EN TH

Mr. Boonyanit Wongrukmit

Chairman

Miss Choosri Kietkajornkul

Chief Executive Officer

Dear shareholders and stakeholders,

The containment of COVID-19 infections among RATCH employees was our necessary and essential mission in 2021, like what we had done in 2020. During the past year, RATCH worked closely with partners, customers and suppliers in Thailand and abroad in the value chain for dealing with the situation, by estimating the impacts related to the Company’s operations and business outlook along with applying suitable measures to keep operations properly. RATCH, partners, suppliers and customers collaborated in establishing the commercially operating power plants the COVID-19 free zones, to avoid undisrupted production and delivery and satisfy customers and power users. Besides, we supported the public health effort against COVID-19 as well as communities. RATCH performed satisfactorily in the past year. We achieved not only in control of the infections at office buildings and power plants, but also in maintaining the economic values and creating shared values for stakeholders, community, society and the environment.

Strengthening risk management efficiency in support of ESG principles

The COVID-19 outbreaks in the past 2 years brought about rapid changes to the way of life and the way of business doing. Stakeholders’ concerns about the environment, society and governance have been rising. These prompted the Company to rethink and the environmental, social and governance issues were included in the enterprise risk management process. Project risk management was monitored more closely, to ensure sufficient and effective preventive measures and mitigation of impacts.

In this context, the improvement of the risk management process continued. In 2022, RATCH plans to carry out its analysis on climate change risks based on the Recommendations of the Task Forces on Climate-related Financial Disclosures (TCFD). As climate change is considered a significant issue to the power generation industry, RATCH needs to know climate impacts that may derail the corporate targets on economic values and long-term growth as well as business opportunities that will bring about value-added in the long term.

RATCH has established the Environmental, Social and Governance Working Group, that integrates all business functions in the assessment and improvement of environmental, social and governance aspects that are essential to the Company and stakeholders. In 2022, RATCH plans to revisit the Corporate Sustainability Development Policy and target setting; formulate the greenhouse gas emission management strategy and target; develop the policy and due diligence process for human rights risks; and develop the Supplier Code of Conduct as guidelines for enhancing sustainable cooperation which will serve as best practices for the industry.

Greenhouse gas emission reduction in focus

RATCH is committed to greenhouse gas emission reduction. In 2021, the Company Group reduce greenhouse gas emissions by 21,573 tons of carbon dioxide equivalent thanks to the optimized utilization of energy and resources in the production process. The power output from renewable sources accounted for 17 per cent of net annualized generation, which further reduced greenhouse gas emissions by 4,268,513 tons of carbon dioxide equivalent. RATCH has also developed GHG inventory. The organization carbon footprint assessment is extended to Scope 3: other indirect emissions and the results will be used in the drafting of greenhouse gas emission reduction roadmap and targets. Our subsidiaries are being pushed to adopt similar actions.

Commitment towards GHG reduction

Due to the intensifying climate change, RATCH is committed to reducing greenhouse gas emissions while growing economic values. We target to reduce our investment in fossil fuel power plants and increase investment in renewable projects, to bring the investment ratio to 60:40 in 2035. Our expectation is the additional 4,000 MW capacity from renewable sources will reduce greenhouse gas emissions by 10 million tons of carbon dioxide equivalent. Meanwhile, our power plants will strive to further improve and maximize energy efficiency and we will diversify into low-carbon businesses that contribute to GHG reduction.

RATCH also plans to grow trees as well as rehabilitate and conserve forests during 2022-2025, to create natural carbon sinks, and adopt the forestry and green space methodology for voluntary emission reduction developed by Thailand Greenhouse Gas Management Organization (Public Organization) (TGO) for gaining registration and issuance of Thailand Voluntary Emission Reduction Program (T-VER) from TGO. It expected greenhouse gas emissions will reduce for another 670,000 tons of carbon dioxide equivalent along the project duration from 2022 to 2034. Under the plan, activities will be launched to strengthen community capacity in safeguarding and utilizing forests as well as to assess forests’ carbon storage capacity and biodiversity, in support of Sustainable Development Goal 13: Climate Action.

We would like to thank shareholders and stakeholders for their valuable recommendations and supports throughout the past 21 years in creating growth and shared values for all parties. We will continuously dedicate our capabilities to developing stable and sustainable progress as well as generating and contributing values for stakeholders, society and the environment.

(Mr. Boonyanit Wongrukmit)
Chairman

(Miss Choosri Kietkajornkul)
Chief Executive Officer