Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Social Responsibility
• Corporate Governance
• Employee Well-being
• Environmental Management
• Safety

Environmental Achievements

• Applied for and received ISO 14001 certification in early 2015.
• Power Saving Industry Helps Thailand Save Energy Project: Saved 72,384 kilowatt annually by replacing light bulbs.
• Solar Cell Project: Invested 1,950,000 baht to save energy and help the environment; used 902 kilowatt of solar power in January 2015.

Social Achievements

• Employed 40 Myanmar migrant workers with the same wage and welfare as Thai workers.
• Provided fair treatment to all employees, including opportunities for wage selection, job transfers, potential development, and promotion.
• Organized 57 training courses with 321 participants (more than 50% of all employees).
• Provided education support for employees’ children (137 persons, 356,600 baht in 2014).
• Established a welfare fund with 520 members as of December 31, 2014.
• Built houses to sell to employees at lower than market prices (30 houses expected to be finished in May 2015).
• Organized a sports activity for employees to develop friendship.
• Customer satisfaction level of 93.99% based on 18 customer inspections.

Governance Achievements

• Improved corporate governance practices as detailed in the report.
• Established a Compliance Manual for employees.
• Implemented a system of internal control, internal auditing, evaluation, and continuous management.
• Maintained transparency and information disclosure to shareholders and stakeholders.

Climate Goals & Targets

Environmental Challenges

• Disappointing profit of 123 million baht.
• Exchange rate volatility between Japanese yen and Thai baht.
• Slowdown in the mining industry and plunge in oil prices.
• Difficulties in implementing joint ventures due to IFRS accounting challenges.
• Accusations of preventing auditor access at CDSFC (denied by the company, arbitral judgment pending).
• Dependence on a few major customers (more than 75% of revenue from four Japanese construction companies).
• Securing raw materials in sufficient quantity and at reasonable cost due to unofficial cartels among large mills.
• Instability in the Japanese construction industry due to global economic events and project delays.

Mitigation Strategies

• Re-educated and retrained employees and improved facilities to take advantage of booming construction requirements in Japan.
• Exploring projects outside Japan, with North America as the next target.
• Considering joint venture project agreements instead of shareholding approaches.
• Plans to expand into other markets to reduce dependence on a few major customers.
• Procuring steel plates from multiple suppliers (JFE Steel, SHINNITTETSU SUMIKIN, POSCO, and Chinese mills).
• Utilizing Chinese materials to gain a competitive edge.
• Anticipating a turnaround in construction investment due to the 2020 Tokyo Olympics and new governmental policies.

Supply Chain Management

Responsible Procurement

• Procuring steel plates from multiple suppliers

Climate-Related Risks & Opportunities

Awards & Recognition

• Best Performance Award from SET (2010)

Environmental Metrics

ESG Focus Areas

• Employee well-being
• Environmental management
• Occupational health and safety
• Community relations
• Fair labor practices

Environmental Achievements

• ISO 14001 certification obtained in 2015
• Implemented energy conservation policy and solar project (reducing electricity usage by 13,308.70 kWh in 2017)
• Participation in the White Factory project to promote employee health and prevent drug abuse

Social Achievements

• Provided fair compensation and annual bonuses to employees
• Offered various training programs (total budget of 8.42 million Baht in 2017)
• Granted scholarships to employees' children since 2013
• Established employee welfare committee
• Provided employee housing and health checkups
• Improved work environment with sports facilities
• Customer satisfaction average of 89.08% in 2017

Governance Achievements

• Improved corporate governance practices
• Established a Compliance Manual for employees
• Independent audit committee
• Transparent disclosure of information to shareholders and stakeholders
• Regular board meetings and shareholder meetings

Climate Goals & Targets

Environmental Challenges

• Management instability due to CEO turnover, affecting client relationships
• Lack of new projects in Japan
• Increasing labor costs in Thailand
• Exchange rate fluctuations
• Volatile oil prices affecting transportation costs
• Dependence on a few major customers
• Securing raw materials at reasonable costs
• Economic climate and construction industry instability in Japan

Mitigation Strategies

• Implementing a temporary group management approach until a stable management team is established
• Japanese language training for top management
• Exploring more demanding projects to remain competitive
• Procuring steel plates from multiple suppliers (JFE, SHINNITTETSU SUMIKIN, POSCO, Chinese mills)
• Expanding into other markets
• Utilizing Chinese materials to gain a competitive edge

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ISO 9001:2015, OHSAS 18001:2007, ISO/IEC 17025:2005, EN ISO 3834-2, ISO 14001:2004, S-GRADE

Environmental Metrics

ESG Focus Areas

• Environmental Management
• Occupational Health and Safety
• Employee Welfare
• Community Engagement
• Fair Labor Practices
• Corporate Governance

Environmental Achievements

• Certified with ISO 14001 (2015) and upgraded OHSAS 18001:2007 to ISO 45001:2018, ensuring environmentally safe production.
• Implemented energy conservation policy and solar project, replacing 7,235.60 kWh of normal electricity usage in 2020.

Social Achievements

• Provided fair compensation and annual bonuses to employees, based on performance.
• Supported employee education with a budget of Baht 1.36 million in 2020 and donated scholarships totaling 573,090 Baht.
• Established employee welfare fund with 519 members as of December 31, 2020.
• Provided dormitories and housing loans to employees.
• Conducted annual health checkups and influenza vaccinations for employees.
• Implemented COVID-19 safety measures, including lockdowns and provision of food and facilities for employees.

Governance Achievements

• Board of directors consists of 8 members, including 4 independent directors.
• Established Audit Committee and Nomination and Remuneration Committee.
• Implemented a system of internal control, internal auditing, evaluation, and continuous management.
• Disclosed related party transactions in the annual report.
• Complied with the rules and regulations set by the Securities and Exchange Commission and the Stock Exchange of Thailand.

Climate Goals & Targets

Environmental Challenges

• Risks of ocean freight charges due to COVID-19 pandemic.
• Risks of raw material supply.
• Risks of economic outlook and construction industry in Japan.
• Risks of craftsman shortage.
• Risks of exchange rate fluctuations.

Mitigation Strategies

• Executed agreements with shipping companies to arrange advanced fixed freight charges.
• Compared prices of raw materials from different suppliers to ensure reasonable prices.
• Executed sales and purchase agreements and opened Letters of Credit (L/C) to ensure timely payments.
• Outsourced and trained craftsmen at the company’s training center.
• Considered execution of Forward Contracts for foreign currency.

Supply Chain Management

Climate-Related Risks & Opportunities