Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Changed the centrifuge motor of latex to use a high-efficiency motor at the Surat Thani factory and was able to control the use of electricity in the concentrated latex production process is the best, which was 84.88 Kwh./ton of concentrated latex, below target 15.12 %.
• Installed a solar power generation system on the roof of an office building to use solar energy instead of using fossil fuels.
• The conversion of the centrifuge motor to the high-efficiency motor
• 3Rs Study on waste and waste management in business processes in a systematic manner according to the 3Rs principle.
• A campaign to use recycled paper and control the amount of paper, including the adoption of technology to replace the use of paper.

Social Achievements

• The project “Thai Rubber Solves Poverty, Happy Society, Bright Environment” promoting schools to have their own income and improve the quality of life and education of students.
• Provided financial assistance to people with disabilities who are legally registered, amounting to 4 people, 112,420.00 baht each, totaling 449,680.00 baht.
• Employee development program to enhance digital skills within the organization
• Employee training program to understand the impact of sustainable business operations on the organization.

Governance Achievements

• Operates in accordance with the principles of good corporate governance for listed companies (Corporate Governance Code (CG Code))
• Established a working group on the process of organizational development towards sustainability to study information and propose guidelines to reduce the impact of the Company’s operations to the least impact on the environment, including studying the improvement of the company’s products to be GREEN PRODUCT

Climate Goals & Targets

Environmental Challenges

• The risk of spreading infectious diseases (COVID-19)
• Risks in quantity and price of rubber raw materials
• The risk of relying on executives and key personnel
• Foreign Exchange Risk
• The risk of an Emergency, Production Process Disruption or Interruption
• Government Policy Risks
• Legal and Regulatory Risk
• Environmental Management Risk
• Risk from International Trade War

Mitigation Strategies

• organizing training to educate employees and establishing a safety system within the company by screening before entering the factory / office area both employees and outsiders to prevent the spread of the epidemic that may occur.
• uses factories which are in various sectors to obtain raw materials from the factory location including nearby areas, which in the past the Company was able to supply raw materials and store raw materials sufficient to meet the needs of customers.
• has the clear organizational structure and segregation of duties and responsibilities of each department in order to decentralize the management powers and responsibilities to the lower-ranking executives as appropriate, including the decentralization of approval authority at each level to allow the approval of various important items through specified procedures and processes.
• The Group uses a variety of foreign exchange risk management tools, such as derivative financial instruments, to mitigate foreign exchange-related risks that may arise from trading in products in currencies other than Thai Baht such as, forward contracts, etc.
• established a Business Continuity Plan (BCP) that covers the work of the Company’s key departments in order to prepare in advance to cope with such crisis or emergency situations.
• The Company provides legal advisors. and the department responsible for monitoring changes in relevant laws and regulations to analyze the impact and factors related to the company and educate the management and employees on key issues to ensure that the Company’s business operations are carried out according to laws and regulations.
• The Company focuses on environmental sustainability and has managed environmental risks by assessing the risks that will affect the company, considering the connection and the impact of related factors such as the location, factory, community, as well as biodiversity in the area.

Supply Chain Management

Responsible Procurement

• Quality and safe raw materials are procured using local raw materials at a fair price.

Climate-Related Risks & Opportunities

Physical Risks

• severe drought in the rubber plantation area
• rains frequently

Opportunities

• Promote business opportunities from climate change issues to prepare for a low-carbon society.

Sustainable Products & Innovation

• CNR special grade raw rubber
• Dental Dam (saliva waterproof rubber)
• Hemp and cannabis cultivation project

Awards & Recognition

• Thailand Top SME Award 2018
• Asia Pacific Entrepreneurship Awards 2019

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced greenhouse gas emissions by 2% compared to the base year 2022; aiming for 8% reduction by 2026.
• Reduced electricity consumption in the production process by 2% compared to the base year 2022; aiming for 5% reduction by 2026.
• Reduced water consumption in the production process by 2% compared to the base year 2022; aiming for 8% reduction by 2026.
• Reduced waste to landfill by 2% compared to the base year 2022; aiming for 8% reduction by 2026.

Social Achievements

• Employee training hours increased to 6 hours/person in 2022, aiming for 12 hours/person by 2026.
• Zero fatal accidents on duty in 2022.
• Increased community investment activities from 6 in 2022 to 9 in 2023, aiming for 10 by 2026.
• Domestic customer satisfaction at 88% and international customer satisfaction at 90% in 2022.

Governance Achievements

• Corporate Governance Assessment by Thai Institute of Directors Association.
• Established a business continuity plan (BCP).
• Implemented anti-corruption policy and complaint reporting channels.

Climate Goals & Targets

Environmental Challenges

• Impact of infectious diseases (COVID-19) on business operations.
• Fluctuations in the quantity and price of rubber raw materials.
• Reliance on key executives and personnel.
• Foreign exchange risk.
• Risk of emergencies, production disruptions, or interruptions.
• Government policy risks.
• Legal and regulatory risks.
• Environmental management risks.
• Risk from international trade wars.

Mitigation Strategies

• Implemented safety measures to mitigate the impact of infectious diseases.
• Maintained safety stock of raw materials (1.6-2 months).
• Established a succession plan and human resource management policies.
• Used foreign exchange risk management tools (e.g., derivative financial instruments).
• Established a Business Continuity Plan (BCP) and insurance coverage.
• Monitored government policies and adapted business strategies.
• Complied with laws and regulations and established a compliance monitoring system.
• Focused on environmental sustainability and implemented pollution control measures.
• Monitored international trade tensions and adapted business strategies.

Supply Chain Management

Responsible Procurement

• Procuring quality and safe raw materials at a fair price from suppliers adhering to good corporate governance principles and social/environmental responsibility.
• Sustainable rubber plantation management according to FSC-FM standards.

Climate-Related Risks & Opportunities

Physical Risks

• Severe drought and excessive rainfall affecting rubber yields.

Transition Risks

• Fluctuations in rubber prices due to competition with substitutes and oil prices.

Opportunities

• Use of renewable energy, efficient energy and water management.

UN Sustainable Development Goals

• Good Corporate Governance
• Human rights management
• Customer Satisfaction Levels
• Responsibility to Employees
• Social and Community Activities
• Climate change
• Energy management
• Water management
• Waste Management, Waste and Pollution

The company's initiatives are aligned with various UN SDGs through good corporate governance, human rights respect, employee well-being, community engagement, and environmental protection measures.

Awards & Recognition

• Thailand Top SME Award 2018
• Asia Pacific Entrepreneurship Awards 2019

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced carbon emissions by 8% compared to the baseline data in 2023
• Reduced electricity usage in the manufacturing process by 5%
• Reduced water usage in the manufacturing process by 8%
• Reduced waste to be landfilled by 10%

Social Achievements

• Launched employee well-being program, resulting in zero fatal workplace accidents
• Provided 9 training hours per employee
• Engaged in community investment through various projects

Governance Achievements

• Established a good corporate governance system
• Implemented anti-corruption policy
• Established a whistleblower hotline

Climate Goals & Targets

Environmental Challenges

• Climate change impacting raw material yields
• Fluctuations in raw material prices
• Global economic slowdown impacting demand
• Geopolitical uncertainties affecting trade
• Competition from synthetic rubber

Mitigation Strategies

• Diversification of sourcing strategies
• Inventory management to mitigate price volatility
• Market diversification to reduce reliance on specific regions
• Business continuity plan to address disruptions
• Risk management framework to address various risks
• ESG-focused initiatives to attract customers in sensitive markets

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sustainable sourcing of raw materials
• ESG assessments in procurement
• Code of conduct for business partners

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events impacting rubber production

Transition Risks

• Carbon Border Adjustment Mechanism (CBAM)

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, SET ESG Rating, CDP, SMETA Sedex, EcoVadis

Certifications: ISO 9001, ISO 14001, IEC 17025, FSC-FM, GOLS

Third-party Assurance: KPMG Phoomchai Audit Co., Ltd.

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 8 (Decent Work and Economic Growth)
• Goal 17 (Partnerships for the Goals)

Initiatives contribute to these goals through sustainable practices, community engagement, and responsible resource management.

Sustainable Products & Innovation

• Ultra-Low Ammonia Latex (ULA latex)
• Latex products for adhesive manufacturing

Awards & Recognition

• Thailand Top SME Award 2018
• Asia Pacific Entrepreneurship Awards 2019