Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainable Development
• Corporate Social Responsibility
• Corporate Governance

Environmental Achievements

• More of Banpu Group’s coal mines and power plants have been certified as meeting international standards in quality management, safety, and environment (QMS-ISO 9001, EMS-ISO 14001 and OHSMS 18001 certifications for the Bharinto mine, Indonesia).
• Implementation of In-Pit Crushing and Conveying (IPCC) in the east production area of the Indominco mine, lowering the hauling distance and increasing the rate of soil removal.
• Construction of constructed wetlands to trap sediments resulting from soil erosion.
• Implementation of Acid Mine Drainage to prevent water acidity and treat acidic water.

Social Achievements

• Continued many CSR activities covering educational development, environmental development, and youth development.
• Supported the generation of geology and mining engineering personnel through scholarships.
• Provided financial support to schools in the Southern Provinces.
• Organized the Power Green Camp for Thai youth.
• Supported Banpu Champions for Change for youth social entrepreneurs.

Governance Achievements

• Inclusion in the Dow Jones Sustainability Indices for Emerging Markets.
• Approved a new edition of the Corporate Governance Policy and the Code of Conduct Handbook.
• Implemented a Whistleblower Policy.
• Preparing related policies and guidelines to submit for certification from the Private Sector Collective Action Coalition Against Corruption (CAC).

Climate Goals & Targets

Environmental Challenges

• Fluctuation in the world economy put tremendous pressure on global coal demand and prices.
• Oversupplied global coal market resulted in aggressive competition and continuously dropping prices.
• Unfavorable weather conditions and an oversupplied market affected Indonesian coal production.
• Risks from potential regulatory changes in Indonesia, China, Australia and Mongolia.

Mitigation Strategies

• Adjusted strategic business plans to manage fluctuations and enhance sustainability.
• Implemented cost rationalisation and productivity enhancements.
• Reorganized and centralized marketing, sales and logistics function.
• Implemented various risk management measures to mitigate risks from regulatory changes.
• Improved the management of the coal supply chain with the introduction of an Optimization System.
• Implemented a preventive maintenance plan for machinery and equipment.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 9001, OHSAS 18001, ISO 14001

Awards & Recognition

• Dow Jones Sustainability Indices (DJSI) membership
• ASEAN Coal Awards 2013 (Lamphun mine)

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• Reduced GHG emissions intensity in mining business by 2.86% and in power business by 3%
• Increased renewable energy investment with a target of 1.1 GW by 2025
• No new inorganic investment in coal business since 2020

Social Achievements

• Not disclosed

Governance Achievements

• Established the Environment, Social and Governance Committee (ESG Committee) in 2021
• Announced as a supporter of the Task Force on Climate-related Financial Disclosures (TCFD Supporter) in 2020
• Implemented internal carbon pricing

Climate Goals & Targets

Environmental Challenges

• Transition risks: policy and legal, technology, market, reputation
• Physical risks: increased severity of extreme weather (acute) and change of precipitation patterns (chronic)
• Coal price fluctuation and carbon cost impacting mining and thermal power businesses

Mitigation Strategies

• Incubate low GHG emissions technologies (energy storage, electric vehicles, smart cities)
• Improve production efficiency and reduce scope 1 and 2 emissions
• Track changing weather conditions and amend operating processes
• Consider natural disaster risk in new project due diligence
• Restructure energy portfolio towards cleaner energy solutions
• Invest in efficient technologies (FGD, SNCR, ESP)
• Seek investment in renewable and energy technology businesses
• Integrate carbon pricing in investment decisions
• Monitor risks, opportunities, and implications of climate change
• Plan for business continuity regarding climate change

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Increased severity of extreme weather events
• Change of precipitation patterns

Transition Risks

• Policy and legal changes
• Technological advancements
• Market shifts
• Reputational risks

Opportunities

• Resource efficiency gains
• Demand for lower-carbon products and services

Reporting Standards

Frameworks Used: TCFD

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Energy storage systems
• Electric vehicles
• Smart city solutions

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Decarbonization
• Employer of choice
• Digital transformation
• Zero waste
• Safe and healthy workplace
• Sustainable supply chain
• Net-positive impact on biodiversity
• People capability development
• ESG in performance evaluation

Environmental Achievements

• GHG emissions intensity reduction of 34% for power business compared to BAU
• Achieved target for GHG emissions intensity in power business (0.438 tonnes CO2e/MWh)
• Aggregate reduction of 515,000 tonnes CO2e in 2023 from Pad of the Future program
• 80% reduction in delays and cleanup times due to chute blockages in Indonesia through air cannon installation
• 5% increase in gross loading rate in Indonesia through air cannon installation
• Annual reduction in energy consumption by approximately 538 MWh in Indonesia through air cannon installation
• Increased recovery rate of reverses osmosis (RO) systems from 70.5% to 72.5% in China
• Extended cleaning cycle of RO units from 10 days to 50 days in China
• Prolonged service life of membrane elements doubled from 4 years to 8 years in China
• Saved approximately 56,000 tonnes of boiler feed water in China
• Reduction of coal spillage dumping and conserved 4,386 tonnes of natural coal annually in Indonesia

Social Achievements

• Employee engagement level of 78%
• Successfully completed Industry-Standard Welding Training Program in Indonesia with 75% employment rate
• Launched income generation program in China providing 32 beneficiaries with higher income opportunities
• Launched BKV First Responder Grant Program in the U.S. awarding 8 grants totaling over USD 30,000
• Supported 14 community development projects in Indonesia benefiting 3,793 individuals

Governance Achievements

• Established ESG Committee
• Announced Information and Cybersecurity Policy
• Appointed Global Information Security Officer (GISO)
• Enhanced cybersecurity supervision through Cyber-Physical System (CPS) Strengthening
• Launched Self-Hacking by White Hackers program
• Integrated ESG criteria into supplier screening and selection process
• Achieved 100% coverage of material ESG aspects embedded in CEO’s KPI

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Escalating impacts of climate change
• Insufficient ready-identified talents for business operations and growth
• Geopolitical risk and geoeconomic confrontations
• Supplier management not fully integrated into the Company’s risk management system
• GHG emissions intensity increase of 4% in mining business compared to BAU due to higher fuel consumption
• One fatal accident involving a contractor

Mitigation Strategies

• Recalibrating strategies to address emerging risks
• Developing alternative sourcing strategies
• Developing a “Human Capital Strategy”, addressing talent gaps through external recruitment and establishing “Banpu Academy”
• Implementing Trigger Action Response Plan (TARP)
• Diversifying buyers and suppliers
• Analyzing and researching the clean energy industry and emerging technologies
• Executing a business partnership investment strategy
• Establishing clear ESG standards for suppliers, defining criteria for selection, auditing, and measuring their ESG sustainability performance
• Implementing safety training courses for specific hazards
• Organizing engineering improvements focused on machine safety
• Launching the Fatal Risk program
• Expanding the safety culture maturity level assessment
• Improving the hauling road, providing company-approved vehicles for all workers in mining areas, and strengthening safety rules and regulations specifically regarding vehicle use in mining areas

Supply Chain Management

Supplier Audits: 84% of critical tier-1 suppliers assessed for ESG risks in 2023

Responsible Procurement

• Supplier Code of Conduct
• ESG criteria integrated into supplier screening and selection

Climate-Related Risks & Opportunities

Physical Risks

• Drought
• Heat
• Heavy precipitation
• Wildfire

Transition Risks

• Carbon pricing
• Stigmatization of the sector

Opportunities

• Developing/expanding low-carbon products and services
• Participating in carbon market

Reporting Standards

Frameworks Used: GRI Standards 2021, GRI 12: Coal sector 2022, G4 electric utility sector disclosures, UN Global Compact, TCFD, AA1000APS, AA1000SES, IFC Performance Standard on Environmental and Social Sustainability, OECD Guideline for Multinational Enterprises, ICMM’s mining principle, IFRS Sustainability Disclosure Standards

Certifications: ISO 14001:2015, ISO 45001:2018, ISO 22301:2019, ISO 27001

Third-party Assurance: LQRA (Thailand)

UN Sustainable Development Goals

• Goal 7: Affordable and Clean Energy
• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation and Infrastructure
• Goal 13: Climate Action

The report details how Banpu's initiatives contribute to these goals through various programs and strategies.

Sustainable Products & Innovation

• Eco-print products from Sasirangan program in Indonesia

Awards & Recognition

• Dow Jones Sustainability Indices (DJSI) member since 2014
• Sustainability Awards of Honor in Sustainability Excellence from the Stock Exchange of Thailand since 2017
• Excellent CG rating in the Corporate Governance Report of Thai Listed Companies since 2017
• AAA rating in the SET ESG Ratings from the Stock Exchange of Thailand
• 5 coins rating on the annual general meeting checklist from the Thai Investors Association
• A rating in the MSCI ESG Ratings Assessment since 2019