Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic
• Social
• Environmental
• Governance

Environmental Achievements

• Reduced CO2 emissions by 2,000 tons
• Reused 20,000 m3 of water
• Reused and recycled 20 tons of hazardous waste
• Increased green area in company and community areas
• Used renewable energy (solar power)

Social Achievements

• Launched employee well-being programs, resulting in 80% employee satisfaction
• Implemented a program to reduce turnover, resulting in a 27% turnover rate (down from 31.7% in 2016)
• Provided training hours (average 6 hours per employee)
• Community investment through school projects and community support

Governance Achievements

• Established anti-corruption training for all employees
• Implemented a robust risk management system
• Received awards for good governance and investor relations

Climate Goals & Targets

Environmental Challenges

• Shortage of skilled labor
• Shortage of successors
• Meeting customer needs in terms of quality and delivery
• Corruption
• Outdated products
• Managing relationships with customers
• Product innovation and disruption
• Shareholder returns
• Corporate governance
• Transparency in operations
• Risk management
• Price competitiveness
• Impact of business operations on the community
• Community engagement
• Climate change
• Energy and fuel use
• Water scarcity in production
• Wastewater management from production processes

Mitigation Strategies

• Implemented quality management system (ISO)
• Developed alternative sourcing strategies
• Implemented risk management and mitigation strategies
• Improved communication and transparency with stakeholders
• Developed sustainable products (R32 air conditioners)
• Implemented 5S program
• Community engagement initiatives
• Investment in renewable energy (solar rooftops)
• Water management initiatives (water reuse and storage)
• Waste management initiatives (reuse, recycling, and disposal)

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI-G4

Certifications: ISO 14001

UN Sustainable Development Goals

• Goal 13 (Climate Action)

Development and production of R32 air conditioners to reduce ozone depletion and global warming.

Sustainable Products & Innovation

• R32 air conditioners

Awards & Recognition

• Thailand Sustainability Investment (THSI) Award
• Top Innovative Organization 2017 Award
• SET Awards 2017 for excellence in investor relations

Environmental Metrics

ESG Focus Areas

• Human Capital Development
• Quality of Work Life
• Quality and Delivery of Goods
• Transparency and Governance
• Innovation
• Risk Management
• Environmental Impact
• Energy Consumption

Environmental Achievements

• Reduced carbon footprint by 1,588 tons of carbon in 2020 (79.40% of the 2,000-ton target) through solar rooftop installation.
• Developed products using new refrigerant (R32) to reduce ozone depletion.

Social Achievements

• Donated over 3,000,000 masks to the community during the COVID-19 outbreak.
• Developed SNC Park, a workplace in nature, to improve employee well-being.
• Continued scholarship program to support students.

Governance Achievements

• Reviewed and updated corporate governance policy to align with the 2017 Corporate Governance Code.
• Established a whistle-blowing channel for complaints.
• Received excellent rating (CG 5 stars) for corporate governance in 2018-2020.

Climate Goals & Targets

Environmental Challenges

• Reliance on fewer customers (top 5 customers accounted for 61% of sales revenue in 2019).
• Fluctuations in raw material prices (copper pipes accounted for 19.6% of raw material purchase value in 2020).
• Risk of customers moving production bases to other countries.
• Risk of labor shortages and rising labor wage costs.
• Risk of losing key personnel with technical skills.
• Increased competition in the industry.
• Rapid technological disruption.
• COVID-19 outbreak and its impact on global economy.

Mitigation Strategies

• Expanded customer base domestically and internationally; negotiated long-term production contracts.
• Implemented guidelines and policies to reduce the impact of copper price fluctuations (e.g., monthly, quarterly, and annual sales forecasts).
• Thailand's advantages as a manufacturing base for air conditioners.
• Hired outsourcing companies to provide replacement workers; invested in automation and AI technologies.
• Implemented personnel management and development policies; multi-skilling of employees.
• Developed the company's business to compete in all aspects (quality, delivery, price, service).
• Adopted robotics and AI technology; established a product R&D agency.
• Implemented guidelines and measures to prevent the spread of COVID-19; diversified product lines.

Supply Chain Management

Responsible Procurement

• Sourcing from domestic manufacturers; some copper pipes ordered from abroad with quality standards.

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Air conditioners using R32 refrigerant

Awards & Recognition

• Best Company Performance Awards
• Outstanding CEO Awards
• Outstanding Investor Relations Awards
• Thailand Sustainability Investment (THSI) Awards

Environmental Metrics

ESG Focus Areas

• Human Capital Development
• Quality of Work Life
• Quality and Delivery goods
• Corruption
• Technological Change
• Risk Management
• Environmental impact from business operation
• Energy Consumption

Environmental Achievements

• Reduced carbon footprint by 1.648 tons of carbon in 2021 (82.42% of 2000-ton target), through solar rooftop installation.
• Reduced external water supply cost by using water from company's own ponds.

Social Achievements

• Donated over 5,000,000 surgical masks.
• Provided COVID-19 vaccines to 2,722 employees and community members.
• Built SNC Field Hospital with 80 beds and supported Nikhom Phatthana Hospital with 207 beds.
• Continued scholarship programs for vocational and tertiary level students.
• Developed SNC Park, a workplace in nature with over 8,000 sqm.

Governance Achievements

• Adhered to good corporate governance principles, receiving a 5-star CG rating.
• Achieved 100/100 points for the AGM Checklist.
• Established clear policies and practices for preventing conflicts of interest, insider trading, and corruption.
• Implemented a whistleblowing system.

Climate Goals & Targets

Environmental Challenges

• Reliance on fewer customers
• Fluctuations in raw material prices (especially copper)
• Risk of customers moving production bases to other countries
• Labor shortages and rising labor costs
• Risk of losing skilled personnel
• Increased industry competition
• Rapid technological disruption
• COVID-19 outbreak

Mitigation Strategies

• Expanded customer base domestically and internationally
• Developed guidelines and policies to mitigate raw material price fluctuations (e.g., long-term contracts, average pricing)
• Focused on Thailand's advantages as a manufacturing base
• Hired outsourcing companies to reduce labor shortages, invested in automation and AI
• Implemented personnel management and development policies (e.g., career paths, multi-skilling, ARAI Academy)
• Improved production processes, adopted robotics and AI, focused on cost and quality
• Established product research and development agency
• Implemented COVID-19 prevention measures, built field hospitals, provided vaccines and masks

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sourcing quality raw materials from domestic and international markets
• Selecting business partners using transparent, systematic, and standardized systems

Climate-Related Risks & Opportunities

Physical Risks

• Drought

Transition Risks

• Changes in refrigerant regulations

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: Null

Certifications: ISO 14001:2015 (Environmental Management System)

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

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Air conditioners using R32 refrigerant

Awards & Recognition

• Best Company Performance Awards
• Outstanding CEO Awards
• Outstanding Investor Relations Awards
• Thailand Sustainability Investment (THSI) Awards

Environmental Metrics

ESG Focus Areas

• Human resource development
• Environmental impact from business operation
• Corruption
• Risk Management
• Energy consumption
• Quality of work life
• Technological change

Environmental Achievements

• Reduced carbon emissions by 1,440 tons of carbon dioxide in 2023 (72.21% of the 2,000-ton target)
• Installed Solar Rooftop panels on factory roofs with a total capacity of 3.4 MW
• Planted over 2,794 trees in 2023
• Reduced water usage in proportion to reduced sales, showing a decrease of 2% compared to the previous year.

Social Achievements

• Developed SNC Park, a project covering an area of over 5 acres, providing a natural workplace environment for employees.
• Donated over 10,000,000 surgical masks to communities and agencies.
• Provided scholarships and essential items to schools.
• Allocated a budget of 50,000 Baht to support a household problem-solving project.
• Offered donations to Bang Bo hospital and Wat Ladwhai and Wat Khao Kae Lae.
• Provided air conditioner cleaning services to bedridden patients' households.
• Participated in the "Big Brother Helps Little Brother" and "Big Brother Teaches Little Brother" projects.

Governance Achievements

• Reviewed and updated corporate governance policy to align with the 2017 Corporate Governance Code.
• Reviewed ethics and code of conduct.
• Implemented a "No gift policy."
• Established a whistleblowing channel.
• Received the Outstanding Investor Relations Award of 2023 from the Stock Exchange of Thailand.
• Achieved a sustainability rating score (SET ESG Ratings) of level A in 2023.

Climate Goals & Targets

Environmental Challenges

• Risk of relying on fewer customers
• Risk of rapid technological disruption
• Risk of labor shortages and labor wage costs
• Risk of relying on personnel with specific expertise
• Risk of being unable to maintain financial ratios as specified in contracts with financial institutions
• Risk of foreign exchange rate fluctuations
• Risk of relying on the senior management
• Risk of having a major shareholder holds more than 25% of the Company's shares
• Risk of fluctuations in the Company's common stock price
• Risks from Dividend Policy
• Water shortages in Rayong province
• COVID-19 outbreak

Mitigation Strategies

• Expanded customer base domestically and internationally
• Negotiated long-term production contracts
• Adopted robotics and artificial intelligence technology
• Established a product research and development agency
• Improved production process by focusing on the introduction of machines and technologies
• Implemented management tools such as revenue and expense management in the same currency (Natural Hedge) or forward contract
• Structured the organization to be decentralized
• Established a sub-committee and working groups
• Formulated succession plans
• Implemented good corporate governance policies and disclosed information transparently
• Invested in building a water reservoir of more than 361,700 cubic meters
• Installed a water supply system
• Built a field hospital and produced surgical masks
• Procured and provided vaccines and ATK test kits
• Implemented a project to improve the skills of personnel and support education

Supply Chain Management

Responsible Procurement

• Sourcing quality raw materials from both domestic and international markets
• Selecting business partners using the transparent, systematic, and standardized system

Climate-Related Risks & Opportunities

Physical Risks

• Drought

Transition Risks

• Changes in consumer behavior
• Relocation of customer production base
• International war
• Inflation

Opportunities

• Development of energy-efficient products
• Increased demand for heat pump water heaters due to rising natural gas prices

Reporting Standards

Frameworks Used: GRI, SET ESG Ratings

Certifications: ISO 9001, ISO 14001:2015, CAC

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

Sustainable Products & Innovation

• Air conditioners using R32 refrigerant

Awards & Recognition

• Outstanding Investor Relations Award of 2023