Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Stakeholder Engagement
• Environmental Responsibility (implied)

Environmental Achievements

• One of the largest refineries of crude palm oil to biodiesel (B100) as an alternative energy source. A refinery plant with a continuous process and friendly to the environment.
• Improved refinery process of biodiesel from batch process into continuous process, reducing refinery costs.

Social Achievements

• Provides proper compensation, lunch, provident fund, health and life insurance, uniforms, transportation, social security, first aid, and nursery to all employees.
• Surveys customer satisfaction and received a good rating from customers. No complaints received from customers.

Governance Achievements

• Established a Corporate Governance Committee.
• Implemented a transparent remuneration policy for Directors.
• Ensured equitable treatment of shareholders and provided opportunities for shareholder engagement.

Climate Goals & Targets

Environmental Challenges

• Economic crisis and shrinkage of government spending in infrastructure resulted in decreased demand for Porcelain Insulators.
• Risk of price war in porcelain insulators procurement due to e-auction system.
• Raw material risk (crude palm oil price fluctuations for biodiesel and vegetable oil production).
• Foreign exchange rate risk due to procurement of raw materials from overseas.

Mitigation Strategies

• Strong business reputation and over 30 years of experience, products accepted by utilities in quality and reliability.
• Company has all the products required by Utilities and some porcelain insulators products require high technology in production process.
• Company has its own research and development center for new products and new production technologies.
• Long-term contracts with suppliers for raw materials.
• Use of palm stearine (by-product from cooking oil refinery) as raw material for biodiesel.
• Large existing tank farms to stock raw materials.
• Use of Forward Foreign Exchange to minimize fluctuation in exchange currency.
• Foreign Currency Deposit to manage revenue in foreign currency.

Supply Chain Management

Responsible Procurement

• Long-term contracts with suppliers.
• Careful selection of raw materials.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Thai Financial Reporting Standards

Certifications: ISO 9001:2000

Third-party Assurance: Dr. Virach & Associates

Sustainable Products & Innovation

• Biodiesel (B100)

Awards & Recognition

• FORBES ASIA BEST UNDER A BILLION

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Stakeholder Engagement
• Environmental Responsibility

Environmental Achievements

• Biodiesel refinery plant with a continuous process, friendly to the environment; reduced dependence on foreign oil, non-toxic and biodegradable, promotes economic development, produces lower emissions, and extended engine life.

Social Achievements

• Provides proper compensation, lunch, provident fund, health and life insurance, uniforms, transportation, social security, first aid and nursery to all employees.
• Customer satisfaction survey received a good rating in quality, services, and prices.

Governance Achievements

• Established a Corporate Governance Committee; ensured equitable policy and maintains shareholders’ fundamental rights; transparent remuneration policy for Directors; regularly held training to alert the Company’s employees and a follow-up on the compliance with the business ethics; efficient internal control system.

Climate Goals & Targets

Environmental Challenges

• Economic crisis and shrinkage of government spending in infrastructure resulted in decreased demand for porcelain insulators.
• Risk of price war in E-auction procurement for porcelain insulators.
• Raw material risk for biodiesel and vegetable oil due to crude palm oil price fluctuations.
• Foreign exchange rate risk due to procurement of raw materials from overseas.

Mitigation Strategies

• Strong business reputation and over 30 years of experience; production technology barrier to entry for new competitors; research and development center for new products and technologies; long-term contracts with suppliers; insurance covering assets and business interruption.
• Improved biodiesel refinery process to reduce costs; use of palm stearine as raw material; large tank farms for raw material storage; ocean vessel fleet for import.
• Forward foreign exchange contracts to minimize currency fluctuations; foreign currency deposits to manage revenue.

Supply Chain Management

Responsible Procurement

• Long-term contracts with suppliers; careful selection of raw materials; sourcing from both local and overseas suppliers.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Thai Financial Reporting Standards (TFRS)

Certifications: ISO 9001:2000

Third-party Assurance: ANS Audit Co.,Ltd.

Sustainable Products & Innovation

• Biodiesel

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Improved Biodiesel refinery process from batch to continuous process, reducing refinery costs

Social Achievements

• Blood donation drives for the Thai Red Cross Society
• Thailand Labour Excellence Award 2019
• Provident Fund Excellence Award 2019
• Employee training and development programs, including scholarships

Governance Achievements

• Established a Corporate Governance Committee
• Implemented an Anti-Corruption Policy
• Regularly reviewed the implementation of the anti-corruption policy

Climate Goals & Targets

Environmental Challenges

• Fluctuation in demand for porcelain insulators
• Risk of price wars in E-auction procurement
• Risk of competition from new entrants in the porcelain insulator business
• Raw material price fluctuations (crude palm oil, LPG)
• Foreign exchange rate risk
• Risk of Biodiesel demand from major oil companies
• Competitive vegetable oil market
• SEC criminal complaint against two former directors and executives of AI Energy Public Company Limited

Mitigation Strategies

• Long-term contracts with raw material suppliers
• Research and development for new products and production technologies
• Product patents
• Complete range of products required by clients
• Focus on high-technology products
• Joint venture with PPC Insulators Group
• Insurance coverage for assets and business interruption
• Improving and modifying the Biodiesel production process to use palm stearine
• Large existing tank farms for raw material storage
• Ocean vessel fleet for raw material transport
• Attractive employee welfare programs to reduce turnover
• Forward foreign exchange contracts to minimize currency fluctuations
• Foreign currency deposits to manage revenue
• Legal opinion obtained indicating the SEC complaint against former directors and executives is a personal matter and the subsidiary is not liable

Supply Chain Management

Responsible Procurement

• Long-term contracts with suppliers
• Careful selection of raw materials
• E-auction procurement

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Thai Financial Reporting Standards (TFRSs)

Certifications: ISO 9001:2000

Third-party Assurance: ANS Audit Co.,Ltd

Sustainable Products & Innovation

• Biodiesel

Awards & Recognition

• Thailand Labour Excellence Award 2019
• Provident Fund Excellence Award 2019