SOLID FOUNDATION
CONQUER CHALLENGES
2020
SUSTAINABILITY
REPORT
CHAIRMAN’S LETTER
¾¾ In term of governance, the fact that “Sustainability Report 2019” of Petrolimex was
honored by Ho Chi Minh City Stock Exchange for the first time as one of 10 best reports
of listed companies in the market showed that Petrolimex’s positive changes in corporate
governance have been acknowledged in the market.
¾¾ In term of human resource, being consistent with our motto, Petrolimex continuously
strengthened training activities to improve professional experience for the employees in the
whole system by establishing specialized training programs conducted by a professional
and experienced team of lecturers. The results achieved by Petrolimex in the past 5 years
were a solid affirmation on efficiency of training programs, professional and highly skilled
human resource development.
TOTAL SALES VOLUME OF PETROLEUM
INCREASED BY AN AVERAGE
6.9%/YEAR.
With the achieved results, we believe that in 2021
and in this new decade, Petrolimex will continue
maintaining sustainable development and growth,
strengthening international cooperation with large
corporations around the world to catch up with
the trend of energy transition as well as deeply and
widely digital transformation in the global scale.
¾¾ In term of other indicators such as environment, social responsibility, research and
development of new energy products, restructuring plan and corporate innovation,
Petrolimex has clearly defined that these are key contents and decisive factors for
Petrolimex’s sustainable development in the future. Therefore, Petrolimex has been
strengthening research, exploitation and synchronous development in the whole system.
Vision to 2025 and following years
In a currently new normal status, Petrolimex is now facing both opportunities and existing challenges in the journey
of development ahead. Therefore, Petrolimex’s BOM continues to provide guidance and direction to Management
Department and member units to complete targets set up by the overall plan to achieve more successes as follows:
¾¾ Ensuring a harmonious combination of corporate
governance factors in the digital transformation era,
human resource and natural resource governance as a
solid foundation to successfully perform business and
production tasks in accordance with targets set up in
the period of 2020-2025 and of each year.
Dear Valued Shareholders, Clients, and Partners
At Vietnam National Petrolemum Group (Petrolimex), we always make continuous efforts to improve corporate
governance, increase business and production efficiency to bring maximum benefits to our valued shareholders, clients,
partners and stakeholders. With a motto of “human capital as a solid foundation for development”, Petrolimex
always and proactively adds core values to our leaders, employees to build a strong and united team as a driving force
for our long-term and sustainable development.
Remarkable milestones
Despite unpredictable changes of the global economy caused by Covid-19 pandemic, Petrolimex still gained
outstanding achievements in 2020, highlighting common economic indicators in the period of 2015-2020 such as
total sales volume of petroleum increased by an average 6.9%/year; profit /owner’s equity ratio reached 20.4%/year on
average; contributing more than 188,000 billion VND to the State Budget in 2015-2020, an average of more than 37,600
billion VND/year; total pre-tax dividend payout reached 13,848 billion VND, equivalent to 1.07 times of charter capital
with annual average dividend payout ratio of 29.56%.
In our Sustainability Report 2020, we set up strategic goals in many aspects such as new energy, human resource
development, digital transformation in governance, management and restructuring, corporate innovation. This is now
the right time for us to review and objectively evaluate our achieved results.
¾¾ Focusing on construction and implementation of
Petrolimex’s development strategy in 2020-2030
and a vision to 2045; successfully implementing the
restructuring plan toward lean management, focusing
on core fields with higher efficiency; implementing
the policy of divestment of State capital at Petrolimex,
divesting capital and restructuring ownership ratio of
the Petrolimex at companies with capital contribution
of the Petrolimex.
¾¾ Innovating, improving governance and management
capacity by applying digital science and technology,
improving capital deployment efficiency, labor
productivity and competitiveness; closely following
Petrolimex’s motto to develop a high-quality human
resource in the whole system, building a professional,
dynamic and modern team of leaders.
¾¾ Maintaining, well performing corporate social
responsibility toward environment and society
combined with ensuring transparency and efficiency
of business and production activities.
With the achieved results, we believe that in 2021 and in this new decade, Petrolimex will continue maintaining
sustainable development and growth, strengthening international cooperation with large corporations around the
world to catch up with the trend of energy transition as well as deeply and widely digital transformation in the global
scale. In order to achieve these goals, Petrolimex will ceaselessly build and complete a solid foundation with modern
and transparent governance system in accordance with international standards to confidently overcome all challenges
ahead.
Thank you very much for your cooperation and support.
Chairman of Board of Management
Pham Van Thanh
Sustainability Report 2020
2
3
CONTENTS
01
02
03
04
02 Chairman’s letter
OVERVIEW OF PETROLIMEX
PETROLIMEX AND A JOURNEY TOWARD
SUSTAINABLE DEVELOPMENT
PETROLIMEX AND
13 MATERIAL TOPICS
GRI APPENDIX TO THE
SUSTAINABILITY REPORT
08 Brief information
30 Overview of Sustainability Report
94 Matrix of material topics
156 GRI appendix to general standard information
10 Vision - Mission - Core values
34 Context of sustainable development in 2020
12 The process of formation and development
39 Overview of petroleum sector in 2020 and
impacts on Petrolimex
96 Some achievements of sustainable development
in 2020
158 GRI appendix to 13 Petrolimex’s material
topics in 2020
98 Analysis of 13 material topics
160 GRI appendix to Petrolimex’s other topics in
2020
14 Fields of business and locations
16 Outstanding awards in 2020
18 Sustainable development indicators in 2020
20 Management apparatus
52 Goals and orientation of sustainable
development strategy
58 Governance for sustainable development
21 Member units, associated companies
82 Technology application in governance and
management
22 Supply chain of Petrolimex
84 Sustainable relationship with stakeholders
COP21
DO
DONRE
EGAS
ERP SAP
EU
GHG
GRI
110 GRI 402. Employee - manager relations
112 GRI 403. Occupational health and safety
124 GRI 300: Environment
125 General management approach
ABBREVIATIONS
COCO
102 GRI 401. Employment and income
120 GRI 416: Customer health and safety
27 Member rights in associations
Automation Gas Station
Board of Management
Company Owned–Company
Operated
The 21st meeting Conference
of the Parties
Diesel oil
Department of Natural
Resources and Environment of
Ho Chi Minh City
Enterprise Gas Station
Enterprise Resource Planning
system
European Union
Greenhouse Gas
Global Reporting Initiative
101 General management approach
116 GRI 404. Training and education
26 External initiatives
AGAS
BOM
100 GRI 400: Society
128 GRI: Natural disaster prevention and control
Group/
Vietnam National Petroleum
Petrolimex Group
JSC
Joint Stock Company
LNG
Liquefied natural gas
OHSE
OSH
PA
PGC
PGI
PGT
PLC
Occupational Health, Safety
and Environment
Occupational Safety and
Health
Petrolimex Aviation Fuel JSC
Petrolimex Gas Corporation - JSC
Petrolimex Insurance
Corporation
Petrolimex Group Tanker
Corporation
Petrolimex Petrochemical
Corporation - JSC
PTC
SDG
TOE
VOCs
VRU
Petrolimex Transportation
Services Corporation
Sustainable Development Goals
Ton of Oil Equivalent
Volatile organic compounds
Vapor Recovery Unit
132 GRI 305: Emissions
135 GRI 306: Oil spill control
136 GRI 308: Supplier environmental assessment
138 GRI 200: Economy
139 General management approach
NOTES
141 GRI 201: Economic performance
E5 RON 92 - II : Biogasoline E5 RON 92 – II
147 GRI: Application of science - technology in
corporate governance
RON 95 - IV : RON 95 gasoline Euro IV emission standard
148 GRI 202: Market presence
DO 0.001S – V: Diesel Oil 0.001S Euro V emission standard
150 GRI 203: Indirect economic impacts
FO 0.5S: Bunker fuels
01
OVERVIEW OF
PETROLIMEX
08 Brief information
10 Vision - Mission - Core values
12 The process of formation and development
14 Fields of business and locations
16 Outstanding awards in 2020
18 Sustainable development indicators in 2020
20 Management apparatus
21 Member units, associated companies
22 Supply chain of Petrolimex
26 External initiatives
27 Member rights in associations
BRIEF INFORMATION
Trading name
VIETNAM NATIONAL PETROLEUM GROUP
Abbreviated name
PETROLIMEX
Ticker symbol
PLX
Business Registration
Certificate No.
0100107370
Charter capital
VND 12,938,780,810,000
Head Office
No.1, Kham Thien, Kham Thien Ward, Dong Da District, Hanoi City,
Vietnam
Office
24th floor, VCCI Tower, No.9, Dao Duy Anh Street, Phuong Mai Ward,
Dong Da District, Hanoi City, Vietnam
Tel
(+84) (024) 3851 2603
Fax
(+84) (024) 3851 9203
Website
http://www.petrolimex.com.vn
Sustainability Report 2020
CHARTER CAPITAL
VND
12,938,780,810,000
8
9
VISION - MISSION - CORE VALUES
VISION
MISSION
Maintain its position as one of largest groups
in Vietnam, top in the downstream petroleum
distribution sector, continue to consider petroleum
as core business line, expand investment and
development of liquefied petroleum gas,
petrochemical, petroleum transportation, export import, insurance, etc. to strive for one of ten leading
enterprises nationwide in terms of market scope
and economic efficiency.
Raising shareholders’ values; bringing welfare
to laborers and communities; adding living
values; contributing to national socio-economic
development.
CORE VALUES
HERITAGE
DIVERSITY
DEVELOPMENT
HUMANITY
Be proudly
Vietnamese
We highly appreciate
difference and diversity
We never stop striving
and innovating to better
ourselves
Human is at the center of
our activities
BRAND PERSONALITIES
Sustainability Report 2020
OPTIMISM
RESPONSIBILITY
TRUST
ENTHUSIASM
We always believe
in a brighter
future
We care about employees,
customers, environment and
surrounding communities
We always keep
our promise
We love what we do
10
11
THE PROCESS OF FORMATION AND DEVELOPMENT
1956
The Oil, Lube and Grease
Corporation, afterward Vietnam
National Petroleum Corporation,
was set up pursuant to Decree No.
09/BTN dated 12th January 1956 of
the Ministry of Commerce.
2016
2011
Vietnam National Petroleum Group (Petrolimex) was
established from the equitization and restructure of Vietnam
National Petroleum Corporation pursuant to Decision No
828/QD-TTg dated 31st May 2011 by the Prime Minister.
The Group successfully held its initial public offering (IPO)
on Hanoi Stock Exchange (HNX) on 28th July 2011.
Vietnam National Petroleum Group operated officially as a
Joint Stock Company from 1st December 2011 pursuant to
Business Registration Certificate No. 0100107370.
1995
Vietnam
National
Petroleum
Corporation
(Petrolimex)
was
reestablished pursuant to Decision No
224/TTg dated 17th April 1995 of the
Prime Minister.
2012
Petrolimex officially became a public
company pursuant to Document
No. 2946/UBCK-QLPH dated 17th
August 2012 of the State Securities
Commission.
2020
Petrolimex was granted Securities Trading Code Registration
Certificate No. 35/2017/GCNCP-VSD dated 25th April 2016
and its ticker symbol is “PLX”.
Successfully 02 sessions of selling treasure shares
with 28 million shares, earning approximately
1,340 billion VND for the Group.
On 26th May 2016, Petrolimex successfully issued private
offering to JX Nippon Oil & Energy Vietnam Consulting and
Holdings Co., Ltd (is now known as ENEOS VIETNAM Co.,
Ltd). And raised its charter capital from 10,700 billion VND
to 11,388 billion VND.
On 28th July 2016, Petrolimex issued redeemable preferred
shares to current shareholders to raise its charter capital by
15%, from 11,388 billion VND to 12,938 billion VND.
2017
On 21st April 2017, stocks of
Petrolimex were listed on Ho Chi
Minh City Stock Exchange (HOSE) as
PLX.
2018
Signed
a
Memorandum
of
Understanding
with
Vietnam
Electricity (EVN) on investment and
development cooperation in the
clean energy sector.
2019
Signed
a
Memorandum
of
Understanding (MOU) with JXTG
Holdings (now known as ENEOS
Holdings), the number one energy
corporation in Japan, on research in
LNG & Gas industry in Vietnam.
Successfully sold 32 million treasury
shares on the stock market and
gained nearly 2,000 billion VND.
Sustainability Report 2020
12
13
FIELDS OF BUSINESS AND LOCATIONS
BUSINESS LINES
LOCATIONS OF BUSINESS
VIETNAM NATIONAL PETROLEUM GROUP
(PETROLIMEX)
PETROLEUM
PETROCHEMICAL
INSURANCE
BANKING
GAS
Laos
WATERWAY
TRANSPORT
CONSTRUCTION,
MECHANICAL
ENGINEERING
AND EQUIPMENT
04
INLAND
TRANSPORT
Countries in the world
TRADE &
SERVICES
Petroleum downstream business: trading and
distributing petroleum, producing petroleum,
import-export of petroleum, implementing derivative
instruments and operations in accordance with
international practices for transactions and trading of
petroleum.
Building other technical and civil projects. Specifically,
constructing, repairing and maintaining petroleum
projects, petrochemical products and civil projects.
Petroleum jetty and terminal leasing and petroleum
transportation services.
Other support services related to transportation.
Specifically, renting and leasing petroleum
transportation vessels.
Paracel Islands
Cambodia
Vietnam
Spratly Islands
Domestic
The Group’s member units and branches are located in 63 of
63 provinces and cities nationwide.
Singapore
Wholesale of solid, gas and liquid fuel and other
related products. Specifically, selling petroleum,
petrochemicals and other related products.
Wholesale of machineries, equipment and spareparts. Specifically, machineries, equipment, spareparts for petroleum sector and other sectors.
Overseas
The Group’s member units and offices are located in 3
Southeast Asian countries, including:
¾¾ Petrolimex Singapore.
¾¾ Petrolimex Laos; Representative office in Cambodia.
Sustainability Report 2020
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15
OUTSTANDING AWARDS IN 2020
TOP 50 VIETNAM’S BEST LISTED COMPANIES
In 2020, Forbes Vietnam honored Petrolimex as top of list of Vietnam’s 50 best listed
companies in Vietnam for the 4th consecutive year.
EXCELLENT UNIT, LEADING THE EMULATION
MOVEMENT 2020 BY COMMITTEE FOR THE
MANAGEMENT OF STATE CAPITAL AT ENTERPRISES
TOP
50
TOP
10
TOP
TOP 10 BEST SUSTAINABILITY REPORT SELECTED BY VLCA
GROUP OF PETROLIMEX
AWARDS
Top 50 Vietnam’s Best Listed Companies
50
CHAMPION OF TOP 50 BEST LISTED
COMPANIES IN VIETNAM
INDIVIDUAL
YEAR
2017, 2018, 2019, 2020
AWARDS
YEAR
Third-Class Labor Medal awarded to Deputy General Directors
2019
Top 10 Vietnam’s Most Valuable Brands
2019
Second-Class Labor Medal awarded to Deputy General Directors
2018
Top 50 Vietnam's Brands (listed in top 20)
2019
Certificate of Merit from the Prime Minister awarded to a Member of Board of Management
named Le Van Huong
2018
First-Class Independence Medal
2015, 2016
Certificate of Merit from the Prime Minister awarded to the Chairman of Board of Management
2008, 2016
Certificate of Merit from the Prime Minister
2011, 2014
Second-Class Labor Medal awarded to the Chairman of Board of Management
2015
Second-Class Labor Medal
2009
Certificate of Merit from the Prime Minister awarded to the General Director
2014
Ho Chi Minh Medal
2006
Third-Class Labor Medal awarded to the Chairman of Board of Management
2011
Hero of the People’s Armed Forces
2006
National Patriotic Emulation Officer awarded to the Chairman of Board of Management
2009
Labour Hero in the Renewal Period
2005
Sustainability Report 2020
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17
SUSTAINABLE DEVELOPMENT INDICATORS IN 2020
Dividend payment in 2019
ECONOMIC
GROWTH
ENVIRONMENTAL
PROTECTION
Sustainable
economic
growth
Labor safety environmental
protection
Human
resource
development
SOCIAL
DEVELOPMENT
Community
development
Total revenue of
Profit after tax of
State budget contribution of
8.2
1,253
38,620
billion USD
billion VND
Expenses of taking care
of laborers working under
toxic and hazardous
environment reached
persons
1.64
47.8
Employee retention rate
Total training hours were
was over
684,900
12,827
billion VND
> 96%
hours
Total amount for Covid-19
funding was
14
8.3
billion VND
Other
remuneration
policies
Sustainability Report 2020
Donating one-day salary
towards Covid-19 pandemic
prevention and fighting
worth
¾¾ Petrolimex has advanced 20% at
the end of 27th April 2020.
billion VND
Total expenses of
undertaking risk assessment
on occupational safety and
hygiene reached
Training on occupational
safety and hygiene for
Petrolimex fully paid dividends to
shareholders in accordance with
Resolution of General Meeting of
Shareholders 2020 as follows:
¾¾ Petrolimex has paid remaining
cash dividends at the rate of
10% as at 22nd September 2020
Expenses for personal
protective equipment
reached
67.5
Total trained employees
were
33,870
25,392
1,948,800,000
laborers
VND
billion VND
Average income per capita
was
VND/person/month
Donating 02 ambulances to
Kien Giang’s health sector
worth
Creating jobs for
Expenses or practicing,
rehearsal, contest, sports
tournament and propaganda
activities of fire-fighting and
prevention reached
11,803,000
million VND
employees
virtual meetings
billion VND
Total training costs were
31,729
~50
7.9
billion VND
billion VND
Investor relations
Donating
2.7
billion VND
to flood victims in Central
Vietnam
Health insurance policy was
Life insurance, voluntary retirement insurance for all employees was
2,500,000
from
VND/person
1,500,000 3,000,000
to
VND/person/month
18
19
MANAGEMENT APPARATUS
MEMBER UNITS, ASSOCIATED COMPANIES
GENERAL MEETING OF
SHAREHOLDERS
SUPERVISORY BOARD
45
BOARD OF MANAGEMENT
45 wholly-owned petroleum member units and
22 Companies’ subordinate branches.
BOARD OF GENERAL
DIRECTORS
Including:
¾¾ 43 One-member Limited Liability
Petroleum Companies in Vietnam
¾¾ 01 One-member Limited Liability
Company in Singapore
REPRESENTATIVE
OFFICES
52 MEMBER UNITS
12 JOINT-VENTURES,
ASSOCIATES (*)
47 WHOLLY-OWNED
COMPANIES/
CORPORATIONS
5 CORPORATIONS
WITH MORE THAN 50%
OF STAKES DIRECTLY
OWNED BY THE GROUP
05 corporations/member units with more
than 50% of authorized capital are directly
owned by the Group.
REPRESENTATIVE OFFICE
IN CAMBODIA
45 DOMESTIC
CORPORATIONS/ ONEMEMBER LIMITED
LIABILITY COMPANIES
PETROLIMEX
SINGAPORE ONEMEMBER LIMITED
LIABILITY COMPANY
02 member units with 100% of authorized capital
owned by the Group. Petrolimex Group Tanker
Corporation (PGT) doing services in petroleum
waterway transportation; Petrolimex Transportation
Services Corporation (PTC) doing services in
petroleum inland transportation and trading
petroleum.
¾¾ 01 One-member Limited Liability
Company in Laos
05
REPRESENTATIVE OFFICE
IN HO CHI MINH CITY
02
12
12 joint-venture and associated companies
with more than 20% of their authorized
capital owned by the Group.
PETROLIMEX LAOS
ONE-MEMBER LIMITED
LIABILITY COMPANY
{*) Note: the number of member units, joint-venture and associated companies was counted from consolidated financial statement 2020
audited by KPMG Vietnam.
Sustainability Report 2020
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21
SUPPLY CHAIN OF PETROLIMEX
SUPPLY CHAIN DIAGRAM
> 5,500(*)
INLAND TRANSPORTATION
petroleum stations under Petrolimex’s
distribution system.
Operated by Petrolimex
Transportation Services Corporation.
DOMESTIC
INLAND TRANSPORTATION
Operated by Petrolimex
Transportation Services
Corporation.
TERMINAL AND
JETTY NETWORK
IMPORT
WATERWAY TRANSPORTATION
>570KM PIPELINE
PETROLEUM
DOWNSTREAM
BUSINESS
ACTIVITIES
The Group-wide petroleum distribution network is divided into 5
main distribution methods: Wholesaler, Agency/Retail Merchant
Franchise, General Agency/ Distribution Merchant Franchise,
Retailer and Re-export. The Petrolimex-branded retail distribution
network has total of 5,500 petroleum stations (*) under distribution
system of Petrolimex.
The supply for Petrolimex’s entire network comes
mainly from two sources: import and domestic
purchase. In 2020, Petrolimex loaded 9,664,509 cubic
meter tons of petroleum, including 3,634,767 cubic
meter tons (~38%) from import and 6,029,742 cubic
meter tons (~62%), domestically purchased from
Dung Quat and Nghi Son Refineries.
WHOLESALE
BUYER
PETROLIMEX
QUANG NINH
(PETROLEUM COMPANY B12)
To serve petroleum downstream business activities,
Petrolimex has the larger system of storage tanks, vessels,
tank trucks, petroleum transportation pipeline, etc. than
any other enterprises in the country. Petrolimex’s total
capacity is 2,200,000 m3 with the nationwide terminal
coverage and over 570 km pipeline.
(*) Including 2,700 directly owned petroleum stations and agents, franchises.
Sustainability Report 2020
22
23
SUPPLY CHAIN OF PETROLIMEX (CONTINUED)
OTHER BUSINESS ACTIVITIES RELATED AND SERVED FOR
PETROLEUM DOWNSTREAM BUSINESS
PETROLIMEX GROUP TANKER CORPORATION (PGT)
The Corporation owns the biggest tank vessel fleet in Vietnam, especially the fleet of long-haul
vessels with total load capacity of over 510,000 DWT, dedicating to transporting petroleum products,
such as Mogas, Diesel, Jet A1, Condensate, Naptha, etc.
In 2020, transportation volume of PGT reached 12,986,000 m3, equivalent to 100% of the plan,
rotational volume reached 21 billion m3, equivalent to 102% of the plan, profit before tax reached
216.5 billion VND, equivalent to 124% of the plan. PGT has 5 waterway transportation member units,
in each of which PGT owns over 50% of their charter capital.
PETROLIMEX GAS CORPORATION – JSC (PGC)
After over 20 years of establishment and development, PGC makes its presence almost everywhere
and serves many areas, like industrial production, agriculture, commerce and social consumption. It
is considered as one of the most prestigious brands in Vietnam’s market in terms of trading liquefied
petroleum gas (LPG). At present, PGC owns a modern and comprehensive system of equipment
and infrastructure. Its network of terminals and jetties with total capacity of 8,235 tons is located
in nationally strategic industrial zones with backend charging stations for sufficient supply to all
provinces and cities nationwide. Total sales volume in 2020 was 150,000 tons, equivalent to 102% of
planned figure and 89% of implemented figure in 2019. Total consolidated profit before tax reached
157 billion VND, equivalent to 111% of the plan and 81% of 2019. Currently, PGC has 5 wholly-owned
member units and 1 partially-owned subsidiary that it holds over 50% of charter capital.
PETROLIMEX AVIATION FUEL JSC (PETROLIMEX AVIATION - PA)
PETROLIMEX TRANSPORTATION SERVICES CORPORATION (PTC)
PTC owns 897 tank trucks with an average capacity of 20 m3/truck. In 2020, total transportation
volume of the Group reached 563 million m3, km equivalent to 105% of the planned figure and
94% of implemented figure in 2019. Petroleum trading volume reached 102% of the plan and 86%
of implementation in 2019. Consolidated profit before tax reached 51.2 billion VND, equivalent to
105% of the planned figure and 64% of implemented figure in 2019. The Corporation has 6 partiallyowned member units that it holds over 50% of charter capital and 3 subordinate branches, all of
them operate in petroleum road transportation.
PETROLIMEX PETROCHEMICAL CORPORATION - JSC (PLC)
PLC currently is the leading enterprise in the asphalt industry with its market share of 30% and ranks
second in the engine oil industry in Vietnam. The nationwide network of modern and high-tech
terminals, tanks, factories manufacturing engine oil, asphalt and chemicals throughout the country
is the Corporation’s competitive advantage. The Corporation has 3 major business lines: engine
oil, asphalt and chemicals, in which the Corporation trades in lubricant oil and two wholly-owned
member units. Total sales volume in 2020 was 420,433 tons, equivalent to 121.6% of planned figure
and 108.7% of the 2019 ‘s figure. Total revenue was 5,701 billion VND, equivalent to 113% of the
planned figure and 91% of 2019. Total profit before tax was 190 billion VND, equivalent to 138% of
the plan and 102% of 2019.
VAN PHONG BONDED PETROLEUM TERMINAL CO., LTD
The Company operates in the business of petroleum terminals and jetties. The total capacity of Van
Phong Bonded petroleum terminal is 505,000 m3. Its revenue in 2020 reached 432 billion VND, equal
to 113% compared to that in 2019.
Petrolimex Aviation Fuel JSC (Petrolimex Aviation - PA) was established in 2008 and does business in
supplying jet fuel to domestic and foreign airlines. Overcoming many challenges in the initial phase of
establishment, PA has made great efforts to become a bright star among Vietnam National Petroleum
Group’s member units.
Since 2016, PA has ranked the 4th in terms of the whole Group sales output and has had the highest
profit among Corporations/Member units of the Group. Currently, PA supplies jet fuel and fuel charging
services to Vietjet Air’s aircrafts at different airports, to which PA provides services, including Noi Bai,
Tan Son Nhat, Cat Bi, Da Nang, and Cam Ranh. Moreover, PA is also a prestigious supplier in the eyes of
international airlines, such as Emirates Airline, Singapore Airlines, Etihad Airways, Air France, etc. Total
sales volume of PA in 2020 was 597,000 m3, equivalent to 69% of the planned figure and 45% of 2019
due to impacts of Covid-19 pandemic. Profit before tax in 2020 was 40 billion VND, equivalent to 23%
of plan. PA has 5 subordinate branches providing jet fuel at major airports across the country.
PETROLIMEX INSURANCE CORPORATION (PGI)
In Vietnam, Petrolimex Insurance Corporation (PJICO) is the foremost insurer which operates under
the Joint Stock model. Since its establishment, PJICO has been making great efforts to become one
of the four leading enterprises in Vietnam market in terms of non-life insurance. Total revenue in
2020 of Pjico was 4,089 billion, equivalent to 118% of planned figure and 111% of 2019. Of which,
original insurance premium revenue was estimated at 3,500 billion VND, equivalent to 114.5% of the
implemented figure in 2019 and 120% of the planned figure. Profit before tax was 217 billion VND,
equivalent to 121% of the planned figure.
OTHER BUSINESS FIELDS
Petrolimex Group Commercial
Joint Stock Bank (PG Bank)
Sustainability Report 2020
Domains of Construction,
Mechanics, Petroleum Equipment,
Export - Import and Information
Technology
Castrol - BP Petco Limited Liability
Company
24
25
EXTERNAL INITIATIVES
Petrolimex Group strictly complies with domestic and international regulations, principles and
agreements on petroleum trading. In the past years, the Group has launched eco-friendly products
that meet international standards, as well as built up and finalized standards, norms, protocols, and
procedures, applied in petroleum works.
MEMBER RIGHTS IN ASSOCIATIONS
No.
1
Pioneering in providing clean energy products: The first and only company
supplying RON 95 - IV (Euro IV standard RON 95 gasoline), DO 0.001S - V (Euro V
standard diesel), bunker fuels FO 0.5S (15 days ahead of the regulations): Reducing
consumption of fossil fuel energy (E5), reducing emission to the environment
when vehicle uses Euro V standard fuel.
2
3
Recovery of gasoline vapor at petroleum stations pursuant to Decision No. 382/
PLX-QD- TGD dated 12th August 2013: Vapor recovery unit shall be designed, installed,
and applied to all petroleum stations and tank trucks during the process of loading
petrol from tank trucks to petroleum stations’ reserves. 100% of petroleum stations
and tank trucks have had their complete vapor recovery units so far.
4
Association
Vietnam Petroleum
Association (VINPA)
Association of
Vietnam Investors in
Laos (AVIL)
Association of
Vietnam Investors in
Cambodia (AVIC)
Association of
Vietnam Investors in
Myanmar (AVIM)
Year of
establishment
Purposes/Functions and missions
2013
Advocating for Government and Ministries’ policies of petroleum price
management to achieve consensus in society and to protect consumers’
interests; Expand cooperation relationship with domestic and international
organizations to develop petroleum industry; Promote and support members
in research, science - technology, science transfer, training, etc.
2011
(Ministry of Home
Affairs)
Gather, organize and facilitate members’ mutual cooperation and support
during the implementation of investment activities in Laos; Provide
information, needs, areas of cooperation, mutual support for joint ventures
and associates among businesses of the two countries to increase financial
capacity, resources and efficiency of investment activities; Assist members
facing difficulties and risks in production and business activities.
2010
(Ministry of Home
Affairs)
Gather, organize and facilitate members’ mutual cooperation and support
during the implementation of investment activities in Cambodia; Provide
information, needs, areas of cooperation, mutual support for joint ventures
and associates among businesses of the two countries to increase financial
capacity, resources and efficiency of investment activities; Assist members
facing difficulties and risks in production and business activities.
2010
(Ministry of Home
Affairs)
Gather, organize and facilitate members’ mutual cooperation and support
during the implementation of investment activities in Myanmar; Provide
information, needs, areas of cooperation, mutual support for joint ventures and
associates among businesses of the two countries, Vietnam and Myanmar, to
increase financial capacity, resources and efficiency of investment activities;
Assist members facing difficulties and risks in production and business
activities; Provide a link for Vietnamese investors researching and deploying
investment activities in Myanmar.
Vapor Recovery Unit (VRU) at Duc Giang Oil Depot: Completed in 2015. After VRU
was installed and came into operation, the Hydrocarbon concentration always
stays 18-20g/m3 (European standard: 35 g/m3).
Sustainability Report 2020
26
27
02
PETROLIMEX AND A
JOURNEY TOWARD
SUSTAINABLE DEVELOPMENT
30 Overview of Sustainability Report
34 Context of sustainable development in 2020
39 Overview of petroleum sector in 2020 and impacts on Petrolimex
52 Goals and orientation of sustainable development strategy
58 Governance for sustainable development
82 Technology application in governance and management
84 Sustainable relationship with stakeholders
OVERVIEW OF SUSTAINABILITY REPORT
Sustainability Report was made as a linking bridge
between Petrolimex and stakeholders, clearly
defining strategic orientations and our commitments
to stakeholders.
Annual Sustainability Report is made to review sustainable
development strategy as well as to assess activities
implemented in the year. In addition, it also promotes
transparency to information for concerned parties and
innovate, improve the Group’s governance capacity.
With Sustainability Report, apart from economic aspect,
Petrolimex also reviews and assess its responsibilities
and contributions to environment and society, it helps
Petrolimex balance its future plans toward sustainable
development goals in the next financial years.
STANDARDS OF REPORTING
Sustainability Report 2020 of Petrolimex was made under GRI standards: core option. The report
ensures full compliance with requirements of GRI Vietnam in the training program of “Competitive
business – Support to implement Sustainability Report” organized by GRI in Vietnam.
PRINCIPLES OF REPORTING
2020 was the 4-consecutive year Petrolimex published its own edition on Sustainability Report in accordance with the
latest GRI Sustainability Reporting Standards (GRI Standards).
¾¾ Engaging
stakeholders
¾¾ Sustainable
development
context
Overview of report
GRI
¾¾ Accuracy;
¾¾ Materiality
101
¾¾ Balance;
Principles
of defining
report
content
Principles
of defining
report
quality
¾¾ Clearness;
¾¾ Comparison;
¾¾ Trust;
¾¾ Update.
¾¾ Thoroughness
General
standards
SCOPE OF REPORTING
Basic overview
GRI
Management approach
102
GRI
103
The Report was prepared in Vietnam for Petrolimex on the petroleum field, including:
All information and performance of the Parent Company - Group and
member units in the whole Group;
Economy
Specific
standards
GRI
200
Environment
GRI
300
Society
GRI
400
Typical activities of 6 member units (including: Petrolimex Tanker
Corporation, Petrolimex Transportation Services Corporation, Petrolimex
Petrochemical Corporation – JSC, Petrolimex Gas Corporation – JSC,
Petrolimex Insurance Corporation, Petrolimex Aviation Fuel JSC) had
significant socio-economic and environmental impacts.
REPORTING PERIOD
Structure of Sustainability Report 2020 was newly presented with 04 main chapters: 1/Overview of Petrolimex; 2/
Petrolimex and a journey toward sustainable development; 3/ Petrolimex and 13 material topics; 4/Appendix of
Sustainability Report. Of which, Perolimex focused on in-depth analysis on its material topics, helping Petrolimex
build specific KPIs in each field, ensuring harmonious interests for stakeholders, following, assessing and improving it
systematically and effectively.
Sustainability Report 2020
The year of 2020 was the fourth year in a row that Petrolimex has independently prepared its Sustainability Report.
Accordingly, all information in this Report was ensured to be in consistently with the previously published information
of the Group. Reporting period is determined from 01/01/2020 to 31/12/2020; and the following periods are periodical
every one year.
30
31
OVERVIEW OF SUSTAINABILITY REPORT (CONTINUED)
HOW TO DETERMINE REPORT CONTENT
Report content is identified on the basis of 4 principles in GRI Sustainability Reporting Standards:
Stakeholders’ engagement
Importance
We identify stakeholders as individuals and organizations whose activities and
Petrolimex’s operations may have mutual influences. We build relationships with
stakeholders based on the principles of relevant interests of parties and foster longterm relationships on the basis of trust, transparency and equality. Particularly, the
key stakeholders from the point of view of Petrolimex are: Shareholders/Investors,
Customers, Employees, State and local authorities, Suppliers and other partners.
Determining material issues is presented in the report:
Context of sustainable development
Sufficiency
The operations of Petrolimex are always to linked to 17 sustainable development
goals of the United Nations. 17 sustainable development goals of the United Nations
are the basis and orientation for Petrolimex to identify material issues. By analyzing,
selecting and integrating sustainable development goals in guiding sustainable
development strategies up to 2020 of the Group, Petrolimex connects closely these
topics with 17 sustainable development goals of the United Nations in compliance
with the global development trend and prepares Action Plan in consistency and
connection with the movement of society. With the aforementioned orientation,
the material issues will be particularly identified in Chapter 3: Petrolimex and 13
material topics of the report.
In 2020, Covid-19 pandemic has caused a severe global economic crisis and seriously
impacted on all aspects of human beings in terms of economy, security, politics,
culture, etc. especially, health sector was the most heavily affected sector. This was
considered as the most inclusive and biggest event in the global panorama in 2020.
Till end of 31st December 2020, more than 82 million people had been infected with
Covid-19 virus, nearly 1.8 million dead, turning the world upside down. Till now,
most of countries around the world are racing to slow down and repel Covid-19
pandemic, more than a half of world population are directly or indirectly involved.
Facing such a tough time, a big question seems to be whether 17 global goals on
sustainable development adopted by The United Nations dated 25th September
2015 is still relevant, what now becomes urgent and what needs to be changed to
make human life better.
Sustainability Report 2020
In 2020, Petrolimex assessed and selected 13 material issues to reflect socioeconomic and environmental impacts of the Group by analyzing and evaluating
“Importance level from the point of view of Petrolimex” and “Importance level
from the point of view of stakeholders”, closely connecting with 17 sustainable
development goals of the United Nations, on the basis of general situation of the
industry and main concerns of stakeholders.
With the goal of providing information for stakeholders’ comprehensive overview
of Petrolimex’s operations, the Sustainability Report also provides information
related to all activities of Petrolimex in addition to providing essential information.
Stakeholders can refer to such information to get a clearer and deeper
understanding of Petrolimex’s operations. Petrolimex always aims at sustainable
development and contributing the highest value to stakeholders as well as to
the whole society. Through periods of Sustainability Report s, Petrolimex has
constantly improved and supplemented reporting content to provide increasingly
comprehensive and diverse information to stakeholders, to better complete its
edition on Sustainability Report in the next financial years.
CONTACT INFORMATION
Petrolimex is willing to receive your feedbacks on sustainable development topics via address:
Website: www.petrolimex.com.vn
Tel: (024) 3851 2603
Head Office: No.1, Kham Thien, Kham Thien Ward, Dong Da District, Hanoi City, Vietnam
Office: 24th floor, VCCI Building, 9 Dao Duy Anh Street, Dong Da, Hanoi
Ms. Nguyen Minh Anh
Email: anhnm@petrolimex.com.vn
Position: Specialist of Risk Management Department – Secretary of Implementation Team of Sustainability Report
Ms. Pham Thi Dung
Email: dungpt@petrolimex.com.vn
Position: Head of Risk Management Department (CRO) – Standing member of Implementation Team of Sustainability
Report
32
33
CONTEXT OF SUSTAINABLE DEVELOPMENT IN 2020
17 SUSTAINABLE DEVELOPMENT GOALS OF THE UNITED
NATIONS
On 25th September 2015, The United Nations has approved 17 ambitiously global sustainable development goals.
These 17 sustainable development goals are expected to be implemented from 2015 to 2030 and are more likely
related to human development before Covid-19 rages.
CONTEXT OF GLOBAL AND VIETNAM SUSTAINABLE
DEVELOPMENT IN 2020
Context of global sustainable development
End of December 2019, Covid-19 pandemic spread across
the globe triggering the deepest economic recession in
2020. Together with influence of environment, natural
disasters have threatened human life security. The pandemic
has not only pushed healthcare systems around the world
into crisis but also caused the most serious economic crisis
since the Great Recession in 1930s.
NATIONAL ACTION PLAN
17 Global Sustainable Development Goals have been nationalized by Vietnam in the National Action Plan to implement
the 2030 Agenda for SDGs with 115 specific goals, emphasizing responsibilities of stakeholders from central to local
levels to maintain economic growth, social stability and environmental protection toward a peaceful, democratic,
prosperous, equal and civilized society.
By putting people’s interests at the heart of policy
making and actions, the most concerned issue of many
countries in the world is how to ensure all people in
every country and territory can access to vaccines
and medicines with the most reasonable price. These
countries need to maintain their commitments and
efforts to give financial support, technology and trade
support to developing and underdeveloped nations.
In 2020, World GDP was recorded a drop of 4.4%,
global extreme poverty rose which is set at $ 1.9 a day,
causing impacts on 9.1-9.4% of world population in
2020.
(According to World Bank (WB)); natural disasters, flood have caused
3,500 people dead, more than 13.5 million people evacuated (By
Christian Aid).
Sustainability Report 2020
34
35
CONTEXT OF SUSTAINABLE DEVELOPMENT IN 2020
(CONTINUED)
CONTEXT OF GLOBAL AND VIETNAM SUSTAINABLE
DEVELOPMENT IN 2020 (continued)
Employment
In 2020, Vietnam saw a 10-year record high unemployment rate of 2.26% ,
the urban unemployment rate was 3.61% while that in rural areas was 1.59%,
unemployment rate for workers with low qualifications or without technical
qualifications increased sharply.
Context of sustainable development in Vietnam
Facing this, Department of Employment has implemented labor development
solutions, investigating employment requirements at enterprises, directing
employment service centers to collect information on recruitment needs
of enterprises; strengthening inspection, supervision of implementation of
employment policies, unemployment insurance and labor management, etc. to
better manage labor market and support the unemployed to find jobs quickly.
There is no exception in the global context, Vietnam has suffered from negative effects of global instability caused by
Covid-19 pandemic, however, Vietnam still maintains a stable socio-economic growth and is on top 10 of world’s fastest
growth economies, especially Vietnam has successfully implemented the “dual goals” of maintaining economic growth
and effectively preventing and fighting against Covid-19 pandemic.
Some typical issues:
Economic
development
In the context of complicated developments of Covid-19 pandemic causing
negative effects to all socio-economic aspects, the economic growth rate of 2.91%
was a remarkable result. Especially, Vietnam is on the list of world’s fastest growing
economies in 2020, Vietnam has achieved remarkable economic achievements.
Social
Responsibility
Covid-19 pandemic has been affecting many aspects of society and disrupting
many regular aspects of life. In order to share difficulties and ensure stable life
for citizens and laborers nationwide, the Government, social organizations and
enterprises have accompanied local citizens to provide emergency support
packages to “leave no one behind”.
Some remarkable achievements include:
¾¾ Total import-export value in 2020 reached 543.9 billion USD, up 5.1% as of
previous year. Vietnam has gained a trade surplus of 19.1 billion USD, the
highest rate in 5 consecutive years (According to General Statistics Office).
2020 also marked a series of worst floods in Vietnam. The Government has
coordinated with central and local ministries, departments, localities, enterprises
soldiers nationwide to timely support severely affected provinces from natural
disasters, greatly reducing the effects of disasters, promoting natural disaster
and flood prevention measures to protect people’s lives, properties as well as to
maintain economic development and stability.
¾¾ Labor productivity of the whole economy in 2020 reached 117.9 million VND/
laborer, equivalent to 5,081 USD/laborer, up 290 USD as of 2019. (According to
General Statistics Office).
In 2020, Vietnam has achieved a remarkable growth in fields of pharmaceuticals,
IT-Telecommunications, finance and banking.
However, 2020 was the most challenging year ever in history, a Covid-19
named year. Over the past year, we have seen severe effects on economy. Many
companies were hit hard by financial imbalances, many went bankrupt. Of which,
tourism and aviation sectors were hardest hit.
Education and
Training
Sustainability Report 2020
2020 was also a challenging year for education and training sector, a year of
continuous changes and flexible measures to maintain educational and training
activities. After two waves of Covid-19 pandemic outbreaks in Vietnam, nearly 1.5
million teachers, educational administrators at all levels and approximately 24
million students were kept safe from disease. Educational and training activities
were transferred to online study by Ministry of Education and Training. Thanks
to this method, educational and training activities in Vietnam were not seriously
interrupted as many other countries (Ministry of Education and Training).
Health
In 2020, Vietnam health sector has been got involved in the battle against Covid-19
pandemic and suffered serious impacts. The health sector faced poor conditions
such as overcrowding and great pressure from many aspects while medical
workforce and facilities are still limited. A big problem how to effectively and widely
deal with health-related issues in general and fight against Covid-19 pandemic in
particular. It requires authorities to work out a comprehensive approach, overcome
every challenge, expand health care facilities to provide local citizens in essential
areas, especially frontline medical workers to take a good care of patients and to
prevent the spread of Covid-19 outbreak.
Vietnam is on the process of eliminating inequality in accessing to health care
services between urban and rural areas, between the rich and the poor people,
etc. making efforts to improve health care system to provide the best health care
services to everyone.
36
37
CONTEXT OF SUSTAINABLE DEVELOPMENT IN 2020
(CONTINUED)
CONTEXT OF GLOBAL AND VIETNAM SUSTAINABLE
DEVELOPMENT IN 2020 (continued)
OVERVIEW OF PETROLEUM SECTOR IN 2020
AND IMPACTS ON PETROLIMEX
TRANSFORMATION TREND OF OIL AND GAS INDUSTRY AS A
RESULT OF PARIS AGREEMENT ON CLIMATE CHANGE
Poverty reduction,
hunger eradication
Poverty reduction and hunger eradiation have been always a major and consistent
policy of the Party and the State in many years. Although this is a very tough issue
but Vietnam has achieved positive results when poverty rate keeps reducing year
on year. However, in 2020, being faced with “dual impacts” caused by Covid-19
pandemic and terrible natural disasters, the process of poverty reduction and
hunger eradication faces numerous difficulties.
Về ngành xăng dầu
Till end of 2020, average poverty rate in poor districts remained at 24%. 8/64
poor districts escaped of extremely difficult situation, equivalent to 12.5% and
14/30 poor districts supported by Resolution 30a successfully escaped of difficult
situation (According to Ministry Agriculture and Rural Development).
Since the Paris Agreement on Climate Change adopted
by 196 Parties in COP21 dated 12th December 2015 and
came into effect on 04th November 2016, there are many
countries and regions establishing their targets on carbon
neutrality. Solutions on decarbonization which are applied
in fields of energy and transportation have created many
new business opportunities for pioneers. (1)
In its annual report, International Renewable Energy
Agency (IRENA) – an intergovernmental organization
dedicated to renewable energy with European Union and
160 other companies as members) emphasizes the goal
of maintaining average global warming of 1.5 degree
Celsius in compliance with Paris Agreement. According
to IRENA, 1.5°C Pathway is to reduce consumption of
fossil fuel by more than 75% in 2050, of which coal and
oil decline faster. Natural gas consumption will peak by
2025 although it would be the dominant fossil fuel by
mid-century. By 2050, 30% of electricity generation will
be served for production of Green Hydrogen (produced
by electrolysis water using electricity generated from
renewable energy). (2)
A host of countries have recently announced their major
commitments to reduce transport sector greenhouse
gas emissions.
According to European Union, the amount of CO2 greenhouse gas emissions from road transport accounts for 21% of
total CO2 emissions emitted from renewable energy resources.
Other
emissions
EU-28
80%
19%
Roadway
Railway
Airway
Inland transport
Other transports
Source: Energy, transport and environment
indicators, Eurostat Pocketbook, 2013
Transport
20%
Sustainability Report 2020
38
39
OVERVIEW OF PETROLEUM SECTOR IN 2020
AND IMPACTS ON PETROLIMEX (CONTINUED)
The European Union takes the lead in issuance of laws and standards on reduction of transport sector greenhouse gas
emissions including: (3)
¾¾ Directive 2009/30/EC was established as regards the specifications of petrol, diesel
and gas-oil and inland waterway fuels, introducing mechanism to monitor and reduce
greenhouse emissions.
Oil majors around the world have introduced their plans
to transform their business models to timely adapt to
Paris Agreement. European oil firms have been very
active and set up bold targets.
Royal Dutch Shell (5), a British-Dutch multinational oil
and gas company – has set up a pathway to net-zero
emission by 2050 in all its production and exploitation
activities including:
¾¾ Reduce its net carbon intensity from between 6% and
8% from 2016 levels by 2023, 20% by 2030, 45% by
2035 and 100% by 2050
01
02
¾¾ Renewable Energy Directive (RED) 2009/28/EC was
established as requirements to fulfil at least 20% of total
energy needs of EU by 2021. The amended directive in
2018 required to fulfil at least 32% by 2030 and added a
requirement of renewable energy accounting for 14% of
total energy needs in roadway and railway transport.
¾¾ Confirms that its total oil production peaked in 2019
¾¾ Seek to have access to additional 25 million tons a year
carbon capture and storage (CCS) capacity by 2035,
Shell now participates in 03 CCS projects in Canada,
Norway and the Netherlands with total output of 4.5
million tons/year
¾¾ Aim to use natural based solutions (NBS) to offset
emissions of 120 million tons a year by 2030.
03
04
¾¾ Directive on the Promotion of Clean and Energy Efficient
Road Transport Vehicles (2009/33/EC of EU introduces
environmentally friendly transport vehicles. Purchase
of road transport vehicles is considered as a measure
to promote this market. The purchase will be based
on 02 criteria: technical specifications for energy and
environmental performance or energy and environmental
impacts as award criteria.
¾¾ From 2021, submit energy transmission plan in a vote
to General Meeting of Shareholders.
¾¾ In short-term, Shell will annually invest 5-6 billion USD
in business pillars of growth (3 billion USD in marketing,
2-3 billion USD in energy solutions and renewable
energy), 8-9 billion USD in pillar of transition (4 billion
USD in integrated gas, 4-5 billion USD in chemical and
products, and around 8 billion USD in Upstream.
¾¾ Shell’s joint venture Raizen sold more than 10 billion
liters of biofuel, plan to increase its bioethanol
production capacity by 50%, to 3.75 liters/year, around
of 3% of global output.
¾¾ Aim to sell some 560-terawatt hours a year by 2030,
and a leading provider of clean power-as-a-Service
¾¾ Maintain a leading position in LNG market, supply an
additionally 7 million tons of LNG y-o-y by mid-century
¾¾ Transform its 13 oil refining sites into 06 high value
chemical and energy parks, reduce 55% of tradition
fuels by 2030, plan to produce chemical from recycle
wastes with plastic waste treatment capacity of 1
million tons a year.
Bristish Petroleum (BP) (6), a British oil firm announced
to cut off its oil and gas production of 40% by 2030, spend
5 billion USD a year on low carbon projects in a bid to
become one of the world’s green power producers. The
firm aims to sell its oil and gas assets that are unprofitable
due to oil low price to mobilize 25 billion USD by 2025
to fund its transition to cleaner energy. BP aims for 20
GW by 2025 and 50 GW of renewable capacity by 2030
from renewable sources such as wind, solar, hydropower,
up from 2.5 GW now and larger than total renewable
capacity in the UK at the moment.
BP’s power production target is much larger than other oil rivals.
¾¾ Regulation (EU) 2019/631 of European Parliament and of the Council of 2019 set up
emission performance standards for new passenger cars and for new light commercial
vehicles.
In the U.S.A, President Joe Biden has agreed with
Paris Agreement and concluded that global climate
adaptation is one of the highest goals in his term. The U.S
plans to build a 100% clean energy and net-zero emission
economy no later than 2050. However, these ambitious
plans of the U.S are facing many challenges because the
U.S is now the world’s largest producer of natural gas and
the largest consumer of oil in the world. (4)
Power production targets of European oil majors
Annual electricity generation capacity by 2025 (BP by 2030)
Gigawatts
Sources: companies, HSBC, Shadia Nasralla/Reuters
60
50
At the moment
40
Targets
30
20
10
0
Total
Sustainability Report 2020
Shell
Repsol
BP
Eni
Equinor
40
41
OVERVIEW OF PETROLEUM SECTOR IN 2020
AND IMPACTS ON PETROLIMEX (CONTINUED)
¾¾ September 2020, BP and Equinor formed a strategic
partnership to develop offshore wind energy in New
York and Massachusetts, the U.S with potential to
generate power for more than 2 million homes.
¾¾ BP and Bunge are now producing biofuels through
a joint venture in Brazil, running 11 biofuel and
bioethanol production facilities with a capacity of 32
million tons of sugar canes a year, produce renewable
energy from biofuels with potential to export 1,200
GW hours to national power grid.
¾¾ Aim to develop Hydrogen and CCUS (carbon capture
utilization and storage) in its new business models, seek
opportunities, supply solutions and decarbonization
services to help partners and customers to achieve
net-zero emissions. BP aims to take up 10% of hydro
market share in main markets by 2030 by having
access to new segments including decarbonization
process in oil refine ring factories.
¾¾ November 2020, BP and Ørsted signed Letter of
Intent (LOI) to work together to build an initial 50
MW electrolyser and associated infrastructure at BP’s
Lingen Refinery in North-West Germany.
Sustainability Report 2020
Total (7), The French oil giant also announces its own plans:
¾¾ Total signed agreements to develop an 800 megawattpeak (MWp) in Al Kharsaah, Qatar. This facility will meet
about 10% of Qatar’s current peak electricity demand
and reduce greenhouse gas emissions by 26 million
tons in the whole life of the project.
¾¾ Participate in offshore wind power projects such as
a 1,500-megawatt project started in 2022 in the UK,
signs 03 agreements to develop offshore wind power
projects in the UK (100 MW), Korea (up to 2,000 MW)
and France (30 MW), Total aims to become a pioneer
in such a big potential market.
¾¾ Establish a joint venture with Clean Energy Fuels
Corp in the U.S to produce renewable natural gas
(RNG). Carbon negative RNG is produced when
carbon emissions are captured from daily lives and
turned into a transportation fuel, reducing harmful
effects of long-term climate change. The California Air
Resources Board reveals the average carbon intensity
(CI) (fCO2e/MJ) is - 317 compared with 100 of diesel
engine and 19 of battery. Clean Energy Fuels Corps
is the largest provider of RNG as a transportation fuel
in the U.S and the largest provider of RNG of LCGS
program in California. RNG can be used directly as a
vehicle fuel or can be used as feedstock to produce
“green” hydro or “green” electricity and still generate
LCGS environmental credits.
Eni (8), Italian multinational oil and gas company aims
to achieve carbon neutrality by 2050 with following
programs:
¾¾ Bio-refineries: double its capacity to 2 million tons by
2024 and increase it five-fold by 2050
¾¾ Circular economy: use of biogas, recycling of waste
and end products
¾¾ REDD + initiatives with the target to offset 6 MTPA
(million tons/year) of CO2 by 2024 and 40 MTPA by
2050
¾¾ Carbon capture projects: total storage of 7 MTPA by
2030; 50 MTPA by 2050;
¾¾ In the long-term, gas will represent more than 90% of
Eni’s production and will support the energy transition
as a backup for intermittent sources
While European oil majors are very enthusiastic with Paris
Agreement, U.S oil companies seem to be slower but still
set up general solutions.
¾¾ Digital and efficient solutions in exploration and
operation activities, customer services
¾¾ Increase its renewable capacity to 4 GW by 2024,
15GW by 2030 and 60GW by 2050, fully integrated
with Eni’s clients
¾¾ Green and blue hydro from bio-refining system
¾¾ Capture natural or artificial carbon to absorb residual
emissions
42
43
OVERVIEW OF PETROLEUM SECTOR IN 2020
AND IMPACTS ON PETROLIMEX (CONTINUED)
ExxonMobil (9), US oil company plans to reduce the
intensity of greenhouse gas emissions in the next 5 years
to support goals of Paris Agreement including:
¾¾ Greenhouse gas plans consistent with goals of Paris
Agreement
¾¾ Set up a plan to reduce greenhouse gas emissions by
2025: reducing the intensity of operated upstream
greenhouse gas emissions by 15 to 20%, a 40 to 50%
decrease in methane intensity, a 35 to 45% decrease
in flaring intensity.
¾¾ Aim for being the leading greenhouse gas performance
of the industry by 2030
¾¾ Plan to eliminate routine flaring by 2030, set up Scope
3 emissions plan beginning in 2021
¾¾ Meet requirements of methane reduction and flaring
by 2020
Sustainability Report 2020
¾¾ Since 2000, ExxonMobil has invested more than 10
billion USD to research, develop and deeply loweremission energy solutions, including nearly 3 billion
USD at cogeneration facilities (producing power and
heat) that more efficiently to produce power and
reduce related emissions.
¾¾ Continue investing in lower-emission energy
technologies such as carbon capture, efficient
production and advanced biofuel
¾¾ Continue support for sound policies of the
Government that put price on carbon
¾¾ Exxon has a working interest in approximately onethird of the world’s total carbon capture capacity and
captured about 6.9 million tons of carbon dioxide for
sequestration – to separate carbon dioxide from the
air - by 2015
44
45
OVERVIEW OF PETROLEUM SECTOR IN 2020
AND IMPACTS ON PETROLIMEX (CONTINUED)
Chevron (10), an US oil firm has not yet invested heavily
in renewable energy with no target in place for a move
to cleaner technology.
¾¾ The US firm has invested in solar, wind and geothermal
energy projects in the last 20 years, but following low
returns, the focus still remained on its oil and gas
business
¾¾ Pledge to raise its low-carbon spending to 3 billion
USD by 2028 while holding investment in oil and gas
production amid growing shareholder pressure to
make its business green and boost returns
¾¾ The US firm will hold its capital expenditures of 14
billion to 16 billion USD a year for new oil and gas
projects by 2025, sharp down from previous years due
to a series of costly projects around the world leading
to annual spending increase of more than 30 billion
USD, a drop in profit.
Sustainability Report 2020
Therefore, in current energy transition trend,
transportation sector petroleum products will be transited
to cleaner fuels such as electricity, gas and hydrogen. This
process requires a step-by-step replacement by solutions
to reduce carbon in fuels. And oil will continue play an
important position in global economy in the coming
time. This roadmap will help those who get involved
in the oil industry to take advantage of resources from
oil and gas fields and available infrastructure such as
oil refineries, terminals, transportation vehicles, fuel
distribution stations to end users. This helps create a
financial resource to fund the whole transition process
without causing any major disruption. At the same time,
the clean energy economy in general needs enough
time and resources to overcome difficulties in a path to
synchronization of basic factors such as supply-demand,
infrastructure, equipment in the global scale.
The world has been experiencing and facing big changes,
the global pandemic is pushing to use of cleaner fuels
to make a permanent habit change of consumers from
vehicles, working and daily living habits that requires
lots of energy developed in the fossil fuel era to use of
vehicles and methods that use less energy in the digital
future and remote working.
Sources:
(1) https://unfccc.int/process-and-meetings/the-paris-agreement/theparis-agreement.
(2) https://www.reuters.com/article/climate-change-renewables-intidUSKBN2B80NY
(3) https://climatepolicyinfohub.eu/are-transport-emissions-mobilizingeu-policy-response
https://ec.europa.eu/jrc/en/jec/renewable-energy-recast-2030-red-ii
https://eur-lex.europa.eu/legal-content/EN/
TXT/?qid=1557841341820&uri=CELEX:32019R0631
(4) https://www.nytimes.com/2021/02/19/world/us-rejoins-paris-climateaccord.html
https://www.naturalgasintel.com/mixed-reaction-from-natural-gas-oil-
industry-as-2t-biden-infrastructure-plan-targets-decarbonization-taxes/
https://www.spglobal.com/platts/en/market-insights/latest-news/electricpower/033121-biden-infrastructure-plan-boosts-renewables-outlook-putsoil-and-gas-on-notice
(5) https://www.shell.com/energy-and-innovation/new-energies/newenergies-media-releases.html
https://www.shell.com/media/news-and-media-releases/2021/shellaccelerates(6) https://www.bp.com/
https://www.bp.com/content/dam/bp/business -sites/en/global/corporate/
pdfs/investors/bpweek/bpweek-low-carbon-electricity-energy.pdf
(7) https://www.total.com/
https://www.cleanenergyfuels.com
(8)https://www.eni.com/assets/documents/press-release/migrated/2021en/02/PR-strategy-2021-2024.pdf
https://www.reuters.com/article/eni-renewables/eni-to-speed-uprenewables-drive-with-greenfield-development-ma-idUSKBN28E2FD
(8)https://corporate.exxonmobil.com/News/Newsroom/Newsreleases/2020/1214_ExxonMobil-announces-2025-emissions-reductions_
expects-to-meet-2020-plan
https://www.forbes.com/sites/daneberhart/2021/03/09/oil-giants-bet-bigon-expected-2-trillion-carbon-capture-market/?sh=2461f1243e8a
(10)https://www.chevron.com/sustainability/environment/increasingrenewables-and-offsets
https://www.reuters.com/article/us-chevron-outlook-idUSKBN2B11ND
https://www.bloomberg.com/news/articles/2020-08-13/chevron-keepsdrilling-for-oil-as-its-rivals-embrace-renewables
46
47
OVERVIEW OF PETROLEUM SECTOR IN 2020
AND IMPACTS ON PETROLIMEX (CONTINUED)
COP21 – VIETNAM’S IMPORTANT AND POSITIVE
CONTRIBUTIONS TO CLIMATE CHANGE ISSUE
Vietnam committed to reduce
greenhouse gas emissions by
8%
Aim to reduce total greenhouse gas
emissions by
9%
by 2030
Sustainability Report 2020
In response to Paris Agreement on climate change
adaptation, Vietnam has submitted to the UNFCCC
Secretariat at COP 21 its Intended Nationally Determined
Contributions (INDCs) and now NDCS right after Paris
Agreement came into effect.
According to INDCs report, Vietnam committed to
reduce 8% of greenhouse gas emissions compared to
the Business – as – Usual Scenario and increase to 25%
based on international support. The reports also said in
the period of 2021-2030, greenhouse gas emission from
energy sector grows very fast, accounting for 80% of total
national greenhouse gas emission by 2030.
Energy and industry have been playing an important role
in the process of economic development in the context
of climate change. According to a research of Ministry of
Industry and Trade, it is forecasted that total final energy
demand will reach 135 million of tons of oil equivalent
(MTOE), 2.5 times higher than that of 2015 at 54 MTOE,
of which transportation sector energy consumption
accounting for about 27% will increase fastest with
approximately 5.7% a year; industry that accounts for
45.3% will increase by 5.0% in 2016-2035 period.
In 2020, after 5 years of implementation of international
commitments on climate change adaptation, greenhouse
gas emission reduction, Vietnam has completed its
updated NDCs and submitted to United Nations
Framework Convention on Climate Change (UNFCCC)
Secretariat amid Covid-19 complicated developments.
After being approved by the Prime Minister dated 24th
July 2020, updated NDC has been submitted to UNFCCC
Secretariat on 11th September 2020 – the moment
Vietnam was implementing “dual goals” of repelling the
disease and promote economic development.
Vietnam has decided to increase its contribution level
to climate change by committing to reduce 9% of its
total greenhouse gas emission by 2030. This can be
increased to 27% based in international support through
multilateral, bilateral cooperation or mechanisms of Paris
Agreement on climate change. With updated NDC and
the move to increase its contribution level, UNFCCC
Secretariat and NDC’s partners has recently sent a letter
to Minister of Natural Resources and Environment highly
appreciating Vietnam’s efforts to cope with global climate
change.
On greenhouse gas mitigation, Vietnam has issued
many policies and legal documents such as Resolution
No 24-NQ/TW; Conclusion No.56-KLTW of the Politburo;
Resolution No.55-NQ/TW of the Politburo on Orientation
of National Energy Development Strategy of Vietnam till
2030 and a vision to 2045, etc.
Regarding to updated NDC which was delayed in 2015,
Vietnam has added new sectors, industrial processes
in greenhouse gas emission baseline, BAU, measures
to mitigate greenhouse gas emission and harmonize
benefits between climate action and sustainable
development. Vietnam has so far been one of a few
countries increasing its contribution level to mitigation
of greenhouse gas emission in updated NDC (Source:
website of Department of Climate Change – Ministry of
Natural Resources and Environment).
48
49
OVERVIEW OF PETROLEUM SECTOR IN 2020
AND IMPACTS ON PETROLIMEX (CONTINUED)
PETROLIMEX’S ACTIVITIES IN 2020
Impacts from
market in the
global context
Covid-19 pandemic was the prominent and remarkable event in 2020 that broke out
early 2019 and spread across the world. Covid-19 pandemics is now very complicated
causing serious impacts ever in decades in all aspects from economy, politics, society,
health, etc. The global economy falls into serious recession and its consequences may
last in many coming years.
Impacts of Covid-19 pandemic combined with geopolitical issues in Middle East have led
to spectacular collapse of the global oil price (for the first time in history, first time ever
in history, on 20th April 2020 the crude oil dropped below zero for WTI crude contract in
May 2020), the global oil industry has experienced a shock, suffered losses, many oil fields
and oil refiners closed their processing plants, many oil companies declared bankruptcy
in 2020. Global oil and gas firms such as SK, BP, Shell, etc. suffered big losses.
Impacts from
Vietnam
petroleum
market
2020 was a particular difficult year for all enterprises in general as well as for
Petrolimex in particular. Disadvantageous factors continuously lasted from
beginning to end of 2020 have had direct and big impacts on business and
production activities of Petrolimex.
¾¾ Competition in domestic petroleum downstream market has become more fierce, especially intermediate sales
channels (till end of 2020, the number of distributors reached 288, up 61 as of beginning of 2020). This was a big
challenge for the Group.
The above-mentioned adverse factors have had significant impacts on business and production activities of Petrolimex
in 2020. By drastic guidance and leadership by Board of Management, flexible solutions of Management Department
and ceaseless efforts of member units and employees in implementing “dual goals” of safely containing Covid-19
pandemic and effectively maintaining business and production activities, Petrolimex has overcome a year of challenges
and achieved encouraged business results.
¾¾ Although Vietnam is among a few of countries successfully preventing and controlling
Covid-19 pandemic while maintaining economic growth of GDP 2.91% - one of
countries with highest GDP growth – but it is the lowest GDP growth of Vietnam
in the last 10 years. Like other countries, Vietnam has been seriously hit by Covid-19
pandemic, causing impacts on almost sectors, socio-economic activities, daily lives of
people.
¾¾ The supply of petroleum to the Group from regional markets and oil refineries became
unstable, especially from domestic oil refineries, there was moments that they failed
to ensure supply of goods on schedule and as contracted. This caused a great impact
on forecast activities and business plan of the Group.
¾¾ In 2020, Vietnam recorded a year of continued and unpredictable natural disasters
and flood in Central region, causing heavy effects to provinces from Nghe An to
Quang Ngai.
Sustainability Report 2020
50
51
GOALS AND ORIENTATION
OF SUSTAINABLE DEVELOPMENT STRATEGY
SUSTAINABLE DEVELOPMENT GOAL IN 2021
The year 2021 saw positive signs when many countries began rolling
out vaccines against Covid-19 pandemic. However, the risk of the third
wave of infections with new variants appeared, turning efforts to soon
repel the disease into challenge. 2021 is also a pivotal year – first year of
implementation of 5-year production and business plan (2021-2025) of
Petrolimex. Based on primary assessment and forecast in 2021, Petrolimex
has set up 03 key tasks for sustainable development goal including:
MID AND LONG-TERM SUSTAINABLE DEVELOPMENT
STRATEGY
Petrolimex has defined that its sustainable
development path will face tough time and many
more challenges due to impacts ahead when it will
be impacted by changes of State mechanisms, limited
space, fierce competition together with negative
impacts of Covid-19 pandemic, unpredictable natural
disasters, flood, etc. causing negative impacts on the
Group’s long-term development goal. Facing this,
the Group has set up some goals including:
Environment
Society
¾¾ Implement the dual goals of ensuring effective business and production activities;
safely preventing Covid-19 and stabilizing employees’ lives in the whole system.
¾¾ Focus on investing, researching and developing new, clean, friendly products, ensuring
minimum impacts on environment such as Euro IV standard RON95, Euro V standard
DO 0.001S Diesel fuel, FO 0.5S diesel fuel, etc.
Economy
Economy
Continue to enhance achieved results based on making absolute safety in all production
and business activities a top priority, stable management system and drastic leadership
accompanied by clear, mid-term and long-term goals. In the next five years, the Group
strives to accomplish its production and business plan as follows:
¾¾ Develop human resource, enhance capability and professional skills for employees,
work out solutions to boost employees’ engagement in the long-term.
Petroleum revenue target
Expected plan
(trillion VND)
% Increase compared to
2016-2020
Total petroleum revenue
616.4
7%
Consolidated revenue
750.3
4.9%
Total revenue of Parent Company
504.4
3.4%
Expected plan
(billion VND)
Average growth rate
(%/year)
17,380
3%
9,270
1.8%
2021 - 2025 period
Profit ratio
2021 - 2025 period
Consolidated profit
Profit of Parent Company
Sustainability Report 2020
52
53
GOALS AND ORIENTATION
OF SUSTAINABLE DEVELOPMENT STRATEGY (CONTINUED)
MID AND LONG-TERM SUSTAINABLE DEVELOPMENT
STRATEGY (continued)
Environment
Continue investing and raising responsibility for environmental protection to minimize
environmental pollution, preventing oil leak or spills, ensuring laborers and customers’
health. Synchronously implement solutions based platform of digital transformation to
research and apply environmental science and technology in many fields effectively,
reducing single-use plastic wastes replaced by recycled glass pots or jars, deploying
steam recovery system, installing floating roof, reflective paint in storage tanks to
minimize gasoline vapors released to the environment, installing system of oil spill
tracking buoys and devices, firefighting foam and lifeboats in rivers and sea, etc.
Strengthen R&D on new, clean, environmentally friendly products such as Liquefied
Natural Gas (LNG), strive to become Vietnam’s leading energy corporation pioneering in
supplying clean energy to clean industries, constantly pursue innovation and creativity,
open door and catch opportunities from global and regional integration.
Society
Maintain its target of becoming a pioneering company in effectively economic
development and sustainable development, fully fulfil responsibility for social
development and community through creating stable and sustainable jobs for laborers,
contributing to local economic development, well fulfilling tax obligation to the State as
well as positively participating in social security, especially ensuring energy security for
national defense now and in the future.
CLEAN PRODUCT STRATEGY TOWARDS SUSTAINABLE
DEVELOPMENT
In the future, new and environmentally friendly energy resources will gradually replace
nonrenewable energy resources. Grasping this trend, Petrolimex will continue coordinating
with the world’s richly experienced firms to conduct R&D to bring new, advanced products to
customers aligning with world’s common development trend. By doing this will contribute to
reduction of air pollution and development of a green economy in the future.
Liquefied
Natural Gas
(LNG)
Liquefied Natural Gas (LNG) is a gas of clean industry which is commonly used by
many countries in the world. According to research, LNG produces significantly lowest
emissions after burned, most of these wastes and emissions are clean wastes. Therefore,
all countries are now considering LNG as an alternative energy resource now and in the
future.
Petrolimex will continue to reinforce, strengthen cooperation relationships with
experienced partners, strategic partners such as JXTG (now known as ENEOS) or other
energy corporations around the world to conduct research on investment opportunities,
exploitation, development of new energy products. Continue to implement all necessary
procedures to coordinate with EVN to speed up progress of LNG projects in My Giang,
Khanh Hoa.
New energy
source from
Hydrogen
Hydrogen is the infinite and environmentally friendly source of energy because it burns in
oxygen to form water, so Hydrogen is the ideal, safe and clean source of energy, causing
no environmental problems to human being. At the COP21 in 2015 with participation
of 196 parties, although Vietnam is a developing country that is heavily impacted by
climate change, but Vietnam committed to reduce 8% of emissions by 2030. To achieve
this, clean source of energy from Hydrogen will be an ideal source of energy replacing
oil -gas in the future, contributing to reduction of pollutants contained in exhaust gases,
limit global warming by below 2°C as mentioned at COP21.
In addition, clean source of energy from Methane Hydrate, Methane (cold) will become
a clean and abundant energy source that Petrolimex can use to replace kerosene in the
future.
Economy
Sustainability Report 2020
Environment
Society
Completely
replace RON92
with E5
On 15th December 2018, Petrolimex has completely replaced RON92 by E5 gasoline, 15
days ahead of deadline set by the Government
E5 petrol is biofuel including mixture of traditional gasoline and bioethanol. When
burned, E5 petrol releases lower number of toxic emissions than RON95 distilled from
fossil fuels. With higher amount of oxygen than mineral gasoline, combustion occurs
more completely, it can help increase capacity and reduce fuel consumption.
54
55
GOALS AND ORIENTATION
OF SUSTAINABLE DEVELOPMENT STRATEGY (CONTINUED)
CLEAN PRODUCT STRATEGY TOWARDS SUSTAINABLE
DEVELOPMENT (continued)
To meet the requirements of IV emission standards starting from 01st January 2017, used materials
must match with the standards. The move to sell this kind of gasoline is based on the Government’s
Decision on the roadmap for application of exhaust emission standards on cars and motorbikes.
Accordingly, from January 2017, all imported and locally assembled cars sold in Vietnam requires to
meet Euro IV emission standards, in short RON 95-IV, Euro - IV emission standard will be applied for
motorbikes by 2022.
Euro IV
standard RON
95 gasoline
(RON 95-IV)
From January 2017, Petrolimex has officially sold Euro IV RON95 gasoline (RON95-IV). This
new kind of gasoline has superior quality features compared to RON 95 that is commonly
used in the market.
DO 0.001S Euro
V standard
This new type of gasoline has content of emissions 2.5-3 times lower than RON 95 that
is commonly used in the market. Of which, lead is 2.6 times lower, sulfur is 3 times lower
and benzene is 2.5 times lower.
Since early 2018, Petrolimex has launched DO 0.001S Euro V standard in the market 15
days ahead of regulations of the Government. This is the highest quality diesel fuel in
Vietnam market with quality standards many times higher than commonly used diesel
fuel in Vietnam. Especially, indicators of cleanliness, content of toxic emissions released
to environment decreased by 50 times compared to commonly used fuels.
Because the content of sulfur is controlled at very low level (10 ppm S), the amount of
SOx (can cause air pollution after combusted in diesel engine) released when using DO
0.001S is much lower than that of DO-II (500 ppm S), DO-III (350 ppm S) and DO-IV (50
ppm S).
The move to sell this kind of gasoline is based on the Government’s Decision on the
roadmap for application of exhaust emission standards on cars and motorbikes.
Accordingly, from January 2017, all imported and locally assembled cars sold in Vietnam
requires to meet Euro IV emission standards (in short RON 95-IV), the standard will
be applied for motorbikes by 2022. Petrolimex is not only a pioneering enterprise in
supplying RON 95 – IV but also supplying this kind of gasoline 15 days ahead of deadline
set by the Government.
Apart from SOx, use of DO 0.001S will make significant contributions to reduction of
other emissions emitted from engines such as HC, NOx, PM.
Supply of FO
0.5S marine fuel
According to International Maritime Organization (IMO), from 01st January 2020, the Sulphur
content of ships’ fuel oil will be reduced to 0.50% (Marpol Annex VI – Regulation 14).
In Vietnam, in compliance with Marpol, Ministry of Transportation has issued Circular
No.09/2019/TT-BGTVT, standard 26/2018 dated 01st March 2019 on maritime pollution
prevention system of ships which clearly specifies that all Vietnamese vessels must use
maritime bunker fuels with sulfur content of less than 0.5% from 01st January 2020.
For environmental protection and climate change adaptation, from November 2019,
Petrolimex has imported trial shipments with sulfur content of max 0.5%. From 01st
January 2020, Petrolimex has officially supplied FO 180-0.5S and FO 380-0.5S (max sulfur
content of 0.5%) to the local marine fuel market.
Sustainability Report 2020
56
57
GOVERNANCE FOR SUSTAINABLE DEVELOPMENT
METHODS OF SUSTAINABLE DEVELOPMENT GOVERNANCE
SUSTAINABLE DEVELOPMENT GOVERNANCE MODEL
Governance structure
In compliance with related regulations of the laws combined with international practices on
corporate governance, apart from constructing and completing governance structure consistent
to international practices, Petrolimex has built a corporate governance framework on sustainable
development (corporate governance) including charters, regulations and legal documents within
the Group to create a professional, thorough, transparent and efficient governance system from the
Parent Company to member units. Then, Petrolimex not only ensures the highest governance rules
which ensure shareholders’ benefits, but also harmonizes development goals and presents its social
and environmental responsibilities.
GENERAL MEETING OF
SHAREHOLDERS OF
PETROLIMEX
SUPERVISORY BOARD
BOARD OF MANAGEMENT
MANAGEMENT DEPARTMENTS
BOARD OF GENERAL DIRECTORS
RISK MANAGEMENT
DEPARTMENT
INTERNAL AUDIT
DEPARTMENT
GENERAL ADMINISTRATION
DEPARTMENT
STRATEGY & INVESTMENT
DEPARTMENT
HR AND REMUNERATION
DEPARTMENT
The governance model of Petrolimex is based on the balanced combination of the following elements:
¾¾ Solid corporate governance structure: The governance structure of Petrolimex includes all management entities of
a listed company: General Meeting of Shareholders, Supervisory Board, Board of Management, Departments under
the Board of Management, Board of General Directors.
¾¾ Compliance with practices and laws of Vietnam: Fully comply with laws, legal framework of Vietnam and the
governance regulations applied to listed companies.
¾¾ Apply consistently corporate governance tools in Petrolimex.
Sustainability Report 2020
58
59
GOVERNANCE FOR SUSTAINABLE DEVELOPMENT
(CONTINUED)
SUSTAINABLE DEVELOPMENT GOVERNANCE MODEL
(continued)
Analysis of governance model
Over 65 years of establishment and development, Petrolimex has built a sustainable and
effective governance model based on harmonious combination of following factors:
Solid foundation for governance
structure
Toward international
standards
Compliance with practices
and laws of Vietnam
Group-wide consistent
application
Petrolimex’s governance structure has fully administrative
subjects of listed company (General Meeting of
Shareholders, Board of Management, Departments under
the Board of Management, Supervisory Board, Board of
General Directors, etc.) that clearly presents advantages
as follows:
Compliance with international frameworks and practices
on corporate governance, ASEAN corporate governance
Scorecard and advanced governance model based on
applying governance model of foreign companies.
Fully comply with laws, legal
framework of Vietnam and the
governance regulations applied to
listed companies in Vietnam; adjust,
review and change in accordance
with conditions in Vietnam.
Establish and develop a Group-wide governance model to ensure the
consistency and uniformity in all operations.
¾¾ Role, responsibility of BOM is clearly stated in the
Group’s Charter.
¾¾ Petrolimex has soon established Departments
under the BOM to advise for BOM (Refer to detailed
information Departments under the BOM on page 66).
¾¾ Establish Risk Management Department and issue
regulations, procedures of risk management at the
Group level.
¾¾ Build Code of Conduct with stakeholders (refer detailed
information of stakeholders on page 86).
¾¾ Approach to international standards on information
announcement: apart from complying with all
mandatory regulations on information announcement,
Petrolimex has also done a good job in complying with
other regulations on information announcement such
as making annual Sustainability Report, organizing
conferences, meetings, transparent information
exchange with foreign and domestic investors, etc.
¾¾ Application of technology in governance and management is consistently
implemented in whole Group (refer detailed information on application of
technology in governance and management on page 82)
¾¾ In the history of 65 years of establishment and development associated
with many changes, but the spirit and love of profession are always in the
mind of generations of employees and laborers of Petrolimex. Petrolimex’s
culture is presented in its actions of dare to think, dare to do, dare to face
challenges, take the lead in innovation, creativity, to be ready for global
integration. In any stage and circumstance, Petrolimex’s employees and
laborers always stay motivated and enthusiastic at work nationwide for
sustainable development of enterprise and prosperity of the country.
Petrolimex is always ready to write the history of its generations, stay
united, devoted to “move forward”.
Although Petrolimex has shown outstanding advantages in its governance
model for sustainable development, but in the current context, there are still
things to be improved and completed in the future:
¾¾ Supplement independent members of BOM; Petrolimex has planned to
collect opinions of shareholders in 2021.
¾¾ Compared to ASEAN Corporate Governance Scorecard, Petrolimex has
made remarkable efforts in improving its corporate governance activities
which is closer to compliance with regional standards. However, Petrolimex
is making efforts to complete the remaining criteria in the next financial
years. In 2021 alone, Petrolimex will focus on 02 criteria: (1) independent
member of BOM; (2) Produce fully translated English version report.
(Please refer to detailed information of ASEAN Corporate Governance Scorecard at annual
report of Petrolimex 2020, page 166-169)
Sustainability Report 2020
60
61
GOVERNANCE FOR SUSTAINABLE DEVELOPMENT
(CONTINUED)
SUSTAINABLE DEVELOPMENT GOVERNANCE MODEL
(continued)
Sustainable governance principles
Responsibility of BOM
01
Define Role, responsibility and commitment of
BOM stipulated in the Charter
02
Set up a competent and professional BOM
Control environment
07
Information announcement and Transparency
08
03
Establish a strong risk management framework
and control environment with Risk Management
Department playing the supervisory role
Strengthen activities of information
announcement in accordance with regulations
of listed companies.
Ensure independent and effective leadership
role of BOM
Rights of shareholders
04
Establish Departments under the BOM
05
Ensure efficient performance of BOM
06
Establish and maintain ethical workplace
culture: Code of Conducts
Sustainability Report 2020
09
Set up a framework to ensure the rights of
shareholders: code of conducts
Relations with stakeholders
10
Strengthen effective participation of stakeholders:
code of conduct
62
63
GOVERNANCE FOR SUSTAINABLE DEVELOPMENT
(CONTINUED)
ROLE AND RESPONSIBILITIES OF DEPARTMENTS IN
SUSTAINABLE DEVELOPMENT
Role and responsibilities of BOM
To ensure transparency and independence in implementation of decisions for maximum benefits of the Group,
Chairman of BOM of Petrolimex must not concurrently hold the position of General Director. Petrolimex is looking
forward to professional and transparent activities based on comprehensive and methodical assessment of related
issues and continue to work out measures to improve efficiency of corporate governance.
Setting strategic goals and measures related to sustainable development
Strategic orientations set up by BOM and presented in the
report is submitted to General Meeting of Shareholders
to collect opinions. BOM organizes implementation of
Resolutions adopted by General Meeting of Shareholders.
Management Department directs specific actions via
activities at the Parent Company and member units. At
each unit, strategic orientations, development goals are
disseminated to all employees at year-end meetings,
meetings to implement business tasks, meetings with
laborers, training courses.
Follow and direct issues related to sustainable development
BOM studies implementation of socio-economic-environment goals on a monthly basis and direct report from
Management Department, specifically:
¾¾ Reporting at monthly meeting of BOM: Petolimex’s
BOM maintains monthly meetings to discuss,
agree and timely give out directions related to
business management activities of the Group. At the
meeting of BOM, General Director, Deputy General
Directors, Departments under BOM and other key
departments of the Group make reports on socioeconomic-environmental related issues that impact
on activities of Petrolimex. BOM will review, evaluate
and give out orientations on business and production
activities, including: assessment on socio-economic
situation to work out sensible business development
strategies; direct implementation of business plan and
resolutions of annual General Meeting of Shareholders;
implement social security programs. After meetings,
BOM will issue Resolutions for General Director to
implement.
Sustainability Report 2020
¾¾ BOM’s report will be implemented by collecting
written opinions of BOM: besides monthly meetings,
BOM will collect written opinions of members of
BOM to solve socio-economic-environmental related
issues reported by Management Department.
BOM issues Resolutions, Decisions, Announcement
as a foundation for General Director, members
of management department, related functional
departments to implement. Members of BOM always
uphold their leadership capacity with high spirit of
responsibility to approve Resolutions, Decisions of
BOM for interests of shareholders and sustainable
development of Petrolimex.
¾¾ Review impacts, risks and opportunities related to
socio-economic-environmental issues: In resolutions,
announcements, conclusions of BOM, BOM requests
General Director to direct Management Department
and related functional department to focus on
forecasting, updating and strictly following practical
developments of socio-economic-environmental
situation in business activities, actively adjust and
timely set up suitable, effective solutions to ensure
successful implementation of annual business plan
and sustainable business strategy. Specifically, in
March and April 2020 amid Covid-19 complicated
developments, BOM has directed Management
Department to urgently assess, analyze and build
scenario-based forecasts and action plan, prepare
contingency measures for emergency response to
spread of Covid-19 pandemic that can cause serious
impacts and disruption in business activities of the
Group. Focus on preventing and effectively controlling
the spread of the pandemic to minimize impacts on
business and production activities. Closely follow
developments of the pandemic, petroleum market and
other sectors of the Group, do a good job in forecast,
research, application of advanced governance and
management models, apply technology in all levels
and units. Mobilize collective intellectual to properly
uphold every initiative and improvement at each stage
to maintain and ensure smooth operation of business
and production activities in the context of Covid-19
pandemic, strive to achieve business goals when
Covid-19 pandemic ends. Mobilize all resources, time,
efforts to ensure health and lives of laborers, with the
fact that Covid-19 cannot be completely kept under
control, BOM has directed application of technology
in organizing General Meeting of Shareholders,
meetings of BOM under virtual format to ensure work
efficiency and comply with regulations. As a result,
General Meeting of Shareholders 2020 was organized
on schedule, ensuring safety for shareholders,
society, saving time and cost. Meetings of BOM were
maintained on a monthly basis, ensuring governance
activities of the Group.
¾¾ Social responsibility: proactively demonstrate role
and responsibility for society in prevention and fight
against Covid-19 pandemic and flood in Central
region. With a spirit of “joining hands to repel Covid-19
pandemic”, BOM has directed Department of Social
Policy to donate nearly 6 billion VND to support
medical equipments to hospitals including Bach Mai
Hospital, Hanoi Lung Hospital and medical workforce
in Hanoi. At every member unit and petroleum
station, Petrolimex’s employees distribute face masks,
water disinfection products to customers and local
people. On nationwide scale, nearly 30,000 employees
and laborers of Petrolimex voluntarily contribute one
day’s salary (total value of more than 8.3 billion VND)
despite difficult business and production activities
to support Anti-pandemic Fund under Vietnam
Fatherland Front Committee in localities. When
Central provinces were heavily impacted by flood
and torrential rain, Petrolimex has urgently deployed
financial support activities, assigned member units in
6 hardest hit provinces such as Ha Tinh, Quang Binh,
Quang Tri, Thua Thien Hue, Quang Nam, and Quang
Ngai to support local citizens who had been heavily
impacted by flood through Vietnam Fatherland Front
Committee with total value of 3 billion VND.
¾¾ Supervision of implementation: BOM has frequently
supervised the implementation of Decision,
Resolutions and polices of the Group adopted by
BOM related to sustainable development and social –
environmental issues.
Guidance on implementation of Sustainability Report
BOM supervises the implementation of Petrolimex’s strategy including Sustainable Development Strategy. BOM
assigned Risk Management Department the job of chairing, coordinating with functional departments to build
contents that are consistent with international practices and conditions of Vietnam as well as of Petrolimex.
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GOVERNANCE FOR SUSTAINABLE DEVELOPMENT
(CONTINUED)
ROLE AND RESPONSIBILITIES OF DEPARTMENTS IN
SUSTAINABLE DEVELOPMENT (continued)
Roles and responsibilities of working departments under BOM in
implementation of sustainable development strategy
General Administration Department
Functions
and duties
Activities in
2020
General Administration Department is a part of the governance structure of Vietnam National
Petroleum Group established by BOM. It is a function of General Administration Department
to advise, generate and directly support the Group’s Party, representatives of State-owned
capital and BOM to carry out its leadership function and manage activities of the Group as
well as monitor the implementation of Decisions, Resolutions, etc. of BOM. In addition, the
department also plays the role of a permanent focal point to generate work content among
BOM, shareholders, member units and other units outside Petrolimex.
In 2020, General Administration Department has advised BOM to successfully organize 11
meetings, supporting Chairman of BOM to organize 98 sessions of collecting written opinions
of members of BOM to issue 340 Resolutions related to issues under authority of BOM.
Well implemented corporate governance, chaired/coordinated with departments of the
Group to research, compose, amend and supplement some internal governance regulations
as a foundation for BOM to issue regulations consistent with new organization models and
regulations of the Laws to manage, supervise and run operation of the Group including:
Charter, internal governance regulations charters of organization and operation, regulations
related assignment of legal representatives of 07 one-member limited liability companies
owned by the Group.
Coordinate with related departments to advise, propose work content for BOM to organize
annual General Meeting of Shareholders 2020 under virtual format in the context of Covid-19
complicated pandemic and compliance with the Laws’ regulations
Coordinate with related departments to implement announcement of information on
corporate governance in 6 months and 2020 as stipulated.
As a permanent member of The Steering Board on Social Policy, Administration General
Department has advised and promptly proposed BOM to implement social security, especially
in prevention and fight against Covid-19 pandemic and flood in the Central Region.
Sustainability Report 2020
Strategy and Investment Department
Functions
and duties
Strategy and Investment Department is a part of Petrolimex’s governance structure established
by BOM. The main functions of Strategy and Investment Department include advising,
consulting and supporting construction of development strategy, evaluating implementation
results of development strategy and proposing changes to development strategy of
Petrolimex. Build short-term and long-term development investment policy and principles;
propose, appraise, coordinate, supervise and assess efficiency of investments, investment
projects under authority of BOM; check, supervise implementation of investment projects of
Petrolimex; propose, monitor operation efficiency, management of investment capital of the
Group, member units, subsidiaries and multi-owners.
Activities in
2020
In 2020, Strategy and Investment Department has implemented and completed its assigned
tasks, specifically:
¾¾ Construction and Investment: Strategy
and Investment Department coordinated
with specialized departments of
Petrolimex to research, review documents
and submit to BOM for approving
investment policy, invest and construct
headquarter, admin offices of member
units in Dong Thap, Tay Ninh, Lam Dong,
etc. and some petroleum terminals such
as Nam Dinh Vu-Hai Phong, Viet Tri-Phu
Tho, Long Thanh-Dong Nai, etc.
¾¾ Coordinate with specialized departments
of Petrolimex and member units to inspect
the current management situation, land
and house use of Petrolimex in accordance
to Degree No 167/2017/ND-CP in 19
provinces/cities, advise BOM to issue
Resolution on methods of rearrangement
and handling of house and land related
issues in 9 provinces and cities.
¾¾ Coordinate
with
Department
of
Information
and
Technology
to
successfully organize online training
courses under program of land resource
management through ERP-SAP system
for 450 employees in more than 70
locations. Coordinate with Public Asset
Management Department under Ministry
of Natural Resource and Environment
to provide online training courses and
guidance on Land Law 2013 and Degree
167/2017/ND-CP.
¾¾ Sign information confidentiality and
strategic cooperation agreements with
T&T Group
¾¾ Coordinate with specialized departments
of Petrolimex to implement projects of
transfer of petroleum stations including
Ham Minh petroleum station – Binh Thuan
(Ba Ria-Vung Tau petroleum station), Lien
Son petroleum station (Ha Bac petroleum
station), etc.
¾¾ Report to Committee for State Capital
Management on foreign investment
situation of Petrolimex, making report on
providing information to serve the tasks
of building technology development
strategy by 2030 and a vision to 2045;
assessing financial situation and operation
efficiency in 2019; making report on
construction of 5-year socio-economic
plan (2021-2025); making report on
ownership ratio of investment capital
of Petrolimex in Pjico, making report on
investment situation in PLS, PLL.
¾¾ Coordinate with functional departments
to implement restructuring plan of Pets
limited company, dissolution of Nghe
An Real Estate Joint Stock Company;
divestment of Petrolimex at Dong Nai
Building Material and Fuel JSC, etc.
66
67
GOVERNANCE FOR SUSTAINABLE DEVELOPMENT
(CONTINUED)
ROLE AND RESPONSIBILITIES OF DEPARTMENTS IN
SUSTAINABLE DEVELOPMENT (continued)
Roles and responsibilities of working departments under BOM in
implementation of sustainable development strategy (continued)
Risk Management Department
HR and Remuneration Department
Functions
and duties
HR and Remuneration Department is a part of governance structure of Petrolimex established
by BOM. Its main functions include advising, consulting and supporting BOM in fields of Strategy
of developing human resources of the Group; Group-wide human resource management and
management of staffs of Board of Management; Group’s labor management, remuneration,
bonus and welfare policies.
Functions
and duties
Risk Management Department is a part of Petrolimex’s governance structure established by
BOM. Its main functions include advising, consulting and supporting BOM to direct and manage
fields such as: Risk Management Strategies: researching, building and evaluating results of
strategy implementation and proposing changes in the Group’s strategies; Organization,
management, review, assessment of the Group’s risk management activities in accordance
with legal provisions; Investor relations.
Activities in
2020
Organization and personnel: implement
management regulations on staffing of
Petrolimex at corporations, one-member
limited
liability
companies
owned
by Petrolimex, HR and Remuneration
Department has directed to build measures
and report to Petrolimex’s leaders to approve,
carry out splitting positions of Chairmen,
Directors at 03 companies under Petrolimex.
Personnel appointment:
in
2020,
personnel appointment of Petrolimex
was implemented in accordance with
regulations on decentralization and approval
assigning Chairman of company to appoint
personnel at member units; re-appointing
personnel; sending representatives of
contributed capital of Petrolimex at jointstock companies.
Activities in
2020
In 2020, Risk Management Department has completed some works including:
Personnel planning: HR and Remuneration
Department has appraised and reported
to BOM to approve personnel planning for
titles of leaders of departments under BOM
in 2020-2025 and titles managed by BOM at
corporations, one-member limited liability
companies owned by Petrolimex in 20202025.
Direct to implement management of
personnel and party member records;
assessing and supplementing personnel’s
resumes; declaring incomes y-o-y as
stipulated.
Labor, salary, bonus
remuneration policies
and
other
¾¾ Implement forms and put risk management system into operation.
¾¾ Complete procedures and methods to implement investor relation related activities
¾¾ Promote meetings, working sessions with investors to prepare for selling shares in 2021
effectively.
¾¾ Advise and implement treasury share sales under guidance of Petrolimex’s leaders.
¾¾ Advise and consult BOM on divestment of capital from key industries.
¾¾ Direct to implement annual report, Sustainability Report presenting transparency and
being highly valued by investors including annual report listed in Top 30 largest capital
companies, annual report finalists, Sustainability Report listed in Top 10 best Sustainability
Reports.
(Apart of 4 above-mentioned working departments for BOM, detailed information about
Supervisory Board is presented at page 74)
Monitor and implement remuneration
policies for personnel of BOM, ensuring
regulations and schedule.
Participate in process of appraisal of salary,
bonus, remuneration fund implemented in
2019 and plan in 2020 of BOM, Supervisory
Board proposed by member units before
organizing General Meeting of Shareholders.
Sustainability Report 2020
68
69
GOVERNANCE FOR SUSTAINABLE DEVELOPMENT
(CONTINUED)
RISK MANAGEMENT TOWARD
SUSTAINABLE DEVELOPMENT
MANAGEMENT OF POTENTIAL RISKS
RISK MANAGEMENT SYSTEM OF PETROLIMEX
There are now strong and quick changes in standards, regulations and business environment of petroleum downstream
sector. Adaptation to this changing trend becomes one of top priorities of Petrolimex. Since 2018, Petrolimex has
established and implemented risk management framework to proactively manage all risks related to business activities
of the Group.
Petrolimex recognizes potential risks related to business activities and always proactively manage
all those potential risks
Scenario 1
Set up more stricter regulations on gas emissions and
quality of petroleum products
Organizational structure of risk management
Scenario
SUPERVISORY BOARD
Emission standards around the world have progressively more stringent. Since 2020, EU has set
a CO2 emission target up to 95g/km. In Vietnam, the Government has set up regulations on gas
emission on transport vehicles, accompanied by regulations on standards of petroleum products.
BOARD OF
MANAGEMENT
RISK
MANAGEMENT
DEPARTMENT
Recently, a series of unqualified gasoline smuggling have been dismantled by investigation
agencies, quality of petroleum products has become hot topic attracting public concerns. Poor
quality of petroleum products has had direct impacts on consumers and environment, not only
does it impact on operation process, durability and fire safety of transport vehicles but also causes
direct impact on environment due to failure to ensure gas emission standards
GENERAL
ADMINISTRATION
DEPARTMENT
HR AND
REMUNERATION
DEPARTMENT
INTERNAL
AUDIT
DEPARTMENT
STRATEGY
AND
INVESTMENT
DEPARTMENT
GENERAL
DIRECTOR
DEPUTY GENERAL
DIRECTOR IN
CHARGE OF RISK
MANAGEMENT
CHAIRMAN/
DIRECTOR/
REPRESENTATIVES
OF MEMBER UNITS/
SPECIALIZED
DEPARTMENTS
RISK
MANAGEMENT
OFFICE UNDER
ACCOUNTING
AND FINANCE
DEPARTMENT
Accordingly, risk management system was established and strictly organized to promptly response to any risk emerged
in business activities. On daily basis, Petrolimex frequently supervise all related risk factors, once finding out any risk that
can be able to become a clear threat, we will work out contingency measures for many different situations based on
analyzing, assessing potential impacts as well as efficiency of available internal supervision system. In the process of risk
handling, we especially pay attention to identity of causes and sources of those risks.
Sustainability Report 2020
Approach of Petrolimex
In 2016, Petrolimex officially issued regulations on environmental protection accompanied
by Decision No.007/PLX-QD-HDQT on requirements of management and implementation of
environmental protection for member units, petroleum projects to supervise environment safety,
professional skill training, inspection, report, handling of violations on environmental safety in
compliance with regulations on environmental protection.
Currently, Petrolimex aims to become Vietnam’s leading energy firm providing clean, high quality
and environmentally friendly energy products. Besides, Petrolimex also conducts research to
provide more premium petroleum products in the near future, entering cooperation to launch
renewable energy products.
Petrolimex’s leaders always give top priority to ensuring quality of petroleum products. Apart
from contributing opinions to build national petroleum standards, Petrolimex always pioneers
in complying with and meeting the highest standards. In order to protect brand reputation built
for more than 65 years, Petrolimex has heavily invested in modernization and automation of its
facilities (e.g., Vapor Recovery Unit (VRU), external floating roof tank that prevents vapor when
environment temperature changes, etc.). Apart of issuing stringent quality control process in the
whole supply chain from import, storage, transport to sales, ensuring highest standard products
to customers.
70
71
GOVERNANCE FOR SUSTAINABLE DEVELOPMENT
(CONTINUED)
RISK MANAGEMENT TOWARD
SUSTAINABLE DEVELOPMENT (continued)
Inventory risk management: Refer to page 192 of Petrolimex 2020 Annual Report.
MANAGEMENT OF POTENTIAL RISKS (continued)
Scenario 2
Explosion and fire safety, environment safety,
occupational and health safety are priorities in petroleum
downstream business.
Scenario
In petroleum downstream business, explosion and fire safety, environment safety, occupational
and health safety are extreme concerns of the Group’s leaders and the public.
Approach of Petrolimex
To improve explosion and fire safety, environment safety, occupational and health safety,
Petrolimex has developed and issued a full range of occupation technical procedures, labor
regulations, regulations on entry/ exit of the unit, buildings, with basic and detailed safety rules
(Regulations on Prevention and fighting against fire, Regulations on Environment Protection,
Regulations on Occupational and Health Safety, Regulations on natural disaster prevention,
search, and rescue). In addition, for timely response to incidents, the Group instructs the
units to develop specific procedures on incident response, firefighting plans, natural disaster
prevention, search and rescue, oil spills, which matches the scale and capability of each
project and building. All regulations are approved by management agencies in compliance
with the regulations. In addition to internal regulations and procedures, the units organize
periodic, unexpected, coordinating practice sessions for workers so that they can be familiar
with possible situations. The Group focuses on investment in modern equipment, technology,
and step by step automates to replace manual labor and improve safety factors. The Group
also coordinates with management agencies to organize trainings, workshops for leaders and
employees in safety departments at its units. The Group signs agreements with international
organizations such as JCCP and the Japanese strategic partners ENEOS to organize advanced
workshops on safety topics.
Sustainability Report 2020
Tax risk Management
Petrolimex recognizes that its compliance to tax policies and its tax risk management are
necessary for maximizing the Group’s customers’, shareholders’ benefits and its contribution
to the State’s budget, which are requirements for its sustainable development. Therefore, at
the Group, we always strive to fullfill our tax responsibilities following the principles of equity
and equality as well as establish our cooperation with tax agencies in mutual trust.
The core principle in our tax risk is “strict compliance with legal regulations”. To satisfy this
principle, we issue the procedures and arrange specialized staffs to update, synthetize the
changes of tax policies and tax regulations. Then, we promptly inform related departments
regarding these changes. At the Group, compliance with tax policies is based on predetermined
procedures, regulations, ensured by strict inspection and supervision (inspection on each
procedure, cross inspection, inspection on various control layers). We maintain transparency
in our relationship with tax agencies, and we provide all necessary evidences.
Contribution to the community through tax paying
Petrolimex is proud to contribute significantly to the local economic development across the
country as tax payer and job creator. We ensure that all member units across the country
fully pay corporation income tax and other taxes, such as added value tax, environmental tax,
import-export tax, excise tax and contractor tax. In 2020, total amount of tax paid to the State
is 38,620 billion VND.
72
73
GOVERNANCE FOR SUSTAINABLE DEVELOPMENT
(CONTINUED)
INTERNAL SUPERVISION SYSTEM AND INTERNAL AUDIT IN
RELATION TO SUSTAINABLE DEVELOPMENT
PETROLIMEX’S INTERNAL SUPERVISION SYSTEM
Petrolimex always concerns and focuses on the development
of internal supervision system to enhance management,
thereby improves business efficiency and ensures the system’s
sustainability. The structure of internal supervision system
is decentralized to ensure objectivity and transparency. All
principles of internal supervision are followed to ensure that the
system protects Petrolimex’s assets and enhances its efficiency.
The Group’s internal supervision system develops and reaches completion stage. The internal supervision system
consists of three defense lines following the model:
BOARD OF MANAGEMENT
The structure of internal supervision system
The first line of
defense
The third line of defense
is Internal audit. Internal
auditing department provides
the Board of Management,
Board of General Directors
with independent assessment
on the design and efficiency
of internal supervision system.
BOARD OF GENERAL DIRECTORS
The first line of
defense
The second line
of defense
The third line of
defense
Control activities in each
procedure
Financial control
Internal audit
Control activities of the
leaders at the Parent
company and member
units.
Risk Management
Security assurance
Quality control
Supervision
Law enforcement agency
The second line of defense
includes Petrolimex’s financial
control,
quality
control,
procedure supervision, and
risk management.
The third line of
defense
Independent auditing unit
Levels of management at
the Parent company and
member units are the first
line of defense. All procedures
must comply with internal
supervision principles, legal
regulations and minimize
errors that may arise from
daily operations.
The second line
of defense
Compliance
Sustainability Report 2020
74
75
GOVERNANCE FOR SUSTAINABLE DEVELOPMENT
(CONTINUED)
INTERNAL SUPERVISION SYSTEM AND INTERNAL AUDIT IN
RELATION TO SUSTAINABLE DEVELOPMENT (continued)
PETROLIMEX’S INTERNAL SUPERVISION SYSTEM (continued)
Principles of the internal supervision system operation
Petrolimex’s internal supervision system operates according to three common principles: delegation of duties, nonpartisanship, and authorization, approval.
Functions and responsibilities of internal supervision system
Petrolimex’s internal supervision system is developed to attain four goals: protection of Petrolimex’s assets, information
reliability, compliance with the legal regulations, and efficiency of Petrolimex operation.
Delegation of duties
Petrolimex business covers various areas
and occupations, which are built around the
petroleum downstream business. According
to this principle, duties and responsibilities
are classified for departments and staffs in
each department at the Parent company as
well as the member unit. Clear delegation of
duties will facilitate specialization, minimize
errors, and help to detect errors easily. The
purpose of this principle is that no individual
or department would be allowed to control all
aspects of the business. Thereby, an employee’s
work is automatically controlled by the work of
another employee. Delegation of duties would
minimize the risks of cheating and errors as
well as improve professionalism of Petrolimex
employees.
Protection of Petrolimex’s assets: the internal
supervision system is developed integrated with
procedures and lines of defense for the protection of
Petrolimex assets, including non-physical assets such
as accounting books and important documents from
thief or uses for purposes other than Petrolimex’s
business and production activities.
Information reliability: Synthesized and treated
financial data are important factors for managers’
decision-making.
Therefore,
the
accounting
department needs to provide the data in a timeless,
accurate, and reliable manner. Based on the data
provided, the BOM, the management Departments
make prompt and reasonable decisions to improve
business efficiency.
The principle of
non-partisanship
The purpose is to create a reasonable
separation of responsibilities in relevant
businesses. The principle of non-partisanship
is strictly followed in the following cases:
¾¾ Non-partisanship in asset protection and
accounting.
¾¾ Non-partisanship in approval of economic
transactions and the performance of
transactions.
¾¾ Non-partisanship in management and
accounting responsibilities.
The principle of
authorization and
approval
To attain the control targets, all business arisen at the Parent Company and member units must be approved
following the right order, procedure and internal regulations.
Compliance with legal regulations: Petrolimex’s
internal supervision system is operated to ensure that
all Petrolimex’s activities comply with the law and
regulations.
Sustainability Report 2020
Efficiency: control procedures are designed to prevent
unnecessary repetition, which will result in inefficient
use of Petrolimex’s resources.
¾¾ General approval: will be implemented by building common policies on various activities and business
areas of the Group. General approval will be the basic for member units to perform business activities
according to the development orientation of the Group.
¾¾ Specific approval: will be implemented for each business activity and procedure. Specific approval will be
applied to all business activities in the entire system, particularly the business involved large amount of
money, important or irregular businesses.
76
77
GOVERNANCE FOR SUSTAINABLE DEVELOPMENT
(CONTINUED)
INTERNAL SUPERVISION SYSTEM AND INTERNAL AUDIT IN
RELATION TO SUSTAINABLE DEVELOPMENT (continued)
2021 INTERNAL SUPERVISION PLANS
Supporting tools
for internal audit in
2020
Information technology system has significant contribution to the internal supervision
performance of the Group. Details as following:
¾¾ The Parent company and 43 petroleum member units: economic transaction are
performed in the SAP-ERP system and delegated to each employee in each specific
transaction.
¾¾ Egas system controls the data, bills, sales from all petroleum stations in Petrolimex
system.
¾¾ Other member units put effort in applying information technology in business
management for best results.
Internal
supervision
activities in 2020
Through supervision, inspection, daily comparison of data in the SAP-ERP, EGAS, AGAS
system and three supervision levels, the Group supervises performance of procedures,
management regulations, promptly corrects the problems, and improves quality of
control activities. In 2020, business activities are negatively impacted by the Covid-19
pandemic and unpredictable fluctuation of the world oil price. Therefore, the business
results changes with time.
According to 2020 inspection plan, the Group performs 24 inspections, specialized
supervisions, and inspections on management. The Group issues written instructions
to promptly correct the remained problems.
In 2021, Petrolimex continues to complete the internal
supervision system in the direction of more efficient risk
management through the following activities:
¾¾ In 2020, business and production activities are
negatively impacted by the Covid-19 pandemic and
unpredictable fluctuation of the oil price. Therefore,
the business results are changed, and the organization
of business activities, management are impacted
significantly. In 2021 and in the future, the Vietnamese
economy and business environment will continue
to change on daily and hourly basic. Recognizing
the regular and strong fluctuation in business and
production activities, all control activities at three lines
of defense will be well adapted by closely following
the business and production movements. The Group
continues to update the SAP-ERP, EGAS, AGAS data
management system, fully apply technology, and
make technology a useful tool for improving “prior to
and in” control of business activities.
¾¾ Issuing and deploying the 2021 inspection plans:
we develop inspection plans based on careful
assessments of material issues, which are carefully
inspected and reviewed, to select the inspection unit
as well as arrange time, staffs for the best results.
¾¾ Issuing and deploying the 2021 document issuance
plan, continuing to review the internal supervision
system, regulations, procedures for suitable
amendment, which will improve management.
Petrolimex regularly reviews the system of internal regulation documents and promptly
amends for increasing control efficiency. In 2020, the Group issues and amends 28
internal normative documents.
Sustainability Report 2020
78
79
GOVERNANCE FOR SUSTAINABLE DEVELOPMENT
(CONTINUED)
INTERNAL AUDIT IN RELATION TO SUSTAINABLE DEVELOPMENT
REMUNERATION AND BENEFITS OF BOARD OF MANAGEMENT,
BOARD OF GENERAL DIRECTORS AND SUPERVISORY BOARD
Salary, bonus and other incomes of Board of General Directors, Chief
Accountant of the Group are paid in accordance with salary and
bonus and other current regulations of the Group pursuant to the
State’s regulations. Bonus (if any) of the Board of General Directors
will be deducted from profit after tax in accordance with the Financial
Management regulation of the Group. Other incomes shall be subjected
to regulations on policy applicable to employees of the State and the
Group. Pursuant to the 2020 Remuneration Plan applicable to members
of Board of Management and Supervisory Board approved by the 2020
Annual General Meeting of Shareholders. Data of paid remuneration:
Internal audit is developed and deployed at Petrolimex since early time:
internal audit is the third line of defense of internal supervision system. In
2008, the internal audit department was established under Management
Boards of the Group. From 2011, when Petrolimex has become a Joint
Stock Company, the BOM established Internal Audit Department, which
was directly under the BOM. The Internal Audit Department’s main
functions are counsel and assistance to the BOM in the inspection and
supervision of the Group-wide, performing independent assessment,
and providing recommendations for management improvement.
Internal audit activities must follow the compliance principle and
contribute to management improvement and sustainable development
of Petrolimex. Each year, the internal audit department performs
inspection, supervision of business and production activities at the
member units. In 2020, the Internal Audit Department inspects and
supervises five member units. After each inspection, supervision, the
Department provides assessments and recommendations for improving
management at the units. Results of the internal audit will be directly
reported to the BOM, and the BOM will direct the units to follow the
recommendations for improving management and minimizing risks. In
2020, the Department closely supervises the development of procedures
and regulations including regulations on financial management of the
Parent Company, regulations on financial management at One-member
Limited Liability Companies, and regulations for inspectors at these
companies, etc.
Salary
and
plurality
remuneration paid to those
who are members of both the
Group’s Board of Management
and Board of General Directors
(Including
the
General
Director, Deputy General
Directors, Chief Accountant):
VND 9,419,758,000
Salary paid to full-time
members of Board of
Management,
plurality
remuneration
paid
to
other members of Board
of
Management:
VND
3,220,679,000.
Including:
Remuneration paid to fulltime members of Board
of
Management:
VND
2,761,966,000
Remuneration paid to the
Supervisory
Board:
VND
3,677,237,000. Other costs
for activities of Supervisors
of the Supervisory Board are
complied with the Group’s
charter and regulations.
Internal audit activities must be regularly updated for new information and
regulations to attain better performance: In 2020, following the Decree
05/ND-CP of the Government on internal audit, Petrolimex promptly
follows all State’s regulations in its business. The Group issues internal
audit regulations and procedures. The regulations contain basic rules,
responsibilities, activities of internal audit department. The Internal audit
procedures provides details on performing internal auditing tasks, which
become the foundation for internal audit activities in the Group-wide.
Sustainability Report 2020
80
81
TECHNOLOGY APPLICATION IN GOVERNANCE AND
MANAGEMENT
DEVELOPING AND MAINTAINING THE INFORMATION
TECHNOLOGY SYSTEM ACCORDING TO OUR BUSINESS
STRATEGIES
IN 2021 AND THE FOLLOWING YEARS - DIGITALIZATION FOR
GOVERNANCE ENHANCEMENT
With a clear vision, we invest in the information technology system, which will become a
foundation supporting our governance and management toward sustainability and contribute
to the realization of our business strategies. The core system is as follows:
Microsoft
Teams
application
The implementation of softwares supports remote working, online teamwork through
devices such as computers or mobile phones, and helps the employees exchange ideas
and coordinate effectively and quickly. Simultaneously, it helps save management costs,
media costs and transaction costs.
In 2020, facing the complicated movements of the Covid-19 pandemic as well as
following the Government’s directions for social distancing, we start to use the Microsoft
Teams application to ensure the completion of economic plans and national energy
security, generate growth and ensure the Group’s leading position.
The Group successfully deploys the online working applications and attains remarkable
results: Governance and business management ensure adequate provision of petroleum
for the people according to the plans; the online General Meeting of Shareholders is
successfully organized and highly evaluated by shareholders; conferences between
the Parent company, member units, departments, domestic and foreign partners are
successfully organized; online trainings for staffs at departments of the Group and
member units are organized to advance the employees’ knowledge in material topics.
Closing 2020 with many difficulties of the Covid-19 pandemic, thanks to the deployment,
maintenance, and development of the information technology system in recent years,
the Group’s managers are supported and provided with adequate information and
tools for thorough governance and management from the Group to member units. The
performance of the information technology system is safe, stable, and available for use
in all circumstances such as social distancing, and becomes a solid foundation to help us
overcome difficulties of the pandemic and complete business plans.
Recognizing the key roles of information technology in
the global development context, Petrolimex continues
to follow the goal of digitalization. We will speed up the
process of applying global technology and innovations
from the 4.0 industrial revolution to our management of
petroleum downstream business in the entire system.
To meet governance and business management
demand from the Group’s leaders to managers and sale
staffs, Petrolimex continues to promote digitalization
strategies through main projects such as deployment of
system supporting decision making, intelligent business
management (BI), big data, purchasing and paying
features through automatic sales, card payments, mobile
payments, customer credit programs, etc.
In 2021, Petrolimex continues to deploy core
technology solutions as the infrastructures supporting
management and governance demand in Group-wide.
Simultaneously, the Group continues to deploy the
advanced management solutions so that the information
technology system will become the foundation for the
Group’s development in the following years. The Group
emphasizes investment in the following programs and
projects:
¾¾ Deployment of the land management, plant
maintenance, and control of recorded data on asset
maintenance and performance in SAP system in the
Group-wide. On that basic, the companies can prepare
active and periodic maintenance plans.
¾¾ Continuing the maintenance and improvement of
the applications supporting remote working, online
working, conferences for saving costs in governance
and business management.
¾¾ Deploying new applications on ERP-SAP system
including: governance, calculation of fees such as
insurance fees, inventory and transport fees, fees of
recording, and management of incoming receipts.
¾¾ Deploying softwares for the risk management
framework and prioritizing development of softwares
for the management of oil price and inventory risks
which have significantly impacts on the Group’s
business.
To attain such important results, the Group strives to
overcome the following challenges: The technical
infrastructures are not synthesized and the procedures
are not standardized. Therefore, we need time and effort
to change people’s habits and give training to them.
Simultaneously, we need to manage risks of the newly
introduced system which are unstable and contained errors.
With a solid foundation of information technology,
Petrolimex will focus on investment and development of the
information technology system, following its digitalization
goal; maintain and develop the information technology
system to support and ensure continuous governance and
business management in all circumstances, contributing
to completion of the goals and business strategies in 2021
and in the upcoming years.
¾¾ Improving digitalization of documents, records and
electronic signatures in e-Office for departments at
the Group.
Sustainability Report 2020
82
83
SUSTAINABLE RELATIONSHIP WITH STAKEHOLDERS
IDENTIFY STAKEHOLDER GROUPS
4
Partners
2 Shareholders, Investors
5
Community
3 Customers
6
Employees, laborers
1
Government and State regulatory agencies
Since its establishment, Petrolimex determinedly links the success of the Group to its sustainable
relationship with stakeholders. The Group uses core brand values (heritage, diversity, development,
and humanity) and Brand personality (optimistic, enthusiastic, responsible and reliable) as principles
in building sustainable relationship between the Group and its stakeholders to ensure long-term
benefits to all stakeholders.
HIGH
Level of influence to Petrolimex
1
5
2
3
6
Stakeholders are those who have influences on or are influenced by Petrolimex’s business activities. Petrolimex identifies
the following types of stakeholders
Government
and State
regulatory
agencies
4
Employees,
laborers
Customers
Partners
LOW
Community
LOW
Sustainability Report 2020
Level of influence from Petrolimex
Shareholders,
Investors
HIGH
84
85
SUSTAINABLE RELATIONSHIP WITH STAKEHOLDERS
(CONTINUED)
APPROACH TO THE ENGAGEMENT OF STAKEHOLDERS
APPROACH TO THE PRINCIPLES OF STAKEHOLDERS
Internal
¾¾ Reliability, enthusiasm, responsibility and optimism are the string linking all individuals
in Petrolimex system
¾¾ Human resources are the valuable resource of the company. Each individual receives
the support to promote creativity, improve personal capability to work toward the
common goals and improve efficiency.
Community
¾¾ Pledge to contribute to the country’s development through economic values;
¾¾ Pledge to contribute to the community through programs promoting development
welfare, and health protection for local communities, and education programs for
young generation.
¾¾ Each employee shall adhere to Petrolimex’s policies while striving to improve the
company’s business performance and its image.
Partners
¾¾ Consistently strive to maintain the image of a reliable and enthusiastic Petrolimex in
the partner’s mind;
¾¾ Comply with negotiation and trading process in the spirit of fair and responsible
treatment in line with ethical principles to suppliers and customers to build up longterm and sustainable relationships.
Laws, government and state regulatory agencies
¾¾ Comply with all legal regulations. Proactively review the implementation of legal
normative documents in firm management, thereby update the internal normative
document system.
¾¾ Strictly and actively implement all policies and guidelines on operation of petroleum
downstream business provided by Government, Ministries and State regulatory
agencies to create consensus in society and protect rights and benefits of consumers.
Sustainability Report 2020
Customers
¾¾ Proactively set the highest standards for the quality of products and services to market,
thereby providing strong commitment that builds customers’ trust in Petrolimex’s
products and services;
¾¾ Pay attention and listen to customers’ demands. Proactively look for solutions to
promptly handle service and product-related problems that customers encounter in
a polite and fair manner to maintain and consolidate their credibility with Petrolimex’s
brand name.
Shareholders, investors
¾¾ Guarantee the best interests of shareholders, preserve and develop the capital
contribution of shareholders as well as maximize the company’s stock value;
¾¾ Provide complete, timely and transparent information about the company’s operation.
Maintain professional auditing programs and commit their quality, integrity, and
transparency.
86
87
SUSTAINABLE RELATIONSHIP WITH STAKEHOLDERS
(CONTINUED)
APPROACH TO THE ENGAGEMENT OF STAKEHOLDERS
(continued)
STAKEHOLDERS’ METHOD OF APPROACH
Stakeholders
Government,
state
regulatory
agencies
Petrolimex’s method of approach
Consultation frequency
¾¾ Actively implementing State new policies and
regulations;
¾¾ Regular, constant
¾¾ Actively participating and expressing ideas at
conferences, seminars and professional working
programs;
¾¾ Regular, Upon request
¾¾ Actively interacting, proactively proposing and
giving ideas to revise and supplement legal
documents;
¾¾ Upon request
¾¾ Attending conferences,
associations.
¾¾ Regular
organizations,
and
¾¾ Meeting and consulting at the online General
Meeting of Shareholders; Discussing with key
shareholders on investment projects;
¾¾ Organizing virtual Roadshows, meetings with
investors;
Shareholders,
¾¾ Consulting, collecting ideas in writing or via website,
investors
emails, social networks, etc.;
¾¾ Issuing Annual Reports, Sustainability Report.
¾¾ Providing products
requirements;
Customers
that
meet
customers’
¾¾ Consulting, collecting ideas, listening to customers
via website, emails, social networks, etc.;
¾¾ Receiving update of information via mass media.
Concerns
Petrolimex’s noticeable actions in 2020
¾¾ Fulfilling all obligations, implementing,
supporting State guidelines and policies;
¾¾ Complying with the provisions of the law;
¾¾ Ensuring the efficiency of production and
business.
¾¾ Ensuring public, transparent and timely
information provision;
Partners
¾¾ Receiving feedbacks via emails, phone, and
documents;
Sustainability Report 2020
¾¾ Proactively reviewing and amending 17 internal
management documents, including core documents in
management, in compliance with the State’s regulations
¾¾ Holding the 2020 Annual General Meetings of Shareholders
in online format;
¾¾ Roadshow and IR activities
¾¾ Ad hoc
¾¾ Stabilizing and improving corporate values
and stock value on the stock exchange;
¾¾ Regular
¾¾ Constantly enhancing corporate governance
competency;
¾¾ 2020 roadmap for dividend payment: the 2020 dividend
rate is expected to be at 12%, which will be approved by
the 2020 General Meeting of Shareholders.
¾¾ Periodical
¾¾ Treating equally, guaranteeing shareholders’
rights.
¾¾ Issuing Annual Report and Sustainability Report for the year
of 2019.
¾¾ Regular
¾¾ Ensuring the quality and transparency of
product information;
¾¾ Regular
¾¾ List of products is diverse in terms of type and
price, meeting demands by each group of
customers;
¾¾ Regular, Ad hoc
¾¾ Constantly innovating and improving service
quality and sales procedures.
¾¾ Increasing interaction and understanding
demands.
¾¾ Negotiating in agenda of direct/online meetings;
¾¾ Coordinating with the Vietnam Directorate of the Market
Surveillance and the Local Directorates of the Market
Surveillance to perform inspections on violation in
petroleum downstream business.
¾¾ Fulfilling obligations of making contributions to the State budget.
¾¾ Ensuring the efficiency of investment capital;
¾¾ Periodical/ad hoc
¾¾ Following all directions of the State regulatory agencies,
proactively giving suggestions on the completion of Decree
83/2014/ND-CP on petroleum downstream business.
¾¾ Regular
¾¾ Regular
¾¾ Organizing 68 virtual meetings and discussions with investors
¾¾ Focusing on the trade of high quality fuels and conducting
research and development of new energy types, which are
environmentally friendly such as LNG
¾¾ Focusing on the research of non-cash payment, and
implementing the non-cash payment in broad scale to
optimize customer experiences and improve customer
care.
¾¾ Regular information provision and communication;
¾¾ Cooperation for development;
¾¾ Practicing
responsible
production.
business
and
¾¾ Sharing the difficulties in the context domestic oil refineries
have continuous technical incidents, the oil prices had
unpredictable movements, and the natural disasters
negatively impacted supply chain.
88
89
SUSTAINABLE RELATIONSHIP WITH STAKEHOLDERS
(CONTINUED)
APPROACH TO THE ENGAGEMENT OF STAKEHOLDERS
(continued)
STAKEHOLDERS’ METHOD OF APPROACH (continued)
Stakeholders
Petrolimex’s method of approach
¾¾ Cooperating with local authorities;
Community
¾¾ Disseminating information and raising awareness of
environmental safety.
Consultation frequency
Concerns
Petrolimex’s noticeable actions in 2020
¾¾ Implementing regulations on environment,
guaranteeing fire control and environmental
safety at petroleum constructions;
¾¾ Keeping production and business together with the
responsibility for environment protection, safety and social
security. In 2020, Petrolimex spent 82 billion VND on social
security activities supporting the construction of charitable
houses, educational and health care facilities, etc.
¾¾ High quality eco-friendly products;
¾¾ Regular
¾¾ Regular
¾¾ Supporting local economic development and
improvement of infrastructure, health care,
education, etc.
¾¾ Supporting the prevention and fighting against the
Covid-19 pandemic with the total amount 14 billion VND;
support for the locals in the flooding areas of the Central
provinces with the total amount 2.7 billion VND.
¾¾ Contributing to the State budget and the
development of localities where member
units of Petrolimex run their operations.
¾¾ Ensuring income, welfare and labor safety;
¾¾ Responding and directly communicating via emails
or phone;
¾¾ Organizing online business meetings.
Employees,
Laborers
¾¾ Working through Trade Union
¾¾ Surveying laborers’ opinions;
¾¾ Regular
¾¾ Periodical
¾¾ Regular
¾¾ Regular
working
¾¾ Civilized
discrimination;
environment,
no
¾¾ Training, enhancing competence, skills of
laborers and granting them opportunities to
improve themselves;
¾¾ Implementing 20% salary cut for managers at the Group
Head office and 15% cut for managers at the member units,
ensuring reasonable incomes for employees and workers.
¾¾ Holding 2020 Laborer Conferences;
¾¾ Organizing Recap programs, Lunar New Year Ceremonies,
etc.
¾¾ Recognizing dedication and contributions
In compliance with the Government’s directions for prevention and
fighting against the Covid-19 pandemic, Petrolimex continues to approach
stakeholders in social distancing and no gathering conditions. Therefore,
all conferences are organized in online format to prevent the Covid-19
while connect with stakeholders.
Sustainability Report 2020
90
91
03
PETROLIMEX AND
13 MATERIAL TOPICS
94 Matrix of material topics
96 Some achievements of sustainable development in 2020
98 Analysis of 13 material topics
100 Society (GRI 400)
124 Environment (GRI 300)
138 Economy (GRI200)
MATRIX OF MATERIAL TOPICS
1
Generally identifying issues with huge
impacts on Petrolimex’s business and
production as well as stakeholders’
concerns.
STEP
2
Shortlisting material topics that
have impacts on Petrolimex and
stakeholders’ concerns.
9
3
6
8
4 1
5
7
6
5
¾¾ Analyzing petroleum market and
industry;
¾¾ Consulting opinions of customers,
partners, shareholders, and investors
to analyze;
¾¾ Consulting opinions of experts and
consulting firms in specific strategic
projects.
¾¾ Selecting material topics of
stakeholders’ concerns and then
collecting
Petrolimex
Leaders’
opinions.
¾¾ Shortlisting material topics based on
the level of rationale and priority.
4
3
2
Impacts on stakeholders’ assessments and decisions
STEP
High
11
8 7
13
10
2
12
9
1
STEP
3
Selecting and analyzing material
topics.
STEP
4
Reviewing,
assessing
approving material topics.
Low
0
1
2
3
4
Sustainability Report 2020
5
6
7
8
9
and
SOCIAL TOPICS
(GRI 400)
Building matrix of material
topics.
High
The importance of Economy, Environment, Society
Collecting stakeholders’ opinions
on material topics included in the
report.
ECONOMIC TOPICS
(GRI 200)
ENVIRONMENTAL
TOPICS (GRI 300)
1
GRI 401: Employment
and Income
6
GRI 201: Economic
performance
2
GRI 402: LaborManagement relation
7
GRI: Application of
science – technology in
corporate governance
3
GRI 403: Occupational
health and safety
8
GRI 202: Market
presence
12
4
GRI 404: Training and
Education
9
GRI 203: Indirect
economic impacts
13
5
GRI 416: Customers
health and safety
10
11
GRI: Natural disaster prevention
GRI 305: Emission
GRI 306: Oil spill control
GRI 308: Supplier
Environmental
Assessment
94
95
SOME ACHIEVEMENTS OF SUSTAINABLE DEVELOPMENT
IN 2020
SOCIAL RESPONSIBILITY
ECONOMIC DEVELOPMENT
Receiving profit and meeting business, production targets in 2020 in the context of
Covid-19 pandemic and extremely difficult economic conditions; contribution to the
State budget exceeds the targets by 5%.
Economic performance
Employment and Income
The company with highest revenue in the Top 50 best listed companies in Vietnam in 4
continuous years.
Education and training complies with the Prime Minister’s regulations and directions
for prevention and fighting the Covid-19 pandemic.
Top 50 best listed companies in Vietnam
Technology application
on governance and
management
Market presence
Implementation of TEAMS (online business meetings and working)
Labor-Management
relation
The nationwide retail network with more than 14,000 petroleum stations in all economic
components, in which there are more than 5,500 petroleum stations (*) belong to
Petrolimex’s distribution system; The presences of the Group’s subsidiaries/member units
in petroleum, transportation, chemicals, jet fuels, insurance, and banking areas are in all
Vietnam’s cities and provinces and some are in foreign countries.
Completion of the design and pilot implementation of the updated Petrolimex brand
recognition in the new and modern stations.
Education and training
14 billion VND of support for prevention and fighting against the Covid-19 pandemic.
Although the Covid-19 pandemic is negatively impacted Petrolimex, in 2020 the
Group flexibly applies the suitable training formats to guarantee safety for learners
in the training programs and follows the directions of updating and advancing
knowledge for employees and workers, including managers, direct and indirect
labors.
2.7 billion VND of support for the people in the Central provinces impacted by the storms
and floods.
All safety measures are applied at petroleum stations for the purposes of safety from
sources to retail selling and minimization of gas emission.
Providing jobs for 25,392 employees and workers (in the Group-wide) across the country.
Contribution to the State budget 38,620 billion VND.
ENVIRONMENTAL PROTECTION
Prevention of natural
disasters
With solid and visionary governance methods, despite of extreme weather conditions,
Petrolimex proactively prepares response solutions, makes use of local resources, and minimizes
impacts of the disasters. Operation regulations, solutions of natural disaster prevention are
developed carefully so that there are no spills and leaks to the environment in the disasters.
Environmental compliance
In 2020, no violation of environmental laws in the entire Petrolimex system occurs, which
helps save costs and reassure Petrolimex social responsibilities.
Waste management
While the total selling output reduces by 5.2% compared to 2019, total indirect CO
emission to the environment in 2020 reduces by 24 thousand tons (the reduction amount
equals 120% of that in 2019), thanks to active provision of green and environmental
friendly products such as DO 0.001S - V and RON 95 – IV.
Oil spill control
In 2020, Petrolimex does not record any remarkable oil spills to the environment.
Sustainability Report 2020
Become the model role in activating the sharing difficulty program: Salary reduction
of manager staffs at the Parent company: reducing 20% in the salary scale; for
manager staffs at the units, reducing 15% in the salary scale.
Employees’ salary are ensured.
(*) Including ~2,700 directly owned petroleum stations (COCO) and franchised/agent petroleum stations.
Indirect economic impacts
Ensure jobs, salary and incomes for 25,392 employees and workers (in the Group-wide)
in the context of the Covid-19 pandemic outbreak at the beginning of the year.
Customer health and safety In the pandemic context, to ensure normal operation of general business and
production activities of Petrolimex and of petroleum stations in particular, the Group
develops the solutions for combining operation and prevention of the pandemic to
ensure safety of staffs and customers at the stations.
Occupational health and
safety
The Group implements various policies for suggesting prevention methods,
occupational safety, labor protection in the working conditions of each employee,
commits to follow all occupational safety standards, and prepares for solving any
possible risky situations.
Facing complicated movements of the Covid-19 and concerning the current risky
working conditions, the Group and its member units implements prevention
methods for employees and workers such as: providing surgical masks, vitamins,
hand sanitizers, support employees and workers in distancing and treatment of
Covid-19, etc.
96
97
ANALYSIS OF 13 MATERIAL TOPICS
00
GRI 4ty
GRI 404
TRAINING AND
EDUCATION
ie
Soc
GRI 401
EMPLOYMENT
AND INCOME
GR
GRI 402
LABORMANAGEMENT
RELATIONS
En
vi
ro
n
GRI 416
CUSTOMER HEALTH
AND SAFETY
m
00
en
GRI 200
t
GRI 403
OCCUPATIONAL
HEALTH AND SAFETY
GRI 308
SUPPLIER
ENVIRONMENTAL
ASSESSMENT
Economy
GRI 305
EMISSION
GRI 306
OIL SPILL
CONTROL
Sustainability Report 2020
I3
GRI
NATURAL DISASTER
PREVENTION
GRI 201
ECONOMIC
PERFORMANCE
GRI 202
MARKET
PRESENCE
GRI 203
INDIRECT
ECONOMIC
IMPACTS
GRI
APPLICATION
OF SCIENCE TECHNOLOGY IN
MANAGEMENT
98
99
GRI 400
SOCIETY
GENERAL MANAGEMENT APPROACH
All data in GRI 400 belong to the Parent company
and 43 member units.
The party with highest responsibilities and resources
¾¾ The party with highest responsibilities in GRI 401, 402, 403, 404, and 416 are the
Board of Management and Board of General Directors.
¾¾ The Communist Party Committee leads, directs and the Unions supervises and
suggests to ensure all requirements were satisfied.
¾¾ The Ho Chi Minh Communist Youth Unions, The Veteran, and The Committee For
Women will counsel and assist the Board of Management and Board of General
Directors in the implementation process.
Issued regulations
¾¾ Regulation on training management.
¾¾ Collective labour agreement.
Objectives of Petrolimex
¾¾ Continue establishing an equal working environment and providing the best
working conditions.
¾¾ Improve Petrolimex’s performance outcomes and service quality.
100
101
GRI 401. EMPLOYMENT AND INCOME
Petrolimex determines that human is the most vital resource that
decides the sustainable development of the Group. Therefore,
Petrolimex always places people as the central in all activities, and
business as the environment for people to maximize their inherent
talents.
Ensuring incomes for employees and workers: Ensuring the rights,
benefits for employees and workers during the Covid-19 pandemic
in the spirit of sharing difficulties; ensure reasonable salaries for
workers who works in production.
Build and train high-performing personnel at work, with
well-defined cultural identities of Petrolimex, together
uphold the leading position of Petrolimex in the home
market, and improve competitiveness in international
market.
In 2020, continuous unfavorable conditions impact all
production and business activities of Petrolimex. Since
the break out of Covid-19 at the beginning of 2020, the
global petroleum downstream business faces difficulties
and losses. In addition, 2020 is the year of continuous and
unusual natural disasters including the storms and floods
in the Central Provinces.
Facing the influences from such disadvantages,
Petrolimex strives to attain the dual-targets: prevention
of the pandemic and continuing operation; ensuring
jobs and incomes for employees and workers; none of
Petrolimex’s employees has lost their job during the
Covid-19 pandemic.
Facing the complicated movements of Covid-19 pandemic
and supporting the workers in dangerous working
conditions, ensuring job and income for employees and
worker are the top priorities of the Group. The Group has
written instructions with the details as follows:
¾¾ Member units develop and implement production
and business plans in line with specific conditions and
arrange work reasonably to provide the best working
conditions for employees and workers.
¾¾ Member units are not allowed to terminate labor
contracts with employees and workers (unless it is
the workers’ wishes to terminate the labor contracts)
because of the Covid-19 pandemic leading to failure to
complete the work or for other reasons.
Ensuring incomes from salary and incomes
similar to salary including: salary, social
insurance, health insurance, unemployment
salary, etc.) for employees and workers
Other regulations: ensuring all rights and
benefits for employees and workers which
are similar to the situation when they are
working.
The unit’s leaders coordinate with the
Executive Committee of the Union for the
employees and workers to thoroughly
understand the spirit of sharing difficulties,
including mental and physical help
for employees (with those in difficult
situations) either when working or
receiving treatment (in the case they are
infected by Covid-19)
For workers in production: in principle,
workers’ salaries are determined by their
output, labor productivity, results, etc.
In the pandemic period, the units must
ensure the workers’ salaries, details as
following:
¾¾ In the cases workers complete more
than 90% of contracted output, labor
productivity, results, their salaries
will be paid according to the unit’s
remuneration regulations.
¾¾ In the cases workers complete less
than 90% contracted output, labor
productivity, results, the units will
determine the salary and provide
supports for workers so that their salaries
are no less than 90% of the entitled salary
or salaries of the preceding month prior
to Covid-19.
Workers’ salary when implementing
alternation between work-at-office and
work from home: salary for work from
home and work at office are not different.
Sustainability Report 2020
102
103
GRI 401. EMPLOYMENT AND INCOME (continued)
OVERVIEW OF HUMAN RESOURCES
On 31st December 2020, total number of employees and workers at Petrolimex is 25,392 people (on 31st December 2019,
the number was 24,009 people). The number of employees in petroleum member units is 18,469 people, increased by
0.9% compared to 2019, in which:
Unit: Person(s)
STRUCTURE
TOTAL
MANAGERS
OTHER EMPLOYEES
Total number of employees
18,469
202
18,267
5,071
0
5,071
12,963
111
12,852
435
91
344
12,606
169
12,437
5,863
33
5,830
413
55
358
7,659
147
7,512
10,397
0
10,397
1,158
0
1,158
990
0
990
Under 30
By age
From 31-55
Over 55
By gender
Male
Female
Post-graduate
By level
University/college graduate
Under college
Employees from new recruitment
Employee reduction in reporting period
70%
2%
28%
PERSONNEL STRUCTURE
BY AGE
32%
68%
PERSONNEL STRUCTURE
BY GENDER
56%
2%
people
(in petroleum member
units)
PERSONNEL STRUCTURE BY
QUALIFICATIONS
Male
Post-graduate
31 - 55
Female
University/college graduate
Sustainability Report 2020
18,469
42%
Under 30
Over 55
Total number of employees
and workers in 2020 is
Under college
104
105
GRI 401. EMPLOYMENT AND INCOME (continued)
GRI 401-1: EMPLOYEE RECRUITMENT AND RESIGNATION AT
PETROLIMEX
Petrolimex holds a policy of recruiting employees that
meets the needs of target group in each division and
member unit in Petrolimex, promoting the initiative of
member units, yet ensuring the consistency across the
Group-wide. Recruitment is strictly controlled based
on actual requirement from task and volume of work,
and that recruited employees fit their jobs should
be guaranteed for the sake of high productivity and
efficiency. In 2020, Petrolimex has 1,158 employees from
new recruitment. Young employees under 30 years old
accounts for 68%, middle-age employees between 31
and 55 years old takes 31%, employees over 55 years old
1%
68%
24%
1%
75%
36%
41%
accounts for 1%, male employees make up 77%, female
employees takes 23%, employees recruited in the North,
the Central, and the South account for 36%, 26%, and
38%, respectively.
In 2020, there is a decrease of 990 employees. In particular:
Employees to retire account for 24%, employees
terminating labour contract account for 75%, employees
rejected account for 1%, male employees account for
79%, female employees account for 21%, the number of
decreased employees in the North, the Central and the
South account for 41%, 23%, and 36% respectively.
TOTAL NUMBER OF EMPLOYEES
FROM NEW RECRUITMENT
TOTAL NUMBER OF
EMPLOYEES LEAVING JOBS
PEOPLE
PEOPLE
1,158
31%
23%
EMPLOYEES FROM NEW
RECRUITMENT BY AGE
Under 30
31 – 55
Over 55
38%
36%
EMPLOYEE RESIGNING BY
REASONS
Terminating labour contract
Retirement
Disciplined and rejected
23%
77%
EMPLOYEES RESIGNING
BY REGIONS
The North
The Central
The South
21%
79%
990
26%
EMPLOYEES FROM NEW
RECRUITMENT BY REGIONS
The North
The Central
The South
Sustainability Report 2020
EMPLOYEES FROM NEW
RECRUITMENT BY GENDER
Male
Female
EMPLOYEES RESIGNING
BY GENDER
Male
Female
106
107
GRI 401. EMPLOYMENT AND INCOME (continued)
GRI 401-2: WELFARE FOR FULL-TIME EMPLOYEES
Human is one of the key factors for Petrolimex’s business success. Therefore, Petrolimex has
always attached importance to regimes and policies in favor of employees.
SALARY AND REWARD POLICIES
In 2020, Petrolimex has certain adjustments in
remuneration policies to match with the business
activities in the context of Covid-19, the state’s
regulations and to ensure income stability for employees
and workers. Details of remuneration policies as follows:
¾¾ Ensuring compensation and benefits for employees
in the time of Covid-19 pandemic in the spirit of
solidarity and sharing.
¾¾ Supporting the cases affected with corona virus in
need of treatment or quarantine, self-monitoring
at home or illness treatment at home; ensuring
appropriate salary for employees: Income from salaries
and from those with salary nature (including salary,
social insurance, health insurance, unemployment
insurance, etc.) is not lower than position salary. Other
benefits are guaranteed as they are at work.
¾¾ For employees: In principle, employee salary is paid
based on contracted output, labor productivity,
performance results, etc. However, during the time
of Covid-19 pandemic, the employees may fulfill
lower than 90% of their contracted output, labor
productivity, performance results, etc., but they still
REGIME OF LABOR CONTRACT AND INSURANCE
Petrolimex fully implements regimes policies for
employees in accordance with regulations. 100% of
employees are required to sign labor contracts according
to the laws. In addition, Petrolimex also always complies
with insurance policies required by the laws, namely:
Social insurance, health insurance, unemployment
insurance, occupational accident insurance, pension,
maternity allowance, etc.
enjoy the income not lower than 90% of their position
salary or their actual income of the month immediately
preceding the month starting pandemic.
¾¾ The salaries paid for employees working at office and
working from home are the same.
¾¾ Managers should uphold the exemplary spirit in all
activities of the Group and member units, especially in
the pandemic prevention and be an exemplar in the
spirit of sharing: Reducing salary by 20% (applied to the
managers under Parent company – the Group) and by
15% (applied to the managers under member units) of
position salary as per salary scales.
¾¾ Taking sick leave and maternity leave: Petrolimex
fully and promptly complies with social insurance
regulations. Petrolimex employees are also facilitated
to rest and recuperate upon the conditions of each
unit.
OTHER WELFARE
Petrolimex’s officers and employees are entitled to other
regimes from Welfare fund and specific provisions of the
Collective Labor Agreement. Besides, Petrolimex also
deducts 1 month’s salary (as regulated by Government)
for expenditure items such as health care insurance,
holiday, travel fee support on occasions of new year, Tet
holiday, etc. for employees. Level and content of expenses
depend on the actual conditions of the member units
as specified in the collective labor agreement of each
member unit.
(See more details about employees’ welfare in GRI 402)
GRI 401-3: MATERNITY LEAVE
The total number of employees taking maternity leave in 2020 was 510
persons, including 418 females, taking 2.3% of all employees, and 92
males whose wives are in pregnancy. Total number of employees back
to work after maternity leave was 365 people, including 273 females and
92 males (the remained number of employees taking maternity leave
will come back to work next year).
Petrolimex ensures that employees, after maternity leave, are provided
with jobs as prescribed by law on labor.
Sustainability Report 2020
108
109
GRI 402. EMPLOYEE - MANAGER RELATIONS
Parent company - the Group and its member units have
strictly complied with the directions of State authorities
and actively carried out solutions to prevent and control
Covid-19 pandemic in association with building a flexible
and effective working plan, thereby ensuring safety
for employees and customers as well as ensuring the
continuity of business.
In 2020, information technology continued to be invested
and was an effective tool to support the synchronous
management and administration in the entire system.
Strengthening IT application in management and
administration activities of the Group: Maximizing
efficiency of information resources, take advantage of
ERP_SAP, EGAS facilities to synthesize information, analyze
data serving management and administration.
During the year, the Group has completed IT
development strategic project. The digital transformation
was implemented step by step, to be specific: Stably
operating online meeting system - TEAMS between
the Group and 43 member units; promoting online
conferences and training; successfully organizing online
General Meeting of Shareholders. This not only helped
to save time and costs but also supported management
and administration activities in the complicated situation
of Covid-19 pandemic. In addition, a series of applications
were expanded and supplemented such as: Module
of land resource management, loss management
and fixed asset management on ERP_SAP; Module for
digitizing records and documents on E-Office. Managers
should uphold the exemplary spirit in all activities of the
Group and member units, especially in the pandemic
prevention and be an exemplar in the spirit of sharing:
Reducing salary by 20% (applied to the managers under
Parent company – the Group) and by 15% (applied to the
managers under member units) of position salary as per
salary scales.
EMPLOYEE
CONFERENCE
Annually, member units hold Employee Conference to summarize recommendations
from employees. These recommendations are addressed adequately with a view
to consolidating the harmonious, stable and progressive relations in the corporate
between employees and employers. At the same time, the Conference is also intended
for building and implementing democratic regulations at workplace, rules, collective
labor agreement, emulation and commendation, discipline, labor protection, salary
increase, salary level raise, etc.
Employee Conference is a truly democratic activity where mutual dialogues on
formulating targets of business, income, working condition improvement and living
standard improvement take place. Through which the democratic rights of employees
are promoted, eligible needs of employees are addressed satisfactorily, employees
show their comfort in working and their attachment to the company.
COLLECTIVE LABOUR
AGREEMENT
100% member units of the Group develop and sign collective labor agreement
according to provisions of the Law on labor, and register with local regulatory
authorities prior to implementation. Collective labor agreement’s content is suggested
to be developed toward greater favor for employees.
Example: for the parent company- the Group: On 6th March 2020, the parent company the Group signed collective labor agreement. Accordingly, agreed contents in collective
labor agreement provide greater benefits to employees compared to those in the Labor
Code, particularly:
The minimum salary paid to employees is at least 15% higher than the region-specific
base salary regulated by the State;
Allowance for employees:
Employees take sick leave, maternity leave according
to the State’s regimes: In addition to Social insurance
regime according to applicable regulations of the State,
employees also receive two months’ base salary for each
month of their sick/maternity leave; employees with
long-lasting sickness receive two months’ base salary for
each month of sickness, but not over 12 months.
Employees entitled to retirement regime: Receive three
months’ salary with the applicable salary amount prior to
retirement.
In addition to required insurance regimes according to
applicable regulations of the State, depending on the
total funding, General Director executes sponsoring
“Health care insurance” for employees.
Annually, General Director bases on the Group’s business
performance to create conditions and offer expenditure
support from the Group’s welfare source to employees for
vacations, travel fee on public holidays, Tet holiday.
Sustainability Report 2020
The Group’s medical department will provide sick
employees with all favorable conditions for paperwork
and transportation (if possible) for medical examination
and treatment at the hospital registered in the Health
insurance card.
Allowance for early retirement: For employees who
haven’t reached the age for retirement but have paid
social insurance premiums sufficiently for retirement, if
their health or capacity does not meet the requirements
of their assigned jobs, or they wish to retire early, they will
receive benefits according to the applicable regulations
of each period.
In addition, the General Director and the Trade Union
Executive Committee of the Group deduct expenditure
from the Welfare Fund in line with the actual capability to
offer remuneration to employees and perform a number
of social policies that encourage either existing or retired
employees of the Group: Gifts on New Year holidays,
gifts for children of the Group’s employees that excel in
learning, cases of sickness. (For details of expenditure
items, please see GRI 201).
110
111
GRI 403. OCCUPATIONAL HEALTH AND SAFETY
Given the increasingly complicated and unpredictable developments of the Covid-19 pandemic, to help employees
feel safe when working in the current high-risk conditions, the Group and its member units have equipped and
applied a lot of pandemic prevention measures such as: Providing face masks, vitamins, hand sanitizer, disinfectant
spray, etc. as well as supporting employees in quarantine or treatment if they are affected with Covid-19.
Every year, member units must prepare an occupational safety and health plan with the contents specified in
the Occupational Safety and Health Regulation, including:
Technical measures for labor safety, fire and oil spill
prevention and control (if any).
Technical measures for occupational hygiene, prevention
against harmful factors and improvement of working
conditions (installation of ventilation systems, dust
collection systems, lighting, noise-proof partitions, antivibration, occupational environment test, etc.);
Equip and provide personal protective equipment to
employees;
Take care of employees’ health;
Provide information, educate and train on occupational
safety and health.
LABOR SAFETY AND HEALTH POLICIES
As petroleum downstream business is associated with
highly risky commodities, Petrolimex’s leaders, member
units’ leaders, Vietnam Petroleum Union and grassroots
trade unions have identified: The loss of safety due to any
negligence in production and business would result in a
catastrophic disaster that affects human health and life,
property, security, and community’s environment, etc.
Therefore, the Group has implemented many policies to
provide prevention methods and ensure labour safety
and safety for each employee’s working conditions,
committed to comply with the labor safety standards
and prepare for addressing potential risks.
The Group manages occupational safety and health
work by the Occupational safety and hygiene regulation
annexed to Regulation No. 035 / PLX-QD-HĐQT dated
11th January 2017. Accordingly, each member unit assigns
a full-time/part-time officer in charge of occupational
safety and health tasks, establish a council/ steering
panel for occupational safety and health including a
representative of the employer; a representative of the
Trade Union Executive Committee; occupational safety
and health officers, health officers at production and
business establishments.
Occupational safety and health plans must be developed
from production teams, departments upward; at the
same time, ideas and comments from the grassroots
trade union executive committee must be collected and
announced so that everyone can contribute their ideas.
At the Group level, the Labor Safety and Hygiene
Department is responsible for monitoring and managing
labor safety and hygiene activities at establishments and
member units across the whole sector. Make plans and
organize training for trainers of occupational safety and
health work as prescribed.
In 2020 the team of trainers certified by the Group
gave training to totally 12,827 people under 06
groups subject to training in occupational safety and
hygiene, issued certificates for 2,915 people, granted
safety cards for 8,182 people and opened training
records for 1,730 people.
DEPARTMENTS IN CHARGE OF OCCUPATIONAL SAFETY AND HEALTH
At the member units, full-time staff or part-time staff are
appointed to be in charge of occupational safety and
health issues (OSH), or OSH department is established to
meet the following minimum requirements:
¾¾ Business unit having under 300 employees needs at
least 01 part-time staff in OSH.
¾¾ Business unit having from 300 employees to under
1,000 employees needs at least 01 staff fully in charge
of OSH.
¾¾ Business unit having from 1,000 employees and above
needs to establish OSH department/unit or arrange at
least 2 persons fully in charge of OSH.
At the parent company- the Group: Occupational safety
and health at the Group are directly guided by 01 Deputy
General Director. The Engineering, Technology and Safety
Department functions of advising the General Director to
direct, manage and govern labor safety.
At Petrolimex, 100% of member units provide in-kind
allowances for employees doing jobs on the list of heavy
and hazardous occupations.
For occupational diseases: Petrolimex conducts annual
health check-ups for 100% of employees to promptly
detect and treat health problems (if any) to ensure
employees’ health. In addition to health insurance
under the labour law, employees are also entitled
to comprehensive health care insurance, accident
insurance, etc.
At Petrolimex, 100% of member units provide in-kind
allowances for employees doing jobs on the list of heavy
and hazardous occupations. For cases of occupational
accidents, Petrolimex will pay compensation in
accordance with the labor Law based on the injury
rate; Trade unions and Youth Union will organize visits,
encourage and call for support from the whole Group for
extremely disadvantaged cases.
Petrolimex provides medical examination for 100% of
direct employees.
Sustainability Report 2020
112
113
GRI 403. OCCUPATIONAL HEALTH AND SAFETY (continued)
INDICATORS OF OCCUPATIONAL ACCIDENTS AND DISEASES
OCCUPATIONAL
ACCIDENT
Unit
Total number of
occupational accidents
Case(s)
In which, number of
cases with fatality
Case(s)
2016
7
4
3 cases of traffic
accidents and 1
case of sudden
death on vessel
Causes for fatal
occupational accidents
2017
5
2018
1
2019
9
1
1
1
Traffic
accident
Gasoline
salesperson
Traffic
was stabbed
accident
to death by a
masked culprit
2020
OCCUPATIONAL DISEASE(S)
Unit
2016
2017
2018
2019
2020
11
Accumulated number of people with
occupational disease(s) as of the report time
Person(s)
64
99
0
0
0
0
In which, the number of people newly
diagnosed with occupational disease(s)
Person(s)
40
19
0
0
0
The number of day-off due to occupational
disease
Day(s)
255
0
0
0
People taking early retirement due to
occupational disease(s)
Person(s)
0
0
0
Total arising expense for people with
occupational diseases in the year
Million VND
144
76
0
0
0
The number of employees whose current
duties or working environment have high risks
of specific diseases
Person(s)
0
0
0
0
0
11
03 people due to
violation against
labor regulations
Number of victims in
occupational accidents
Person(s) 8
6
1
3
02 people of
accidents due to
vehicle crashes
while working at
petroleum stations
06 people of traffic
accidents during
working hours
In which, death toll by
occupational accidents
Person(s) 5
1
Causes for fatal
occupational accidents
4 people of traffic
accidents and 1
Traffic
person of sudden accident
death on vessel
Total expense for
occupational accidents
(first aid, treatment,
Million
salary payment for
VND
days-off, compensation,
allowance, etc.)
129
Asset losses (by money)
Million
VND
Day-off due to
occupational accidents
Day(s)
Sustainability Report 2020
1
1
0
Gasoline
salesperson
Traffic
was stabbed
accident
to death by a
masked culprit
422
According to actual data
of each member unit
133
525
114
115
GRI 404. TRAINING AND EDUCATION
Considering employees as the most important factor
for development, the Group has a clear guideline
on improving qualification of employees, including
managers, senior engineers and other employees. This
helps enhancing and raising the Group’s performance
on a basis of technology development and procedure
optimization. Annually, the Group directs member units
to examine and make statistics on the current status of
cultural background and working skills of Youth Union
members and employees; needs of training, retraining,
upgrading operational qualifications, management
capability, political reasoning, foreign languages,
computer skills, and workmanship. Accordingly, courses
of upgrading qualifications and skills for Youth Union
members and employees are planned.
The Group organizes training activities and encourages
participation, including internal and external training
courses for the sake of qualification improvement, working
efficiency enhancement, and career development for
employees.
GRI 404-1: Average number of training hours per year per employee in 2020
TT
INDICATOR
OUTCOME
1
Total number of training hours
684,900 hours
2
Average number of training hours/employee
37.55 hours
3
Average number of training hours for female employees
38.85 hours
4
Average number of training hours for male employees
36.94 hours
5
Total number of training participations
31,729 participations
6
Total number of training participations of managers
6,490 participations
7
Average number of training hours for managers
112.48 hours
8
Training expense
33,870 million VND
GRI 404-2: Programs for upgrading employee skills
Petrolimex determines that human is the most vital
resource that decides the sustainable development
of a corporate. Therefore, in order to improve human
resource quality, the Parent Company and member units
all develop their plans and organize training, re-training,
and fostering activities that help employees upgrade their
professional qualifications, management capabilities,
foreign languages, political reasoning, computer skills,
and workmanship. In parallel with training to improve
employees’ skills in general, Petrolimex also focuses
on building and training staffs in key areas with great
impacts on Petrolimex’s business performance such as:
Training program for the managers of petroleum stations,
etc.; building, training, and fostering professional working
style, friendly attitude, polite communication for the sales
staff at the petroleum stations. This helps enhancing and
raising the Group’s performance on a basis of technology
development, procedure optimization, and service
quality enhancement.
Performance in 2020: Despite being affected by Covid-19 pandemic, in 2020 the Group flexibly
applied appropriate training forms, ensuring absolute safety for trainees during the training process
and had a clear policy in updating and improving qualifications of employees, including managers,
indirect and direct labors.
TRAINING COURSES
485
166
1,781
35
Trainees participated in training programs for Petrolimex’s
managers of petroleum stations.
Trainees participated in training programs for middle-level
managers.
Trainees participated in training programs on Corporate
governance of information technology system.
Trainees participated in training program for Master of Business
Administration (Andrews MBA) organized by Andrews University
(USA) in Vietnam.
Organized 15 courses under the Training Program
for Petrolimex’s managers of petroleum stations with
485 trainees who are managers of petroleum stations,
specialized stores and general business stores at the
Group’s member units. The purposes of the Program
are providing leadership thinking and improving
management capacity for managers of petroleum
stations in line with the Group’s development orientation
and the society’s requirements; supplementing
necessary knowledge and skills for managers of
petroleum stations to meet the requirements of the
Group and its member units in organizing and managing
the petroleum stations as well as the needs of the
reality; creating favorable conditions for the managers
of petroleum stations to share their knowledge, skills
and experience in organizing, managing and operating
the petroleum stations in different actual situations and
building the solidarity among Petrolimex’s managers of
petroleum stations; accelerating and encouraging these
managers to have more engagement and higher sense
of responsibility to their work, contributing to the Group’s
development.
Organized 5 courses under the Training Program for
middle-level managers with 166 trainees who are the
middle-level managers of the Group’s member units.
The purposes of the Program are helping the middlelevel managers of Petrolimex be aware of their roles and
Sustainability Report 2020
responsibilities in creating values for the Group, thereby
determining necessary knowledge, skills and capabilities
to become a professional middle-level manager;
providing necessary knowledge and skills to the middlelevel managers for their improvement of leadership
and management skills, meeting the requirements of
the Group and the needs of the reality; encouraging
the middle-level managers to share their knowledge,
skills and experience in organization, management and
operation in different environments and building the
solidarity among the Group’s middle-level managers.
Organized the first course of the training program for Master
of Business Administration (Andrews MBA) which was coorganized by Andrews University in Vietnam and National
Economics University with 35 trainees. The purposes of the
Program are providing knowledge and improving the skill of
critical thinking, methods and skills of leading, management
and governance as well as improving English skills for
management team and succession team of the Group and
its member units to meet the requirements in the current
period of extensive international economic integration and
in the coming time.
Organized 8 Corporate governance of Information
Technology Training Programs with the participation of
nearly 1,781 trainees who are IT staffs and operators of IT
systems in the Group and its member units.
116
117
GRI 404. TRAINING AND EDUCATION (continued)
GRI 404-3: PERIODIC ASSESSMENT OF WORK PERFORMANCE
Based on the actual status and management requirement of each member unit, employees are
evaluated in terms of suitability for the work nature and governance requirements of the member unit
on a monthly, quarterly, biannual, annual basis depending on each division. For employees and laborers
who are Communist Party members, apart from the above procedures, they are also subject to the
Communist Party’s assessment procedures. The method of reviewing follows the Group’s Regulation on
Emulation and Commendation.
Reviewing employees’ performance is presented in the statistics of the Parent Company - Group in 2020 as follows.
Quantity
Object
Principle for selection (summary)
Outstanding
Labor
Collective
88
Group-wide
member units and
Parent Company’s
Departments
Progressive
Labor
Collective
7
Parent Company’s On the occasion of the member unit yearly performance
Departments
wrap-up, deliver annual reviews and rewards to collectives
qualified for the following criteria:
Quantity
Select typical collectives among the advanced and
creative labor collectives that overcome difficulties and
overperform planned targets with 100% individuals
fulfilling their assigned tasks.
¾¾ Successfully complete assigned tasks and plans.
Object
Unit-level
Model
Employee
44
Parent Company’s
employees (15% of
Parent Company’s
employees)
Among progressive employees, select individuals
that have initiatives and solutions to boosting work
performance. The number of unit-level model
employees does not exceed 15% of the total number
of progressive employees.
Progressive
employees
175
Parent Company’s
employees (79%)
Annual awards are delivered to individuals who are
qualified for the following criteria:
¾¾ Successfully fulfill their assigned duties with high
productivity and quality;
¾¾ Organize and uphold robust and efficient regular
emulation movements.
¾¾ Over 50% of individuals in the collective are awarded
with the title of “Progressive Labor” and no individual is
disciplined by warning or higher levels of punishment.
Collectives
¾¾ Properly observe guidelines and policies of the
Communist Party, the State laws, as well as policies,
regulations and rules of the Group, member
units and local authorities; hold a spirit of selfreliance, solidarity, mutual assistance; participate in
emulation movements in an active manner;
Individuals
¾¾ Exercise internal solidarity, adequately observe
guidelines and policies of the Communist Party and
the State laws.
¾¾ Actively study politics,
qualifications and skills;
¾¾ A newly established member unit must be in operation
for at least 1 year (12 months).
Certificate of
Merit from the
Group
321
Group-wide
Collectives successfully fulfilling their assigned duties.
collectives member units and
Parent Company’s Exercise internal solidarity, properly practice grassroots
democracy regulations, properly organize emulation
Departments
movements.
Take care of material and spiritual life of employees in the
collective; promote frugality.
Principle for selection (summary)
culture,
professional
¾¾ Lead a decent and healthy lifestyle.
¾¾ Work at least 10 months in the year
Certificate of
Merit from the
Group
1,083
Group-wide
employees (~ 5% of
employees of the
Group)
Individuals who successfully fulfill the tasks assigned by
their unit and adequately perform citizen’s obligations.
The number of Certificate of Merit from the Group does
not exceed 5% the number of employees in the unit.
The quantity does not exceed 5% of the total number
collectives in the unit
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118
119
GRI 416: CUSTOMER HEALTH AND SAFETY
Petrolimex is always aware that
safety is the first and most important
task in production and business,
including safety for customers and
employees of Petrolimex.
All safety measures which are applied at the Group’s petroleum entities aim to ensure safety for Petrolimex’s employees
and customers from source to sale, to be specific:
¾¾ Petrolimex strictly complies with the State’s regulations on product quality standards and has issued its own
Regulations on product quality standards with a higher level than Vietnam’s standards on technical requirements
for current petroleum products to ensure methodical management in receipt, storage, transportation, etc., applying
technology in receipt – dispatch, storage and transportation to minimize the evaporation of petroleum vapors
into the environment, minimize the evaporation of petroleum, thereby minimizing the impact on those directly
contacting with petroleum and customers.
¾¾ For petroleum stations where customers daily come to buy gasoline, Petrolimex always pay high attention to
implement solutions to ensure highest safety, to be specific:
In addition to the promulgated Regulations on Fire Prevention and Fighting, in 2020,
Petrolimex issued Fire Safety Manual to give guidance for fire prevention and fighting
and rescue applied to petroleum station, LPG stores; Regulations on oil spill response at
petroleum stations to ensure fire safety, respond to oil spills at petroleum stations and
ensure safety for customers buying gasoline at petroleum stations.
In 2020, given the situation of increasingly complicated developments of the Covid-19
pandemic, in order to ensure stable production and business of Petrolimex in general and
petroleum stations in particular, Petrolimex has developed a working organization plan in
combination with pandemic prevention to ensure safety for employees and customers at
the petroleum stations, to be specific:
¾¾ All employees make medical declaration, especially those who have travelled to pandemic
areas or have had close/distant contact with the affected people to be monitored and
tested in accordance with regulations to ensure safety for their families, community and
society. All employees were also encouraged to install Bluezone application.
¾¾ Thoroughly handled the strict implementation of Face mask, Disinfection, Distance, No
gathering, Medical declaration in pandemic prevention as instructed by the Ministry
of Health.
¾¾ At the petroleum stations, all employees on duty have to wear face masks, gloves
and protective glasses. Hand washing areas with disinfectant liquid/soapy water were
arranged at the petroleum stations and all employees, customers or partners were
required to wash their hands before coming into the stores and wear face masks during
the transactions.
¾¾ Regularly disinfected sales area and other necessary areas at the stations; regularly
disinfect gasoline pump handles. The petroleum stations also arranged staff to be in
charge of checking temperature of employees every morning and of customers having
transaction at the station’s office.
Sustainability Report 2020
120
121
GRI 416: CUSTOMER HEALTH AND SAFETY (continued)
As a result, there was no case of employees affected with Covid-19 at
Petrolimex’s petroleum stations in 2020; 100% of petroleum stations
kept their stable operation; and there was no customer suffering
impact of Covid-19 from the Petrolimex’s petroleum stations.
All safety measures are applied by Petrolimex at the Group’s petroleum
facilities to ensure safety for employees and customers from source to sale.
GRI 300
ENVIRONMENT
GENERAL MANAGEMENT APPROACH
STATE
1. Law on Fire Prevention and Fighting;
2. Law on Environmental Protection;
3. Law on Occupational Safety and Health;
4. Law on Natural Disaster Prevention and Control;
5. Legal documents under the Laws
Information and figures in GRI 300 are applied to
the Group (including Parent Company, petroleum
member unit and joint stock unit).
10 CORPORATIONS/ TWOMEMBER LIMITED LIABILITY
COMPANIES
Regulations and rules of companies/
corporations
PARENT COMPANY –
THE GROUP
Policies, Regulations and Rules
43 ONE-MEMBER
LIMITED LIABILITY
COMPANIES
Policies, regulations, rules,
procedures, safety rules,
Technical exploitation, and
Instruction documents
Branches, General
terminals, Terminals,
Jetties, Pipelines,
Petroleum stations
Implemented
2 CORPORATIONS/
ONE-MEMBER LIMITED
LIABILITY COMPANIES
Policies, regulations,
rules, procedures, internal
regulations, Technical
exploitation, the Corporations
instruct to apply management
documents of the Group.
Refineries/Charging
stations, Lubricant,
chemicals, asphalt, LPG
and aviation fuel terminals
Means of transportation
Implemented
JOINT STOCK COMPANIES
Applying internal management
documents of the Group; Releasing
procedures, safety regulations,
Technical exploitation, and
Instruction documents.
Ships, tanker trucks
Implemented
Sustainability Report 2020
124
125
GENERAL MANAGEMENT APPROACH (continued)
Notes
Regulations
on risk
management
Regulations
on fire
prevention
and fighting
Based on the applicable laws, the prevailing standards on fire prevention and
fighting, environmental protection, occupational safety and health, natural
disaster prevention and control, search and rescue and the requirements
in management activities, the Group has developed a management
document, including:
Regulations
on environmental
protection
Directing and instructing member units to implement
according to laws, standards and regulations on OHSE;
implementing enhanced safety measures on holidays,
New Year Eve, rainy season and dry season with high risks
of unsafety.
The subjects directing to implement the Group’s
regulations:
¾¾ The Group directs the representatives of its contributed
capital at corporations/companies to implement the
Group’s regulations.
Sustainability Report 2020
Regulations
on
occupational
safety and
health
Regulations on
natural disaster
prevention and
control, search
and rescue
Directing and instructing member units to
implement according to laws, standards and
regulations on OHSE; implementing enhanced
safety measures on holidays, New Year Eve, rainy
season and dry season with high risks of unsafety.
¾¾ Each corporation/limited liability companies is an
independent legal personality to be responsible to the
law and the Group for safety work.
¾¾ For one-member corporations/limited liability
companies of which 100% of charter capital owned by
the Group, currently either applying the Group’s safety
regulations or promulgating their own regulations
in conformity with their management and operation
characteristics.
¾¾ For corporations/limited liability companies with two
members or above, referring to the Group’s safety
regulations or promulgating their own regulations
in conformity with their management and operation
characteristics.
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127
GRI: NATURAL DISASTER PREVENTION AND CONTROL
Management
approach
¾¾ Technology - Safety Department sets up an online group via mobile communication
software with the participation of all Heads of the member units’ Steering
Committees to regularly monitor and update the disaster prevention and control
status, inspect and supervise the implementation, and quickly deal with the
consequences to ensure safety for employees and petroleum works, minimizing
business interruption.
Regulations on natural disaster prevention and control, search and rescue according
to Decision No.661/PLX-QĐ-TGĐ dated 12th November 2018 (effective from 01st
December 2018).
¾¾ The plan of natural disaster prevention and control, search and secure of each
unit before rainy season is reviewed and updated. Each employee at the unit is
assigned with specific duties, including checking and cleaning the system, tankers,
lightning protection system, anti-static electricity, drainage system, equipment
and machinery, etc. as well as fully preparing equipment and materials to serve
the natural disaster prevention and control, search and secure with right types and
quantity as described in the plan.
Decision No.443/PLX-QĐ-TGĐ dated 31st July 2019 on consolidating the Steering
Committee for natural disaster prevention and control, search and rescue of Vietnam
National Petroleum Group.
The units make their own natural disaster prevention plan and submit to the Group
annually, including the costs for purchasing natural disaster/flood prevention
equipment and commodity reserve plan in combination with the Department of
Industry and Trade according to the regulations of the Central Steering Committee for
Natural Disaster Prevention and Control.
HEAD OF THE STEERING
COMMITTEE - DEPUTY
GENERAL DIRECTOR
Standing Deputy Head of the
Steering Committee: Deputy
Head of Technology – Safety
Department
Members: Leaders of the
Departments i.e., Finance and
Accounting, Retail Business,
Petroleum Engineering,
Admin Office
Secretary: Staff of
Technology – Safety
Department
Situation of natural
disaster prevention
and control, search
and rescue at the
Group in 2020
2020 was a year with extreme and abnormal weather in Vietnam as consequences
of La Nina impact according to the meteorological and hydrological forecast.
Vietnam is considered as one of the countries most affected by climate change. With
methodical and visionary management approaches, Petrolimex actively overcame,
had solutions to overcome, and exploited local resources, thereby minimizing losses
and damages caused by storms and floods. In addition, the operating regulations and
natural disaster prevention plans were well prepared to prevent oil spills or leaks due
to natural disasters.
The Group is also aware that the extreme weather phenomena such as storms, floods,
etc. and other natural disasters will occur more frequently; therefore, the Group has
built effective response plans in both short term and long term.
At the units: Steering
Committee and Vanguard for
natural disaster prevention
and control, search and rescue
In 2020, Petrolimex released official letter No.0540/PLX-CNAT dated 29th April 2020
on the enhancement of natural disaster prevention activities in 2020 - key contents
needed to be implemented before, during and after the rains, storms and floods.
¾¾ Each member unit has to make its own natural disaster prevention plan. Technology
- Safety Department is the focal point for monitoring the progress of weather and
natural disasters and issuing urgent telegrams to instruct the member units in
disaster response.
Sustainability Report 2020
Details of natural disaster prevention and control, search and rescue in 2020 are as follows:
In 2020, 08 urgent telegrams were released to give the instructions to cope with:
¾¾ Storms No.1 and No.3, entering the East Sea then transferring to China; Storm
No.2, weakening into a tropical depression before entering Vietnam so not causing
remarkable effects to Vietnam;
¾¾ Storm No.4: Urgent telegram No.1147/CĐ-PCTT dated 18th August 2020;
¾¾ Storm No.5: Urgent telegram No.1287/CĐ-PCTT dated 16th September 2020;
¾¾ Storm No.7: Urgent telegram No.1415/CĐ-PCTT dated 13th October 2020;
¾¾ Storm No.8: Urgent telegram No.1461/CĐ-PCTT dated 22nd October 2020;
¾¾ Storm No.9: Urgent telegram No.1481/CĐ-PCTT dated 26th October 2020;
¾¾ Storm No.10: Urgent telegram No.1517/CĐ-PCTT dated 02nd November 2020;
¾¾ Storm No.12: Urgent telegram No.1549/CĐ-PCTT dated 09th November 2020.
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129
GRI: NATURAL DISASTER PREVENTION AND CONTROL (continued)
In October 2020, the Central Region of Vietnam suffered 04 storms, 01 lowpressure area and 01 tropical depression impacting the mainland, and 02
historic heavy rains, occurring from the 6th to the 13th of October and from
the 16th to the 23rd of October. Consequently, Petrolimex’s units in Central
Vietnam including Ha Tinh, Quang Binh, Quang Tri, Thua Thien – Hue, Da
Nang, Quang Ngai, Binh Dinh and Phu Khanh were flooded due to heavy
rain, leading to business interruption and asset losses, to be specific:
1st time: From the 6th to the 13th of October 2020
No.
Member units
Number of flooded and interrupted member units
1
Petrolimex
Thua Thien Hue
07 petroleum stations and Ngu Binh Petroleum
Terminal were flooded, affecting sales and shipment;
166,000,000
2
Petrolimex Da Nang
10 petroleum stations were flooded or could not
receive petroleum, affecting sales;
310,000,000
3
Petrolimex Quang Tri
04 petroleum stations were flooded, affecting sales;
Total losses
Estimated losses (VND)
21,000,000
497,000,000
2nd time: From the 16th to the 23rd of October 2020
No.
Member units
Number of flooded and interrupted member units
Petrolimex
Quang Binh
20 petroleum stations and Song Gianh Terminal were
flooded, affecting facilities, sales and good dispatch;
2
Petrolimex Quang Tri
09 petroleum stations were flooded, affecting facilities
and sales;
21,000,000
3
Petrolimex Ha Tinh
11 petroleum stations were flooded, affecting facilities
and sales;
603,900,000
4
PTS Nghe Tinh
05 petroleum stations were flooded, affecting facilities
and sales;
85,400,000
1
Total losses
Sustainability Report 2020
Estimated losses (VND)
1,602,000,000
2,312,300,000
3rd time: Storm No.9 occurring from the 26th to the 29th of October 2020
Petrolimex Da Nang: No human loss, minor damage to
property, not affecting production and business activities.
Petrolimex Quang Ngai: Quang Ngai province was the
center of Storm No.09 in 2020. Although there was no
human loss, the whole power grid in the area was cut
off from 3 to 10 days; the petroleum stations had to use
generators to maintain business activities. 01 petroleum
station was flooded in one meter of water. Asset losses
were estimated totally 900 million VND, including damages
of ceiling, roof lighting, signboard on roof top, etc.
Petrolimex Binh Dinh: Petroleum stations maintained
normal operation in spite of power cut-off in some areas
and using generators. No human loss and damage of
signboards were recorded.
Effects of storms and floods on the lives and families of employees
Through the figures and reports from Grassroots Trade Unions to Petrolimex’s Trade Union, as of 30th October
2020, the losses and damages caused by storms and floods to the lives and families of employees of Petrolimex
are as follows:
No.
Member units
Number of affected families
Estimated losses (VND)
1
Petrolimex Ha Tinh
67
1,608,700,000
2
Petrolimex Quang Binh
78
4,873,000,000
3
Petrolimex Quang Tri
66
1,233,300,000
4
Petrolimex Thua Thien – Hue
58
841,050,000
5
Petrolimex Da Nang
17
276,800,000
Total estimated losses
286
8,832,850,000
¾¾ Petrolimex Ha Tinh: 33 households were flooded from 1 to 2 meters of water and 28 households were flooded under
1 meter of water. Asset losses were estimated as 1.6 billion VND.
¾¾ Petrolimex Quang Binh: 18 households were flooded under 1 meter of water; 77 households were flooded from 1 to 2
meters of water and 47 households were flooded over 2 meters of water. Asset losses were estimated as 4.5 billion VND.
¾¾ Petrolimex Quang Tri: 36 households were flooded under 1 meter of water; 58 households were flooded from 1 to 2
meters of water and 5 households were flooded over 2 meters of water.
¾¾ Petrolimex Thua Thien - Hue: 10 households were flooded under 1 meter of water; 8 households were flooded from
1 to 2 meters of water and 5 households were flooded over 2 meters of water.
130
131
GRI 305: EMISSIONS
PETROLIMEX’S SOLUTIONS TO REDUCING
DIRECT GREENHOUSE GAS EMISSIONS
¾¾ Facilities maintenance solutions include a series of implementation and inspection regulations and procedures to
prevent gas and liquid leaks (spill prevention).
¾¾ Major business product of Petrolimex is fuel - indirect cause of greenhouse gas emissions. Besides the law on
petroleum business, Petrolimex actively chooses high quality products i.e., RON 95 - Euro IV standard and DO 0.001S
- Euro V standard. Choosing these products for business requires Petrolimex to invest and upgrade its facilities such
as containers, quality management, information promotion, etc. With choosing these products, Petrolimex has also
contributed to remarkably reducing greenhouse gas emissions from vehicles, estimated as follows:
Comparison between the volume of emissions reduced thanks to choosing
DO 0.001S-V and RON 95-IV for business in 2020 and that of 2019.
Unit: tons
30,000
15,000
Unit: tons
Total Hydrocarbon Content (THC)
0
24,625
PM
10,000
5,000
1,252
CO
2,573 2,468
2,765 2,399
NOx
NOx + HC
1,035 1,252
441 383
PM
CO
383
NOx + HC
2,399
NOx
2,468
-
5,000
2020
20,346
20,000
Total emissions reduced thanks to consumption of DO 0.001S-V and Ron95-IV in 2020
2019
24,625
25,000
Total Hydrocarbon
Content (THC)
Despite the difficulties of economy in 2020, the volume of emissions reduced in 2020 thanks to choosing 2 high quality
products i.e., RON 95-IV and DO-V for business was higher than that of 2019.
10,000
15,000
20,000
25,000
30,000
EMISSION OF SOLID WASTE AND WASTEWATER
Petroleum industry does not use input materials; therefore,
the amount of solid waste and wastewater is not
considerable.
Petrolimex manages solid waste in accordance with
general environmental management approaches, consist
of domestic solid waste and hazardous waste.
¾¾ Domestic solid waste is generated at offices and
petroleum stations from daily activities of employees
and partly from customers, then collected and
treated by urban environmental companies or local
cooperatives in the form of domestic waste according
to the signed contracts.
¾¾ Hazardous waste is managed in accordance with the
law on hazardous waste, including/but no other than
the 9 following items, depending on the different
business units: oil-contaminated waste; lubricants,
Sustainability Report 2020
engine oil; sludge from the clarifier or waste water
treatment system; empty oil cans, oil-contaminated
plastic containers; waste fluorescent tubes; waste
toner cartridge; waste lead batteries; oil-contaminated
gloves or rags.
The above-mentioned hazardous waste released
from Petrolimex’s member units is not considerable.
Many petroleum stations release a few of kilograms of
hazardous waste per year. According to law, the business
unit generating under 600 kilograms of hazardous waste
per year should make report and submit to DONRE every
6 months. However, Petrolimex still complies with the
legal regulations in preservation, storage and signing
contract with hazardous waste treatment unit to collect,
transport and treat. In 2021, the Group has a plan to
build a general procedure for storing hazardous waste
at petroleum stations and terminals to ensure consistent
management with Petrolimex brand image.
132
133
GRI 305: EMISSIONS (continued)
GRI 306: OIL SPILL CONTROL
MANAGEMENT APPROACH
VOCs (Volatile Organic Compounds) are
organic solids or liquid that can spontaneously
evaporate when exposed to atmospheric
pressure at ambient temperatures. Once
evaporated into the air, many types of VOCs
can combine together or connect to other
molecules to form new compounds. To a
certain extent, VOCs are harmful to human
health.
One of the most effective measures to prevent oil spills and mitigate
VOC emissions involves maintenance.
¾¾ Regulation on inspection and maintenance of petroleum pipelines
(Decision No. 286/PLX-QĐ-TGĐ dated 8th June 2017, by the Group’s
General Director).
¾¾ Regulation on inspection and maintenance of petroleum tanks
(Decision No. 755/PLX-QĐ-TGĐ dated 25th December 2018, by the
Group’s General Director).
The purpose is to improve the efficiency of managing maintenance
of petroleum pipelines and tanks, thereby preventing maximum
leakage that causes loss of petroleum vapor or liquid.
¾¾ Petrolimex’s petroleum stations have no wastewater
other than rainwater. The gutter system surrounding
sales areas, containers and 3-compartment clarifiers
with volume from 3m3 to 5m3 at the stations ensure
to treat water effectively via periodic monitoring. This
system plays the prevention role in case of oil spill
accident. Some cases in dry season, there is no water
in clarifiers.
¾¾ Wastewater generated at the petroleum stations upon
industrial cleaning or oil-contaminated rainwater.
Some is generated from washing tanks or petroleum
pipelines. With different management methods, the
sludge from washing tanks or petroleum pipelines is
treated as hazardous waste by the washing service
unit. At present, Petrolimex is studying the Project
on standardization of oil-contaminated wastewater
collection and treatment system at petroleum stations
to apply in the entire system.
Sustainability Report 2020
Based on operating experience, the most important issue of
Petrolimex in environment management is oil spill accident
since it not only affects the environment (soil, water, air and
living beings but also causes fire and explosion risk with
serious consequences. In addition to the management
measures, Petrolimex has bought 4 types of public liability
insurance and environmental pollution insurance for the
entire system of stations, terminals, jetties and pipelines of
the Group. Details are as follows:
¾¾ Public liability insurance: Compensation for personal
injuries, loss or damage to property of the third parties
due to the accidents related to business activities of
Petrolimex.
¾¾ Environmental pollution insurance: Compensation for
pollution treatment costs at the place covered by the
insurance, covering pollution, personal injuries, loss
or damage to property of the third parties, including
damage to natural resources.
OIL SPILL CONTROL AT PETROLIMEX
Hereunder are results from the technical cooperation
project between Japan Cooperation Centre Petroleum
(JCCP), Vietnam National Petroleum Group (PLX) and
ENEOS Petroleum Corporation – Phase II (2018 – 2020):
¾¾ Workshop on inspection and maintenance of
petroleum tanks: 200 Petrolimex’s staffs participate
in exchanging experiences with ENEOS’ experts (JX
Research Institute, Raiznext).
¾¾ By August 2020, due to the application of Regulation
No. 755, 265 petroleum tanks are inspected, thicknesses
of 75,000 bottom points, 4,400 wall points and 10,800
roof points are measured. Compared to the period
before issuing this regulation, the average number
of petroleum tanks that are inspected and repaired
increased 2.2 times and 1.7 times, respectively, each
year. The member units start over creating a statistical
system of recording scientific inspection data to
enhance safety level in managing and exploiting the
petroleum tanks.
¾¾ A total of 135 km of pipelines are inspected and
thicknesses of 10,800 points are measured – an
increase of 1.5 times compared to the period before
Decision No. 286.
134
135
GRI 308: SUPPLIER ENVIRONMENTAL ASSESSMENT
In 2020, Petrolimex’s primary source of petroleum
products is provided by domestic suppliers (Nghi Son
Refinery and Petrochemical LLC – NSRP, Binh Son
Refining and Petrochemical Joint Stock Company –
BSR), accounting for 62% of total volume.
NGHI SON REFINERY AND
PETROCHEMICAL LLC (NSRP)
Local suppliers should ensure compliance
with Vietnam’s environmental laws and other
environmental standards. The remaining
38% of petroleum volume is imported from
foreign suppliers such as Trafigura, SK Energy,
Lukoil, etc. These are all large suppliers with
strict policies and standards in the field of
environmental protection. In 2020, they make
no law violations nor had any major incidents
which significantly affect the surrounding
environment.
Sustainability Report 2020
NSRP considers environmental protection its
top priority and has invested a total of 300
million USD (nearly 7,000 billion VND) in the
construction and installation of environmental
protection works. NSRP has applied advanced
technologies from the developed countries of
Japan, Korea, and the European Union (EU) to
minimize emissions into the environment of air,
water and soil. The sources of waste generation
are treated to meet the strict environmental
standards of International Financial Institutions/
World Bank Group as well as Vietnam’s prevailing
regulations and standards.
NSRP has successfully built an Integrated
Management System (IMS) according to
international standards of ISO 14001:2015 for
Environmental Management System and ISO
9001:2015 for Quality Management System.
NSRP was audited and certified compliant with
the ISO 9001 and ISO 14001 standards by DNVGL organization on 22nd March 2019.
TRAFIGURA GROUP PTE. LTD
BP P.L.C.
Trafigura is committed to environmental
protection and the transition to zero-carbon and
low-carbon energies. Trafigura sets challenging
goals and monitors performance indicators
with the aim of strengthening its ability to
manage the environmental effects, engaging
with suppliers, customers, trading partners and
multiple stakeholders in business operation to
understand, manage and reduce environmental
risks and impacts more effectively. In 2020,
Trafigura starts a project of improving its
approach to emergency response. In recent
years, Trafigura has already applied first-hand
lessons learned to mitigate the likelihood of spills
and prevent the repeated incidents. No spills
occurred last year.
BP aims to be a very different kind of energy
company by 2030 as it scales up investments
in low-carbon energy and focuses on oil and
gas production at the forefront of emissions
reduction. BP’s new strategy kicks off a decade of
ambitious distribution.
BP has pursued its goal of becoming a NetZero
company by 2050 and has been ambitious to
help the world achieve this objective together.
NetZero means reaching a balance between
the anthropogenic emission sources and the
removal of greenhouse gas sinks, as outlined in
Article 4.1 of the Paris Agreement*.
(*) BP Sustainability Report 2020: https://www.bp.com/
content/dam/bp/business-sites/en/global/corporate/pdfs/
sustainability/group-reports/bp-sustainability-report-2020.pdf
136
137
GRI 200: ECONOMY
All data in GRI 200 are the statistics of the Group-wide
(including Parent Company, Petroleum Member Unit and
Joint Stock Company).
GENERAL MANAGEMENT APPROACH
Good governance’s foundations are springboards for businesses in general and Vietnam National Petroleum Group in
particular to prove their key roles and important positions in the market. Above all, unitedly applying a governance
system, firmly operating that system, and closely demonstrating the Leadership’s ability to lead the business. In the
context of many global challenges not only from the market but also from the pandemic, Vietnam National Petroleum
Group has embraced the change and has been resilient on the path towards sustainable development by continuing
to enhance the advanced governance model with the aim of:
¾¾ Maximizing shareholder value.
¾¾ Being a tool to help Board of Management and Board of General Directors understand the business situation, thence
come up with the plans to boost revenue as well as the measures to manage governance strictly but still flexibly,
adapt to the practical situation but not lose the core governance values.
Supervisory
Board
General
Meeting of
Shareholders
Representative
offices
Representative
office in
Ho Chi Minh City
Sustainability Report 2020
Board of
General
Directors
Board of
Management
52 Member units
47 whollyowned
Companies/
Corporations
5 corporations
with more than
50% of stakes
directly owned by
the Group
45 Domestic
Corporations/
One-Member
Limited Liability
Companies
Petrolimex
Singapore OneMember Limited
Liability Company
12 Joint-ventures,
Associates
Petrolimex Laos
One-Member
Limited Liability
Company
138
139
GENERAL MANAGEMENT APPROACH (continued)
GRI 201: ECONOMIC PERFORMANCE
Application of science and technology in executive management
ECONOMIC PERFORMANCE
SAP-ERP Software
Vietnam National Petroleum Group is a Multi-Owned
Group operating in petroleum downstream business.
Besides the main business of petroleum, the Group
has companies doing related business such as ocean
transportation; domestic transportation; petrochemical;
gas; jet fuel; etc.
ERP (Enterprise Resource Planning) is an enterprise resource planning tool that helps manage and control all the
resources related to manufacturing, supply chain, business, sales, human resource management, governance reporting,
etc.
Using SAP-ERP software is the Group’s breakthrough solution to handle problems in business management from
importing, finance and accounting, human resources to selling products internationally.
EGAS SOFTWARE
Vietnam National Petroleum Group uses EGAS (Enterprise Gas Station) software – a solution to manage petroleum
retail stations, built on the data-centric model, operating in the internet environment, supporting users in managing
all petroleum stations throughout the system to ensure that the products are sold according to quality and quantity
standards.
Throughout 2020, the Covid-19 pandemic has
comprehensively and deeply affected all countries
around the world. The global economy generally falls into
recession and Vietnam’s economy with its large openness
has suffered many kinds of impacts, seriously affecting all
socio-economic fields, causing supply chain disruptions
and commercial circulation. Some industries have been
directly influenced including import and export; aviation;
transportation; tourism; etc.
Petroleum Station Management Software EGAS
Unit: billion VND
Commodity Importing
Employees
Price and Pricing Policy
Assets
Salary
Sales
Inventory
Invoice, Printed Matters
Centralized Category
Sales Network
Documents, Reports
Given the general economic situation, 2020 is a
remarkably difficult year in the production and business
activities of Vietnam National Petroleum Group.
Unfavorable factors constantly appeared and have been
long lasting from the beginning to the end of year 2020,
which directly and comprehensively affect the Group’s
production and business. However, with a clear vision
plus the quick, timely policies and decisions from the
Leadership along with all employees’ trust and consensus,
Vietnam National Petroleum Group fulfills its role and
mission. The Group-wide makes great efforts to achieve
goals such as: stabilizing and developing the market for
petroleum, petrochemicals, etc.; completing its assigned
political tasks; and fully satisfying the consumption needs
of people. Moreover, during that difficult time, while
many businesses facing the challenges have to reduce
staff, Vietnam National Petroleum Group still maintains its
operation throughout the system ensuring employees’
livelihoods as well as national energy security.
2016
2017
2018
2019
2020
123,097
153,697
191,932
189,604
123,919
Profit before tax
6,300
4,785
5,178
5,648
1,410
Profit after tax
5,147
3,912
4,155
4,677
1,253
Total assets
54,244
61,769
56,283
61,762
61,106
Owners’ equity
23,201
23,384
23,092
25,923
24,126
Net revenue
Integrated
Management System
Petroleum Station Automation System AGAS
Pump Column
Signals Reception
Sustainability Report 2020
Automatic
Tank Gauging
Integration
Card Payment
Integration
Self-Service
Sales
Sales Receipt
Printing
140
141
GRI 201: ECONOMIC PERFORMANCE (continued)
ECONOMIC PERFORMANCE
TOTAL REVENUE
TOTAL ASSETS
(Billion VND)
(Billion VND)
250,000
64,000
191,980
200,000
150,000
124,001
123,127
58,000
50,000
52,000
2016
2017
2018
2019
2020
0
2016
OWNERS’ EQUITY
(Billion VND)
(Billion VND)
5,648
4,785
5,000
2017
2018
26,500
6,300
6,000
5,178
2019
2020
25,923
26,000
25,000
25,000
24,500
4,000
24,126
24,000
3,000
23,500
2,000
1,410
1,000
Sustainability Report 2020
54,244
PROFIT BEFORE TAX
0
61,106
56,283
56,000
54,000
7,000
61,762
60,000
153,736
100,000
0
61,769
62,000
189,656
23,201
23,384
23,092
23,000
22,500
22,000
2016
2017
2018
2019
2020
0
2016
2017
2018
2019
2020
142
143
GRI 201: ECONOMIC PERFORMANCE (continued)
Responding to the campaign “Vietnamese people prioritize using Vietnamese goods” of the Party
and State, the Group developed many action programs focusing on enhancing performances
of using products/services among the Group’s companies and its mission to promote supplying
Petrolimex’s goods and services to Vietnamese consumers.
Together with that, the Group prioritizes importing petroleum from domestic refineries. The proportion of domestic
outputs purchased has been increasing. As follows:
Implemented in
2018
Gross import and domestic purchase (m3, ton)
Domestic purchase (m3, ton)
Domestic purchase/Gross import and domestic
purchase ratio
Implemented in Implemented in
2019
2020
ROA, ROE and ROS
30%
ROA
20%
15%
10,188,680
9,664,509
10%
4,127,437
5,923,823
6,029,742
5%
41%
58%
62.4%
0%
2016
Profitability ratio
200,000
Profit after tax / Total assets (ROA)
150,000
16,925
28,269
30,203
163,711
159,454
Profit after tax / Owner’s equity (ROE)
13,791
136,811
100,000
ROS
25%
10,024,241
250,000
ROE
Profit after tax / Net Revenue (ROS)
2017
2018
2019
2020
2016
2017
2018
2019
2020
9.8%
6.7%
7.0%
7.9%
2.0%
25.8%
16.8%
17.9%
19.1%
5.0%
4.2%
2.5%
2.2%
2.5%
1.0%
110,127
50,000
0
2017
2018
Domestic
Not only that, Vietnam National Petroleum Group still
organizes meaningful activities such as Petrolimex
Race 65 Years: Every Step – One Heart. This activity not
only spreads pride in the formation and development
of Petrolimex for 65 years, but is also an extremely
meaningful for individuals Group-wide in particular and
contributes great values to society in general. From this
activity, the employees show their spirit of solidarity, of
spread, and of determination to overcome all difficulties
and challenges together. In addition, each run step
represents VND 1,000 donated to a fund aiming to assist
disadvantaged children that are awarded on the occasion
of the 65th Group anniversary and Lunar New Year 2021.
The program spreads not only the spirit of promoting
Sustainability Report 2020
2019
2020
Foreign
physical health to the participants, but also “mental
health” to colleagues – Vietnamese compatriots who
are in need of help. The Covid-19 pandemic has made
each citizen implement social “distancing”, but it helps
Petrolimex’s collective get closer, unite and understand
better the spirit that the Party Secretary cum Chairman
of Board of Management Pham Van Thanh has directed:
“We need discipline, and more responsibility”, “We need
to make efforts and adapt more”, “We need to know
how to share more”. These are practical and meaningful
activities to affirm Petrolimex’s willpower to fight back
and get over the Covid-19 pandemic together with the
whole country.
144
145
GRI 201: ECONOMIC PERFORMANCE (continued)
GRI: APPLICATION OF SCIENCE - TECHNOLOGY
IN CORPORATE GOVERNANCE
Profit Structure from Business Activities 2019
Unit: billion VND
4,000
Science and technology have been applied to organizing online meetings throughout the Group to
its member units. Especially, it is the first time Vietnam National Petroleum Group successfully held
the online Annual General Meeting of Shareholders in 2020.
During the social distancing period, the enterprises
in general and Vietnam National Petroleum Group in
particular faces many difficulties, one of which is how to
hold meetings ensuring not only work performance but
also safety in prevention and control of Covid-19 pandemic.
3,602
3,500
3,000
2,500
In order to implement that, Vietnam National Petroleum
Group deploys the “Online Meeting via Teams
Application” solution synchronously from the Group to
its member units. This is an exceedingly wise decision of
the Leadership because it not only helps employees keep
2,000
1,500
1,000
500
267
183
Petrochemical
Gas
358
189
228
safe distances and prevent disease transmission, but also
improve work efficiency whilst saving costs and time for
everyone.
Most notably the Annual General Meeting of Shareholders
is held on 26th June 2020, marked a new step following
the inevitable trend in the 4.0 era. The entire meeting
program is digitized and applied new online software and
technology solutions ensuring information transparency,
concurrently creating the conditions for domestic and
foreign shareholders to attend the meeting safely during
the Covid-19 pandemic.
Petroleum
Transportation Other Goods
Service
and Services
Internal
Exclusions and
Adjustments
Profit Structure from Business Activities 2020
272
300
257
Unit: billion VND
Using Strava application in linking and recording the results of Petrolimex Race 65 Years.
219
200
138
100
31
(100)
(200)
(300)
During the Race 65 Years, in order to connect hundreds
of teams and thousands of participants, Petrolimex has
to unify, propagandize and instruct the attendees to
update and use Strava software. This application not only
has multiple modern super features such as accurate
measurement of users’ distances and speeds, but is also
like a miniature social network, helping users to track
their workouts and achievements as well as the results
of others, promoting interaction between people or
stimulating the users’ enjoyment in sport activities, etc.
(287)
Effectiveness
(400)
Petroleum
Sustainability Report 2020
Petrochemical
Gas
Transportation Other Goods
Internal
Service
and Services Exclusions and
Adjustments
01
Strictly implementing the
State’s direction on social
distancing, safety assurance.
Hence, the attendees together “recorded” their run
steps – the personal achievements; the teams were
able to easily see their overall “accomplishment” so they
could strive harder accordingly to not only accomplish
but also go beyond their goals. Also, the Charity Fund
was expected to reach a respectable number, thus this
program would be not only commemorative but also
significantly meaningful for society.
02
Ensuring the
workflow.
03
Saving costs and time for
the activities mentioned
above.
146
147
GRI 202: MARKET PRESENCE
With the enthusiastic participation of nearly 10,000
people, Petrolimex captures many beautiful images
throughout the process of race course. Petrolimex’s “P”
letter image is appeared all over the S-shaped land, from
the highest peak of Ha Giang to the cape of Ca Mau. We
witness the excitement, fun and happiness from the
individuals to the teams. We also see the consensus and
cooperation of all employees over the Group who make
great efforts to achieve the goals as well as contribute
to create more meaningful charity fund than ever before.
Sustainability Report 2020
Afterward, we – the participants seem to be happier
because of achieving the race course together, doing
something good for society and our compatriots. The
employees’ cohesion and unity manifest beautifully and
radiantly. Together we make beautiful memories and
wonderful values.
PETROLIMEX IS PROUD
TO GO FURTHER WITH VIETNAM
148
149
GRI 203: INDIRECT ECONOMIC IMPACTS
Donation of medical devices
to Bach Mai Hospital worths
2.74
Billion vnd
Social Security
Projects
Sustainability Report 2020
Amid the Covid-19 pandemic’s complicated developments and high transmissibility,
Vietnam National Petroleum Group is severely affected but remains ready to
support Bach Mai Hospital in medical devices with total value up to 2.74 billion VND.
Furthermore, Petrolimex joins hands with the other enterprises across the country
with its commitment to Vietnam Fatherland Front Committee to donate 3 billion
VND supporting several hospitals in Hanoi with medical supplies for the Covid-19
pandemic prevention and control. Concurrently, Petrolimex also gives 100 million VND
with the aim of supplementing medical instruments to the units such as: Kham Thien
Ward, Phuong Mai Ward, Military Department of Command in Dong Da District, Cau
Giay Medical Center, etc. And especially, more than 29,000 employees of Petrolimex
volunteer to donate their 1-day salaries valued 8.3 billion VND to contribute to the
Covid-19 pandemic prevention funds at the local Fatherland Front Committees. It can
be seen that the pandemic made the lives of Vietnamese people generally and Vietnam
National Petroleum Group particularly face a lot of difficulties. However, with the spirit
of solidarity, “good leaves protect torn leaves”, all Petrolimex employees together share
difficulties and repelled challenges.
Covid-19 Ventilator
Donation Program
In 2020, although the production and business activities of the Group and its member
units are critically affected by the Covid-19 pandemic, as a large-scale business with its
proud tradition for more than 65 years of establishment and development, Petrolimex
is always ready to join hands with people across the country to fight the pandemic.
Fulfilling its commitment to Vietnam Fatherland Front Committee Hanoi, Petrolimex
donates two high performance ventilators, one electrolyte and blood gas analyzer, and
four patient monitoring devices. In addition, Petrolimex gives two ventilators and one
video bronchoscopy system to Bach Mai Hospital.
Given this support, Petrolimex wishes it could contribute to better pandemic prevention
and control at hospitals, simultaneously these devices would continue being effective
in diagnosis and treatment for patients when the Covid-19 pandemic passes.
150
151
GRI 203: INDIRECT ECONOMIC IMPACTS (continued)
Now more than a year into the raging Covid-19 pandemic, people continue to face the devastating wave of this virus,
and the management and implementation of state budget collection has encountered many difficulties. Nevertheless,
as one of the leading enterprises in the economy, Vietnam National Petroleum Group makes its best efforts to not only
complete the management and business tasks, but to also fulfills its responsibilities towards the entire society through
contribution to the National Budget. From the statistics, the Group still ensuring submittal to the state budget with a
total amount of 38,620 billion VND in 2020 regardless of facing many challenges. Although there is a slight decrease in
comparison with two years 2018 and 2019, this result has been a great effort from all the Group’s employees carrying
out their responsibilities to the society.
Contribution to the state budget
With the message “Every Step – One Heart”, the Petrolimex Race 65 Years is conducted
Petrolimex Race 65 online, taking place from 0:00 on 21st November to 23:59 on 5th December 2020. It is
Years – Online
a more special activity when every step of the runners contains a deep humanistic
9,565
runners
meaning, each kilometer achieved generates VND 1,000 contributing to a charity
fund for disadvantaged children that is donated on the occasion of the 65th company
anniversary and Lunar New Year 2021. All the run participants strive their best to reach
the maximum amount of kilometers to contribute to the fund. According to the
statistics, numerous member units achieve top kilometer totals such as: Petrolimex
Group Commercial Joint Stock Bank (reaches 28,162 km, equivalent to VND 28,162,000),
Nghe An Petroleum Company (reaches 24,956 km, equivalent to VND 24,956,000) and
Southwest Petroleum Company (reaches 24,498 km, equivalent to VND 24,498,000).
Thus, despite the volatile economy context, we can see that Vietnam
National Petroleum Group makes great efforts not only to overcome
challenges but also to create beautiful and humanistic values full of
love to the community. It shows the “Petrolimex” spirit of solidarity and
consensus, and the spirit of mutual love being one of the “Vietnamese”
traditions, as well.
Sustainability Report 2020
Total tax paid to the state budget
Unit: billion VND
50,000
45,010
45,000
40,000
35,000
38,181
39,102
2017
2018
38,620
32,981
30,000
25,000
20,000
15,000
10,000
5,000
0
2016
2019
2020
152
153
04
GRI APPENDIX
TO THE SUSTAINABILITY
REPORT
156 GRI Appendix to General Standard Information
158 GRI Appendix to 13 Petrolimex’s Material Topics
in 2020
160 GRI Appendix to Petrolimex’s Other Topics in
2020
GRI APPENDIX TO THE SUSTAINABILITY REPORT
GRI APPENDIX TO GENERAL STANDARD INFORMATION
GRI
DISCLOSURES
GRI 101
FOUNDATION
GRI 102
GENERAL DISCLOSURE
REPORTING CONTENT
NUMBER OF
PAGES
102.2
102.3
102.4
102.5
102.6
102.7
Name of the organization
102.18
Brief information
8
Fields of business
14
Supply chain
22
Brief information
8
Contact information
33
Locations of business
15
Brief information
8
The process of formation and development
12
Management apparatus
20
Locations of business
15
Management apparatus
20
Member units, associated companies
21
Economic performance
141
Total number of employees
104
Ownership and legal form
Markets served
102.20
Executive-level responsibility for economic, environmental and
social topics
104
102.9
Supply chain
Supply chain
22
Solutions to reducing greenhouse gas emissions
132
Doing business with clean products to
mitigate emissions
55
Risk management
70
Oil spill control
135
General management approach to environment
125
Precautionary Principle or approach
102.12
External initiatives
External initiatives
26
102.13
Membership of associations
Member rights in associations
27
102.21
102.22
102.14
Statement from senior decision-maker
Chairman’s letter
102.15
Key impacts, risks, and opportunities
Risks and opportunities
2
Sustainability Report 2020
64
Governance model
59
Identify and manage economic environmental - social impacts
100, 124, 138
70
Identify Stakeholder Groups
84
Stakeholder engagement
86
Governance model
59
Departments under Board of Management
64
Composition of the highest governance body and its committees
Chair of the highest governance body
Governance model
59
102.24
Nominating and selecting the highest governance body
Sustainable development governance model
59
Identify and manage economic environmental - social impacts
102.26
Role of highest governance body in setting purpose, values and
strategy
Effectiveness of risk management process
Sustainable development strategy initiated by
Board of Management
Effectiveness of risk management process
102.28
Evaluating the highest governance body’s performance
Effectiveness of sustainable development
management
102.29
Identifying and managing economic, environmental and social
impacts
Identify and manage economic environmental - social impacts
102.30
Effectiveness of risk management processes
Effectiveness of risk management process
102.31
Review of economic, environmental and social topics
Identify and manage economic environmental - social impacts
102.32
Highest governance body’s role in sustainability reporting
Top management involvement and role in
Sustainability Report
102.33
102.35
Communicating critical concerns
Identify and manage economic environmental - social impacts
100, 124, 138
70
52
70
58
100, 124, 138
70
100, 124, 138
59, 64
100, 124, 138
Effectiveness of risk management process
70
Nature and total number of critical concerns
Concerns of stakeholders
86
Remuneration policies
Remuneration and benefits of Board of
Management, Board of General Directors and
Supervisory Board
81
39, 52, 70
5. STAKEHOLDER ENGAGEMENT
3. ETHICS AND INTEGRITY
Mechanisms for advice and concerns about ethics
Consulting stakeholders on economic, environmental and social
topics
59
102.23
102.34
2. STRATEGY
Values, principles, standards, and norms of behavior
NUMBER OF
PAGES
Roles and responsibilities of Departments
under Board of Management
Effectiveness of risk management process
Scale of the organization
Overview of human resources
102.17
Delegating authority
Location of headquarters
Information on employees and other workers
102.16
Governance structure
102.19
Activities, brands, products, and services
Location of operations
REPORTING CONTENT
Governance model
102.8
102.11
DISCLOSURES
4. GOVERNANCE
1. ORGANIZATIONAL PROFILE
102.1
GRI
Vision – Mission
10
Core values
11
Code of conducts to stakeholders
86
102.40
List of stakeholder groups
Identify Stakeholder Groups
84
102.41
Collective bargaining agreements
100% member units of the Group develop
and sign the collective labor agreement
111
102.42
Identifying and selecting stakeholders
Identify Stakeholder Groups
84
102.43
Approach to stakeholder engagement
102.44
Key topics and concerns raised
Stakeholder engagement
86
156
157
GRI APPENDIX TO THE SUSTAINABILITY REPORT (continued)
GRI APPENDIX TO GENERAL STANDARD INFORMATION (continued)
GRI
DISCLOSURES
REPORTING CONTENT
NUMBER OF
PAGES
6. REPORTING PRACTICE
102.45
Entities included in the consolidated financial statements
Scope of reporting
31
102.46
Defining report contents and topic boundaries
How to determine report content
32
102.47
List of material topics
Identifying material topics
102.48
Restatement of information
102.49
Changes in reporting
102.50
Reporting period
102.51
Date of most recent report
102.52
Reporting cycle
102.53
Contact point for questions regarding the report
102.54
Claims of reporting in accordance with the GRI Standards
102.55
GRI content index
GRI 103
MANAGEMENT APPROACH
103-1
Explanation of the material topic and its Boundary
Analysis of 13 material topics
The management approach and its components
GRI 300 General Management Approach, and
GRI 306 Management Approach to Disaster
Prevention
103-2
103-3
Reporting practice
GRI Appendix
31
156
98
125, 128, 135
GRI 200 General Management Approach
139
GRI 400 General Management Approach
100
GRI APPENDIX TO 13 PETROLIMEX’S MATERIAL TOPICS IN 2020
DISCLOSURES
REPORTING CONTENT
GRI 200
ECONOMY
GRI 201
ECONOMIC PERFORMANCE
201.1
Direct economic value generated and distributed
Economic Performance.
GRI
APPLICATION OF SCIENCE - TECHNOLOGY IN CORPORATE
GOVERNANCE
Application of science - technology in
corporate governance.
GRI 202
MARKET PRESENCE
202.1
Ratios of standard entry level wage by gender compared to local
minimum wage
GRI 203
INDIRECT ECONOMIC IMPACTS
203.1
Infrastructure investments and services supported
203.2
Significant indirect economic impacts
GRI 300
ENVIRONMENT
GRI
DISASTER PREVENTION
GRI 305
EMISSIONS
305.1
305.5
Direct Greenhouse Gas (GHG) Emissions (Scope 1)
Reduction of Greenhouse Gas (GHG) Emissions
Sustainability Report 2020
DISCLOSURES
NUMBER
OF PAGES
Employee salary.
Supporting social security works.
Supporting the tasks of Covid-19 pandemic
prevention and control.
Contribution to the state.
Disaster prevention.
Analysis of greenhouse gas emissions from
Petrolimex’s activities.
Solutions to reducing greenhouse gas
emissions.
Doing business with clean products
tomitigate emissions.
147
109
150, 151
306.1
Waste generation and significant waste-related impacts.
Management approach.
Oil spill control.
Disaster prevention.
135
135
128
306.2
Management of significant waste-related impacts.
Waste management.
132
306.3
Waste generated.
Emissions of solid waste and wastewater.
133
GRI 307
ENVIRONMENTAL COMPLIANCE
Disaster prevention.
128
GRI 308
SUPPLIER ENVIRONMENTAL ASSESSMENT
308.1
New suppliers that were screened using environmental criteria.
Supplier environmental assessment.
136
GRI 400
SOCIETY
GRI 401
EMPLOYMENT
401.1
New employee hires and employee turnover.
Employee recruitment and resignation.
106
401.2
Benefits provided to full-time employees that are not provided to
temporary or part-time employees.
Welfare for full-time employees.
108
401.3
Parental leave.
Maternity benefit.
109
GRI 402
LABOR-MANAGEMENT RELATIONS
402.1
Minimum notice periods regarding operational changes.
GRI 403
OCCUPATIONAL HEALTH AND SAFETY
403.1
Occupational health and safety management system.
Occupational safety and health.
112
403.2
Hazard identification, risk assessment and incident investigation.
Labor safety and health policies.
112
403.4
Worker participation, consultation and communication on
occupational health and safety.
Adequately providing training and
facilitating
communication
on
occupational safety and health in
accordance with relevant regulations of
the Ministry and the Group.
113
403.5
Worker training on occupational health and safety.
Occupational safety and health training
courses.
117
403.6
Promotion of worker health.
Petrolimex Race 65 Years – Online.
152
403.8
Workers covered by an occupational health and safety management
system.
Labor safety and health policies.
112
403.9
Work-related injuries.
Reporting occupational accidents and
incidents.
114
403.10
Work-related ill health.
Reporting occupational diseases.
115
GRI 404
TRAINING AND EDUCATION
404.1
Average hours of training per year per employee.
Statistics of training hours
116
404.2
Programs for upgrading employee skills and transition assistance
programs.
Training courses.
117
404.3
Percentage of employees receiving regular performance and career
development reviews.
Periodic assessment of work performance.
118
GRI 416
CUSTOMER HEALTH AND SAFETY
416.1
Assessment of the health and safety impacts of product and service
categories.
Selection of trading safe and eco-friendly
products for environment and customer
health.
55
416.2
Incidents of non-compliance concerning the health and safety
impacts of products and services.
Compliant with regulations on petroleum
downstream business, especially the
Covid-19 pandemic prevention and control
for customers.
120
153
128
132
132
NUMBER
OF PAGES
WASTE
GRI 200 General Management Approach
140
REPORTING CONTENT
GRI 306
95, 99
Evaluation of the management approach
GRI
GRI
Employee - Manager Relations: Employee
Conference; Collective Labor Agreement.
110, 111
158
159
GRI APPENDIX TO THE SUSTAINABILITY REPORT (continued)
GRI APPENDIX TO PETROLIMEX’S OTHER TOPICS IN 2020
GRI
DISCLOSURES
GRI 200
ECONOMY
GRI 204
PROCUREMENT PRACTICES
204.1
Proportion of spending on local suppliers
GRI 205
ANTI-CORRUPTION
205.3
Confirmed incidents of corruption and actions taken
GRI 206
ANTI-COMPETITIVE BEHAVIOR
206.1
Legal actions for anti-competitive behavior, anti-trust,
and monopoly practices
GRI 300
ENVIRONMENT
GRI 301
MATERIALS
301.1
Materials used by weight or volume
301.2
Recycled input materials used
301.3
Reclaimed products and their packaging materials
GRI 302
ENERGY
302.1
Energy consumption within the organization
302.2
Energy consumption outside of the organization
302.3
Energy intensity
302.4
302.5
Reduction of energy consumption
Reductions in energy requirements of products and
services
Sustainability Report 2020
REPORTING CONTENT
COMPARISON WITH YEAR 2019
1/ Revenue by geographical regions
1/ Revenue by geographical regions
Domestic: 110,127 billion VND.
Domestic: 159,454 billion VND.
Foreign: 13,791 billion VND.
Foreign: 30,203 billion VND.
2/ Ratio of domestic purchased outputs/Total imports and domestic
purchased outputs: 62.4%.
2/ Ratio of domestic purchased outputs/Total imports and
domestic purchased outputs: 58%.
Until now, no corruption case of the Group has been confirmed.
No corruption-related case
REASONS FOR OMISSION
Petrolimex does not engage in anti-competitive practices
Petrolimex does not use many kinds of materials in production and
business. Starting in 2018, Petrolimex standardized the sample containers
at their petroleum station and terminal. Since 2019, the plastic sample
bottles, often short usage time, have been replaced by tin ones – can be
reused many times.
Specific data is not available yet. Reason: The units proactively replaced
the containers when needed.
Petrolimex not recycling its products.
No statistics.
121,859 TOE
Following the direction of the Ministry of Industry and Trade, Petrolimex
only statisticizes the energy data of Petrolimex Group Tanker Corporation
(PG Tanker) and Petrolimex Transportation Services Corporation (PTC), who
are the key energy users (>5,000 TOE – Ton(s) of Oil Equivalent). In 2020,
the Ministry of Industry and Trade did not make statistics. The energy used
in petroleum member unit is mainly electricity for lighting and petroleum
pumping. No information. Reason: Need statistics from each of petroleum
station/terminal.
No information.
Since 2017, the petroleum station lighting regulation has been applied
to determine lighting requirements ensuring OSH, fire protection, energy
efficiency and aesthetics. The stations have been gradually replacing
fluorescent bulbs with energy-saving LED lights. Specific data is not
available yet.
No information.
Reason: Need to summarize and compare power consumption before and
after switching to LED bulbs, statistical unit: petroleum stations.
The need to expand production and business led to rising energy demand
of products and services.
160
161
GRI APPENDIX TO THE SUSTAINABILITY REPORT (continued)
GRI APPENDIX TO PETROLIMEX’S OTHER TOPICS IN 2020 (continued)
GRI
GRI 303
303.1
303.2
DISCLOSURES
REPORTING CONTENT
COMPARISON WITH YEAR 2019
REASONS FOR OMISSION
WATER AND EFFLUENTS
Pursuant to the provisions of Circular No. 22/2013/TT-BCT on the
declaration of the Industry and Trade database, Petrolimex’s member
units are required to declare their environmental databases at the
website moitruongcongthuong.vn. In 2020, the Ministry of Industry and
Trade amended, promulgated the replacement circular, simultaneously
planned to change the website’s database system resulting in interrupted
data declaration. Nonetheless, the statistics were sufficiently unqualified.
Reason for no accurate statistic: Most of the wastewater treatment systems
at petroleum stations in the form of three-compartment clarifier filter
rainwater overflowing the likely oil-contaminated area. This amount of
rainwater was incorrectly estimated.
Interactions with water as a shared resource
Management of water discharge-related impacts
The terminals are subject to obtaining the discharge permits with
local approval (discharge >5m2/day) as prescribed in the Law on Water
Resources. The discharge permit stipulates the discharge locations,
the number of outlets, and the output water quality monitoring at
the facilities’ discharge outlets. The potential oil-contaminated water
is classified, treated and controlled by the national regulation of QCVN
29:2010/BTNMT. The quantity of wastewater is mainly generated from
stormwater runoff. There are no exact statistics.
The sources of used water are:
- Tap water: Used for living purposes of employees.
- Groundwater: Well water – used for living purposes of employees.
303.3
Water withdrawal
Reason for no accurate statistic: The volume of tap water is determined
by the bill from the clean water utility. The well water to be used is not
statistical but its volume is also very small and insignificant. Surface water
has no statistical data.
- Surface water: Water from ponds, lakes and rivers – used as the water
reserve for firefighting, the water to chase the petrol in the pipeline
(circulating).
Volume: No statistics.
303.4
Water discharge
Petrolimex’s business lines do not use water as an input material. The
amount of clean water consumed due to the employees’ daily needs. A
small quantity of surface water used as the water reserves for firefighting
and industrial sanitation, <5m3/day.
303.5
915 m3/day – corresponding to the needs of 18,300 employees.
Water consumption
A domestic water demand standard is 50 liters/day. With number of
employees in the petroleum member units and in the Group’s office in
2021 of 18,469 people, the corresponding volume of used water is 923
m3/day.
GRI 304
304.1
304.2
BIODIVERSITY
Operational sites owned, leased, managed in, or adjacent No statistical data on petroleum stations located in or adjacent to
to protected areas and areas of high biodiversity value protected areas and areas of high biodiversity value was provided yet.
outside protected areas
However, petroleum stations are the necessary infrastructure for socioeconomic activities, so they are always in densely populated locations.
Significant impacts of activities, products, and services Consequently, the impact on sensitive areas is not more particular than
the planning of other infrastructures.
on biodiversity
304.3
Habitats protected or restored
304.4
IUCN Red List species and national conservation list
species with habitats in areas affected by operations
Sustainability Report 2020
No statistical data on petroleum stations located in or adjacent to protected
areas and areas of high biodiversity value was provided yet. However,
petroleum stations are the necessary infrastructure for socio-economic
activities, so they are always in densely populated locations. Consequently,
the impact on sensitive areas is not more particular than the planning of
other infrastructures.
Topic beyond the scope of Petrolimex’s management.
162
163
GRI APPENDIX TO THE SUSTAINABILITY REPORT (continued)
GRI APPENDIX TO PETROLIMEX’S OTHER TOPICS IN 2020 (continued)
GRI
DISCLOSURES
REPORTING CONTENT
GRI 307
ENVIRONMENTAL COMPLIANCE
307.1
Non-compliance with environmental laws and
regulations
GRI 308
SUPPLIER ENVIRONMENTAL ASSESSMENT
308.1
Environmental criteria were not used as the basis for supplier selection.
New suppliers that were screened using environmental
Nevertheless, no supplier was found to participate in violations and
criteria
cause tremendous environmental pollution.
308.2
Negative environmental impacts in the supply chain
100% of suppliers comply with environmental standards.
and actions taken
GRI 400
SOCIETY
GRI 405
DIVERSITY AND EQUAL OPPORTUNITY
In 2020, no member unit of the Group was handled for environmental
violation.
405.1
Diversity of governance bodies and employees
By 31st December 2020, the total number of Petrolimex’s employees is
25,392 people. In which, the number of petroleum sales unit’s employees
is 18,469 people: 15 Group Managers; 43 unit managers; 187 company
employees; 3,297 office workers (of the Group and 43 member units);
14,970 people of direct labor for production and business.
405.2
Ratio of basic salary and remuneration of women to
men
Ratio of salary between male and female employees.
GRI 406
NON-DISCRIMINATION
406.1
Incidents of discrimination and corrective actions taken Equality and Non-Discrimination.
GRI 407
FREEDOM OF ASSOCIATION AND COLLECTIVE
BARGAINING
407.1
Operations and suppliers in which the right to freedom Collective labor agreement of the parent company and its member units;
of association and collective bargaining may be at risk
Right to join trade unions; Annual Workers’ Conference 2020.
GRI 408
CHILD LABOR
408.1
Any violations of injustice, discrimination, child labor, forced labor, illOperations and suppliers at significant risk for incidents
treatment or abuse of employees at Petrolimex, are strictly prohibited
of child labor
and severely punished.
GRI 409
FORCED OR COMPULSORY LABOR
409.1
Any violations of injustice, discrimination, child labor, forced labor, illOperations and suppliers at significant risk for incidents
treatment or abuse of employees at Petrolimex, are strictly prohibited
of forced or compulsory labor
and severely punished.
GRI 410
SECURITY PRACTICES
410.1
Security personnel trained in human rights policies or
procedures
GRI 412
HUMAN RIGHTS ASSESSMENT
Sustainability Report 2020
100% of security personnel formally trained in organizational human
rights policies or specific procedures and their application in security.
COMPARISON WITH YEAR 2019
REASONS FOR OMISSION
There is No violation.
On 31st December 2019, the total number of Petrolimex’s employees
was 24,009 people.
Equality and Non-Discrimination.
Collective labor agreement of the parent company and its member
units; Right to join trade unions; Annual Workers’ Conference 2019.
Any violations of injustice, discrimination, child labor, forced labor,
ill-treatment or abuse of employees at Petrolimex, are strictly
prohibited and severely punished.
Any violations of injustice, discrimination, child labor, forced labor,
ill-treatment or abuse of employees at Petrolimex, are strictly
prohibited and severely punished.
No statistics
164
165
GRI APPENDIX TO THE SUSTAINABILITY REPORT (continued)
GRI APPENDIX TO PETROLIMEX’S OTHER TOPICS IN 2020 (continued)
GRI
DISCLOSURES
REPORTING CONTENT
412.1
Operations that have been subject to human rights
reviews or impact assessments
412.2
Employee training on human rights policies or Petrolimex fully complies with the Labor Law and the other
procedures
Government’s policies in the areas of human rights.
412.3
Significant investment agreements and contracts that
include human rights clauses or that underwent human
rights screening
GRI 414
SUPPLIER SOCIAL ASSESSMENT
414.1
New suppliers that were screened using social criteria
414.2
Negative social impacts in the supply chain and actions
taken
GRI 417
MARKETING AND LABELING
417.1
Requirements for product and service information and
Conforming to all relevant regulations on marketing and labelling.
labeling
417.2
Pertaining to products/services labelling in Vietnam, Petrolimex has its
trademark (logo and identification marks) that have been copyrightIncidents of non-compliance concerning product and
protected at the Intellectual Property Office of Vietnam. These trademarks
service information and labeling
adhere to Petrolimex’s brand identity system that was built and issued
Group-wide according to Decision No. 315/XD-QĐ-TGĐ on 24th May 2010.
417.3
Incidents of non-compliance concerning marketing
communications
GRI 418
CUSTOMER PRIVACY
418.1
Substantiated complaints concerning breaches of
customer privacy and losses of customer data
GRI 419
SOCIOECONOMIC COMPLIANCE
419.1
Non-compliance with laws and regulations in the social
No violations for sanction.
and economic area
Sustainability Report 2020
Reference GRI 308: Supplier Selection.
COMPARISON WITH YEAR 2019
REASONS FOR OMISSION
No statistics.
Conforming to all relevant regulations on marketing and labelling.
Pertaining to brand marketing communication, Petrolimex follows
the Brand Management Process which includes two contents of Brand
Management and Crisis Management. This procedure was approved and
promulgated according to Decision No. 316/XD-QĐ-TGĐ dated 24th May
2010.
Hitherto, the Group has received no substantiated complaint concerning
breaches of customer privacy and losses of customer data.
Hitherto, the Group has received no substantiated complaint
concerning breaches of customer privacy and losses of customer
data.
No statistics.
166
167
VIETNAM NATIONAL PETROLEUM GROUP
Abbreviated name: PETROLIMEX (HOSE: PLX)
No.1 Kham Thien Street, Dong Da District, Hanoi
[T] : (024) 3851-2603
[F] : (024) 3851-9203
[W] : www.petrolimex.com.vn