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Nipokna Eng_Y-GreenOf.pdf 1 7/17/14 9:59 PM Contents Organizational Profififififif ile 4 Message from the Governor 6 CSR Strategic Directions 8 Structure of CSR Operations 9 CSR Performance and Achievements in 2013 10 Sifignifif icant Impacts, Risks and Opportunities 11 Materiality Analysis 14 Social and Environmental Operations consistent with the International Standard ISO 26000 15 Organizational Governance 16 Human Rights 22 Labor Practices 23 The Environment 30 Fair Operating Practices 41 Consumer Issues 43 Community Involvement and Development 48 Performance Disclosures of Additional GRI G3 Indicators Level A 58 Survey on Public Attitudes towards EGAT’s Operations and Performance 66 About this Report 68 GRI G3 Content Index-Electric Utilities Supplement- Application Level A 69 Statement of GRI Application Level Check 75 Awards of Great Pride 76 CSR Performance of the EGAT Group 78 How to read this report EGAT Sustainability Report 2013 was published with an aim to present to all stakeholders EGAT’s performance on economic, environmental and social impacts towards the goal of sustainable development during January 1 to December 31, 2013. The topics and contents of our reporting were prepared following the guidelines of GRI G3 Sustainability Reporting Guidelines & Electric Utility Sector Supplement (RG & EUSS) and the core subjects and issues identififfiied in the International Standard 26000 Guidance on Social Responsibility. For information on ISSN 2351-0439 EGAT’s operational and fiffiinancial performance,fi please fiffiind fiin EGAT Annual Report 2013. 57-06-010_NIPOKNA Eng_GreenO_Y.ai=CS5 “To be a world-class leading organization in the electric power industry.” Vision In 2013, EGAT had a vision to be an internationally leading organization in electricity business with a goal to be a leading organization in the following five key aspect, • Good corporate governance, • A high performance organization, • Operational excellence, • An organization of national pride, and • Financial viability. 57-01-070_001 Thai_GreenO_W.ai=CS5 2 • Generate, acquire, transmit and sell Mission bulk electric energy via the transmission network. • Produce lignite for the lignite-fired power plant and sell lignite by-products for industrial uses. • Provide energy-related services to external companies and private power plants. • Invest in electricity and energy-related businesses through subsidiaries and affiliates – the EGAT Group. Corporate Culture Committed to the Organization EGAT people are all committed to the organization, performing their duties with good faith, loyalty, skill and diligence for the same unified goal to drive the organizational growth and safeguard the interest of EGAT and the nation. Striving for Excellence All employees work with sound and farsighted planning, diligence and determination and always give due consideration on safety and the interest of the country, society and environment. All are committed to continuously developing themselves for improved competence and work performance to ensure the high quality, efficiency and excellence of their work that earns EGAT trust and acceptance from the public and domestic as well as international agencies and organizations. Upholding Moral Integrity EGAT praises and supports the employees with integrity and ethically sound conduct as well as the employees who dedicatedly act in the interest of the nation. EGAT is determined to prevent, by all means, an abuse of power and misconduct in the organization. It is also committed to equitable treatment of all employees and stakeholders. 3 Codes of Conduct Believing that ethical operation will bring about long-term value and sustainability for the organization, EGAT has prescribed the following as standard ethical practices. Adherence to democracy with the King as Head of State. Provision of energy services with quality and reliability, and adherence to ethical principles. Having all stakeholders in mind and treating all parties concerned equitably, fairly and with accountability. Strict compliance with all relevant laws. Operations based on the sufficiency economy philosophy. Operations with EGAT’s interest in the forefront and with avoidance of activities potentially leading to conflict of interest. Attachment of importance of EGAT human resources development in knowledge and competency enhancement and instillation of the senses of virtue, integrity, honesty, perseverance and responsibility. Building of confidence among EGAT personnel through remuneration, promotion and transfer, fair rewards and punishments, as well as working conditions which are safe for life and property. Participation in efforts to bring about social balance with emphasis placed on society, communities and the environment. Operation with greater emphasis on common and stakeholders’ benefits than on personal gains. Strict observance of EGAT’s good organizational governance principles and professionalism. Core Values F Fairness Interact with all related individuals or parties fairly and equitably. I Integrity Behave with integrity, honesty, openness and truthfulness. Carry out one’s duty with dedication and a complete sense of Responsibility & responsibility for national interest, the community, society, and Accountability R environmental protection. Treat others with honor, respect people’s dignity and opinions, and M Mutual Respect learn to live in harmony with the community. Commitment to Continuous Continuously improve self and team performance to create a Improvement and culture of innovation. Be prepared for change. C Teamwork 4 ORGANIZATIONAL PROFILE Electricity Generating Authority of Thailand (EGAT) was established under the Electricity Generating Authority of Thailand Act, B.E. 2511 (1968) on May 1, 1969. A state enterprise reaching its 44th anniversary in 2013, EGAT is under the supervision of the Ministry of Energy and the Ministry of Finance which is its major shareholder. Its operations focus on electricity generation and transmission business as well as electricity sales to the two distribution utilities, namely the Metropolitan Electricity Authority (MEA) and the Provincial Electricity Authority (PEA), as well as a number of direct customers by law and neighboring countries. EGAT’s primary mission is to generate, acquire, transmit and sell electric energy, and conduct electricity related businesses and other businesses related to EGAT’s activities including the production and sale of lignite and lignite by-products, as prescribed in the Electricity Generating Authority of Thailand Act, B.E. 2511 (1968) and its latest revision promulgated in 1992. Under the present electricity business structure, EGAT is responsible for the generation and transmission of electricity as well as the control of power dispatching centres nationwide to ensure the secure and adequate power supply. EGAT also put greater importance to the environmental well-being management for communities and the society. EGAT’s overall operations have been under the supervision of its regulator, the Energy Regulatory Commission of Thailand (ERC). EGAT’s headquarters is located at 53 Charan Sanit Wong Road, Bang Kruai district, Nonthaburi province 11130. It has five dispatching centers, two in Nonthaburi province, one in Phitsanulok province, one in Khon Kaen province and one in Krabi province. In all, the country’s system peak generation requirement in 2013 stood at 26,598.1 MW, occurring on May 16, 2013 at 14.00 hours. This marked the highest peak record level that beat the previous peak record of 26,423 MW, occurring on March 23, 2012, due to the very hot temperature which climbed up to 37 degrees Celsius. In 2013, EGAT’s generating facilities of 40 locations countrywide provided a combined installed capacity of 15,010.12 MW, accounting for 44.57 percent of the country’s system installed capacity. Additional capacity was derived from power purchase from independent power producers (IPP), small power producers (SPP), companies in the EGAT Group, and electric utilities in neighboring countries. Installed capacity Percentage of Description (MW) total capacity 1. Installed capacity from EGAT’s generation fleet, comprising 22 hydropower 15,010.12 44.57 plants, 3 large-sized thermal plants, 6 combined cycle plants, 1 diesel power plant, and 8 small-sized renewable energy power plants. 2. Power purchase from 8 domestic independent power producers (IPPs) and 12,741.69 37.83 three companies in the EGAT Group. 3. Power purchase from 27 small power producers (SPPs) in the category of 3,524.60 10.66 firm power purchase agreements. 4. Power purchase from four electric utilities located in Lao People’s 2,404.60 7.14 Democratic Republic and Malaysia, through the HVDC Thailand–Malaysia Transmission System. In 2013, natural gas remained a primary energy source for the country and EGAT’s electricity generation. Natural gas consumption by EGAT’s power plants were 27.93 percent, followed by 9.58 percent of coal, 0.7 percent of fuel oil, 0.09 percent of diesel oil, and 3.11 percent of hydropower as standby capacity. After the generation and acquisition of electricity, EGAT has supplied bulk electricity to distributing authorities via its transmission network to efficiently and reliably satisfy the demand in an environmentally responsible manner and at a reasonable price. In 2013, EGAT’s electric transmission network consisted of 32,384.24 circuit-kilometers of high voltage transmission lines with voltage level ranging from 500, 300, 230, 132, 115 to 69 kV and 213 substations. Bulk electricity was supplied to PEA
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