Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economy
• Environment
• Society

Environmental Achievements

• CO2 emission controlled to 0.585 Ton/Ton of crude steel (close to target of 0.579)
• Installed 1.4 MW Solar Roof at Rayong Plant
• Received Carbon Footprint for Organization (CFO) recognition from Thailand Greenhouse Gas Management Organization (TGO) for SISCO plant
• NTS and SCSC plants received Green Mining Award 2019 for the second consecutive year
• All 3 plants received Green Industry Awards Level 4

Social Achievements

• Improved Loss Time Injury Frequency Rate (LTIFR) to 0 time/million working hours from 1.28 time/million working hours in the previous year
• Reduced number of minor injuries (RWC/MTC/FAC) to 16 cases from 27 in the previous year
• SISCO plant received National Safety Excellence Award 2019
• 98.62% employee participation in voluntary CSR activities impacting 65,034 people
• NTS and SISCO plants received CSR-DPIM Continuous Award 2019
• 3 plants received CSR - DIW Continuous Award 2019

Governance Achievements

• Received Corporate Governance Report (CGR) rating of “Excellent” (90 points)
• 100% of new employees trained on Tata Code of Conduct
• 99% of employees trained on Anti-Bribery and Anti-Corruption Policy
• 43 vendors participated in CAC-SME Executive Briefing 2019
• Recertified as a member of Thailand’s Private Sector Collective Action Coalition Against Corruption (CAC)

Climate Goals & Targets

Environmental Challenges

• Delay in execution of Government projects affecting steel demand
• High competition in domestic sourcing market
• Non-compliance/delay in implementing safety, health, and environmental laws
• Manpower management, retaining and building employee engagement
• Contraction in global and domestic liquidity
• Disruption of production and supply due to natural calamity
• Trend to use substitute products or less rebar in construction technology

Mitigation Strategies

• Expanded into high value-added products (Super ductile rebar, non-TMT rebar, GB rebar, ready-use products, special wire rods)
• Increased rebar sales through modern trade channels and export markets
• Developed production processes to use alternative sources of semi-finished products
• Implemented Contractor Safety Management (CSM), strengthened Process Safety Management (PSM) and Road Safety
• Daily cash and rolling cash forecast, foreign exchange hedging, appropriate insurance policies
• Flexible supply chain management, switching operations among production units, insurance coverage
• Increased downstream portfolio (dowel, stirrup, cut & bend products), promoting product benefits

Supply Chain Management

Responsible Procurement

• Health and safety management practices
• Effective environmental impact management policies
• Human rights policies
• Fair business practices
• Contribution to community development

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards 2016, CDP Disclosure Programs

Certifications: ISO 9001:2015, ISO/IEC 17025:2005, ISO 14001:2015, TIS 18001:2554/ISO 45001:2018, OHSAS 18001:2007

UN Sustainable Development Goals

• Goal 1
• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 14
• Goal 15
• Goal 16

Initiatives contribute to these goals through various economic, environmental, and social programs

Sustainable Products & Innovation

• Seismic Rebar
• Cut and Bend
• Deformed Bar: Grade SD50
• Dowel Bars
• Stirrup
• GB Rebar
• High Carbon Wire Rod for Tire Cord

Awards & Recognition

• Thailand Sustainability Investment Award (THSI) 2019
• Sustainability Disclosure Award 2019
• Certificate of Global Warming Reduction Party 2019
• CSR – DPIM Continuous Award 2019
• Carbon Footprint for Organization (CFO) Certification 2019
• Green Mining Award 2019
• Thailand Labour Management Excellence Award 2019
• CSR – DIW Continuous Award 2019

Environmental Metrics

ESG Focus Areas

• Safety, Health and Environment
• Corporate Social Responsibility
• Sustainability
• Corporate Governance
• Climate Change

Environmental Achievements

• Saraburi Plant received certificate of Carbon Footprint for Organization (CFO) from Thailand Greenhouse Gas Management Organization (TGO) for four consecutive years.
• All three plants of TSMT have received ISO 14001:2015 certificate for the environmental control.
• The Company is focused on energy conservation to minimize environmental impact, such as greenhouse gas emissions. It is in discussion with business partners to set up solar power technology in all its three plants as an alternative source of energy to reduce the greenhouse gas emissions (GHGs) and mitigate future damage to the environment.
• The main raw material used across all three locations is ferrous scrap and is fully recyclable.
• The Company also emphasizes on environment by monitoring the CO2 emission to measure and control greenhouse gases, follow up the Environment Impact Assessment (EIA) by monitoring gases such as NOX, SOX, CO and dust in all plants by 100% compliance to the regulatory requirements.
• The Company also effectively utilizes water and applies Zero Discharge principle in water management.
• For waste management, the Company applies the 3R concept in order to maximize recycle waste by targeting 99% of waste back in process.

Social Achievements

• All the three plants of TSMT have received certificate of International standard of Occupational Health and Safety Management Systems ISO 45001: 2018 / TIS 18001:2554.
• The Company accords highest priority to safety and well-being of workmen at the workplace.
• During this year the Company had lunched health campaign “We all can be better than before”, to motivate and award employees who improved their health index.
• The Company strictly implements Covid-19 prevention measures to minimize the risk of any infection amongst the employees and other stakeholders.
• Company also provide good work environment and regularly monitors industrial hygiene such as dust, noise, chemical and heat.
• Also, provides physical health check for employees, follows up and supports necessary treatment in case any abnormal result related to work is found.
• The Company is committed to continual improvement in the safety & occupational health performance and accordingly, sets objective-targets, develop, implement and maintain management standards and systems, and go beyond compliance of the industry standard, legal and other requirements.
• The Company has a clear and concrete policy pertaining to the workplace safety and sanitation which is posted on the website of the company.
• The Company is driven by the following Safety Principles: Safety is line management responsibility. All injuries can be prevented. Felt concern and care for the employee on “24 hours safety” shall be demonstrated by Leaders. Employees shall be trained to work safely. Working safely shall be condition of employment. Every job shall be assessed for the risk involved and shall be carried out as per authorized procedures/ checklist/ work permit and using necessary work permit and personal protective equipment.
• In financial year 2020–21, the number of employees was reduced by 50 persons to improve manpower productivity.
• The Company has no lay-off policy but the new recruitment and replacement for resigned employees are carefully considered for necessary positions only.
• During the past 3 years, the Company has not received any significant labour disputes.

Governance Achievements

• The Company is committed to conduct business with conscience to all groups of stakeholders as mirrored in its compliance with the principles of good corporate governance as recommended by the Stock Exchange of Thailand, notifications of the Office of the Securities and Exchange Commission, provisions of laws, and other regulations.
• The Company also aims at developing its business in accordance with or exceeding existing regulatory requirements, yet under the corporate governance directives of fairness and transparency for improvement of its practices to the international standard.
• The Company has documented policy and principles of good corporate governance in the Company’s “Good Corporate Governance Manual” since 2005.
• The Company has reported CG Code compliance and other practices related to good corporate governance.
• The Company follows the principles of good corporate governance for listed companies issued by SET.
• The Company also follows the OECD (Organisation for Economic Co-operation and Development) Principles of Corporate Governance.
• In the year 2020, the Company maintained rating in the Corporate Governance evaluation from Thai Institute of Directors (IOD) in “Excellence” reflecting the continuous improvement on corporate governance.
• The Company signed Thailand’s private sector’s declaration of intent for Thai Private Sector Collective Action Against Corruption (CAC) in resisting and discouraging corruption in all of its forms since 2014.
• The CAC directors have approved the Company as “a company that has been evaluated to have full procedures and clear standards that prevents corruption within the organization up to the level that is required by the CAC” since 2015.
• The Company is also a certified member of Partnership against Corruption for Thailand (Pact) and signed a declaration to promote children’s rights and business principles at The Children Sustainability Forum hosted by Thaipat Institute and UNICEF.

Climate Goals & Targets

Environmental Challenges

• Significant fluctuation in price of raw materials, energy and volatility in steel prices, the Covid-19 pandemic, acts of terrorism, cyber security threats.
• Government reduces budget allocation for infrastructure projects leading to lower demand of construction steel.
• Adverse impact on purchasing power and steel demand from economic slowdown resulting from Covid-19.
• Lockdown measure taken by many countries, suspension of manufacturing activities, restrictive measures on ports adversely impacting supply of raw materials, uncertainty and increased time in logistics & supply chain.
• Rising demand from the construction sector in Thailand and increasing demand of steel in China bring about extremely competitive environment for sourcing raw material.
• Non-compliance/delay in implementation of the provisions of safety, health and environmental laws & regulations, which may lead to stoppage of operations, damage to assets and loss of reputation.
• Breach of information security due to cyberattacks, Non-compliance to IT legislations and regulations may lead to business disruption and imposition of penalties.
• Dramatic changes caused by Covid-19 pandemic have unprecedented implications on companies around the world and influenced Human Resources Management profoundly.
• Prolonged Covid-19 pandemic may impact to employee morale loss due to work disruption which may lead to the reduction in workforce productivity.
• Contraction in global and domestic liquidity adversely affecting availability and cost of capital.
• Disruption of production and supply due to natural calamities like flood and draught.
• Sudden correction in the current price levels especially when most economies are struggling from Covid-19.

Mitigation Strategies

• Increased reach and pocket share in retail market by adding new customers in the provinces, aggressive approaches in particular segments of rebar, expanding in the GB rebar market, the ready-use product market.
• Developed and expanded in the wire rods market by improving the product quality, product customization.
• Intensified efforts in the export markets to protect its market share, especially to the ASEAN countries.
• Focusing on a risk management in various perspectives to enhance efficiency on strategic procurement and driven a sustainable procurement sourcing policy.
• Enhanced syndication with the in-house stakeholders through steering committees in sourcing alternative / substitute raw-material.
• Coordination with various business partners and distribution of order portions to multiple sources mitigate the risk from supply shortage.
• In raw material inventory management, the Company takes into account safety-stock level and adjusts the inventory level accordingly.
• At TSTH, Safety, Health and Environment (SHE) organization is defined by Apex Safety Council (ASC).
• Key initiatives launched during the year such as Process Safety Management (PSM), safety audit by Job Cycle Check (JCC), strengthen Contractor Safety Management (CSM).
• Tracking lead indicators such as Lost Time Injury Frequency (LTIF), Medical Treatment Case (MTC), First Aid Case (FAC) and Property Damage.
• Implementing Covid-19 prevention measures.
• Provides good work environment and regularly monitors industrial hygiene.
• Provides physical health check for employees, follows up and supports necessary treatment.
• Utilizes resources effectively and efficiently with appropriate environmental management regulation.
• The Company is aware of the risks and take seriously prevention in its IT network.
• Mechanisms are in place to capture alerts and triggers from external sources and any information security related incidents.
• Moving to resilience through zero trust platform/network.
• Increasing awareness in addition to investments in well-known cloud-based solutions.
• Enacting various policies and procedures to ensure proactive workforce awareness in cyber security, information security, data privacy and comply with PDPA.
• HR plays a vital role on rapid response to Covid-19, in keeping the workforce engaged, productive and resilient.
• Proactive labour relations and communication both 2 ways and 1 way to employees and contractors are in place.
• Reconfiguring workflows, processes, together with upskilling of employees to be multi-skilled, agile, including IT skills capability.
• Broadly, the working capital management is integrated with business plan together with cash flow projection.
• Daily cash and rolling cash forecast has been focused and syndicated between Finance, Marketing & Sales and Procurement.
• The Company’s inherent risk to natural calamity is relatively moderate due to its operations spread in four different locations.
• The Company is aware of the risks associated with operating in industrial areas and has emergency handling procedures at all its facilities.
• Structured periodical mock drills are done to ensure effectiveness of such procedures.
• Disruption to business operation is effectively addressed by flexible supply chain management and switching operation amongst the three production units.
• The Company has taken extensive insurance coverage related to natural calamity and all industrial risks.
• The Company avoids speculation and inventory build-up by regularly buying and selling and considering the appropriate finished steel orders in hand based on company’s steel inventory bracket.

Supply Chain Management

Responsible Procurement

• Regularly promoting its corporate governance policies, ethical and safety standards to its business partners.
• Sourcing strategy of both goods and services with an aim to maximize value in use, deliver required quantity on time aligned to the organization working capital requirement and to support production plan.
• Procurement strategy and sourcing processes are alignment with the Tata Steel Group’s overall procurement strategy.
• During the year, 75% of the sourcing, in volume terms, was from the domestic and 25% from overseas sources.
• Implementing E-auction for sourcing high-value raw materials.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, OECD Principles of Corporate Governance

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001: 2018 / TIS 18001:2554, ISO/IEC 17025:2017

Awards & Recognition

• SET for CSRI Recognition Award (2013)
• SET for Outstanding CSR Award and CSR Recognition award (2014)
• Thailand Sustainability Investment 2015
• Thailand Sustainability Investment Award and Sustainability Report Award 2017
• Thailand Sustainability Investment Award 2018 and SET Sustainability Award 2018 in Outstanding Category
• Sustainability Disclosure Award for the year 2019
• Thailand Sustainability Investment Award (THSI) for 2018-19
• Sustainability Disclosure Award 2020
• Thailand Sustainability Investment Award (THSI) 2020