Sustainability Strategy

The Company has established a Sustainable Business Development Policy by integrating international standards on sustainability and corporate responsibility

including the United Nations Sustainable Development Goals (SDGs), standards issued by the International Organization for Standardization (ISO), ISO 26000 Guidance on social responsibility, the Universal Declaration of Human Rights (UDHR), the United Nations Guiding Principles on Business and Human Rights (UNGP), and the National Action Plan on Business and Human Rights (NAP). The Company also monitors and reports its performance in accordance with its guidelines. Its sustainable business development approach is centered on creating value across three pillars: economic value (Growth), social value (Good), and environmental value (Green), all of which are founded on good corporate governance (Governance). Details are as follows:

Growth

To achieve its corporate vision and mission, the Company believes that operating under its core strategies will enable it to respond to the competitive landscape and rapidly changing environment. The Company applies innovation, knowledge, supply chain business management, and business expansion in compliance with applicable laws and regulations. Its investment and business development strategies are as follows:

Core Business

The Company focuses on growth in its core business by expanding its large-scale power plant business and investing in and developing solar, wind, hydropower, natural gas, and electricity transmission system projects in Thailand, the Republic of China (Taiwan), the Philippines, the Lao People’s Democratic Republic, the Socialist Republic of Viet Nam, the United States of America, and Australia.

Adjacent Business

The Company expands into new businesses related to its core business to support the future direction of the energy industry, including Smart Energy, District Cooling, and Energy Storage. These businesses provide energy management solutions that reduce costs, improve energy efficiency in buildings, and enhance power system stability.

Non-core business

The Company has a collaborative strategy with Bangchak Group to develop energy infrastructure assets, including oil storage facilities and ports, to meet international standards.

Related to Core Business

The Company aims to build its corporate value chain by providing comprehensive services for planning, target setting, and carbon footprint monitoring to reduce both direct and indirect greenhouse gas emissions. These services also include carbon credit trading to offset emissions and achieve the Company’s operational greenhouse gas emissions targets.

Good

The Company believes that good and sustainable business operations must go hand in hand with social development and assistance, engagement, and responsibility towards all sectors of society, both within the organization through its employees and outside the organization through its communities, to build long-term resilience. The Company transfers business knowledge from within the Group to communities and society and applies new knowledge to continuously support community development and social activities. Examples include enabling communities to access clean energy through the Group’s projects, promoting safety and occupational health, respecting the human rights of employees and communities surrounding its projects, and embracing diversity and differences within the organization. The Company has also established relevant policies, including the Business Responsibility on Human Rights Policy, and oversees compliance with these policies through its grievance channels for ethics and business conduct.

Green

The Company recognizes the importance of advancing the energy transition and is committed to serving as a driving force and role model in clean power generation. It places importance on the impacts of climate change and has established targets for carbon neutrality and net-zero greenhouse gas emissions. The Company also seeks opportunities to expand into new businesses, promote efficient resource utilization through the circular economy, and strengthen environmental stewardship.

In addition, the Company has a policy of not investing in fossil fuel-related projects that generate high levels of greenhouse gas emissions. It also has a policy of selecting modern and environmentally friendly equipment and technologies to ensure that its power plants operate at maximum efficiency.

Governance

The Company recognizes the importance of corporate governance, or good corporate governance, and has therefore adopted the Corporate Governance Principles prescribed by the Securities and Exchange Commission, Thailand, as guidelines for its operations. These principles support an efficient, transparent, and accountable management system, thereby building trust and confidence among shareholders, investors, and all relevant stakeholders.

The Company also recognizes the importance of managing key enterprise risks and applies the risk management process under the COSO ERM 2017 framework. This process identifies and assesses risks that may affect the Company’s strategy, operations, finance, regulatory compliance, and reputation, including emerging risks. Risk coordinators are appointed in every department to analyze risks and prepare risk management plans. Progress in implementing these plans is monitored and reported quarterly to the Enterprise-wide Risk Management Committee and to the Board of Directors as appropriate.