Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Built a water treatment system and reused water in production lines (2000)
• Received certification from the Department of Industrial Factory for project participation of “Ozone Depleting Substance Phase out” for terminating the usage of Chlorofluorocarbons (CFC) for all steps of production process
• Changed office lighting to energy-saving bulbs
• Reusing paper to reduce paper usage in all operations. Papers used on both sides were donated to school for the blinds

Social Achievements

• Regular employee training sessions (e.g., public speaking, Kaizen, sales techniques, technical drawing reading)
• Annual health checkups for employees
• Annual employee celebrations
• Supported local temples after widespread flooding in Central Thailand
• Regularly gave scholarships to students in schools and local communities
• Allowed trainees from local educational institutes to gain real-world work experience
• Established anti-corruption policy (2013)

Governance Achievements

• Improved business efficiency in all parts
• Emphasized good governance practices and complied with the Code of Best Practices in accordance with the Stock Exchange of Thailand
• Encouraged all members of the Board to be trained in the Director Accreditation Program (DAP) held by the Thai Institute of Directors (IOD)
• Established an internal auditor office responsible for supervising business in a just and fair manner with all parties
• Clearly defined competency and responsibility for the Board of Directors, Audit Committee, and Executive Committee and Managing Director

Climate Goals & Targets

Environmental Challenges

• Fluctuations in raw material prices (copper, aluminum, zinc-coated steel plates)
• Supply risk due to reliance on a few large suppliers
• Risk of raw material shortages (copper)
• Exposure to foreign exchange rate risks (30% revenue from export market)
• Increased competition from free trade agreements and imports from China
• Liquidity risk
• Risks from subsidiaries
• Lack of human resources, high wages, flood and limited on investment

Mitigation Strategies

• Maintained close relationships with suppliers to receive timely news and price trends
• Management team’s experience in analyzing and predicting price movements
• Informed customers of current commodity prices prior to sending quotations
• Maintained a 2-month safety stock of raw materials
• Set conditions for large customers with annual fixed prices to adjust prices to reflect actual costs
• Automatically adjusted product prices for other customers based on raw material price fluctuations
• Spread raw material orders to other suppliers
• Researched and developed an all-aluminum coil to substitute copper
• Membership in ASHRAE for access to data, news, and latest technology
• Natural hedging due to revenue and cost in US Dollars
• 30-60 days credit terms from overseas customers
• Utilized currency forwards to control exchange rate risks
• Focused on high-quality coils with different competitiveness than mass products from China
• Improved quality, production efficiency, cost control, and expansion to other export markets
• Focused on customized products
• Closely monitored cash or cash equivalent balance
• Paid attention to cashflows management
• Negotiated with Financial Institutes to adjust loan structure by changing status from short to long-term loan

Supply Chain Management

Responsible Procurement

• Maintained close relationships with suppliers
• Transparency in purchasing system

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: CSA, UL, ISO 9001:2008

Sustainable Products & Innovation

• All-aluminum coils

Awards & Recognition

• Golden Award for parts supplier from Trane (Thailand)
• Best Supplier Award from Trane (Thailand)
• Best Performance Award for Service & Special Project from Trane (Thailand)
• Excellent Industrial Award of 2005 in SME Management category from the Prime Minister

Environmental Metrics

ESG Focus Areas

• Social and Environment Responsibility
• Corporate Governance
• Anti-corruption

Environmental Achievements

• Implemented water treatment system and water reuse in production
• Joined CFC elimination project
• Reduced waste and excess materials through Kaizen projects (resulting in 757,384 Baht cost reduction per year)
• Energy saving projects resulting in 2,701,039.10 Baht electricity cost reduction per year

Social Achievements

• Employee training and development
• Annual health check-ups for employees
• Annual New Year party for employees
• Scholarships for employees’ children
• Support for local schools and temples
• Donations to flood victims
• Collaboration with educational institutes for development and research

Governance Achievements

• Implemented anti-corruption measures
• Established anti-corruption policy
• Emphasis on transparency and moral in business operations
• Good corporate governance practices in accordance with Stock Exchange of Thailand

Climate Goals & Targets

Environmental Challenges

• Fluctuations in raw material prices (copper, aluminum, zinc)
• Supply risk due to reliance on a few large suppliers
• Raw material shortage (copper)
• Exchange rate risks
• Intense competition due to free trade agreements
• Major customer dependency
• Liquidity risk
• Risks from subsidiaries
• Natural disasters
• Technology change
• Environmental effects

Mitigation Strategies

• Maintaining close relationships with suppliers and safety stock
• Informing customers of commodity prices and adjusting prices accordingly
• Developing alternative sourcing strategies and spreading raw material orders
• Developing a copper substitute material (all-aluminum coils)
• Gathering information and trends of exchange rates and utilizing currency forwards
• Focusing on high-quality products and customized products
• Closely monitoring cash balance and cash flow management
• Financial support for subsidiaries and ensuring their independent operations
• Adequate insurance policies
• Multiple production capacities in different locations
• Membership in ASHRAE for access to latest technology and R&D
• Implementing safety measures, closed systems for chemicals, and water treatment systems

Supply Chain Management

Responsible Procurement

• Conducting business with suppliers that have corporate social responsibility
• Communicating guidelines with suppliers to ensure transparency and fairness

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• All-aluminum coils

Awards & Recognition

• Excellent Industrial Award of 2005
• Certificate from Council of Industry for eliminating CFC

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Developed a wastewater treatment system to reduce pollution.
• Reduced waste and material usage in the production process, resulting in annual cost savings of 942,577 baht.
• Implemented energy-saving projects, reducing electricity costs by 2,801,039.10 baht annually.

Social Achievements

• Provided employee training programs (5.81 average training hours per employee/year).
• Offered employee welfare programs, including annual health checkups and company events.
• Provided educational funds for employees' children.
• Participated in community activities, such as temple renovations and educational support for local schools.

Governance Achievements

• Established an anti-corruption committee.
• Implemented a Code of Conduct for directors, executives, and employees.
• Regularly held board meetings (at least quarterly).

Climate Goals & Targets

Environmental Challenges

• Fluctuations in raw material prices (copper and aluminum).
• Dependence on a few major raw material suppliers.
• Risk of raw material shortages.
• Impact of exchange rate fluctuations.
• Increased competition due to free trade policies and AEC integration.
• Risk of dependence on major customers.
• Risk of having the CEO and Chairman be the same person.
• Liquidity risk.
• Risks associated with investments in subsidiaries.
• Risks from natural disasters and other hazards.
• Risks from technological changes.
• Risks from environmental impacts.

Mitigation Strategies

• Tripartite agreements between raw material producers and customers.
• Maintaining good relationships with suppliers.
• Developing alternative sourcing strategies.
• Hedging strategies to mitigate exchange rate risks.
• Focusing on high-quality products to compete in a different market segment than Chinese competitors.
• Diversifying customer base and expanding exports.
• Clear separation of duties and responsibilities.
• Maintaining sufficient cash reserves.
• Supporting subsidiaries' funding needs.
• Insurance coverage for various hazards.
• Investing in research and development to stay abreast of technological advancements.
• Implementing safety measures and environmental protection systems.

Supply Chain Management

Responsible Procurement

• Considering social and environmental responsibility of suppliers.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 9001:2008, CSA, UL

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced cost of goods sold by 2,923,600 baht per year through optimizing raw material usage and waste reduction initiatives.
• Electricity cost reduction of 2,119,147.33 Baht per year through various energy saving projects (Air conditioning improvement, air compression improvement, LED lighting).
• Received a certificate from Council of Industry for protecting the environment by stopping the use of CFCs.
• Built a water treatment system and re-using water in production line (2000).

Social Achievements

• Offered trainings to all employees to increase potentials and career path.
• Offered annual health check-ups to reduce medical costs and promote good health among employees.
• Held annual New Year party to entertain and increase morale of employees.
• Gave scholarships to employees’ children.
• Engaged in various community and education projects, including scholarships for local schools and disaster relief.
• Received Outstanding Practice Awards in Occupational Health, Safety and Environment of 2016’s in province level by Department of Labor Protection and Welfare.

Governance Achievements

• Became a signatory company of the Private Sector Collective Action Against Corruption (CAC) in 2016, aiming for certification in 2017.
• Implemented a comprehensive anti-corruption policy and established an Anti-Corruption Committee.
• Emphasized transparency and moral in business operations, including information disclosure, internal data usage control, corporate governance, and risk management.
• Conducted self-assessment of the Board and Audit Committee performance.

Climate Goals & Targets

Environmental Challenges

• Fluctuations in raw material prices (copper, aluminum, zinc-coated steel plates).
• Supply risk due to reliance on a few large suppliers.
• Raw material shortage risks (copper oxidation).
• Exchange rate risks due to export revenue and raw material imports.
• Intense competition from free trade agreements and imports (especially from China).
• Liquidity risk.
• Risks from subsidiaries.
• Natural disasters.
• Technology change risk.
• Environmental effects risk.
• Labor shortage and high wage costs.

Mitigation Strategies

• Maintaining close relationships with suppliers and using safety stock.
• Adjusting prices to reflect actual costs for large customers with annual fixed prices.
• Spreading raw material orders to other suppliers.
• Developing alternative materials (all-aluminum coils).
• Utilizing currency forwards and natural hedging.
• Focusing on high-quality, customized products.
• Improving quality, production efficiency, and cost control.
• Expanding to other export markets.
• Obtaining adequate insurance policies.
• Having multiple production facilities in different locations.
• Membership in ASHRAE for access to latest technology and R&D.
• Implementing preventive plans to reduce environmental effects.
• Using closed systems for chemicals and water treatment systems.
• Employing migrant workers and focusing on automation to reduce labor dependency.

Supply Chain Management

Responsible Procurement

• Ensuring suppliers comply with company’s CSR policy.
• Transparency in purchasing system.

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• All-aluminum coils

Awards & Recognition

• Outstanding Practice Awards in Occupational Health, Safety and Environment of 2016’s in province level by Department of Labor Protection and Welfare

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced production costs by 8,047,697 THB/year through waste reduction and material reuse initiatives.
• Reduced electricity costs by 1,672,309.58 THB/year through energy efficiency projects (compressed air system improvements and LED lighting).
• Eliminated the use of CFCs in production processes.

Social Achievements

• Implemented anti-corruption training and signed a declaration of intent with the Private Sector Collective Action Coalition Against Corruption Committee.
• Provided employee training (5.51 hours per employee/year) and health checkups.
• Supported community development and educational programs.

Governance Achievements

• Established a clear separation of duties between the Chairman of the Board and the CEO.
• Implemented a risk management policy aligned with the COSO framework.
• Established a whistleblower policy and mechanisms for reporting ethical concerns.

Climate Goals & Targets

Environmental Challenges

• Fluctuations in raw material prices (copper, aluminum, galvanized steel).
• Dependence on a few major raw material suppliers.
• Risk of raw material shortages.
• Impact of exchange rate fluctuations.
• Increased competition due to free trade policies and regional economic integration.
• Liquidity risk.
• Risks associated with investments in subsidiaries.
• Risks from natural disasters and other unforeseen events.
• Risks from technological changes.
• Environmental risks associated with industrial production.
• Potential conflict of interest due to the Chairman's stake in a construction company.

Mitigation Strategies

• Tripartite agreements between raw material suppliers, customers, and the company.
• Strong relationships with suppliers to monitor price changes.
• Safety stock of raw materials (2 months).
• Price adjustment clauses in contracts with major customers.
• Diversification of raw material sourcing.
• Development of aluminum coils to reduce reliance on copper.
• Membership in ASHRAE for access to industry information and technology.
• Natural hedge against exchange rate fluctuations (balanced import and export in USD).
• Currency forward contracts to manage exchange rate risk.
• Focus on high-quality coils to differentiate from low-cost competitors.
• Expansion of export markets.
• Insurance coverage for various risks.
• Decentralized production across three factories.
• Membership in ASHRAE to track technological changes.
• R&D to develop new products and processes.
• Safety equipment and closed-loop systems for chemical processes.
• Wastewater treatment system.
• Safety, Occupational Health, and Environmental Committee (OHSEC).
• Policies to manage conflicts of interest.

Supply Chain Management

Responsible Procurement

• Emphasis on quality and cost-effectiveness
• Volume discounts through high-volume orders

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Certified for joining the Thai Private Sector Collective Action Coalition Against Corruption (CAC)

Climate Goals & Targets

Environmental Challenges

• 2019 Corona Virus pandemic which makes number of local sales of HVACR decline due to postpone of projects
• COVID-19 pandemic has affected the hotel business
• Loss from the construction business

Mitigation Strategies

• reducing all expenses and unnecessary costs
• improve costs structure, mange and improve machine efficiency to control production costs, reduce defect, reduce other costs
• developing new products

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Sustainability
• Carbon Footprint Reduction
• Energy Efficiency

Environmental Achievements

• Developed energy-efficient products such as Chiller Unit for EV Charger and Passive Displacement Ventilation (PDV)
• Focus on using eco-conscious building materials in construction projects (Loova brand)
• Consideration of carbon footprint in production processes to improve energy efficiency

Social Achievements

• Not disclosed

Governance Achievements

• Certified member of the Thai Private Sector Collective Action Coalition Against Corruption (CAC) since 2018
• No corruption-related complaints received in the past year

Climate Goals & Targets

Environmental Challenges

• Reduced revenue from HVACR product business due to geopolitical conflicts and major client order delays/cancellations from late 2022 to Q3 2023

Mitigation Strategies

• Negotiating with new clients to increase sales
• Developing new products (Chiller Unit for EV Charger, PDV)
• Continued development of existing product lines (AHU Replacement, Loova brand building materials)

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Chiller Unit for EV Charger
• Passive Displacement Ventilation (PDV)
• Loova brand building materials

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Received Bronze Medal Ecovadis for sustainability performance.

Social Achievements

• Not disclosed

Governance Achievements

• Renewed membership with the Thai Private Sector Collective Action Coalition Against Corruption (CAC) for another 3 years.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic.
• Fluctuations in raw material costs (copper, aluminum, and other metals).
• Global exchange rate fluctuations.
• Container shortages and high shipping costs impacting exports.
• Construction project delays.

Mitigation Strategies

• Cost-plus pricing to adjust for raw material costs.
• Big data used for procurement and inventory management.
• Reviewing plans and strategies regularly to mitigate risks.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: ISO 9001:2015, TIS.1516-2549

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Large air purifiers (Air Purifier)
• HERESITE P-413 anti-corrosion coating
• Loova brand walls and roofs

Awards & Recognition

• Bronze Medal Ecovadis