Sakol Energy Public Company Limited
Climate Impact & Sustainability Data (2019)
Reporting Period: 2019
Environmental Metrics
ESG Focus Areas
- Affordable and Clean Energy
- Environmental Responsibility
- Good Corporate Governance
Environmental Achievements
- Started recognizing revenues from investment in new businesses including compressed bio-methane gas (CBG) production and distribution and production and distribution of renewable energy as VSPP (biomass power plant) with installed capacity of 9.9 megawatts.
- Biomass power plant commenced operations in August 2019 and generated over Baht 100 million in revenue.
Social Achievements
- Launched a core value “CORRECT” and organized training program called “SKE Leadership Acceleration Program.”
- Organized several community development activities such as lunch program for students, school renovation, charity donation, and tree planting.
Climate Goals & Targets
Medium-term Goals:
- Generate Baht 1,000 million in revenues per year by 2022.
- Achieve total power generation and distribution capacity of 30 megawatts within 2022.
Short-term Goals:
- Increase the capacity factor of its power plant to over 90% in 2020.
- Maintain NGV compression at minimum quantity of 520 tons per day in 2020.
- Achieve target performance in CBG business in 2020.
Environmental Challenges
- Decrease in NGV compression by approximately 11% due to overall economic conditions.
- CBG sales did not reach target due to current economic environment.
- Risk of reliance on major customer (PTT).
- Risk from decreasing difference between oil price and NGV price and decreasing demand for NGV.
- Risk from natural disasters (for Mae Krating Power Plant).
Mitigation Strategies
- Focus on cost reduction strategies and investment in related businesses.
- Focus on selling CBG to industrial factories instead of NGV fuel.
- Strict compliance with contracts and delivery of good quality services to maintain relationship with PTT.
- Business diversification through investment in renewable energy and CBG.
- Risk management policies and Business Continuity Management plan (BCM).
Supply Chain Management
Responsible Procurement
- Raw material cost management for sustainable management.
Climate-Related Risks & Opportunities
UN Sustainable Development Goals
- Goal 7: Affordable and Clean Energy
Investment in renewable energy and CBG.
Sustainable Products & Innovation
- Compressed bio-methane gas (CBG)
- Biomass power plant
Awards & Recognition
- Investor Relations Awards 2019 from The Stock Exchange of Thailand