Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Used biogas from wastewater treatment to replace fuel oil
• Reduced electricity consumption by using high-efficiency equipment and energy-saving devices
• Implemented Zero Discharge policy for treated wastewater
• Improved biogas production system to prevent leakage
• Monitored combustion systems to control air emissions
• Achieved ISO 14001:2004 certification

Social Achievements

• Developed employee skills and created internal knowledge for competence management
• Promoted employee participation in community development
• Supported environmental conservation activities
• Supported youth education and social responsibility
• Sponsored community events (e.g., Songkran festival, blood donation)

Governance Achievements

• Established an anti-corruption policy and training
• Established Audit Committee and Risk Management Committee
• Implemented a Code of Best Practices aligned with the Stock Exchange of Thailand

Climate Goals & Targets

Environmental Challenges

• Government policies affecting ethanol pricing and quotas
• Dependence on major customers
• Dependence on molasses as the main raw material
• Risk of biogas production disruption due to natural disasters
• Liquidity risk due to loan covenants

Mitigation Strategies

• Diversified raw materials (molasses and cassava)
• Long-term contracts with molasses suppliers
• Strengthened biogas production infrastructure
• Improved relationships with customers and expanded customer base
• Refinanced loans with more favorable terms

Supply Chain Management

Responsible Procurement

• Long-term contracts with key suppliers
• Quality control of raw materials

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Constructed a biogas power generation system with a capacity of 3 MW to reduce energy costs and improve long-term cost management.
• Implemented ISO 14001:2004 environmental management system certification.

Social Achievements

• Organized various community activities such as Children's Day, sports competitions, and Loy Krathong celebrations.
• Participated in a tree-planting project.

Governance Achievements

• Established an anti-corruption policy and joined the Collective Action Coalition of the Thai private sector.
• Established an Audit Committee and a Nomination and Remuneration Committee.

Climate Goals & Targets

Environmental Challenges

• Fluctuations in global crude oil prices affecting ethanol prices and sales volume.
• Dependence on key suppliers for raw materials.
• Dependence on major customers.
• Government policies.
• Potential damage to biogas production facilities due to natural disasters.
• Environmental impact.

Mitigation Strategies

• Long-term contracts with raw material suppliers.
• Diversification of raw material sources (using both molasses and cassava).
• Strengthening relationships with existing customers and expanding customer base.
• Continuous improvement of production efficiency to reduce costs.
• Improving the structure of biogas production facilities and implementing disaster insurance.
• Implementing a “ZERO DISCHARGE” policy for wastewater and installing a Bio Scrubber to reduce air pollution.

Supply Chain Management

Responsible Procurement

• Long-term contracts with molasses suppliers.

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Implemented ISO 14001:2015 for environmental management.
• Improved efficiency of wastewater treatment systems.
• Monitored and controlled greenhouse gas emissions.
• Installed Bio-Scrubber to reduce H2S emissions.

Social Achievements

• Implemented employee wellbeing initiatives.
• Community investment programs.
• Developed employee skills through training programs.

Governance Achievements

• Implemented anti-corruption training for all employees.
• Established a Code of Conduct.
• Adherence to Thailand's Good Corporate Governance principles.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to fluctuating raw material prices and availability.
• Climate-related risks (e.g., extreme weather events).
• Competition in the biofuel market.

Mitigation Strategies

• Developed alternative sourcing strategies for raw materials.
• Implemented risk management strategies to mitigate climate-related risks.
• Focused on product quality and customer relationships to maintain market share.

Supply Chain Management

Responsible Procurement

• Contracts with sugarcane suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (flooding)

Environmental Metrics

ESG Focus Areas

• Environment
• Safety and occupational health
• Resources preservation
• Society
• Anti-corruption

Environmental Achievements

• Improved efficiency in the bio-gas production system to prevent leakage
• Examined the fuel combustion system to control air quality
• Improved the factory’s working areas and its landscape towards becoming a Green Plant
• Installed Bio-Scrubber to eliminate hydrogen sulfide (H2S) reducing Sox in flue gas
• Construction of the EVAPORATOR SYSTEM FOR BIO METHANATED SPENT WASH to reduce process water used and generate a by-product Potassium Humate

Social Achievements

• Encouraged staff members to take part in communal activities focusing on sustainable improvement in quality of life
• Improve skills of staff members and build corporate cognition to develop Competence Management
• Support activities involving environmental preservation
• Promote development of learning, awareness, and responsibility among youths
• Community investment totaling 1,270,390 Baht

Governance Achievements

• Received SETAWARDS 2020 for Business Excellence
• Received a “Very Good” level (4 stars) for Corporate Governance by the Thai Institute of Directors Association
• Received a “Very Good” level (98 score) on the Annual General Meeting Quality Assessment by the Thai Investors Association
• Officially certified as a renewal member of “Thailand’s Private Sector Collective Action Coalition Against Corruption”

Climate Goals & Targets

Environmental Challenges

• COVID-19 outbreak causing difficulties for business running and decreased sales volume of ethanol
• Drought affecting sugarcane production and increasing molasses price
• Risk associated with Procurement of Main Raw Materials due to drought and price fluctuation
• Risk associated with Price Fluctuation of Main Raw Materials
• Risk from the Government Policy
• Risk from the Growing Trends of Electric Cars and Hybrid Cars
• Risk from the Utilization of Biogas as Main Fuel
• Risk from Environmental Impact
• Risk from Compliance with Loan Agreements
• Risk associated with Compliance with the Regulations and Relevant Laws
• Anti-Corruption Risk

Mitigation Strategies

• Cost management and rigorously expense control
• Procuring other raw materials to substitute the molasses (raw sugar and tapioca chips)
• Determining its ethanol selling price based on a cost-plus basis
• Closely monitoring market situation and price trend of raw materials
• Expanding its customer base and monitoring export market situation
• Conducting a feasibility study of producing other products or derivatives products of ethanol
• Strengthening the structure of the biogas ponds and conducting regular maintenance
• Complying with the requirements of the government in “Wastewater Management in Industrial Plants”
• Informing the Board of Directors of LANNA regarding the loan agreement condition
• Closely monitoring and coordinating with related agencies to keep up with the changes in policies, rules, regulations and laws
• Establishing an anti-corruption working team and conducting self-assessment on the corruption risk

Supply Chain Management

Responsible Procurement

• Purchasing only from manufacturers and/or distributors that deliver quality ingredients accurately and punctually

Climate-Related Risks & Opportunities

Physical Risks

• Drought

Transition Risks

• Growing Trends of Electric Cars and Hybrid Cars

Opportunities

• Producing other products or derivatives products of ethanol

Awards & Recognition

• SETAWARDS 2020
• Thai Institute of Directors Association 4 stars
• Thai Investors Association 98 score

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Environmental Sustainability
• Social Responsibility

Environmental Achievements

• Installed bio scrubbers to remove hydrogen sulfide (H2S) from biogas, improving air quality.
• Implemented wastewater management system, reducing water usage in production.
• Undertook an industrial forest plantation project to reduce greenhouse gas emissions.

Social Achievements

• Maintained 85% of factory workers as locals from Suphanburi province.
• Provided employee training (average 14 hours/person/year).
• Supported community development projects (medical equipment, supplies, etc.).

Governance Achievements

• Received a “Very Good” level (4 stars) for Corporate Governance assessment by the Thai Institute of Directors Association.
• Received a 100 score (“Excellent”) on the Annual General Meeting Quality Assessment by the Thai Investors Association.
• Established and implemented a Sustainability Management Policy.

Climate Goals & Targets

Environmental Challenges

• Decreased ethanol sales volume (18.23%) due to COVID-19 pandemic and reduced fuel demand.
• Increased molasses price (28.05%) due to drought.
• Dependence on major customers for ethanol sales.
• Government policies affecting ethanol promotion and demand (e.g., EV promotion).

Mitigation Strategies

• Developed alternative sourcing strategies for raw materials (cassava).
• Expanded customer base to reduce dependence on major buyers.
• Conducted feasibility studies on producing other products from ethanol.
• Focused on cost management and production efficiency improvements.

Supply Chain Management

Supplier Audits: At least once a year

Responsible Procurement

• Quality testing of raw materials
• Using at least 2 suppliers for main raw materials.

Climate-Related Risks & Opportunities

Physical Risks

• Drought

Transition Risks

• Growing trends of electric cars and hybrid cars

Awards & Recognition

• SET AWARDS 2020