Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment preservation
• Ethical business conduct
• Responsibility towards society, shareholders and other related parties
• Anti-corruption

Social Achievements

• Contribution to society by assisting flood victims, donation of supplies to the communities, donation of money to build religious places, schools, hospitals and participation in environmental conservation campaigns.
• Arrangement of activities to cultivate environmental conservation spirit, for instance a campaign to use used paper in the office.

Governance Achievements

• Certified as a member of the Private Sector Collective Action Coalition Against Corruption (CAC) on March 9, 2017 and recertified on November 4, 2019.
• Prepared the Corporate Governance Policy and Code of Conduct in writing to be observed by the directors, the executives and the employees at all levels.

Climate Goals & Targets

Environmental Challenges

• Risks from the government’s policy (LPG price deregulation policy, LPG Free Trade Policy for domestic use, Consumer and Environmental Protection Policy)
• Risk from increasing number of LPG traders
• Risk from Safety of LPG cylinders
• Risk from Accidents in LPG Terminals, LPG Filling Plants, and LPG Auto-gas Stations
• Risks from Transportation of LPG
• Risk from being unable to renew land leasing contract for Satupradit Terminal
• Risk from the volatility of the world price of LPG
• Risk from investment in oversea businesses
• Financial risk factors (effect of changes in foreign currency exchange and changes in interest rates)
• Risk from having a group of shareholders holding more than 75% shares
• Risk of impact from the subsidiaries’ operational performance

Mitigation Strategies

• Entering purchase and sales agreement with business partner by fixing price, volume and period
• Managing inventory adequately for supply in the following month without stocking them
• Acquisition of a 89-3-40 rai piece of land in Phrapradaeng district, Samutprakarn province for constructing new jetty and LPG terminal
• Insuring the property including LPG terminals, LPG filling plants, and LPG auto-gas stations
• Writing specific clauses in the contract that any damages or losses to the property, third party, and environment caused by operations of the agents, all liabilities are responsible by the agents
• All of the vehicles including petroleum road tankers, LPG road tankers, ammonia road tankers, petroleum vessel tankers, LPG vessel tankers, and ammonia vessel tankers are legally licensed and regularly inspected
• All truck drivers and vessel crew members must be regularly trained
• Purchasing insurance coverage for all vessels and all of their road tankers
• Performing research and analysis in laws, regulations, government’s policy, taxes, and other factors
• Setting up the system in continuous monitoring the project performance as well as its ongoing risks factor
• Developing its capability and personnel competencies
• Emphasizing in the volatility of foreign exchange and exploring effective measures in mitigating risks
• Selectively considering financial derivatives as tools in reducing risks
• Appointing 3 non-executive members on the board of directors, and 3 of them are independent directors and members of audit committee
• Appointing SGP’s representatives to be members of the board of directors of subsidiaries

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Installed solar panels on rooftops and implemented energy-saving lighting systems (LED) in gas storage facilities to reduce greenhouse gas emissions.
• Initiated a paperless project and used LNG-powered vehicles for product transportation to reduce environmental impact and transportation costs.

Social Achievements

• Launched a project to create jobs and careers, providing cooking training to those interested in the food business, improving the quality of life in the community.
• Implemented a Work From Home policy and utilized modern technology for online communication and meetings to reduce physical contact and prevent COVID-19 spread.

Governance Achievements

• Established policies and measures for data privacy and compliance with the Personal Data Protection Act (PDPA).
• Strengthened corporate governance and anti-corruption measures throughout the value chain.

Climate Goals & Targets

Environmental Challenges

• Climate change and global warming, impacting energy production and natural gas.
• Fluctuations in LPG prices due to a semi-floating, semi-controlled pricing policy.
• Potential for accidents in LPG storage facilities, filling plants, and service stations.
• Risks associated with LPG transportation, including accidents and unforeseen events.
• Risks related to the safety of LPG cylinders.
• Fluctuations in foreign exchange rates affecting LPG business overseas.
• Fluctuations in interest rates on long-term loans with floating interest rates.
• Risks associated with the company's inability to comply with loan agreements.
• Risks associated with debt burden and financial institutions.
• Risks from liberalization of LPG distribution for household use.
• Risks from consumer protection and environmental policies.
• Climate-related risks (physical and transition risks).
• Non-renewal of land lease at the Sathupradit LPG storage facility.
• Risks from a single shareholder group holding more than 75% of shares.
• Risks from the impact of operations and financial status of subsidiaries.
• Risks from the Personal Data Protection Act (PDPA).
• Risks from emerging diseases and adaptation to business operations (New Normal).

Mitigation Strategies

• Developed alternative sourcing strategies.
• Managed costs in LPG filling and transportation, and implemented safety awareness campaigns.
• Adhered to safety standards and regulations, and implemented insurance policies.
• Implemented risk mitigation strategies for foreign exchange and interest rate fluctuations.
• Maintained debt-to-equity ratio and debt service coverage ratio within acceptable limits.
• Developed and improved product quality and safety.
• Developed strategies to manage climate-related risks (physical and transition risks).
• Purchased land for a new LPG storage facility.
• Appointed independent directors to balance power and oversight.
• Implemented measures to comply with PDPA.
• Implemented strict measures to prevent COVID-19 infection and maintained business continuity.

Supply Chain Management

Supplier Audits: 100% of Key Suppliers

Responsible Procurement

• Supplier self-declaration on ESG factors
• Supplier assessment and risk categorization
• ESG on-site audits

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (flooding, drought)
• Reduced energy and natural gas production

Transition Risks

• Changes in government policies and regulations
• Changes in product and service standards
• Increased operating costs

Opportunities

• Development of energy-efficient products and services
• Increased customer demand for environmentally friendly products
• Collaboration with organizations to develop energy knowledge

Reporting Standards

Frameworks Used: GRI Standards 2021, UN SDGs

UN Sustainable Development Goals

• SDG 7 (Affordable and clean energy)
• SDG 8 (Decent work and economic growth)
• SDG 12 (Responsible consumption and production)
• SDG 13 (Climate action)
• SDG 16 (Peace, justice and strong institutions)
• SDG 17 (Partnerships for the goals)

Initiatives contribute to these goals through various ESG programs.

Sustainable Products & Innovation

• 7 kg LPG cylinder
• SIAMGAS Application