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RATCH's corporate sustainability development principles set forth in the Code of Conducts as the operational framework and guidelines are as follows:

  • The Company adheres to sustainable development as a guideline for business operations based on responsibilities to economy, society, and environment.
  • The Company decides to conduct business based mainly on economic, health, safety, environmental and social issues.
  • All activities of the Company must be carried out under sustainability principles and aim for sustainable results in order to maintain the acceptance and trust of all stakeholders.
  • All executives and employees have the duty to regularly create good interactions with stakeholders who are related to their operations.
  • All executives and employees are obliged to strictly comply with the Company's regulations regarding occupational health, safety, security, and environmental and social responsibilities.
  • The Company shall operate business that creates sustainable benefits to the society by taking care of occupational health and safety of employees, partners, and communities while minimizing impacts on the community, keeping greenhouse gases from production to the minimum, best protecting the ecosystem and biodiversity, and using energy, water and other resources with maximum efficiency.

The Corporate Sustainability Development Policy, RATCH sets forth as the strategy for economic, environmental and social development of the Group's operations in Thailand and overseas, also sets force sustainability development strategies as follows:

  • Impose the corporate sustainable development strategy covering good governance, enterprise and project risk management, and emerging risks.
  • Assess risks and set measures to cope the risk impacts that may affect the company's sustainability in economic, social, environmental and governance aspects. This should be considered as materials for business planning, decision-making and operation for the organizational stability and sustainability.
Corporate Sustainability Policy
Economy
  • Seek guidelines to develop and continuously improve efficiency for all business activities by defining the goal, evaluation methods, monitoring and sustainability assessment of the activity.
  • Develop and promote the corporate innovations and technology as a business strategy to create value added and long-term growth of the corporate as well as co- benefits for society and environment.
  • Promote and support all business partners, suppliers and stakeholders along the supply chain to run business based on the sustainable development practices.
Environment and Climate Change Adaptation
  • Manage the environmental quality and biodiversity according to the legal requirements and specified regulations as well as investing, developing and improving the environment management system, new applicable methodology ensuring higher efficiency of environment quality management and control.
  • Create and seek approaches and methods of reduction of resources, energy, emission, waste and greenhouse gas in order to protect, control and minimize impacts to environment, community and society.
  • Define target of emitted greenhouse gas from generating electricity and operating business, assessment methodology of climate change risks and impacts that may affect the generation and business, and search for measures of greenhouse gas emission reduction and climate change adaptation.
Society and Community
  • Invest in the personnel capability enhancement by providing the skill and knowledge development and relevant resources as well as safety in workplace to build 'creative thinking' atmosphere and fully optimize employees' potential and capacity.
  • Respond to customers' needs and gain their satisfaction in products and services quantity and quantity aligned with contractual agreement.
  • Encourage and promote participation of the community and stakeholders by opening for listening their advices, constructive and transparent dialogue, fair treatment, respect of diversity, supporting their quality living and community empowerment.
  • Collaborate with public sector, industrial associations, business partners, civil society and other stakeholders in developing and/ or applying sustainability standard and practices generally accepted by industry.

Strategic review

In 2021, RATCH conducted a review on sustainable development strategies as well as economic, social and governance issues significant to the Company and stakeholders. RATCH accordingly considered an improvement to the current principles and international practices. In light of the sustainable development review, the following actions will be completed in 2022 along with the setting of targets and enterprise indicators, are as follows;

  • Improve sustainable development strategies, and set the roadmap, targets and 5-year work plans.
  • Improve the human rights policy and the human rights risk assessment process.
  • Develop the Climate Change Strategy, the roadmap and greenhouse gas emission reduction targets.

More Info : The Code of Conduct , Corporate Sustainability Development Policy

The climate change is a significant factor to RATCH's operations and challenges the Company's ability in adapt to impacts and turning crises to opportunities, particularly when it concerns power generation which is the Company's core business.

RATCH has devised the approach and guidelines in response to climate change and includes them in the Code of Conduct and the Corporate Sustainability Development Policy, which serve as the framework for corporate operations and activities. Climate change risks on the Company's strategies and targets concerning fossil-fuel power project investment and power plant operations have been assessed. The Company also assessed the potential of renewable power plant investment.

Climate Change Response Strategy

RATCH's climate change response framework is geared towards maintaining business continuity and addressing two Sustainable Development Goals which are Goal 12: Ensure responsible consumption and production and Goal 13: Take urgent action to combat climate change and its impacts.

RATCH's Climate Change Response Strategy covers five aspects:

Strategy 2025 Targets 2035 Targets
1. Setting of Fuel Type Proportion
  • Combined capacity: 10,000 MW
  • Fossil: 75%
  • Renewable: 25%
  • Combined capacity: 10,000 MW
  • Fossil: 60%
  • Renewable: 40%
2. Greenhouse Gas Emissions Reduction
  • GHG reduction: 6,000,000 tCO2e or 70% compared to the base year 2015
  • GHG emissions per kWh down by 15 % compared to the base year 2015
  • GHG reduction: 10,000,000 tCO2e or 100% compared to the base year 2015
  • GHG emissions per kWh down by 25% compared to the base year 2015
3. Increase of GHG Storage
  • Stored amounts of GHG: 83,000 tCO2e
  • Stored amounts of GHG: 280,000 tCO2e
4. Knowledge and Awareness Enhancement
  • Employee training attendance: 80%
  • Energy consumption reduction through Community Energy Project targeting community participation by 80% of the target group
  • Employee training attendance: 90%
  • Energy consumption reduction through Community Energy Project targeting community participation by 90% of the target group
5. Information Disclosure
  • Sustainability Report according to the Global Reporting Initiatives
  • 56-1 One Report
  • Carbon Disclosure Project (CDP)
  • Participation in Corporate Sustainability Assessment of international institutions
  • Sustainability Report
  • 56-1 One Report
  • Carbon Disclosure Project (CDP)
  • Participation in corporate Sustainability Assessment of international institutions

Assessment of climate change risks and opportunities

RATCH outlines the guidelines to manages likely impacts from the climate change and assesses the emerging opportunities that can bring corporate value-added as follows:

Risk Factor / Impact Corporate Strategic Plan / Growth Target
Managing Method
  • Review strategic plan and investment target concerning portion of power generation from fossil fuels and renewable energy.
  • Develop and improve the Climate Change Strategy and the risk/opportunity assessment process in alignment with TCFD recommendations.
  • Develop a GHG reduction roadmap and emissions reduction targets for the short, medium and long term.
  • Study and develop the internal carbon pricing scheme.
Opportunity
  • An increase in the investing capacity in energy innovations, future trend of energy technology and energy start-ups.
  • Development of innovations concerning renewable energy, energy trading, energy storage smart grid and electric vehicles.
  • Development of solar rooftop installation business and Private PPA targeting business and industrial customers, extending from cogeneration plants' customers in industrial estates.
Risk Factor / Impact Operations
Managing Method
  • Set a policy to have all power plants develop their GHG and carbon footprint inventory to support the formulation of GHG reduction strategy and targets.
  • Require all power plants to map GHG-reduction plans and targets and fully comply with regulatory requirements concerning climate change.
Opportunity
  • Improve/raise renewable energy consumption at power plants to save energy and reduce CO2.
  • Develop projects concerning carbon trading/offsetting

More Info : Risk Management

GHG emission monitoring through carbon footprint assessment

RATCH Group, through Ratchaburi Power Plant and RATCH Cogeneration Power Plant, monitored the greenhouse gas emissions in accordance with Carbon Footprint for Organization methodology (Revision #5) of Thailand Greenhouse Gas Management Organization (Public Organization) (TGO). GHG Inventory under Scope 3 emissions was prepared, with this year selected base year as the emissions covered direct emissions from the Group's activities as well as indirect emissions from other sources from upstream to downstream.

Ratchaburi Power Plant, RATCH Cogeneration Power Plant and RATCH Group Building's carbon footprints in 2019 and 2020 were certified by TGO. The 2021 carbon footprints will be filed for certification in 2022.

Greenhouse gas emissions (tCO2e )
Carbon Footprint for Organization (CFO)

Direct GHG emissions (Scope 1)

  • Consumption of fuels like natural gas, bunker oil and diesel in production process
  • Consumption of fuels for transportation
  • Utilization of limestone in desulfurization
  • Leakage of sulfur hexafluoride (SF6) and coolants

Energy indirect GHG emissions (Scope 2)

  • Power supply from Electricity Generating Authority of Thailand
  • Power supply from Provincial Electricity Authority
  • Power supply from Metropolitan Electricity Authority

Other indirect GHG emissions (Scope 3)

  • Emissions from upstream sources
  • Emissions from downstream sources
Year (Base Year) 2019 2020 2021* (Base Year) 2019 2020 2021* 2020 2021*
Ratchaburi Power Plant 7,128,375 (2015) 5,201,346 4,997,704 4,950,948 27,702 (2015) 24,090 18,837 28,131 - 1,769,980
RATCH Cogeneration Power Plant - - 313,927 300,110 - - 25 1,069 3,131 88,841
RATCH Group Building 73
(2018)
69 664 43 1,110 (2018) 1,084 888 813 - 36

Remark: *The information is under verification process.

Ratchaburi Power Plant's greenhouse gas emissions in 2021 increased from the previous year, as Ratchaburi Thermal Power Plant was instructed to generate electric power with bunker oil. Bunker oil consumption in the year totaled 161 million liters, up by 100% and 76% from the previous year and the base year 2015 respectively.

The two power plants' emissions in Scope 1 and Scope 2 to the net energy output were 0.4122 in 2021 compared to the 2015 base year were at 0.4567 tCO2e per megawatt-hour, or a reduction of 2,177,373 tCO2e

The carbon footprint data will support the formulation of the Company's GHG-reduction strategy, roadmap and target, which will be carried out in 2022.

Emission reduction through renewable energy

RATCH's net output of electric power generated by renewable sources totaled 7,247,621 megawatt-hour, or a reduction of 4,268,513 tCO2e of greenhouse gas emissions. The reduced GHG accounted for 24 percent of total emissions in 2021.

Renewable sources Net energy output (megawatt-hour) Reduced greenhouse gas emissions (tCO2e)
Total Equity holding base Total Equity holding base
1. Solar power 181,886.20 128,753.76 116,829.82 90,268.91
2. Wind power 2,160,931.29 1,641,677.99 1,516,408.62 1,216,304.53
3. Hydro power 4,833,786.52 1,229,590.99 2,599,773.11 663,369.95
4. Biomass power 71,016.70 28,406.68 35,501.25 14,200.50

Greenhouse gas emissions reduced by renewable energy projects in 2021
(Unit: tCO2e)

Emission reduction through production efficiency enhancement

In 2021, each power plant succeeded in carrying out fuel-saving projects and activities, resulting in 140,804 million BTU of saved fuels and 23,717 megawatt-hours of saved electric power. In total, they reduced greenhouse gas emissions by around 21,573 tCO2e of total emissions. The GHG emission per kilowatt-hour was continuously maintained, while the production cost was cut by Baht 54,992,579.

Project / Activity Energy-saving target in 2021 Reduced heat usage (million BTU/year) Saved electricity (kWh per year) Saved expenses (Baht/year) Investment (Baht) Breakeven (year) Reduced GHG emissions (tCO2e)
Ratchaburi Power Plant
  • Suspending Auxiliary Cooling Water Pump when a block of Combined-Cycle Power Plant shut down
Electric power 228,000 kWh - 972,782 2,937,800 - - 486.29
  • Halting Control Air Compressor but instead using one Station Air Compressor during preserved operation
- 493,776 1,491,204 - - 246.84
  • Saving power consumption by adjusting angle of fan blade of Auxiliary Cooling Tower
- 66,946 202,178 - - 33.47
Nava Nakorn Power Plant
  • Raising the temperature of steam entering HP Steam from 505 to 510 degree Celsius to enhance the steam turbine's power
Electric power: 75,603 kWh and heat energy: 27,058 MMBTU 18,305 - 4,194,044 - - 2,681.82
  • Reducing excess energy when the load goes updown to accommodate EGAT's peak and minimize loss
4,420 - 372,579 - - 647.51
  • Saving power consumption of the Lighting Cooling Tower system (extension) and Core Central Room (CCR) through LED lighting replacement and turning off unused parts
- 47,136 116,186 - - 23.56
Berkprai Cogeneration Power Plant
  • Changing the final filter of gas turbines to enhance combustion efficiency and reduce heat loss
42,241.61 MMBTU 43,598 - 9,659,054 1,614,000 0.17 6,387.32
RATCH Cogeneration Power Plant
  • Installing variable speed drive (VSD) in cooling water tower fan unit 2 and cool water pump in the loop heating system of the gas turbine #2
74,480.05 MMBTU 3,787 1,109,769 3,683,118 1,152,861 0.31 554.77
  • Reducing operating hour of cooling water system or chiller of the gas turbine
16,506 4,837,076 16,053,367 - 0.00 2,418.05
  • Utilize high efficient Air Compressor
943 276,307 917,013 1,166,667 1.27 138.13
  • Offline Compressor Wash
53,245 15,603,640 14,164,112 214,999 0.22 7,800.26
RATCH Group Building
  • Promoting energy saving under the program Turn-off, Unplug, Adjust, Change
Lower 1% from average energy used in 2017-2019 - 309,333 1,201,923 - - 154.64
Total   140,804 23,716,765 54,992,579 4,148,527 - 21,573

Emission reduction under T-VER program

In 2021, Ratchaburi Power Plant submitted two projects for carbon credit certification under Thailand Voluntary Emission Reduction Program (T-VER), in preparation for Thailand's Emission Trading Scheme (ETS)

Registration No. Project Type of Project Status Crediting period Amounts of carbon credit (tCO2e) Certification plan (years)
Registered Carbon Credit Certified Estimated entire period Certified
105 Energy Efficiency Project through LED Lighting Replacement by Ratchaburi Electricity Generating Co.,Ltd. Energy efficiency (EE) 7 years 5,397 3,064
(4 years)
2024
131 Solar Floating Project at Ratchaburi Electricity Generating Co.,Ltd. Renewable energy (RE) 7 years 12,418 1,513
(1 year)
2023
185 Sustainable Forestation Project of Ratchaburi Power Plant Forest and Green area (FOR) 2022 20 years 1,140 - 2022

Promotion of external emission reduction

Community Energy Project Phase 3 (2020-2022), at Yang Hak sub-district, Pak Tho District, Ratchaburi Province

In the second year of the Community Energy Project, RATCH promoted the use of solar-powered water pumps. Eight pumps were handed out to the community and they were used for agricultural purposes. Aside from this, two energy learning centers were established to transfer the knowledge in solar power application for equipment and tools instead of fossil fuels, to help reduce greenhouse gas emissions. The centers also demonstrated how solar-powered tools and equipment worked.

Assessment of impacts

Activity Social benefit Environmental benefit Economic benefit
Activation of 8 solar powered pumps 100 households benefit from the pumps.
  • For agricultural purposes: 98 households
  • For consumption purposes: 17 households
  • Consumption and combustion of gasoline, 17,280 liters per year for traditional pumps, was cut.
  • Combustion-based emissions were slashed by 37,836.29 kgCO2e* (37.8 tCO2e) per year.
  • Reduce expenses on pumps for household use
  • Reduce expenses on gasoline by Baht 518,400 (based on the average fuel price of Baht 30 per liter)

* Based on TGO's calculation methodology: Gasoline combustion of not-moving engine releases 2.1896 kg. of carbon dioxide per liter (kgCO2e).

Low Emission Support Scheme (LESS)

The Company submitted two community energy-saving projects and Head Office's energy-saving project to GHG evaluation under LESS Scheme in the energy-efficiency category. The projects reduced GHG emissions by 4.86 tCO2e per year.

Project Certification period under LESS Scheme Reduced GHG (tCO2e)
Solar-power promotion at Ban Hua Ha, Mae Hong Son Province (Off-grid solar power generation) 1 July 2020 – 15 June 2021 2.987
Community Energy Project at Yang Hak Sub-district, Pak Tho District, Ratchaburi Province (Renewable power generation in replacement of purchasing of power from the grid) 16 December 2020 – 15 June 2021 1.874
Total 4.861

Carbon sink creation

RATCH has shown support to community forests across the country through its "Love the Forest and the Community Project". Under the project, community forest contests have been organized and prize money has been awarded to the forests with sustainable management that covers safeguarding, rehabilitation and utilization of forest resources. The project has been implemented in collaboration with the Royal Forest Department since 2008.

Community Forest Contests (2008-2021)
Indicators Results
Number of entries 15,868 forests
Awarded community forests (before Community Forest Act B.E. 2562 effective) 1,974 forests
Awarded community forests (after Community Forest Act B.E. 2562 effective) 1,395 forests
Areas of awarded forests 1,276,389.24 rai
Prize money 43,020,000 Baht
Environmental benefit from contests
Carbon capture (6.3 tons/rai on average) 8,041,252.21 tco2e
Water storage and runoff discharge (≈ 686 cubic meters/rai) 875,603,019 Cubic meters
Value of forest ecosystem services (≈ Baht 89,737 per rai) 114,539 million Baht

In 2021, RATCH prepared a forest reforestation project (2022-2025) to create a carbon sink. The project will be improved and registered under TGO's T-VER Scheme in the forest and green area category. Encompassing approximately 50,100 rai, the project is expected to capture a total of 670,000 tons of carbon dioxide equivalent throughout the initial 10-year crediting period. It is part of the carbon sink-creation strategy.

GHG disclosure

Disclosure method Target group
Sustainability Report 2020 based on GRI Standards Shareholders, investors, stakeholders, and the interested
Participating in Stock Exchange of Thailand's sustainability assessment Shareholders, investors, stakeholders, and the interested
Taking part in survey on Carbon Disclosure Project Investors and stakeholders
Taking part in S&P ESG Indices Corporate Sustainability Assessment Investors and stakeholders

RATCH received "The Sustainability Disclosure Award" from Thaipat Institute for the third consecutive year, recognized for the Completeness, Credibility and Communication of its publicly-disclosed Sustainability Report based on the Ceres-ACCA criteria.

RATCH foresees that climate change will remain a major factor that influences businesses in the future, particularly those in the electricity and energy industry. Several countries are setting their Carbon Neutrality and Net Zero Emission targets after the 26th UN Climate Change Conference (COP26) and that is a catalyst for changes in all dimensions. Such can constitute emerging risks that affect the Company's competitiveness and business sustainability. The risks that are expected to emerge in the next 3-5 years and create significant impacts on the Company are as follows:

Emerging Risk Cause / Possible Impacts Management Approach / Opportunity
Laws, regulations and measures that support a reduction in greenhouse gases and the net zero target, to limit global warming to 1.5 degrees Celsius above pre-industrial levels
  • A law may be enacted to support the national targets on emission reduction that may involve the emission cap or GHG management (Cap & Trade); and/or emission reduction targ or carbon taxes.
  • The financial market has imposed measures and practices involving ESG. Emission reduction has become a condition that all businesses shall honor, especially those in t electricity generation industry.
  • The operating cost will increase and this will limit the electricity generation industry's growth, especially when it involves fossil fuels.
  • Monitor and study the power development plans, national carbon strategy and investment targets of the countries that are investment destinations, as well as the likelihood regulatory changes concerning GHG management to assess financial impacts and business/investment opportunity as well as return on investment in the countries.
  • Specify the fossil fuel ratio for the electricity generation business; devise the strategy, roadmap and target to reduce the Company's greenhouse gas emissions; and apply TC recommendations in assessing financial impacts and planning the approach/methods in tackling and mitigating the impacts.
  • Study and follow up on the development and amendments in the law and rules on the financial market, as they can be a condition in the fund-raising through various channels a instruments as well as required compliance with other conditions.
  • Study and follow up on the development/ improvement in emission reduction mechanism, compulsory or voluntary, in the national and international levels the development of carb trading and carbon credit pricing and the implementation of emission taxes.
  • Improve personnel capability, for the right knowledge and skills supportive to the new business context and conditions as well as future businesses.
Development of low-carbon innovation and technology for decreasing GHG in support of global efforts to limit global warming to 1.5 degrees Celsius above pre-industrial levels
  • The development of decarbonizing technology to turn fossil fuels to clean energy and improvement in the efficiency of technology for increasingly demanded renewable electrici generation may affect the Company's operating cost.
  • The advancement in Carbon Capture and Storage (CCS) technology development, to reduce emissions to the atmosphere, may affect the operating cost of the Company's existi fossil fuel power plants and future investment.
  • Monitor the advancement in electricity generation technology; study and analyze carbon footprint per unit for comparison with that of the Company's projects, commercial operated and under development; draw up the approaches for efficiency management as well as resource utilization and conservation; and use the information as the basis for futu project consideration.
  • Explore investment opportunities in the innovation and technology concerning emission management, renewable energy, storage and energy management; and build up partnership wi technology developers, experts or start-ups.
  • Monitor changes or improvement in regulatory rules/criteria/measures in environment impact reduction and environmental quality management concerning the application of Carb Capture and Storage (CCS) technology in the electricity and energy sector.