Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic
• Social
• Environmental

Environmental Achievements

• Reduced greenhouse gas emissions through various initiatives (details not quantified)
• 100% reuse of water in mills through 3R approach (Reduce, Reuse, Recycle)
• Implemented measures to reduce cane burning, dust from trucks, and other air pollutants
• New Krung Thai Sugar Factory Co., Ltd. certified Green Industry, Level 2

Social Achievements

• Launched iCane project to improve efficiency and service for cane farmers
• Implemented KSL Junior Farmer project to train the next generation of sugarcane farmers
• Developed and implemented KYT (Kiken Yoshi Training) activities to promote work safety
• Organized SHE Day activities to educate staff on safety equipment usage
• Received a bronze level award from the Securities Exchange Commission (SEC) in the Happy Retirement Project
• Implemented the Zero Accident Project at Khon Kaen Sugar Power Plant Co., Ltd.

Governance Achievements

• Implemented corporate governance policy and guidelines consistent with international standards
• Adopted Bonsucro standard for sustainable production of agricultural goods
• Khon Kaen Sugar Industry PLC assessed as having excellent corporate governance for the second consecutive year

Climate Goals & Targets

Environmental Challenges

• Greenhouse gas emissions from operations
• Water usage in the sugar manufacturing process
• Wastewater from sugar manufacturing process
• Air pollution from various sources
• Ineffective fertilizer embedding equipment
• Work-related accidents

Mitigation Strategies

• Implemented measures to reduce greenhouse gas emissions (details in report)
• Implemented 3R approach for water management (Reduce, Reuse, Recycle)
• Implemented measures to reduce air pollution (details in report)
• Developed innovative fertilizer embedding equipment
• Implemented KYT (Kiken Yoshi Training) and SHE Day activities to promote work safety
• Implemented the Zero Accident Project

Supply Chain Management

Responsible Procurement

• Fair and transparent procurement practices
• Timely payment for goods/fees
• Compliance with human rights principles, environmental standards, and labor standards

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO9001:2015, GMP, HACCP, ISO22000, FSSC22000, Halal, Kosher, Bonsucro

UN Sustainable Development Goals

• SDG 2
• SDG 4
• SDG 5
• SDG 6
• SDG 7
• SDG 8
• SDG 9
• SDG 12
• SDG 13
• SDG 16

The report highlights initiatives contributing to various SDGs, including sustainable agriculture, decent work, responsible consumption and production, climate action, and ethical business practices.

Sustainable Products & Innovation

• Organic sugarcane
• Natural cane sugar
• Bio-fertilizer

Awards & Recognition

• Bronze level award from SEC in the Happy Retirement Project
• Thailand Labor Management Excellence Award (2017)
• Carbon Footprint Award from the Greenhouse Gas Management Organization (Public Organization) for New Krung Thai Sugar Factory Co., Ltd.
• Sustainability Disclosure Acknowledgement Certificate 2019 from Thaipat Institute

Environmental Metrics

ESG Focus Areas

• Sustainable business operation
• Value-chain management
• Corporate governance
• Environmental management
• Occupational Health and Safety
• Personnel Development
• Responsibility to community and society
• Innovation and Product Development

Environmental Achievements

• Reduced greenhouse gas emissions (both direct and indirect)
• Reduced water usage through 3R (Reduce, Reuse, Recycle) initiatives
• Reduced air pollution (dust, SOx, NOx)
• Improved waste management (hazardous and non-hazardous)
• Implemented Submerge Aerated Fixed Film Project for wastewater reuse

Social Achievements

• Launched Kiken Yoshi Training (KYT) activities to promote work safety
• Implemented Zero Accident Project at Wangsaphung, Loei
• Organized SHE Day activities to promote work safety
• Increased employment of disabled persons
• Awarded Moral Business Prize in Moral Business Forum 2020

Governance Achievements

• Implemented corporate governance policy and guidelines
• Established a Corporate Governance Committee
• Received the highest result of quality assessment on organizing the annual general meeting of shareholders of 2020
• Became a certified member of Thailand’s Private Sector Collective Action Coalition Against Corruption (CAC)

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting economic situation and business operations
• Ineffective fertilizer embedding equipment
• Inefficient daily processes and paperwork in supplier management

Mitigation Strategies

• Developed innovative fertilizer embedding equipment
• Implemented KMS WEB project to streamline supplier management and reduce daily processes
• Adapted personnel training and development to online platforms (KSL Knowledge Hub, KSL Freshy Guide, KSL Explorers)

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Fair and transparent procurement practices
• Compliance with human rights principles, environmental standards, and labor standards
• Collaboration with suppliers on sustainability initiatives (e.g., KMS WEB)

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI

Certifications: ISO9001:2015, ISO22000:2005, ISO22000:2018, GMP, HACCP, FSSC22000, Halal, Kosher, Bonsucro

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 1: No Poverty
• Goal 2: Zero Hunger
• Goal 3: Good Health and Well-being
• Goal 4: Quality Education
• Goal 8: Decent Work and Economic Growth
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action

KSL's initiatives contribute to these SDGs through various CSR activities, sustainable practices, and community engagement programs.

Sustainable Products & Innovation

• Natural fertilizer from filter cake

Awards & Recognition

• Moral Business Prize 2020
• Thailand Labor Management Excellence Award 2017
• CSR-DIW AWARD 2020
• Bronze Award on Eco Social Value Factory 2020
• Role Model Disability Award 2020
• Sustainability Disclosure Recognition 2020

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Power plants use bagasse to generate electricity for usefulness within the factory.
• Use molasses to produce alcohol.
• Increase production process efficiency and energy conservation projects.
• Producing of organic fertilizer from filter cake for use in sugarcane cultivation.
• Reduce water usage management, wastewater treatment, and water reuse in production.
• Recycle 100 percent Non-Hazardous Waste
• Eliminate 100 percent Hazardous Waste

Social Achievements

• Review the occupational health, safety, and working environment management strategy, including methods for evaluating the effectiveness of safety operations.
• Review work manuals on occupational health, safety, and working environment to control risky assignments.
• Promote partners, communities, and surrounding societies to participate in the health and safety workplace system pass through many activities such as Kiken Yoshi Training (KYT) and SHE Day.
• Develops workforce planning for future in term of quantity, skills and capabilities by job analyzed that related to reasonable compensation.
• Continuous develops employees’s skill pass through reskill, upskill that focus on future capability solutions and evolving needs of customers.
• Develop the production of products, containers, and deliveries that meet the needs of customers
• Continuously develop and improve systems and service channels for customers for effective service that can promptly respond to their issues by using the satisfaction data and suggestions from the customers.

Governance Achievements

• The Company held the 2021 Annual General Meeting of Shareholders, No . 1/2022, on February 23, 2022, through Electronic Annual General Meeting (E-AGM),
• The Board of Directors has complied with the principles of virtuous corporate governance of the Securities and Exchange Commission (CG Code), the Thai Institute of Directors Association (IOD), corporate governance policy, code of conduct, as well as international standards to comply with various criteria of the ASEAN CG Scorecard, and et cetera.
• Received 100 full scores in the quality assessment of shareholders' Annual General Meeting (AGM Checklist) from the Thai Investors Association.
• Revised the Code of Business Conduct and the Anti -Corruption Manual.

Climate Goals & Targets

Environmental Challenges

• Risk from Climate Change
• Risks from Fluctuation of Global Sugar Price
• Risks from Government Policies
• Risks of Bad Debts from Credit System Provided to Farmers (Advanced Credit)
• Risks from Exchange Rate
• Risks from Investment Project in Laos and Cambodia
• Risks from Cybersecurity

Mitigation Strategies

• Power plants use bagasse to generate electricity for usefulness within the factory.
• Use molasses to produce alcohol.
• Increase production process efficiency and energy conservation projects.
• Producing of organic fertilizer from filter cake for use in sugarcane cultivation.
• Reduce water usage management, wastewater treatment, and water reuse in production.
• Collaboration between institutes for research in Sustainable Energy, along with finding methods beneficial from the product of the agro-based sector, which help lessen the impact of climate change on the agriculture segment.
• Cooperation with people in the community and state in planting a tree together with preserving forests that support carbon dioxide absorbent.
• To hedge the risk from the volatility of sugar prices in the global sugar market.
• The company has set up a committee to supervise the work of hedging sugar price in the world market.
• The company has closely monitored and coped with these government policies to have properly determine or adjust the operational guidelines of relevant parties to be able to perform their duties in accordance with government policies correctly.
• The company has contracted both short -term and long -term loans in a foreign currency (USD) with a floating rate . So, we followed it with a policy to create a hedging contract by contracting all cross-currency swaps with an equal duration with a loan contract for payment of principal and interest.
• KSL still review our methods and plan to learn of the remaining concession area for cultivation.
• Control security in terms of accessing user resources . and promulgated the information security policy of KSL Group
• Carry out maintenance of equipment (Hardware) and programs (Software) regularly

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• droughts, flash floods, storms, or extreme weather events

Reporting Standards

Frameworks Used: GRI

Certifications: SQF 2000, ISO 9001:2000, HACCP, Bonsucro

Sustainable Products & Innovation

• low GI (low glycemic index) sugar

Awards & Recognition

• Sustainability Disclosure Recognition Award from Thaipat Institute