Bangchak : ESG Report

Vision

Mission

We commit to accelerate sustainable energy transition, while balancing energy security.

We are energizing lives through Greenovative solution and promoting ESG for all.

Core Values

Business Culture

Employee Culture

Sustainable Innovative Business	To be virtuous, knowledgeable,
Development in Harmony with	and contributive to others
the Environment and Society

Overview

Governance and

Economic Dimension

Environmental

Dimension

Social Dimension

Appendix

Contents

4	Message from Group Chief
Executive Officer and President

Overview

About this Report	8
Bangchak Overview	12
Shareholding Structure	14
Management Structure	16
Bangchak Business Value Chain	17
Business Structure	26
Bangchak at a Glance in 2023	28
Bangchak and Sustainability	30
Bangchak and Stakeholders	32
Identification of Materiality Topics	52
Sustainable Strategy	58
Economic, Environmental, and
Social Context	70

Governance and
Economic Dimension	73

Governance and

Economic Dimension

Revenues and Expenses and
Tax Management	74
Good Corporate Governance and
Anti-Corruption	75
Risk Management	85
Change Management	96
Supply Chain Management	97
Sustainable Product and
Service Development	110
Relationship Management and
Responsibility to Customers	118
Innovation Management	121
Technology and Cybersecurity Integration and
Implementation for Business Development	123

Bangchak Corporation Public Company Limited	3
Integrated Sustainability Report 2023

129 Environmental Dimension

Environmental Dimension

Efficiency in Resource Allocation
for Optimal Utilization	130
Energy Consumption and
Climate Change Management	132
Water Management	138
Water Pollution Management	142
Air Quality Management	144
Waste and Scraps Management	147
Product Transportation	151
Biodiversity Management	154
Environmental Cost Accounting	164

Social Dimension	167

Social Dimension

Occupational Health and Safety	168
Human Rights	176
Human Resource Management	185
Community and Social Development	198

224 Appendix

Appendix

Sustainability Performance Statistics	226
GRI Content Index	264
The Adherence of the Ten Principles
of the UN Global Compact	280
Assurance Statement	282

Overview

Governance and

Economic Dimension

Environmental

Dimension

Social Dimension

Appendix

Message from Group Chief Executive Officer and President

Climate change remains a global priority in 2023. COP 28 focused on key issues such as energy efficiency, transitioning from fossil fuels to green energy, methane reduction agreements, and accelerating investment in new technologies to replace fossil fuels. These are clear signals that the world is prioritizing the transition to clean energy.

Bangchak Group is committed to sustainable growth that balances value and benefits for all stakeholders, encompassing ESG principles. We are committed to addressing climate change by driving the green economy towards a low-carbon society through our BCP316NET plan. This plan aims for the organization to achieve "Carbon

Neutrality" by 2030 and "Net Zero" emissions by 2050.

The Company has developed a roadmap to achieve our goals by establishing a working group to develop guidelines for improving energy and resource efficiency, and to consider investment plans in low-carbon businesses and green innovations.

"Developing work processes, increasing productivity, improving efficiency and reducing costs, as well as developing human resources, innovative products, and prioritizing safety and sustainable business development while caring for the environment and society" is the driving force behind our success. In 2022, Bangchak Phra Khanong Refinery was the only organization in Thailand to receive the Thailand Quality Award (TQA). In 2023, it became the first and only refinery in the world to receive the Global Performance Excellence Award achieving the eminent World Class level from the Asia Pacific Quality Organization (APQO) for its international-level management practices.

Bangchak Corporation Public Company Limited	5
Integrated Sustainability Report 2023

In 2023, Bangchak Group is gearing the production of Sustainable Aviation Fuel (SAF) to meet the needs of airlines that prioritize reducing greenhouse gas emissions from air travel and transportation through the construction agreement of the sustainable aviation fuel production unit, the first of its kind in Thailand, with a production capacity of 1 million liters per day. This will help reduce greenhouse gas emissions by approximately 80,000 tons of carbon dioxide equivalent per year.

We have also developed a plan to procure raw materials by launching the "Fry to Fly" project to collect used cooking oil via Bangchak petrol stations and collaborate with major food business partners such as the "Five Star Chicken" and "S&P" brands to manage used cooking oil from kitchen operations for SAF production. This will help reduce carbon dioxide emissions and contribute to environmental protection and consumer health.

In addition, the Company has also expanded its framework for addressing climate change solutions through Oam Suk Social Enterprise Company Limited by supporting environmentally conscious farmers by purchasing "Low-EmissionRice" from the large-scale modern agricultural community enterprise in Doem Bang Sub-district, Doem Bang Nang Buat District, Suphan Buri Province. Farmers in this community have received knowledge transfer on rice cultivation methods that reduce flooding through the "wet-dry alternating rice cultivation" practice under the Thai Rice NAMA project. The rice is then used as premium gifts for customers at Bangchak service stations. The Company also further supports a network of community oil station businesses by installing rooftop solar systems for cost savings and encourage them to register carbon credits obtained from the solar installations in the T-VER program under the "Cooperative Network to Combat Global Warming" project.

As a leader in energy transition, the Company places importance on balancing business operations with a foundation based on equilibrium amongst the three challenges of the Energy Trilemma: Energy Security, Energy Affordability, and Environmental Sustainability. The Company's acquisition of Esso (Thailand) Public Company Limited is a sound investment for the country as it will provide strategic energy assets. This enhances energy security for the nation, provides consumers with more affordable and accessible energy, and ultimately benefits the business. Our refining capacity will increase, and production efficiency will improve in an economically viable way. Additionally, we can extend our sustainability practices to our partners throughout the broader supply chain.

Furthermore, the Company remains committed to continuous development by participating in sustainability assessments with international agencies to ensure our sustainability initiatives comprehensively meet the expectations of all stakeholders.

On behalf of Bangchak Group, I would like to thank our shareholders and all stakeholders for the continuous trust, confidence, and support. As we enter our fifth decade, we remain steadfast in our pursuit of sustainable growth under our vision of "Crafting a Sustainable World with Evolving Greenovation." We aim to benefit all stakeholders, to be a century-old organization serving as a pillar of energy for the country, and to create a balance between energy security, energy accessibility, and sustainability for Thai society. This will ensure a sustainable future for generations to come in line with our "Regenerative Happiness" goal of delivering boundless happiness.

(Mr. Chaiwat Kovavisarach)

Group Chief Executive Officer and President Bangchak Corporation Public Company Limited

Overview

Governance and

Economic Dimension

Environmental

Dimension

Social Dimension

Appendix

Bangchak Corporation Public Company Limited	7
Integrated Sustainability Report 2023

Overview

About this Report	8
Bangchak Overview	12
Shareholding Structure	14
Management Structure	16
Bangchak Business Value Chain	17
Business Structure	26
Bangchak at a Glance in 2023	28
Bangchak and Sustainability	30
Bangchak and Stakeholders	32
Identification of Materiality Topics	52
Sustainable Strategy	58
Economic, Environmental, and Social Context	70

Overview	Governance and
	Economic Dimension

About This Report

Source

Bangchak Corporation Public Company Limited has prepared an integrated sustainability report to disclose its sustainability performance for the 18th consecutive year, covering the reporting period from January 1st to December 31st, 2023 (Disclosure 2-3). The Company follows the GRI Sustainability Reporting Standards (GRI Standards), including GRI1 (Foundation 2021), GRI2 (General disclosures 2021), GRI3 (Material topics 2021), and GRI11 (Oil and Gas sector 2021), as well as the highest level of the United Nations Global Compact (Advance Level) criteria. Additionally, the Company has integrated the Sustainable Development Goals (SDGs) into its organizational strategy and operations to demonstrate its commitment to addressing sustainable development goals. This integration aims to focus and respond to the demands and expectations of various stakeholders. In the process of compiling the Sustainable Development Integrated Report for the year 2023, there have been no alterations to any data or methodologies, such as variables or calculation methods, that would necessitate amendments to the previous edition of the Integrated Sustainable Development Report for the year 2022.

Scope of the Report (Disclosure 2-2,3-1,3-3)

This report provides an overview of the performance data for the year 2023 of Bangchak Corporation Public Company Limited, a publicly listed company operating in Thailand and Singapore. It focuses on 2 primary areas (Disclosure 3-2) :

1 The scope of the refinery and oil trading business includes:

• Bangchak Refinery and Oil Depot at Sukhumvit 64, Oil Depot at Bang Pa Inn, and Oil Depot at Surat Thani
• Main office building (M Tower)
• Central Region Business Center, the Northeastern Region Business Center, the Northern Region Business Center, and the Southern Region Business Center

Environmental	Social Dimension	Appendix
Dimension

• Bangkok Fuel Pipeline and Logistics Company Limited (BFPL)
• BCP Trading Pte. Ltd

2 The scope of marketing business includes:

• Bangchak Green Net Company Limited (BGN) operates in the oil service station business
• Bangchak Retail Company Limited (BCR) operates in the coffee shop business

The reporting covers 67.7% of the total revenue of the Company group, with operational statistics provided for each scope as referenced in the table.

The report presents information on energy usage and greenhouse gas emissions related to the organization's operations within Scope 1, Scope 2, and Scope 3. It includes reporting on greenhouse gas reduction efforts from Bangchak Refinery and Oil Depot at Sukhumvit 64, as well as M Tower, which are significant operational areas (Disclosure 3-2). Regarding water-related data (Water withdrawal, water discharge, and water consumption), it covers operational outcomes from Bangchak Refinery and Oil Depot at Sukhumvit 64, M Tower, BCP Trading Pte. Ltd., Bangchak Green Net Company Limited (BGN), and Bangchak Retail Company Limited (BCR) (Disclosure 3-2). For air pollution management data, oil, and chemical spill incidents from Bangchak Refinery and Oil Depot at Sukhumvit 64 are reported. Waste management data reports operational outcomes from Bangchak Refinery and Oil Depot at Sukhumvit 64 and main office building (M Tower), which are significant operational areas (Disclosure 2-6).

Regarding screening new suppliers and evaluating the social and environmental impacts of suppliers within the supply chain, the Company, Bangchak Corporation Public Company Limited, reports operational outcomes for the year 2023. There have been no organizational changes or significant concerns within the supply chain (Disclosure 2-6).

In terms of safety and occupational health, the Company reports safety and occupational health data covering the areas of office spaces and the Bangchak Refinery and Oil Depot at Sukhumvit 64, as well as data from the main office (M Tower) area only.