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t
Vision
To become a leading value-orientedenergy and infrastructure company in Asia Pacific.
Mission
M1 To ensure shareholders' value creation through financial return sustainably generated by accountability for environment, society and good governance.
M2 To achieve operational excellence and enhance competitiveness.
M3 To adhere fair business conduct and strict compliance to relevant laws and regulations.
M4 To raise employees' awareness and motivation of self-development for readiness in competition and business changing.
M5 To support security of national power grid and infrastructure system.
M6 To explore potential opportunities and new alternatives in energy-related and other non-power businesses to generate growth and business expansion for shareholders.
Corporate Value
Power of Professional
Be Entrepreneurial & Commit to Integrity
Power of Innovation
Boost Agility & Encourage Innovation.
Power of Teamwork
Excel Synergy, Collaboration &
Strengthen Partnership
Business Strategy
STRENGTH | SYNERGY | SUSTAINABILITY |
Efficient operations geared | Integrated operations with | Promoting renewable energy |
towards worthwhile revenue | extended collaboration with | with concerns about |
and returns and strong | leading partners in Thailand | environmental and social |
foundation for excellence. | and abroad, for sustainable | stewardship and governance |
growth opportunities in | for sustainable growth. | |
the Power Business and | ||
Non-Power Business in | ||
the value chain as well as | ||
value-added innovations. |
Content 02
01
04
Vision, Mission and | 02 |
Corporate Values | |
Message from Chairman | 04 |
and Chief Executive Officer | |
Sustainability Performance | 07 |
Highlights in 2023 |
Environmental Performance in 2023
Management and Reduction of | 85 |
Greenhouse Gases | |
Environmental Management | 101 |
and Biodiversity |
Economic Performance in 2023
Economic Performance | 197 |
Supply Chain Management | 203 |
Customer Relationship Management | 213 |
and Product Responsibility |
Awards and Recognition | 08 |
About this Report | 10 |
RATCH Business Profile | 14 |
03
Business Strategy and | 25 |
Sustainability Strategy | |
Progress of Sustainability Strategy | 27 |
Implementation | |
Material Topics in 2023 | 32 |
Management of Key Material Topics | 35 |
Value Chain of RATCH's Business | 40 |
Stakeholder Engagement | 41 |
Good Corporate Governance | 59 |
Business Ethics and Compliance | 71 |
Prevention of Fraud, Corruption | 76 |
and Conflict of Interest | |
Complaint and Whistleblowing | 79 |
Channel | |
Risk Management | 80 |
and Internal Control |
Social
Performance in 2023
Respect for Human Rights | 124 |
Safety and Occupational Health | 132 |
IT Security and Cybersecurity | 150 |
Employee Stewardship | 158 |
Community and | 175 |
Social Stewardship |
Performance Data 2023 | 230 |
GRI Content Index 2023 | 244 |
Disclosure in the Alignment | 257 |
with TCFD | |
Sustainable Development Goals | 258 |
(SDGs) Mapping | |
Independent Assurance | 260 |
Statement | |
Feedback Form: | 262 |
2023 Sustainability Report |
Message from Chairman and Chief Executive Officer
Dear all shareholders and stakeholders,
The Board of Directors and the Management of RATCH Group PCL. share the aspiration to drive the Company towards stable and continuous growth. As such, sustainable development principles have been integrated into the operations. While the Management takes the rein, the Board of Directors and sub-committees particularly the Corporate Governance and Sustainability Committee supervise the operations to ensure the generated economic values can offer appropriate and balanced benefits to society or stakeholders.
Groundworks towards universal environmental and social standards
RATCH is determined to uplift environmental and social operations due to the significant influence on the operations and expectations of stakeholders. The process has been improved. In the past year, the Company extended the Environmental and Social Policy to encompass the following key issues of the enterprise and its business: the environmental impact management; the procurement of environmental-friendly products and services; the conservation and rehabilitation of natural resources, forests and biodiversity; respect for human rights; fair labor treatment; the safety and health of employees and community; the promotion of community engagement; and respect for the indigenous people. The policy shapes the business direction and operational guidelines of all work processes and all activities of RATCH, subsidiaries and operational controlled entities in Thailand and abroad. Approved by the Board of Directors and enforced on 18 August 2023, the revised policy also serves as the basis for the development of Environmental and Social Management System (ESMS) in order to enhance effectiveness of environmental and social risk and impact management of RATCH, joint ventures, business partners and suppliers in the value chain, covering all business phases from development to construction, operation and decommissioning. To be implemented in 2024, ESMS was developed in alignment the international standards of the International Finance Corporation, the Asian Development Bank, the Equator Principles as well as international environmental, and safety and occupational health management standards.
04 Sustainability Report 2023
Adaptation and response to climate impacts
The energy transition, to cap an increase of global temperature below 1.5 Degree Celsius, is a challenge to the power and energy business's sustainability. RATCH is well aware of the global push and vows to achieve carbon neutrality by 2050 in line with the national goal. We have prepared the Climate Change Strategy and Decarbonization Roadmap. In 2023, under the renewable energy strategy, our renewable energy equity installed capacity reached 2,974 MW or 27.14% of total, and 1,739 MW is under the development and construction phases. Renewable energy distribution capacity accounted for 20% of total capacity in the year.
RATCH has started a study on hydrogen fuel technology and the feasibility of renewables-based green hydrogen production. Australia boasts an investment potential, being the location of the Company Group's large wind farms. With Australia's strategy to become a leading hydrogen exporter in 2030, Australia also has the proper ecosystem for hydrogen technology development. RATCH has been underway of the feasibility study and looking for experienced and interested partners, for participation in the development and investment.
Greenhouse gas removals were another activity continuously implemented last year. In collaboration with the Department of Royal Forest and the Department of Marine and Coastal Resources, RATCH has participated in Thailand Greenhouse Gas Management Organization (Public Organization)'s Thailand Voluntary Emission Reduction Program - Forestry and Green Space. Activities involve the reforestation and conservation of natural and community forests. RATCH also supported Mae Fah Luang Foundation under Royal Patronage's carbon credit for sustainable development program that is implemented through community participation and capability enhancement. All have been carried out along with other activities in support of economic, social and environmental development.
Promotion of Respect for Human Rights Principles
RATCH realizes our duties concerning human rights, which is an essential part of our Corporate Sustainability Strategy. The zero-tolerance goal is set for 2030. The Human Rights Due Diligence has been implemented, with human rights risk and impact assessments being scheduled every 3 years. Following risk assessment in 2022, in the past year the impacts concerning the employees of RATCH, subsidiaries and operational controlled entities were assessed, as employees are considered significant internal rights-holders. The assessment showed low risks and impacts and the control and preventive measures remained efficient and effective.
RATCH Group Public Company Limited 05
RATCH also demands suppliers and business partners' compliance with human rights, including the clause in the Supplier Code of Conduct and making it a condition in supplier screening and assessment processes. RATCH has encouraged our subsidiaries and operational controlled entities to follow our path and promoted the understanding and awareness in human rights among employees, to ensure all rights-holders in the value chain satisfy equitable treatment as stipulated by the human rights principles.
On behalf of the Board of Directors, the Management and all employees, we would like to thank all shareholders and stakeholders for their confidence in the Company's path towards sustainability as well as perspectives and recommendations to lift the bar for our economic, governance and environmental operations and create continuous and sustainable benefits to the economy, society and the environment.
Governance as sustainability pillar
RATCH has adhered to good governance, transparency and integrity in operating business and it has been the pillar or our growth and stability throughout the past 23 years. We have consistently improved the key areas in line with regulatory requirements and business or industry contexts and monitored the legal compliance, fight against fraud and corruption, risk management and compliance with the Code of Conduct. The adequacy and suitability of internal control is assessed along with the prevention of wrongful use of the Company and subsidiaries' assets and transactions with related parties. In 2023, we witnessed zero violation of related legislation and the Code of Conduct, or complaint concerning fraud and corruption.
Sincerely yours,
(Mr. Sutat Patmasiriwat)
Chairman
(Miss Choosri Kietkajornkul)
Chief Executive Officer
06 Sustainability Report 2023
Sustainability Performance Highlights in 2023
Generated and distributed renewable energy: 4,230,811 MWh Equity installed capacity of renewable energy:
2,974 MW,
up 55.44% from 2022 Hazardous wastes not deposited in landfills: 215 tons
Volume of saved energy:
70,151 MWh
Volume of consumed renewable energy:
16,600 MWh
Reduced GHGs:
39,728 tCO2e
Saved raw water consumption:
2,806,232 cubic meters
Water reuse
7%
Forest areas for reforestation and carbon sequestration
-
Forest areas conserved under "Love the Forests and
the Community Project":
30,614.78 rai
- Conserved forest areas for carbon credit assessment:
14,319 rai
- Mangrove areas for carbon credit assessment: 113.47 rai
n | ta | ||||||||||||
l | di | ||||||||||||
n | e | ||||||||||||
m | |||||||||||||
r | m | e | |||||||||||
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o | s | ||||||||||||
i | |||||||||||||
v | i | ||||||||||||
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E | n | ||||||||||||
Certified carbon credits from T-VER projects
- 3 projects
-
Certified carbon credit amount:
4,967 tCO2e
Calculated carbon credits from T-VER projects
- 5 projects
- Total calculated
carbon credits
6,256 tCO2e
Environmental complaints and penalties on legal non-compliance:
None
Operating areas covered in biodiversity assessment
100%
Social investment:
Bahtฺ 171.98 million
Employee occupational illness incidence rate:
= 0
Lost-Time Injury
Frequency Rate:
0.11 Per 200,000
Hours worked
Employees of RATCH
and entities in the reporting boundary participating
in human rights impact assessment: 100 Violation on human rights:
None
Human Rights Due Diligence for RATCH and entities under the scope of reporting: 100 Community benefiting from the Love the Forests and the Community Project
16 villages
4,775 households
Forest conservation prize money:
Baht 1.45 million
Community using prize money for capacity building:
100%
S
o
c i a l d i m ension
No. of students and teachers receiving skill training under
the Education for Career Empowerment Project:
- 83 teachers
in electric power, welding, mechanics and renewable energy fields, or 3.99%
of all teachers in the country
- 1,035 students
in electric power, welding, mechanics and renewable energy fields, or 6.49%
of all students in the country
- Employment ratio of participating students:
59.02%
- Continuing studies of vocational students under education for career Empowerment
Project in Lao PDR:
29.13%
n | ||||||||
o | ||||||||
i | Revenue from renewable | |||||||
d n | ||||||||
ic a | n | s | ||||||
electricity | ||||||||
i m e | ||||||||
m d | ||||||||
o | ||||||||
n e | • Baht 7,036.00 million | |||||||
Ec a | ||||||||
o c | ||||||||
n | ||||||||
n | ||||||||
r | ||||||||
e | • 13.89% of total revenue | |||||||
go | ||||||||
v |
Investment in renewable energy
- Baht 137 million
- 5.37% of total investment in 2023
Investment in non-power business and innovation
- Baht 835 million
- 32.77% of total investment in 2023
Revenue from non-power business and innovation
- Baht 2,373 million
- 4.69% of total revenue
Spending ratio of significant suppliers 77.18% of total spending
Significant suppliers under ESG risk assessment 100% of all significant suppliers
No. of incidence on personal data breach and confidential information leak
None
Breach of the Code of Conduct and complaint on fraud and corruption
None
RATCH Group Public Company Limited 07
Awards and Recognition
RATCH Group was bestowed multiple external awards and recognition in 2023 regarding corporate governance, environmental and social activities that placed importance on all stakeholders, transparent information disclosure and regular external verification.
RATCH Group PCL.
Ranked Excellence from the Corporate Governance Report of Thai Listed Companies 2023 (5 star) organized by Thai Institute of Directors Association with support from the Stock Exchange of Thailand for the 16th consecutive year
An honorary mention of | Full score in the Annual General | SET ESG Ratings 2023 at |
the 11th NACC Integrity Awards | Meeting Quality Assessment 2023 | AA Level by the Stock Exchange |
from the office of National | by Thai Investors Association for | of Thailand, being in Group 2 with |
Anti-corruption Commission | the 5th consecutive year | market capitalization between |
Baht 30,000 - 100,000 million | ||
(inclusion into THSI for the 9th | ||
consecutive year) |
Honorary Sustainability | Medal to benefactor in | Honorary Chief Innovation |
Disclosure Award 2023 from | Community Forest Promotion | Officer Award from National |
Thaipat Institute | and Development 2023 from | Innovation Agency |
the Royal Forest Department | (Public Organization) |
CFI.co Award 2023 for Best Value Creation Energy Infrastructure Company (APAC)
by UK-based Capital Finance International Magazine
08 Sustainability Report 2023
Ratchaburi Electricity Generating Co., Ltd.
Honorary CSR-DIW Continuous | Sustainability Disclosure | Moral Award from Center for |
Award 2023 for operator's social | Acknowledgement Award 2023 | Morality Promotion |
responsibility standard from the | from Thaipat Institute for the | (Public Organization) in collaboration |
Department of Industrial | disclosure of environmental | with Ministry of Culture and |
Works, Ministry of Industry for | and social activities | Moral Assembly |
the 10th consecutive year |
Sahacogen (Chonburi) PCL.
- Excellence Performance of Corporate Governance Report of Thai Listed Companies 2023 (5 star) by Thai Institute of Directors Association with support from the Stock Exchange of Thailand
- SET ESG Ratings 2023 at A Level by the Stock Exchange of Thailand
- Full score in the Annual General Meeting Quality Assessment 2023 by Thai Investors Association
- Sustainability Disclosure Acknowledgement Award 2023 from Thaipat Institute for sustainability disclosure
Berkprai Cogeneration Co., Ltd.
Nava Nakorn Electricity
Generation Co., Ltd.
Sahacogen Green Co., Ltd.
Sahagreen Forest Co., Ltd.
-
CSR-DIWContinuous Award 2023 for operator's social responsibility standard from the Department of Industrial Works,
Ministry of Industry - Award under the Zero Accident Campaign 2023 from Thailand Institute of Occupational Safety and Health (Public Organization)
- Membership of Thai Private Sector Collective Action Against Corruption (3rd membership recertification)
- Award under the project on biomass-powered very small power plant (Biomass VSPP)'s energy, safety and environmental efficiency
- Membership of Thai Private Sector Collective Action Against Corruption (3rd membership recertification)
- Outstanding organization award for safety, occupational health and workplace environment management (Platinum level) from Thailand Institute of Occupational Safety and Health
(Public Organization) (T-OSH)
RATCH Group Public Company Limited 09
About this Report
RATCH Group's operations and performance in 2023 in the governance, economic, social and environmental aspects are disclosed in this report and on the Company's website: www.ratch.co.th. RATCH analyzed and assessed positive and negative impacts of the Company's operations, particularly in the power business - our primary business, and topics material to the Company and stakeholders, to ensure the transparency and adequacy of the disclosure of our strategies as well as implementation, progress and performance.
The report disclosed its operating performance during 1 January 2023 to 31 December 2023, prepared in accordance with the Global Reporting Initiative, GRI Standards 2021 and supplement indicators for the Electric Utilities Sector. This report also included climate actions by adopting the framework of the Recommendation of the Task Force on Climate-related Financial Disclosures (TCFD). (Detail shown on Page 257)
Scope of the report
The scope of this report concerned the operations of RATCH Group, its subsidiaries and joint ventures in which the Company has operational control, located in Thailand and overseas. In 2023, the number of joint ventures increased from 2022, with Songkhla Biomass Co., Ltd. and contributed 84.76% of total revenues in 2023. The list of companies covered in this report is as follows:
Operational controlled company
- RATCH Group PCL.
- Ratchaburi Electricity Generating Co., Ltd.
- RATCH Cogeneration Co., Ltd.
- RATCH Energy Rayong Co., Ltd.
- Nava Nakorn Electricity Generation Co., Ltd.
- Berkprai Cogeneration Co., Ltd.
- Sahacogen (Chonburi) Public Co., Ltd.
- Songkhla Biomass Co., Ltd.
- RATCH-AustraliaCorporation Pty Ltd
- Fareast Renewable Development Pte. Ltd. (Asahan-1)
- RATCH-LaoServices Co., Ltd.
- Asia Water Co., Ltd.
Note: | = reported |
Reporting Topics | ||||||||||||||
Economic | Environmental | Social | ||||||||||||
Location | Production | Water | Waste | Biodiversity | Energy consumption | GHG | Safety | Employee | Community | Humanrights | ||||
Air | ||||||||||||||
Thailand | ||||||||||||||
Power Business | ||||||||||||||
Thailand | ||||||||||||||
Thailand | ||||||||||||||
Thailand | ||||||||||||||
Thailand | ||||||||||||||
Thailand | ||||||||||||||
Thailand | ||||||||||||||
Thailand | ||||||||||||||
Australia | ||||||||||||||
Singapore | ||||||||||||||
Non-power Business
Lao PDR
Lao PDR
= unreported
List of all subsidiaries and joint ventures appeared in Form 56-1 One Report and the company website: www.ratch.co.th.
10 Sustainability Report 2023
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Disclaimer
Ratchaburi Electricity Generating Holding pcl published this content on 20 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 March 2024 03:36:05 UTC.