Dear shareholders and stakeholders,

RATCH operates mainly in electricity generation, infrastructure and energy-related businesses in Thailand and throughout Asia Pacific and electricity generation remains our primary business, accounting for 80 percent of total investment. We have set the targets to raise the enterprise value to Baht 200,000 million in 2023 and increase generating capacity to 10,000 MW.

Amid rapid and abrupt changes in technology, climate change impacts, complex social and human rights issues as well as increasing competition, RATCH considers risk management an essential tool in sailing us through challenges and leading us to opportunities, continuous growth and target achievements. In 2020, RATCH reviewed risk management approaches and analysis tools and improved the process in response to today’s challenges, and likely emerging risks. The purpose is to foresee a holistice picture of risks in economic, environmental and social dimensions as well as human rights-related risks in the project, organizational, national and international levels. That will assist the formulation of comprehensive enterprise risk management strategies and hence ensure more effectiveness in the strategic decision-making process. The review and improvement is scheduled for completion in 2021.

Commitment towards GHG reduction

RATCH is aware that electricity generation, though creating economic and social values, influences climate change which requires the global community’s actions to keep temperature increase at no more than 1.5 degree Celcius above pre-industrial level. In response to this effort as a part of international community and GHG reduction-focused industry, RATCH is set to generate 25 percent of the 10,000 MW target from renewable energy, compared to the previous 20 percent target. Meanwhile, we encourage development of generating innovations that promise less energy consumption as succeed at Berkprai Cogeneration Power Plant. The power plant is equipped with 3 generating systems gas turbine, steam turbine and gas engine. Commencing commercial operations in 2020, it consumes less fuels upon electricity unit about 300 BTU/ kilowatt-hour, representing by 4 percent reduction of fuel consumption compared to Small Power Producers (SPP) in Group of the company. Its generating efficiency is also above other SPP power plants’, during peak and off-peak periods. While the efficiency stayed around 47 percent, the Equivalent Availability Factor was by 98 percent. The success allowed RATCH to be awarded the “Best Innovative Company Award” at the Stock Exchange of Thailand’s SET Awards 2020.

We will also step up the efforts to reduce greenhouse gas emissions. We have studied various approaches in Thailand and overseas and formed ESG Working Group, we expect to finalize new strategies and targets within 2021. RATCH has launched some actions in the past years. As a participant of Thailand Greenhouse Gas Management Organization (Public Organization) or TGO’s Thailand Voluntary Emission Reduction Program, RATCH developed 3 T-VER projects involving energy efficiency, renewable energy and forests. They had reduced greenhouse gases annually by 2,602 tons of carbon dioxide equivalent. Subsidiaries and companies under the Company’s operational control have prepared greenhouse gas inventory. In 2020, RATCH Cogeneration Company Limited kicked off the organization carbon footprint assessment based on TGO’s Carbon Footprint for Organization methodology. The data will be used in the formulation of the Group’s greenhouse gas reduction guidelines and targets.

Safety and occupational health come first

RATCH maintains its zero accident target at all operating sites and all safety targets for 2020 were achieved. Amid the new coronavirus (COVID-19) outbreak, the Company put in place preventive measures in line with the government and the Ministry of Public Health’s measures, to watch out and prevent infections among employees and the spread in office buildings and power plants. We worked with suppliers operating at office buildings and power plants, to formulate safety guidelines for their employees. None of the Group’s employees or suppliers’ has contracted the disease so far. RATCH also supported the Company’s power plants, to implement ISO 45001 Occupational Health and Safety Management System ensuring that occupational health and safety of employees, contractors and related stakeholders were treated at same standard.

In support of sustainable development goals

RATCH has also adhered on Thailand and international guidelines of governance, anti-corruption and respect to human rights, making them standard practices for the operations in both Thailand and abroad. Thanks to the best practices, RATCH has been listed in the Stock Exchange of Thailand’s Thailand Sustainability Investment (THSI) since 2015 and SETTHSI. RATCH also supports the United Nations Sustainable Development Goals-Goal 12: Responsible Consumption and Production and Goal 13: Climate Action which can address the impacts from the Group’s operations and foster organizational capacity and capabilities.


Chief Executive Officer