Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Baconco received a Certificate of Achievement from Ba Ria Vung Tau Power Company for its efforts in energy saving and regulatory compliance. This is a result of various energy-saving measures implemented over the past five years (solar heating, inverter installation, LED lighting, etc.).
• Baconco maintains high operational efficiency in environmental protection management, exceeding Phu My I Industrial Park’s requirements.

Social Achievements

• Baconco partnered with the Norwegian Football Association in Vietnam to organize football matches and lunches for 2,000 youths from 15 social centers.
• PMTA participated in Thoresen Thai Agencies Public Company Limited’s “Agriculture for School Lunch” project, sponsoring Ban Nongyai Phattana School.

Governance Achievements

• Established a Corporate Governance Policy covering Board structure, duties, responsibilities, and executive management principles.
• Implemented best practices in shareholders’ meetings to facilitate the use of shareholder rights.
• Established a Whistle-Blowing Policy (under construction).

Climate Goals & Targets

Environmental Challenges

• Global economic slowdown and high fluctuation resulting in low commodity and agricultural product prices.
• El Niño effects causing drought in Vietnam and Southeast Asia, impacting fertilizer demand.
• Increasing counterfeit goods in the fertilizer market.
• Volatility in the Vietnamese Dong exchange rate.
• Highly competitive fertilizer market in Vietnam.

Mitigation Strategies

• Maintaining low inventories to limit exposure to market downturns.
• Firm pricing and discount policies to retain margins when raw material prices increase.
• Cost-plus margin approach for selling prices, adjusted weekly.
• Long-term relationships with overseas suppliers to secure raw material supply.
• Just-in-time purchasing of raw materials.
• Automated bagging and loading processes to ensure timely delivery.
• Using special yellow color and registering “Conco” trademark to differentiate products.
• Cooperation with business networks for counterfeit goods notification.
• Natural hedging strategy by modifying revenue and raw material cost structures.
• Considering forward contracts to manage exchange rate risk.
• Differentiation strategy focusing on specialized products to limit competition exposure.
• Multiple production processes and value-added products to maintain market share and margins.
• Quarterly compliance checklists to monitor compliance with laws and regulations.

Supply Chain Management

Responsible Procurement

• Balancing long-term profitability and sustainability in raw material procurement.
• Considering raw material quality, supplier credibility, and agreements.

Climate-Related Risks & Opportunities

Physical Risks

• Drought, earthquake, floods, storms, or other weather changes impacting operations and demand.

Awards & Recognition

• Certificate of Achievement from Ba Ria Vung Tau Power Company

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Baconco maintained high operational efficiency in environmental production management, exceeding Phu My I Industrial Park’s requirements.
• Wastewater treatment plant purified wastewater at a rate exceeding legal requirements; sludge recycled.

Social Achievements

• Baconco funded the Football for All in Vietnam Foundation, sponsoring football activities for children.

Governance Achievements

• Company received a “Good” rating from the Corporate Governance Report of Thai Listed Companies and an “Excellent” rating for the quality of its 2019 AGM.
• Established Corporate Governance Policy aligned with the 2017 Corporate Governance Code (CG Code).

Climate Goals & Targets

Environmental Challenges

• Challenging fertilizer market conditions.
• Raw material price volatility.
• Risk of raw material shortages due to global supply constraints.
• Increasing counterfeit goods.
• Natural disasters (drought, floods, etc.).
• Fluctuation of the Vietnamese Dong.
• Competition in Vietnam's fertilizer market.
• Compliance with Vietnamese government standards for fertilizer formulas.

Mitigation Strategies

• Active sales and marketing efforts to increase domestic sales.
• Reactivation of African markets.
• Low inventory policy to limit exposure to market downturns.
• Firm pricing and discount policies.
• Cost-plus margin approach to selling price setting.
• Long-term relationships with overseas suppliers.
• Just-in-time raw material purchasing.
• Alternative sourcing strategies.
• Use of "DAP yellow" and "Conco" trademark to differentiate products.
• Cooperation with business networks to identify counterfeit goods.
• Crisis management and business continuity plans.
• Insurance to cover natural disaster risks.
• Optimum inventory management.
• Natural hedging strategy by balancing USD income from exports and raw material costs.
• Consideration of forward contracts to manage exchange rate risk.
• Product differentiation strategy focusing on specialized products.
• Multiple production processes and value-added products.
• Quarterly compliance checklists to monitor adherence to laws and regulations.

Supply Chain Management

Responsible Procurement

• Long-term contracts with major suppliers.
• Sourcing raw materials from both domestic and international suppliers (49% imported).

Climate-Related Risks & Opportunities

Physical Risks

• Drought
• Floods
• Storms

Reporting Standards

Frameworks Used: Thai Financial Reporting Standards (TFRS)

Third-party Assurance: KPMG Phoomchai Audit Ltd.

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Human rights and employee well-being
• Social Contributions
• Environment

Environmental Achievements

• Baconco is ISO 14001:2015 environment management accredited.
• Wastewater treatment plant purifies wastewater at a rate of 450 cubic meters a day, exceeding legal requirements.
• Project launched to reduce fuel costs and sulfur dioxide emissions by reclaiming and reusing tires as fuel.

Social Achievements

• Baconco funded Quang Trung Junior Secondary School in Quang Binh province for a new computer room.

Governance Achievements

• Compliance with the 2017 Corporate Governance Code (CG Code) for listed companies.
• Established transparent and clearly traceable organizational structure.
• Implemented Whistle Blowing Policy.

Climate Goals & Targets

Environmental Challenges

• Seasonal drought, decline in agricultural product prices, salinity intrusion in the Mekong Delta.
• Covid-19 pandemic caused delays in logistics and marketing.
• Low demand for premium NPK fertilizer.
• Ban of glyphosate products.
• Fluctuation of raw material prices.
• Increasing in counterfeit goods.
• Volatility of Vietnamese Dong against other currencies.

Mitigation Strategies

• Effective management of the Vietnamese government led to business resumption.
• Focus on export to reduce concentration risk and hedge against exchange rate volatility.
• Factory area management services to generate recurring income and diversify risk.
• Strict management of raw material stocks and higher sales proportion of priority higher margin products.
• Natural hedging strategy by modifying the structure of revenues and raw material costs.
• Long-term contracts with major raw material suppliers.
• Use of special yellow color and “Conco” trademark/logo to differentiate products.
• Cooperation with business networks for notification of counterfeit goods.
• Crisis management plan and business continuity plan.
• Insurance to cover natural disaster risk.
• Differentiation strategy focusing on specialized products.
• Multiple production processes and value-adding processes.
• Low-inventory policy to manage exchange risk and price volatility.
• Considering entering into forward contracts to manage exchange risk.
• Quarterly compliance checklists to monitor compliance with laws and regulations.

Supply Chain Management

Responsible Procurement

• Balancing long-term profitability and sustainability.
• Considering raw material quality, supplier’s creditability and other agreements.
• Network of raw material suppliers in and outside Vietnam.
• Long-term contracts with major suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Drought, earthquake, floods, storms

Sustainable Products & Innovation

• Urea Super Phosphate (USP) additive.
• Bio Stimulant coating substance.