RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
Contents
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2 3 Social & Environment Responsibility Report 2012
About RATCH
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Ratchaburi Electricity Generating Holding PCL is a leading private power producer of Thailand, with 14% of the country’s installed capacity. The Company was established on 7 March 2000 with a registered capital of Bt 14,500 million. The Company is listed on the Stock Exchange of Thailand.
Vision 2. Expand renewable and alternative energy, to become a leader in renewable energy “To be the leading independent power producer in the region 3. Enter into related businesses for new opportunities and trusted by the public”. increasing returns 4. Create attractive returns for shareholders with commitment Mission to the benefits of the society as a whole “To invest, develop, and operate electricity generation and 5. Ensure financial structure accommodative to sustainable related businesses” business expansion 6. Strengthen positive relationships with suppliers, business Policies partners, and networks based on mutual benefits 1. Expand electricity generation and distribution with the 7. Consistently maintain relationships with communities near following priorities; the Company’s power plants and other premises 1.1 To meet domestic demand 8. Strengthen competitive capability and promote employees’ 1.2 To increase overseas production capacity in support quality of work environment of corporate expansion 9. Uphold occupational health & safety standards 10. Adhere to good corporate governance RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
The Company is committed to be a responsible business organization, and play a key role in fostering long-term national Total installed capacity energy security, through the power generation to benefit the as of 31 January 2013 economy, society and environment for sustainable business expansion.
RATCH is a holding company, engaging in principal investment business, in the core company, subsidiaries and affiliates operating 3 main businesses – electricity generation, renewable energy and related businesses in Thailand and overseas. At present, the Company’s installed capacity, commercially 8.1% commencing and under development, totals 6,303 MW: 4,587 MW in Thailand and 1,716 MW overseas (Lao PDR and Australia).
Electricity Generation 19.1% The Company emphasizes on the diversification of fuels: 5 natural gas, coal and hydropower for generating stability which plays a significant role in promoting the country’s infrastructure stability. The Company targets to expand the capacity to 7,800 MW in 2016. With regards to fuel choices, the Company takes into consideration the impacts on the environment and global 72.8% warming in particular. To date, the Company operates 8 gas- fired power plants with a combined capacity of 4,933.32 MW: 5 of which, with 4,477.8 MW, are located in Thailand and the remaining three 3 plants with 455.52 MW in Australia. Also, there are 2 very small power plants in Sukhothai, which generate 6.25 MW from associated gas, a by-product from crude oil production.
Combined capacity:
6,303 MW
Domestic capacity 4,586.5 MW Capacity in Lao PDR 1,206.5 MW Capacity in Australia 510 MW Social & Environment Responsibility Report 2012
The Company also puts emphasis on hydropower, which
requires low investment and emits zero CO2 in the generating Divensification of fuel used in process which benefits society and environment. The Company power generation currently runs operates and develops 4 hydropower projects, Natural gas Renewable energy and another 455.3 MW by investing lao securities market 4,933.32 MW 156.45 MW through EDL-Gen. Coal 751.2 MW Associated Gas Hydropower 6.25 MW 455.3 MW Among the fossil fuels resources for energyin power 2.50% generation, coal is offered the most attractive solution to the 0.09% increasing fuel cost. Thanks to its vast reserves and affordable 7.22% price, which will reduce the adverse environmental impacts and to maintain sustainable development which will lower 11.92% electricity cost and greater electricity stability will be resulted, in direct benefits to the economy and society. On environmental impacts, today’s technology has shown greater efficiency in 6 reducing pollution associated with coal combustion. For instance, the Flue Gas Desulfurization (FGD) system is capable of removing upto 97% of sulfur dioxide from the exhaust, helping minimize environmental impacts.
78.27% Commercially-commenced projects Project Investment Capacity by Project Location Type Fuel capacity ratio (%) investment ratio (megawatt) (megawatt)
Ratchaburi Ratchaburi, IPP natural gas 3,645.00 100 3,645.00 Thailand Ratchaburi, Tri Energy IPP natural gas 700.00 50 350.00 Thailand Ratchaburi, Ratchaburi Power IPP natural gas 1,400.00 25 350.00 Thailand Sukhothai, Pratu Thao and its expansion phase VSPP associated gas 2.65 100 2.65 Thailand Sukhothai, Sao Thian A VSPP associated gas 3.60 100 3.60 Thailand Queensland, Townsville IPP natural gas 234.00 80 187.20 Australia Western Australia, Kemerton IPP natural gas 300.00 80 240.00 Australia Western Australia, BP Kwinana IPP natural gas 118.00 24 28.32 Australia Vientiane, Nam Ngum 2 IPP hydro 615.00 25 153.75 Lao PDR
EDL-Gen Lao PDR IPP/SPP hydro 881.00 10.108 89.05
Note: IPP = Independent Power Producer SPP = Small Power Producer VSPP = Very Small Power Producer RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
Projects under development/construction
Project Investment Capacity by Project Location Type Fuel capacity ratio (%) investment ratio (megawatt) (megawatt)
Ratchaburi World Ratchaburi, Thailand SPP COGEN natural gas 210.00 40 84.00 Cogeneration
Navanakorn Electricity Pathum Thani, SPP COGEN natural gas 122.00 40 48.80 Generating Thailand
Xe-Pian and Champasak and Attapue, IPP hydro 410.00 25 102.50 Xe-Namnoy Lao PDR
Nam Ngum 3 Vientiane, IPP hydro 440.00 25 110.00 Lao PDR
Hongsa Power Xayaburi, IPP lignite 1,878.00 40 751.20 Lao PDR 7
Renewable energy Renewable energy The Company sets sights on investing in renewable energy in investment ratio Thailand and overseas, to lessen dependence on fossil fuel in electricity generation, in-process CO to mitigate global 2 2.53% warming impacts. This is a concert effort which will benefit the environment and respond to the government’s policy to join 15.33% global community in promoting renewable energy. The Company’s focus is on solar, wind and biomass, which seem to be the most promising resources in the country. The Company’s plan is to generate 200 MW from renewable energy in 2016. At present, the Company has been involved in 18 projects with combined capacity of 156.45 MW: 15 projects in Thailand and 3 in Australia. 82.14%
Solar power 23.98 Megawatt Wind power 128.51 Megawatt Biomass 3.96 Megawatt Social & Environment Responsibility Report 2012
Commercially-commenced projects
Project Location Type Project Investment Capacity by capacity ratio (%) investment ratio (megawatt) (megawatt)
Solar Farms: Nakhon Ratchasima VSPP 18.00 40 7.20 Solar Power Co.,Ltd. Thailand 1) Solar Power (Korat 3) 2) Solar Power (Korat 4) 3) Solar Power (Korat 7)
Solarta Co.,Ltd. VSPP 34.25 49 16.78 1)Sai Sena Ayutthaya Thailand 2) Sai Yoi Nakhon Pathom Thailand 3) Sai Prapa Nakhon Pathom Thailand 8 4) Sai Thong Nakhon Pathom Thailand 5) Sai Yai Nakhon Pathom Thailand 6) Sai Tatong Suphan Buri Thailand 7) Sai Saphan Suphan Buri Thailand
Huay Bong 2 Wind Farm Nakhon Ratchasima SPP 103.50 20 20.70 Thailand
Huay Bong 3 Wind Farm Nakhon Ratchasima SPP 103.50 20 20.70 Thailand
Starfish Hill Wind Farm South Australia SPP 34.50 80 27.60 Australia
Toora Wind Farm Victoria SPP 21.00 80 16.80 Australia
Windy Hill Wind Farm Queensland SPP 12.00 80 9.60 Australia
Projects under development/construction
Project Location Type Project Investment Capacity by capacity ratio (%) investment ratio (megawatt) (megawatt)
Khao Kor Wind Farm Petchaboon SPP 60.00 55.18 33.11 Thailand Biomass Power Station Songkhla VSPP 9.90 40 3.96 Thailand RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
Generation-related business The Company maps out the plan to invest in electricity generation and maintenance system, coal mines, and gas turbine equipment maintenance businesses. To date, the Company has invested in 5 companies worth a total of Bt 133.5 million.
Investment in Thailand
Item Company Registered capital Country Investment Nature of Business/operation ratio (million baht) ratio (%)
1 RATCH O&M Co.,Ltd. 10 Thailand 99.99 Operate and maintain small power plants
2 Sukhothai Energy Co.,Ltd. 80 Thailand 51 Enhance gas quality
3 Chubu Ratchaburi Electric Thailand 50 Operate Ratchaburi Power Plant in Ratchaburi Services Co.,Ltd. 4 Egat Diamond Service 623 Thailand 10 Gas turbine equipment maintenance 9 Co.,Ltd. 5 Songkhla Biofuel Co.,Ltd. 1 Thailand 40 Supply biomass fuel to Songkhla Biomass power plant
Investment in Lao PDR
Item Company Registered capital Country Investment Nature of Business/operation ratio (US$) ratio (%)
1 RATCH-Lao Services 2,500,000 Lao PDR 99.99 Operate Nam Ngum 2 Power Plant and hold Co.,Ltd. 5.081% stake in EDL-Gen
2 Phu Fai Mining Co.,Ltd. 50,000 Lao PDR 37.5 Mining service under concession for Hongsa Power Plant
3 EDL-Generation Public Bt 2,098.52 million Lao PDR 10.108 RATCH-Lao Services Co.,Ltd and RH Company investment through International (Singapore) Corporation are the LAO PDR’s shareholders of EDL-Gen securities market
The Company’s strategies also include investment in the securities market, focusing on electricity generating companies, to stabilize the Company’s revenue and cash flow and indirectly increase the Company’s capacity. This strategy was introduced in 2011, starting with the purchase of initial public offering (IPO) shares of EDL-Generation PCL. The Company now holds 10.108% stake in EDL-Gen, allowing it to increase electricity generation capacity by 89.05 MW through the holding.
Social & Environment Responsibility Report 2012
MESSAGE FROM CEO
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Ratchaburi Electricity Generating Holding PCL is committed to reliable electricity generating in support of the country’s economic and social development, with emphasis on social and ecologically-concerned environmental-friendly generating practices.
Ratchaburi Electricity Generating Holding PCL is committed Guiding the Company’s activities on social and environmental to reliable electricity generating in support of the country’s responsibility is a sustainable development approach, with economic and social development, with emphasis on social focus steering towards a well balance of the economy, social and ecologically-concerned environmental-friendly generating and environmental balance as much as possible to the fullest practices. For over a decade, the Company has served the to achieve sustainable growth. In the past year, the activities the country’s power electricity demand in full capability are focused on 4 main areas: through the installed capacity which accounts for 14% of the 1) Tackle carbon emission waste from power generation, to country’s. In the past year, the Company’s power plants reduce the impacts of global warming. This has been
generated 19,461 million kilowatt hours, allowing continued undertaken under 3 main guidelines to reduce CO2; economic development and convenience to general public and - Gas-fired and hydro power plants are the first investment the entire society. The Company has closely monitored the priority, thanks to the nature of the “clean energy”. We environment quality management throughout the generating- generate 4,940 MW from natural gas or 78.4% of total process and emphasized collaborations with communities near capacity, and 455 MW from hydropower or 7.2%. our premises, guided by the commitment towards equitable - Increase a proportion of renewable energy portion. In the responsibility for all stakeholders and consistent returns to past 3 years, the Company has taken part in 11 solar shareholders. power projects, 6 wind power projects, and 1 biomass RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
power project, with a combined capacity of 156.5 MW. quality, treated water, heat and noise and biodiversity as The 11 domestic solar farms and 2 wind farms, as well well as waste disposal. All power plants have also adopted as 3 wind farms in Australia have commenced operations, world-class environment management practices. In the past
and are able to reducinge CO2 by 179,000 tones per year, the Company made it a policy to reduce energy and annum. The Huay Bong 2 and 3 wind farms in Dan water usage. Ratchaburi Power Plant accordingly carried Khunthod District in Nakhon Ratchasima province are the out a project to release lower volume of treated water to largest wind farms in Southeast Asia with a combined public water channels, which reduced the water released by capacity of 207 MW. Our mission is to increase the over 50% and cut down energy required for the pumping of renewable energy capacity to 200 MW in 2016. raw water. An energy conservation campaign was launched,
- Capture CO2 waste by applying the Carbon Capture whereby equipment was improved and installed to reduce Storage approach. A research project is underway, to energy consumption.
feed spirulina with CO2 waste. The research shows, in 4) Good governance: the Company’s mission is guided by our
favorable condition, spirulina’s capacity to contain CO2 economic, social and environmental responsibility. Aside is 9 times higher than those from trees’. The Company from full respect and compliance to laws, we adhere to has also collaborated with public and private agencies in business ethics in all activities involving stakeholders which utilizing CO2 waste in growing algae for biodiesel encompass anti-corruption, human rights, and fair 11 production. The project is expected to be kicked off within competition. this year. 2) Build up community trust: our operations create jobs and Though Thailand’s entry to the Asean Economic Community in help grow the rural economy. In the past year, Ratchaburi 2015 offers higher investment opportunities, it represents a Power Plant, our primary asset, paid Bt 1,800 million in challenge. Business strategies must be adjusted according to local taxes and contributed Bt 156 million to the Power the changing environment to preserve sustainable growth. The Development Fund which was used to fund economic and Company is convinced that doing business responsibly under social development projects of the communities around the sustainable development guidelines, aimed towards the balance power plant and in Ratchaburi province for continuous of 3 growth pillars – economy, society and environment, and growth. The Company has also taken part in lifting up the together with the full supports from all stakeholders' engagement quality of life, reducing expenses and increasing income of will push the Company forward in a strong and solid manner. people in surrounding communities, with activities involving education and youth, career development, religious and culture, and campaign on energy conservation. 3) Environmental care: growing power demand is at the expense of more fuel burning for power generating, resulting
in higher CO2. For a balance, the Company opts for low-carbon fuels in the generating production process. The Company also pays significant attention to cutting edge technology. All power plants have installed an environment quality management system which meets global standards Sincerely Yours, and demonstrates high efficiency. At Ratchaburi Power Plant alone, the investment in this regard required Bt 4,000 million and the system has been continuously inspected and maintained to ensure the environmental-friendly electricity (Noppol Milinthanggoon) generation. The system encompasses the checks of air Chief Executive Officer Social & Environment Responsibility Report 2012
RATCH Values and Ethics
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Aiming to become a leading independent power producer in the region trusted by the public, Ratchaburi Electricity Generating Holding PCL has followed good governance practices since its establishment in 2000. The Code of Conduct and Ethics have been developed and implemented as a guideline for business and non-business operations.
Aiming to become a leading independent power producer in The Company’s ethics are targeted to promote good the region trusted by the public, Ratchaburi Electricity governance among all business units of Ratchaburi Electricity Generating Holding PCL has followed good governance Generating Holding PCL. The Code serves as an ethical practices since its establishment in 2000. The Code of Conduct framework for all units’ operations, to ensure greater business and Ethics have been developed and implemented as a success of the group and is recognized by all related parties. guideline for business and non-business operations, and the With this in mind, the Code of Conduct is based on honesty; Company has strictly conformed to those rules and regulations. transparency; integrity; responsibility towards society, In order to cope with rapid changes in business environment, environment and all stakeholders; and stricted compliance with the Company has revised and implemented the new core values laws. The board of directors, executives and employees of all or company culture in 2011 conducted by employee engagement levels are endorsed, committed to and abided by the Code of at all levels. Ethics. Corporate values are also upheld as our concrete foundation and commitment from all executives and employees in steering the organization towards the Company’s ultimate goal for a sustainable development. RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
RATCH Values Collaboration Values demonstrate the shared aspiration that executives and Believing in the power of collaboration employees must engage in our business operation, to deliver s To respect team members and finally achieve the organizational goals; which are: s To be sincere and willing to obtain knowledge from others , share experience, and view as a team Professionalism s To create a trustworthy and supportive working environment. Fostering proficiency to build trust and credibility s To take part in the team’s goal setting and achievement s To be responsible for the organization’s success and failure s To acknowledge differentiation among others and understand s To develop employees with a sense of belonging and other’s behaviors engagement s To simultaneously coordinate with all groups at all levels for s To be professional and ethical one constructive relationships s To inspire others as well as oneself s To treat others in friendly and supportive manner s To pass on knowledge to others s To accept and comply with the majority’s decision, and s To follow the business and social etiquette realize the role as part of the team s To be punctual in all occasions s To prioritize mutual benefits s To be open-minded and adjustable to a change of personnel, s To be a considerate one with compassion to others policies and business environment s To voluntarily assist cross functional operation as well as s To get hold of a positive attitude other activities of the organization 13 s To be proficient in communication and presentation skills s To compromise differontiation and minimize conflict among others Passion for Excellence s To possess positive and strong interpersonal skills expressed Striving towards self-development at its best possible with open conversations result s To be polite : show appreciation and apologetic manner in s To perform their duties with determination and devotion appropriate s To constantly develop and improve the efficiency and work s To embrace others’ opinions or suggestions with respect process s To make friends and keep up on a good relations with s To develop oneself, striving for obtaining new skills and others in their organization and outside knowledge s To be creative and attain holistic thinking Good Governance s To overcome difficulties with determination Maintaining integrity and corporate governance s To achieve particular assignment within or higher sets of s To ensure that duty is performed under the righteousness, standards transparency, and fairness s To be able to perform more challenging tasks s To ensure an equitable treatment and keeping word of s To set clear plans and goals before implementation honour to others in favor of the organization’s interests s To embrace the “Can Do” attitude s To avoid any improper actions possibly lead to oneself to s To envision potential obstacles and plan for resolution in harm reputation of the organization advance s To comply with laws, rules, regulations and the company’s s To think out of the box and show an imaginative view, in policies order to create any possible innovation s To keep the Company’s information with confidentiality s To demonstrate voluntarily spirit and devote their time to benefit others and the society
Throughout our past 13 years, ethics and values are the heart and significant foundation that have formed our executives and employees towards integrity, ethical standards, honesty, respect and accountability to all stakeholders. Social & Environment Responsibility Report 2012
Sustainable Development
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The Company realizes that solid and sustainable business growth must go hand in hand with the improvement in community quality of life, society and environment. It upholds this commitment and act accordingly since the business was established
Management guidelines Good corporate governance As a responsible business organization, the Company realizes The Company has been operating under good corporate that solid and sustainable business growth must go hand in governance practices, business ethics, morals and ethics, hand with the improvement in community quality of life, society aside from accountability to society, community, environment and environment. It upholds this commitment and act and all stakeholders, to push the organization towards an accordingly since the business was established. Corporate international status in a solid and sustainable way. This will governance underlines the company’s practices and shapes prepare the company for the Asean Economic Community in the operating framework, to ensure achievements at all units, 2015 and help it achieve the vision to become a leading value-added returns to shareholders, and equitable and fair publicly-trusted independent power producer in the region. treatment to all stakeholders. These run accordingly to the sustainable development philosophy. RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
The Company’s Board of Directors has applied good corporate governance practices for listed companies and the Securities and Exchange Commission (SEC)’s guidelines in directing the Company and promoting it as an efficient and ethical business organization, aside from responsibility to society, community and environment. These are the fundamentals of sustainable growth. The “Good Governance Policy” have been enforced throughout the group since 2003, with annual reviews and updates.
All subsidiaries of Ratchaburi Electricity Generating Holding PCL are required to follow the same set of guidelines, as universal practices will establish trust and confidence among shareholders, investors and all stakeholders. This is to stress its business responsibility; honest and equitable treatment to stakeholders; accountability; quality information disclosure; 15 commitment to short-term and long-term added value to the organization; supports on good, moral and ethical practices among executives and employees; and responsibility to society and environment.
The company also puts in place other policies to encompass stakeholders, including Risk Management Policy, Shareholders Policy, Employee Policy, Society and Environment Policy, Information Technology and Networking Policy, Safty Policy, Occupational Health and work environment Policy, and the 5S Policy. All are disclosed on the Company’s website. The Company also commissions a study to accommodate challenges from the AEC, resulting from regional amendments in regulations governing listed companies throughout Southeast Asia.
The Company’s good governance framework is as follows;
>> The Board of Directors and sub-committees The Board of Directors, acting on behalf of shareholders, plays a crucial role in leading the Company towards sustainable success. It is tasked to ensure the Company’s compliance to laws, the Company’s goals, regulations, shareholders’ resolutions and related rules. Social & Environment Responsibility Report 2012
As of 31 December 2012, the Board of Directors comprised s Supervise human resource management, to ensure 12 experts in areas related to the Company’s operations: 7 transparent and appropriate guidelines, methods and representing major shareholders (including one member from procedures for the selection, evaluation, dismissal and the executive) and 5 independent directors. Their role and termination of directors and high-level executives
responsibility can be summarized as follows: s Review and supervise process of the internal audit and
s Formulate vision, strategies, policies, business plans, internal control, risk management, control of inside budgets and work process in accordance with information used, connected transaction reporting, conflict competitiveness of the company of interest, information disclosure and work procedures, to
s Regularly examine the performance of the Company and ensure transparent protection of stakeholders’ interests and the management in relation to goals and/or forecasts compliance to related rules
The Company also has 4 sub-committees supervising closely-connected significant matters.
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Sub-committees Summarized Scope of Duty
1. Audit Committee s Review and ensure accurate and sufficient financial reporting
Appointed by all independent s Review internal audit system and ensure efficient and effective internal control, directors to prevent corruption or serious malpractices in the work process
s Review connected transactions or transactions that may incur conflict of interest, to ensure compliance to laws and the Stock Exchange of Thailand’s rules and regulations
s Monitor and ensure compliance with laws related to the company’s business
2. Human Resources and s Set vision and strategies on human resources and executive capability Remuneration Committee enhancement plan
s Formulate clear and transparent policies, guidelines, methods and procedures involving in selection, dismissal or termination of directors and high-level executives. Set clear, transparent and performance-linced remuneration to attract and retain capable personnel
s Formulate efficient and effective performance appraisal guidelines, criteria and procedures
s Disclose the remuneration-setting policy for directors and high-level executives and the amounts in a transparent manner RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
Sub-committees Summarized Scope of Duty
3. Risk Management Committee s Review risk management policy and guidelines to cover various risks inclding risks on investment and businesss development, on the development of under-construction projects, on the operations of commercially-commenced power plants, on finances and on the organization’s image and reputation
s Formulate risk management strategies and conduct quarterly evaluation to maintain risks at controllable level and ensure no significant impacts to the organization
s Monitor and control risk factors that may affect business operations and the Company’s future capacity expansion
s Impose measures to mitigate risk impacts and prevent undesirable events, to avoid serious impacts
4. Investment Screening s Thoroughly and comprehensively review investment plans, to ensure the
Committee compatibility to the company’s goals, business circumstances and related 17 factors
In 2012, the Company won the “Excellent CG Scoring” from investment projects. Employees at all levels have also been the annual Corporate Governance Report of Thai Listed ordered to strictly honor the policies, rules and regulations, Companies 2012 for fifth consecutive years. The Company and all control measures, to show their accountability. The was also on the “Top Quartile” of listed companies with market treatment guidelines for major stakeholders are as follows; capitalization over Bt10,000 million. The Thai Investors Association also assigned “Excellent” rating for the Company’s Shareholders annual shareolder meeting in 2012, reflecting the Company’s s Bolster business growth for maximum returns to shareholders. efficient and effective application of good governance practices s Respect, protect and ensure basic rights of all shareholders in business management. in the disclosure of necessary information for their evaluation of the Company’s performance. Ensure accurate and regular >> Business ethics reporting on operating results and financial statements, in The Company is convinced that underlying the solid and line with international standards honored in local and sustainable business development is honesty, integrity and overseas capital markets. ethics. The Company has been committed to operating the s Fully and comprehensively comply with accounting standards business with integrity, transparency, ethics and responsibility as required by laws and ensure systematic examination from to society, environment and all stakeholders, aside from strict internal auditors, independent auditors, the audit committee compliance with laws. This reflects in the application of the and the Board of Directors. generally-acccepted accounting standards; appropriate, cost- efficient and efficient budgeting; and regular evaluation of Social & Environment Responsibility Report 2012
Employees s Improve and maintain sustainable relationship with partners 18 s Base employee remuneration on the merit system, to ensure who put emphasis on quality and value-for-money of appropriate and fair compensations. products/services as well as trust upon ethical business s Resort to fair, just and honest principles on knowledge, skills practices.
and appropriateness in appointing, transferring, rewarding s Prohibit directors, executives and/or employees from and punishing employees. demanding or offering anything from the Company’s s Ensure regular participation in nurturing the environment, business partners, creditors and/or debtors.
occupational health and safety for the sake of employees, s Compete in a good spirit and do not forge groundless the Company’s assets, society, and the environment. accusations against competitors.
s Thoroughly encourage employees on knowledge and skill s Do not seek competitors’ secrets via dishonest and improper enhancement. means. s Strictly follow labor and welfare laws and regulations. Society and Environment
Business partners, competitors, creditors and debtors s Put society and environment as the priority in business s Source out products and services in an ethical and fair operations and ensure strict compliance with environmental manner under the following guidelines: laws and regulations.
- Ensure competition among bidders and ensure proper s Uphold His Majesty the King’s “Understanding, Accessibility and fair selection. and Development” principle in the operations for peaceful - Put in place the criteria and standards on partnership coexistence with community and mutual benefits.
consideration and selection. s Take community as “good neighbors”, to develop and - Ensure proper and standardized form of contracts. strengthen community for a better and sustainable quality - Put in place the contract management and monitoring of life.
system, to ensure complete and transparent contract s Promote community participation in order to access the Company's fulfillment whch will prevent corruption and malpractices information disclosure, bolster positive understanding, throughout the procurement process. monitor, and review impacts incurring from the Company’s operations. RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
s Encourage and promote exchange of knowledge and >> Communications, Tip-Offs, and Complaint experience in the individual and cross-organisation levels, Management for proper and continued improvement in the environmental For righteous, transparent, just and accountable business condition. doing in line with the well-preserved good governance, the s Respect local traditions and customs of communities where Company has put in place proper and various communications the Company operates and regularly support community channels for stakeholders, from telephone, facsimile, e-mails, activities. postal mails to website. They can also reach corporate communications units like the Office of Company Secretary, >> Compliance with laws and regulations Public Relations Department, Investor Relations Department, The Company is determined to grow the organization for Community Relations Department and Social Activity mutual benefits of all stakeholders, while upholding integrity, Department. The Company also assigns the Human Resource honestry and ethics under the good corporate governance. Division and the Office of Company Secretary to handle This culminates into creditability and recognition from relevant complaints from stakeholders who discovered, acknowledged parties. Throughout the years, the Company has followed the or had questions on actions by any units or employees which following related laws, rules and regulations: violate laws, policies, rules, regulations, good governance s Laws, regulations, internal control, and every rule related to practices, or Code of Ethics and may cause the Company 19 the Company’s business operations. damage. There are measures to protect complaint filers who s The company’s code of ethics, policies, rules, regulations filed complaints with good intentions. and work process. s Employees at all levels and relevant parties must recognize Filing tip-offs or complaints, the persons must specify details, and strictly follow rules, regulations and work procedures their names, addresses and contact phone numbers and send and cooperate with the Company’s internal control. them to the Human Resource Division or the Office of Company Secretary. The Chief Executive Officer, independent directors >> Information disclosure and Transparency or the Audit Committee can be notified of this for direct Information disclosure and transparency is the fundamental of investigation and reporting to the Board of Directors. good corporate governance practices, the Company has adopted as a company listed in the Stock Exchange of The complaint filers’ names, addresses or their information will Thailand. The Company’s information has been disclosed be classified and not disclosed to irrelevant persons, unless accordingly to the policy and guidelines set by the SET and required by laws. The Company will also limit access to the the Securities and Exchange Commission, to ensure sufficient, information to only persons authorised to the investigation. In fair and timely disclosure through media and communication the investigation process, the Company will set up an channels aside from the SET’s electronics network. This is to investigation committee and jointly with related parties will ensure maximum access of target groups. The channels devise remedial measures. Progress must be reported to the include the company’s website, annual reports, press releases, management team and remedial measures must be submitted press conferences, interviews, investor meeting, analyst for the management’s consideration in due time. The complaint meetings, and shareholders’ site visits. Besides, shareholders, filers will be notified of the investigation result, after the investors, analysts, the media, communities, regulatory management acknowledges the result and approves the government units, or all stakeholders can also make direct remedial measures. contacts with the Company’s communications departments. (Details of information disclosure are in Annual Report 2012). Social & Environment Responsibility Report 2012
>> Audit Monitoring Encourage Community Participation The Company’s audit monitoring has been a key mechanism The Company has put community participation as first priorities in preserving good governance and enhancing trust among in its social and environmental policy. This has been enforced stakeholders that the Company’s internal control and risk in all activities and all stages of project management. management has been enforced properly and sufficiently. The Internal Audit Division reports directly to the Audit Committee, Project development stage which is the primary unit to audit the following operational
system: s 3TUDY PRIMARY DATA ON TECHNICAL AND COMMUNITY s Review the Company’s systems and procedures to ensure economic/social/and cultural aspects. compliance, transparency and compatibility with the policy, s #OMPLETE A PLAN ON COMMUNITY PARTIPATION AND THE work plan, code of practices and related laws. project communication plan.
s Review and assess the sufficiency of all units’ internal control, s (OST ACTIVITIES TO PROMOTE UNDERSTANDING IN THE PROJECT and public meeting to sound out community opinions with emphasis on efficiency and effectiveness of resource on different issues as required by related government allocation and optimal response to the organization’s goals. units and regulators. s Review the accuracy and credibility of financial reports and 20 information, encompassing reliability and asset protection Construction stage and assessment of the sufficiency of internal control, to ensure that the accounting, registration, papers and financial s #ONTINUOUSLY COMMUNICATE AND EDUCATE COMMUNITIES reporting system is accurate, accountable and shielded on the progress and the Company’s operations. against personal mischiefs. s 0UT IN PLACE A COMMUNICATION UNIT AS A DIRECT CHANNEL for hearing, suggestion, community's complaint, and responding to them timely. Priority emphasis for strict internal audits are finance/ accounting, procurement, asset management, inveritory management, human resource management, and legal compliance. Commercial operations stage
s #LOSELY AND CONTINOUSLY COMMUNICATE WITH THE COMMUNITIES s (EED THEIR OPINIONS AND IMPROVE ACTIVITIES IN ACCORDANCE with community needs s #LOSELY MONITOR THE IMPLEMENTATION OF SOCIAL AND environmental impaer mitigation measures identified in EIA report
At Ratchaburi Power Plant, "the Environment Inspector Committee of Ratchaburi Power Plant" is set up, consisting of community representaives, community leaders, and representatives from local and provincial administrative bodies. RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
At Ratchaburi Power Plant, “the Environment Inspector Risk Management Committee of Ratchaburi Power Plant” is set up, consisting of The Company realizes the need in keeping risks in the community representatives, community leaders, and controllable level. The guidelines and procedures to identify, representatives from local and provincial administrative bodies. assess, handle and monitor all aspects of risks involving They inspect the power plant and ensure that the environmental business units and/or the organizational operations are impact mitigation measures are implemented in accordance outlined. The Risk Management Working group comprising with the environmental impact assessment report and the executives of all business units and risk management units is environment monitoring plan. The committee acts as the established, taking the primary role in ensuring compliance coordinator with the power plant and disseminates information, with the policy and practices specified by the Risk Management facts, problems or possible problems and suggestions from Committee. Their responsibility is as follows; the community. This is a major channel of community s Identify, analyze and evaluate type of risks and outline risks participation in monitoring the Company’s operations. which could derail the Company’s goals.
s Study and analyze internal and external factors which may Environment and Occupational Health cause uncertainties and affect the Company’s operations, Measures to protect the organization from destruction or loss of value, The Company has enforced international operating standards as well as seek opportunities to increase competitiveness 21 across the group. On environment, the group’s power plants and generate added value to the Company.
- Ratchaburi, Tri Energy, Ratchaburi Power - have applied ISO s Specify international-standard risk management guidelines 14001 standards and the operations have been continuously for business units and the organization, to minimize negative and closely revierwed and monitored. impacts. The guidelines will be submitted for the Risk Management Committee’s approval.
In 2011, Ratchaburi Power Plant won the OHSAS 18001 s Monitor, analyze and ensure that managing risk in business certificate and the occupational health standards have been unit and organization all levels is in line with specified enforced together with ISO 14001. Pradu Tao Power Plant guidelines, and control risks can be contralled in the level also won ISO 9001:2008 certificate and the Company has approved by the Risk Management Committee. continuously followed through the requirements. s Complete the Company’s quarterly risk management report and submit it to the Risk Management Committee. (Details In 2012, Solarta Co.,Ltd’s solar farm was enlisted in the Clean of risk management are in Annual Report 2012)
Development Mechanism (CDM) sheme under the United s The Board of Directors outlines risk management policy and Nations Framework Convention on Climate Change (UNFCCC). ensures compliance. At meetings, the Board reviews risk factors that could affect the Company’s operations and outlines measures to tackle risks in the most effective way.
s The Risk Management Committee considers the Company’s risk management framework and measures and reviews the efficiency and effectiveness of the measures.
s Management team reviews business risks and specifies measures within the framework specified by the Board. The measures are submitted for the Risk Managment Committee’s consideration. Social & Environment Responsibility Report 2012
Risk Management Diagram
Board of Directors Audit Committee
Risk Management Committee Internal Audit Division
Management
Risk Management Working Group
Risk management Business level
22 Planning and Portfolio Managment Business Development Accounting and Finance Corporate Administration Function Function Function Function
Managment Business unit risk level
s Risk Managment Working group accumulates possible risks The control encompasses financial information management to and monitors risk management of business units. It analyzes ensure accurate, complete and reliable financial reports as well and defines business risks, completes measures to handle as strict compliance with related laws, rules and regulations. the risks, and submits the measures for the management The Company’s internal audit emphasizes and requires consideration. thorough audit on four major areas:
s Business units are tasked to evaluate their risks, which may s Efficiency and effective of main operating systems - human affect the Company’s operations and complete the units’ resource management, accounting and finance, budget risk management plan. They must report progress on a disbursement, IT, inventory management, and procurement monthly basis to the Risk Management Working group. process
s Accuracy and reliability of financial reports, through the review Internal Control and evaluation of the data-processing system, SAP, and Infornal control system is a mechanism adopted to manage assurance of correct and properly-screened financial document.
internal risks. Through the independent internal audit unit s Conpliance with law, regulations and rules the Company’s reporting directly to the Audit Committee, all business units business
of the Company, subsidiaries and joint ventures are reviewed. s Worthiness of investment in joint ventures, through the review The efficient and effective internal control is developed, to of the 3 aforementioned areas. For joint ventures with under- ensure that the Company’s operations are in line with business development projects, the review is geared towards budget goals in tems of operating results and resource maximization. and investment disbursement. RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
Internal Control System
Board of Directors
Independent AuditorAudit Committee Management
Internal Audit Division
Coordinate & exchange information with the auditor 23 on audit plan, auditing scope and method, and Business units of Company, Annual audit planning results subsidiaries, and joint
Review and execute the audit plan
Submit suggestions when risks emerge and set correction
Complete quarterly audit reports for Audit Committee’s Consideration
Submit audit reports for Board of Directors’ review
The thorough and effective internal control has served well in preventing risks to the operations, having allowed the Company to demonstrate continued growth, achieve business goals and maintain the sustainable and solid leadership in the electricity generation industry. Social & Environment Responsibility Report 2012
Human Rights - Denounce child and forced labor as well as sexual On human rights, the Company has followed the Constitution, harassment, verbally and non-verbally. Penalties are clearly related laws like the labor law, as well as the Company’s Code specified and the approach is being applied with customers, of Ethics which underlines respects in basic rights and freedom suppliers and partners. of stakeholders and equitable and fair treatment. These have - Open a direct communication channel with stakeholders and been applied in the operations, resulting in good reputation a channel for compliant filing, and establish the efficient and for the Company. fair process to deal with the complaints, for transparent and accountable operations. Growing overseas interests in the past two years in line with - Allow communities to monitor the power plants’ operations, the Company’s business strategy, the Company considers recognizing that communities hold the constitutional rights participating in the United Nations (UN) Global Compact, the to guard and preserve their natural resources and international principles having been adopted by international environment. Dialogues are initiated to promote organizations, to internationalize the Company’s human rights understanding and solve problems, to ensure trustful co- practices. The written code on human rights is in the planning existence of the power plants and communities. process, to set guidelines for the treatment of employees, - Uphold moral, ethical and professional principles in the 24 customers, suppliers and partners. operations. - Preserve the environment through efficient and above- Practically, the Company has included human rights principles standard generating and environmental impact management into the Code of Ethics, common values, corporate culture and systems, to keep the environment from harming the health corporate governance principles, aside from honoring laws and living condition of communities and society. which also highlight the human rights principles. The Company’s practices that promote human rights principles are The principles have been honored and practiced for over a summarized as follows; decade. The Board of Directors and the management team hold this as the Company’s basic responsibility for stakeholders. - Respect human dignity and basic rights as stipulated in the The Human Resources Department and the Company’s Constitutions, as well as safety of lives and properties of the Secretary Office are in charge of monitor the compliance. The Company’s stakeholders principles have also been applied with subsidiaries and joint - Promote equality and treat employees in a fair manner. All ventures. employees are entitled to prosper in their profession. The Company has offered appropriate remuneration and welfare Taking these principles seriously, the Company has established to employees, at the level comparative to companies in the good relationship with stakeholders, which reduces risks to same peer. The merit system is applied in evaluating their the operations and forges trust and confidence among performance. The Company also puts in place equitable job shareholders, employees, regulatory bodies, partners, trade opportunities and chance to develop and advance, partners, customers, community and society. This leads to regardless of their sex, religion, culture, age, race, language today’s reputation and good image for the Company. and skin color. - Respect differing opinions, choice of religion, beliefs, traditions and culture, as well as privacy and/or employees’ right to keep customer secrecy. RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
Anti-Corruption and Prevention On corruption prevention, the Company has strictly honored the laws, Code of Ethics and business ethics since the establishment. The Audit Committee and the Internal Audit Division are in charge of monitoring, surveillance and investigation the procedures of all business units to ensure accurate, transparent and conflict of interest-free procedures. The Company has outlined the rules and regulations and guidelines on malfeasances for executives and employees and subjected them to job termination and legal actions.
The Company also specifies in the business ethics that business partners and/or creditors will not be demanded or offered anything. The Company will also thoroughly and cautiously consider avoiding business doing with individuals or juristic entities with unscrupulous behaviors. 25 Social & Environment Responsibility Report 2012
Sustainable Development on Economy
26
Ratchaburi Electricity Generating Holding Public Company Limited is the country's leading independent power producer. Its mission is to generate electricity, to address demand from the industrial, household and business sectors which are driving the economy and enhancing the quality of life. Aside from business growth, the Company emphasizes on social and environmental balance.
Ratchaburi Electricity Generating Holding PCL is an approximately Bt 3,800 million, with over 80% in electricity independent power producer with primary presence in generating. In 2016, the Company targets to increase its Thailand, Lao PDR and Australia. Its mission is to generate generating capacity to 7,800 megawatt capacity from 6,303 electricity, to address demand from the industrial, household megawatt at present. and business sectors which are driving the economy and enhancing the quality of life. Aside from business growth, the Economical risk management Company emphasizes on social and environmental balance. Locally and overseas, the Company has formed joint ventures, forged equity participation in under-development projects, The Company’s business strategy is focused on generating acquired business ventures, and indirectly built up investment more electricity from fossil fuels and alternative sources as through the capital market. All is under the same goal, to well as investing in related businesses. Towards a more expand the generating capacity and enhance organizational integrated business, the Company last year invested revenues and earnings. This will assure shareholders and RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
employees of returns and strengthen the company’s supply Business performance reflecting economic chain and the overall economy. There are six major business sustainability risks to the Company’s operations as follows; In 2012, the power plants operated by subsidiaries and joint 1. Risk from competition ventures which are Ratchaburi Power Plant, Tri Energy Power 2. Risk on finance Plant, Ratchaburi Power Power Plant,Nam Ngum 2 Hydro 3. Risk on the efficiency of assets in revenue generating power Power Plant, Pratu Thao and Sao Thian Power Plant 4. Risk on human resources, generated a total combined electricity of 26,337,789.36 5. Risk on image and reputation megawatt-hours: 88.82 % from natural gas, 2.76 % from 6. Regulatory risks bunker oil, 0.30 % from diesel and 8.13 % from hydropower.
Details of strategies to deal with the Company’s risks are For wind power, Huay Bong 2 and 3 wind farms with a presented in the 2012 Annual Report. combined capacity of 207 MW, the largest wind farm in the country and South East Asia has started its operation and Management framework on economy generated electricity to EGAT. From 14 November, 2012 to Under sustainable development guidelines that uphold the 1 February, 2013, Huay Bong 3 wind farm generated balance of three key pillars – the economy, society and 28,777,430 kilowatt-hours of electricity. 27 environment, the Company has strived to lay out the integrated business structure. Primarily focusing on investment in large Last year, the Company recorded Bt 60,011 million in revenue fossil fuels-based power plants, the Company has expanded and Bt 7,726.27 million in net profit. Dividend payment is to cover environmental-friendly electricity generating projects estimated at Bt 3,291.50 million and corporate tax amounted starting with the generating of power from flue gas – to to 887.23 million. The Company's subsidiaries contributed Bt maximize the value of a crude by-product which is usually 208.11 million to the Power Development Fund, which will fund wasted. The business is extended to encompass the power projects to enhance the quality of life of communities near the generating by alternative fuels, in line with the Company’s power plants and compensation to communities affected by greenhouse gas minimization strategy and the government’s the power plants’ operations. alternative energy development policy. As inventing a power project is time-consuming, the Company diversifies into generating-related business, starting with the establishment of a subsidiary to operate and maintain power plants, a joint venture to refurbish power plants’ gas turbines, and a mining joint venture which supplies coal to power plants. The diversification has solidified the Company’s cash flow.
Since 2000, the Company’s generating capacity has been expanded as well as earning growth, resulting mainly from the solid fundamentals built upon good governance whereby social and environmental concerns are taken seriously. This establishes confidence and trust among stakeholders, leading to business success in the domestic market and overseas, the stronger business strength and eventually sustainable growth. Social & Environment Responsibility Report 2012
Economic Sustainable Results
Statement of financial position
Assets Liabilities Equity Million Baht 100,000 80,000 60,000 40,000 28 20,000 0 2012 2011* 2010 2009 2008 Year
Revenue Profit of the year
Revenue from the Company and its subsidiaries Profit from the Company and its subsidiaries Share profit of jointly-controlled and associated Share profit of jointly-controlled and associated entities entities Million Baht Million Baht 7,000 60,000 6,000 50,000 5,000 40,000 4,000 30,000 3,000 20,000 2,000 10,000 1,000 0 0 20122011*201020092008 Year 2012 2011* 2010 2009 2008 Year
Note: *2011 Restated RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
Ratchaburi Power Plant’s Ratchaburi Power Plant’s Dispatch Factor Equivalent Availability Factor 2011-2012 2011-2012
TP = Thermal Plant EAF (%) 2554 TP = Thermal Plant CCGT = Combined Cycle Gas Turbine 2555 CCGT = Combined Cycle Gas Turbine Dispatch Factor (%) 100 99.54 94.45 94.14 80 80 94.35 93.74 93.08 88.86 86.67 83.43 81.5
73.73 73.35 60 67.9 69.07 65.74 63.17 40 40 37.86
34.74 20 29 25.77 21.34 00 0 TP#1 TP#2 CCGT#1 CCGT#2 CCGT#3 TP#1 TP#2 CCGT#1 CCGT#2 CCGT#3
Note: Ratchaburi Power Plant, with 3,645 megawatt capacity, is a primary genoration soure of the Company, representing 57.82% of total caparity. The plant comprises of 2x735 units of thermal power plant and 3x725 megawatt blocks of combined cycle power plants
Dividend per share Dividend payment 2011-2012 2002-2012 Million Baht 3,500 Baht 3,000 2.5 2.27 2.25 2.25 3,263 3,263 3,263
2.20 2.25 3,292 (42.6%) 2.10 2.10 (49.13%) (48.41%) (62.43%) (67.28%) 3,190
2.00 2.00 (51.14%)(52.24%) 3,045 3,045
(47.06%)(50.32%) 2,500 2,900 2.0 1.75
(49.24%) 2,537 1.50 2,000 (48.42%) 1.5 2,175
1.00 1.10 1.00 1.10 1.10 1.10 1.10 1.15 1.15 1.17 * 1,500 1.0 1,000 1,450
0.5 5,00 1.50 0.75 0.90 1.00 1.00 1.00 1.10 1.10 1.10 1.10 1.10 0.0 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Year20012002 2003 2004 2005 2006 2007 2008 2009 2011 2012 Year
Note: ** An agenda proposed for shareholders' approval in the 2013 Shareholders' Annual General Meeting to be held on 28 March 2013. The Company paid interim dividend at Baht 1.10 per share on 14 September 2012. Social & Environment Responsibility Report 2012
Environmental-Friendly Business Operations
30
The more electricity demand, the more impacts. The Company thus puts its best effort in balancing the two sides, through the maintenance of power generating efficiency to fully respond to social and economic demands while ensuring the environmental management efficiency for minimum level of impacts.
Environmental Management Generating process impact management The Company acknowledges that electricity generating is a The Company’s policy is to ensure that the generating process two-sided coin. On one side, electricity is the infrastructure is friendly to the environment and communities, through necessary for economic development and convenience of the preventive measures as follows; general public. On the other side, electricity generating 1. Follow environment and related laws, rules and regulations, consumes natural resources which inevitably impacts in social and strictly follow up, prevent and monitor environmental and environmental. The more electricity demand, the more impacts mitigation and prevention measures as specified in impacts. The Company thus puts its best effort in balancing the Environmental Impact Assessment reports. the two sides, through the maintenance of power generating 2. Analyze environmental impacts at the start of the projects efficiency to fully respond to social and economic demands and outline the measures to tackle and prevent the possible while ensuring the environmental management efficiency for impacts which may emerge during the construction period minimum level of impacts. and during the operations, which have successfully prevented and minimized the possible impacts. RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
3. Apply high-efficiency technology in eliminating and containing Environmental-friendly generating process emission from the generating process, to tackle the problems Ratchaburi Power Plant, the Company’s primary generating at their root causes. The Company has invested in technology source with 3,645 megawatt capacity or 58% of total capacity, which reliably manages, controls and monitors the environmental has embarked on environmental-friendly generating practices quality for power plants, to ensure that emission is eliminated which produce concrete results. Upholding “industrial, at lower than the legally-required levels. ecological and environmental friendship” for development 4. Apply international-standard environmental management which does not affect natural resources and surrounding system, to strengthen the environment quality management. communities, Ratchaburi Power Plant acknowledged the value The Company’s policy is to apply the internationally- of environment around the premise. The Eco-Industrial concept recognized management system with all power plants, to has been applied to highlight the harmonious co-existence of ensure that the environmental impact management system the business and the environment, to produce least impacts is efficient, effective and reliable. Ratchaburi Power Plant, or ensure that the impacts are within the specified standards. which is the Company’s primary assets, has won the ISO Supporting this is the belief that nurturing the power plant’s 14001:2004 certificate from det Norske Veritas (Thailand) environment is like nurturing the environment of the province, Co.,Ltd, which also issued the OHSAS 18001:2007 and the better condition in the province will benefit the whole certificate to the power plant. Under both systems, the power Kingdom’s environment. This will; in turn, benefit the world 31 plant has to review all measures under ISO 14001 and and global population. Showing responsibility for the global OHSAS 18001 standards every six months. If any fault is environment and natural resources is an attempt of a small located, it will be fixed. The rules, manual and operating start to conserve the global environment, which should lead guidelines are reviewed regularly, to promptly monitor, to sustainability of the industrial sector, environment and prevent and fix problems. natural resources. 5. Wisely choose fuels for the generating, which is a way to manage environmental impacts from the generating process. Ratchaburi Power Plant has also applied generating technology Each fuel causes different levels of impacts. The Company’s that efficiently contains emission at its source and applied priority is on natural gas, which is clean and promises low environmental-friendly equipment; for example, in controlling combustion emission. The Company has owned 10 natural combustion chamber’s temperature to prevent nitrogen oxide gas-fired power plants with combined installed capacity of or the installation of equipment to eliminate sulfur dioxide 4,940 megawatt; 7 in Thailand and 3 in Australia. incurring from the switch to auxiliary fuel. These procedures 6. Increase generating capacity with renewable energy, through derive from the acknowledgement and care for possible diversification into hydropower, wind power, solar power and impacts on community and the environment, indicating the biomass power as their generating process emits no impacts Company’s responsibility to the future of the environment and on the environment and communities. This also reduces natural resources which will be valuable treasure of the fossil fuels in electricity generating and hence reduces younger generation. greenhouse gas emission.
Social & Environment Responsibility Report 2012
Climate change solving Involvement CO2 Emission Reduction The Company has a strong determination to tackle the 1. Energy Conservation Campaign intensifying climate change, by lowering in-process carbon Global warming is a critical problem and must be tackled dioxide. The investment is primarily poured on generating urgently. Wasteful use of electricity speeds up the depletion projects powered by natural gas, hydropower and renewable of natural resources and electricity is generated by fossil fuels sources. Of total capacity, that generated by natural gas like coal, oil and natural gas. The generating process naturally accounts for the biggest part, while the capacity from emits greenhouse gas and causes air pollution. hydropower and renewable energy has been significantly increased. Ratchaburi Power Plant has initiated in-door electricity conservation campaign, to promote wise use of electricity and
The Company plans to reduce the carbon emission, by reduce CO2. In 2012, the power plant saved electricity by
applying the Carbon Capture Storage concept in the research 12,282 megawatt hours, reducing 6,253 tons of CO2. CO2 project to cultivate spirulina algae with Ratchaburi Power reduction was more effective than in 2011 thanks to the
Plant’s waste CO2. The initial result shows that the spirulina replacement of of HID 250W light bulbs with T5 light bulbs at
algae grows well with the waste CO2, able to absorb CO2 nine the combined cycle power plant. Ratchaburi Power Plant now 32 times higher than big trees. In the past year, a study was generates 15,889,156 megawatt-hours, equivalent to the
carried out to evaluate the feasibility of the project’s emission of 7,679,074 tons of CO2. commercialization. Throughout the past 8 years (2005-2012), Ratchaburi Power In the next step, the Company has collaborated with the Plant had reduced power consumption by 51,552 megawatt-
Department of Alternative Energy Efficiency and Development, hour, reducing a equivalent to 26,891 tons of CO2. the Energy Ministry, Bangchak Petroleum PCL and Loxley PCL in producing biodiesel from algae, which is grown by
Ratchaburi Power Plant’s waste CO2. The project is currently in its first phase.
Ratchaburi Power Plant, which generates 58% of the Company’s total capacity, has undertaken numerous
approaches to reduce CO2 to be in line with the Company’s mission to take part in mitigating climate change impacts. The approaches are:
RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
Power Generating & CO2 Emission Powe Generating from combined cycle power plants (million megawatt-hours) Powe Generating from thermal power plants (million megawatt-hours)
Volume of CO2 emission against power generation (million megawatt-hours)
14.5 14.8 14.7 11.8 13.8 13.3 12.7 10.2 11.7 10.8 8.4 10.7 9.7 8.1 7.7 8.6
5.8 6.7 4.7 4.2
3.7 33 3.3 1.9
2008 2006 2007 2008 2009 2010 2011 2012
Power Consumption Saved & CO2 Emission Reduction
Power Consumption Saved (megawatt-hours) Carbondioxide Reduction Emission (tons)
20.0 12,000
20.35 15.0 9,000 12.28
10.0 6.16 6,000
4.56 3.20 3.07 5.0 3,000 2.36 2.56 1,514 1,639 1,564 2,323 10,403 1,628 3,134 6,252
2004 2005 2006 2007 2008 2009 2011 2012 Social & Environment Responsibility Report 2012
2. Green area enhancement Sustainable energy consumption Acknowledgement in environmental impacts drives Ratchaburi The Company has put greater emphasis on sustainable energy Power Plant to grow trees in the premise. Green area now consumption, through attempts in cutting power usage at amounts to 472 rai or 23.4% of total area. office buildings and power plants as well as improving the power plants’ fuel efficiency while maintaining the electricity Under the tree planting project, teak trees account for 52%, generating capability. mahoggani 15%, mast trees 10%, Siamese neem trees 9%, golden shower trees 2%, palm trees 2% and others 10%. Establishing energy-saving awareness is part of the efforts, to Greening the premise, these trees produce pleasant scenary, educate employees and communities of energy saving and
absorb CO2 in the atmosphere and become a sanctuary of sustainable energy consumption. They are educated on the many lives. source of energy, significance of energy in everyday life and economic development, proportional increase in energy demand in line with growing population, possible shortages from overuse, environmental impacts from the consumption, global warming and energy-saving tips for sustainability. In the 34 past year, the sustainable energy consumption campaign targeted community forest leaders in the Central, Eastern and Northern parts of the country, aside from a campaign on youth in the Southern and Northeastern community forest areas, on hope that understanding will lead to awareness and practice. At Kla Yim Youth Camp, One main activity of the love TYPE OF PLANTS GROWN Forestland Community project which is the company’s flagship IN RATCHABURI POWER PLANT serialland environmental responsibility program in partnership 10% with the Royal Forestry Department the children are taught to “Eat up their food, drink up their water, and grow 3 trees”. 2% Daily, waste from their food was measured. The energy value 2% of the waste - measured from raw materials through cooking
process - was displayed, along with CO2 generated by the 9% process. The youth gained more knowledge on the energy and its social and environmental impacts, thus raising energy- saving awareness among them.
10%
52% 15%
Teak trees Siamese Others neem trees Mahogany Golden trees Shower Trees Note: Kla Yim Youth Camp, One main activity of the love Forestland Mast trees Palm Trees Community project which is the company’s flagship serialland environmental responsibility program in partnership with the Royal Forestry Department RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
Extended community energy project Target Areas The concept was replicated to communities near Ratchaburi Tambon Tharab, Mueang district; and Tambon Ban Singh, Power Plant, under the extended community energy project Photharam district in Ratchaburi province. Project period since in cooperation with Ratchaburi Provincial’s Energy Office, the from October 2011 to November 2012 Energy Ministry. The project is divided into 10 Steps: The project calls for systematic public participation, to raise • Step 1: Explain the project to leaders and members of local their awareness in the value of energy and knowlege in turning administrative bodies and community leaders locally-sourced materials into energy for maximum benefits. • Step 2: Explain the project to community members and the They are educated on the proper use of energy technology general public interested in energy issues, and select and energy management to support their dependence. community energy volunteers, Entering the cooperation agreements on community energy planning between Under this project, the community involved in community Ratchaburi Provincial Energy Office and Ban Singh energy management with the right and comprehensive Municipality in Photharam district and Tambon Tharab knowledge on energy. They shared ideas and took part in the Administrative Office in Mueng district. • Step 3: Collect general data and energy consumption data project in line with the sufficiency philosophy, setting an 35 example to other communities. For higher efficiency in the of the communities. Selecting youth and community community energy project, the Company cooperated with volunteers for training on the collection of required data like Ratchaburi Provincial Energy Office to extend the project, to household details, energy consumption, cooking process, achieve energy sustainability and collaboration within as well as transport and agriculture. communities and support the Company’s corporate social • Step 4: Process and analyze the data, to compare energy responsibility. Encouraging public participation in community consumption rate and communities’ energy capability. energy management is part of returning profits to society. • Step 5: Present the data to the communities. • Step 6: A field trip to learn more about sustainable energy Objectives technology, as guidance for the development of the • Enhance energy-related knowledge and management community energy development plans. capability of local administrative bodies • Step 7: Complete the community energy development plans. • Improve the capability of communities and the general public Community representatives draft the plans, based on the in target areas, so they can pass on the knowledge correctly community capability and energy demand. and appropriately to local areas’ capability • Step 8: Public hearing on the plans, to encompass no fewer • Establish energy-related knowledge, to raise awareness in than 80 community members. Select pilot projects and the value of energy and conservation and to set a good nominate model households of the community. example which leads to community development under the sufficiency philosophy Social & Environment Responsibility Report 2012
• Step 9: Have the communities expedite the pilot projects, putting the Provincial Energy Office as their advisor and providing technology support. • Step 10: Conclude the project, through the exchange of experiences, problems and obstacles witnessed by the pilot projects or model households. Solutions and next year’s plans were formulated.
Through the 10 steps, the communities learnt of their energy consumption and capability. Community energy plans, drawn up by the communities, are in place and present pilot projects which will lead to a reduction in energy consumption and the switch to sustainable energy. Key facts from this project are summarized as follows: 36
Key facts Tambon Ban Singh Tambon Tharab
Population 11,848 3,931
No. of households 3,783 1,156
Average household income 236,264 baht/year 172,825 baht/year
Aggregate income of the village 867,562,384 baht/year 169,878,151 baht/year
Community energy expenditure 212,426,553 baht/year 58,087,713 baht/year - Fuel for transport and farming (24.49% of aggregate income) (29.50% of aggregate income)
purposes - Electricity bills - Cooking cost
Total energy usage 9,237.98 million tons/year 1,498.80 million tons/year
CO2 emission from energy 21,734,020 kg/year 5,379,200 kg/year consumption RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
Results from the community energy plan execution Pilot projects in Tambon Ban Singh • 81 energy community volunteers (52 from Tambon Ban Singh and 29 from Tambon Tharab), will steer forward energy 1. Replace 394 light bulbs with energy-saving ones conservation and educate others on energy and electricity 2. Promote charcoal stoves, made of 200-litre oil barrels which will lead to energy saving and efficient energy (5 units) management in the communities. 3. Promote high-efficiency stoves (Super Ang-Lo) / (29 units) • Pilot projects which lead to these energy consumption 4. Promote renewable energy technology forecasts; (1 set of energy-saving chicken grill stove and 1 set o In 2013, their energy expenpditure will decline by 5% of solar-powered oven) from 2012 o At least 5% increase in the application of community energy technology
Pilot projects in Tambon Tharab • Both villages can be developed into energy learning centers, if the projects are continued.
1. Replace 81 light bulbs with energy-saving ones to reduce • Both communities show a good attitude towards the power consumption Company and better understanding in energy and electricity. 37 2. Promote biogas technology to reduce use of LPG gas for cooling (3 wells) 3. Promote high-efficiency charcoal stoves mock of 200-litre oil barrels (9 sets) 4. Promote biomass-powered stoves for cooling (6 sets) 5. Promote Super Ang-Lo or high-efficient stoves (35 sets) 6. Promote solor-powered ovens (5 sets) Social & Environment Responsibility Report 2012
Water management • Water from office buildings undergoes the extended aeration- Basic environmental management of the Company’s power activated sludge process. Mixed with chlorine, it is released plants is focused on impact containment and prevention to the irrigation pond. Water from the irrigation pond is used beyond regulatory requirements. The over-10-year experience to water trees inside the premise. Wastewater from the in electricity generating is applied in the designing and annual gas air heater washing is treated and after development of the prevention system, to minimize the impacts sedimentation it is released to holding pond. and allow all power plants in concurrently generating power • Water quality monitoring device is installed at the retention and preserving the environment and community co-existence. pond before releasing to natural water channels. This device Ratchaburi Power Plant’s treatment practices for water will test the pH, Conductivity. Temperature, Dissolved released from the power plant and office buildings are as Oxygen (DO) and Biological Oxygen Demand (BOD). Samples follows: are collected for monthly wastewater testing, to ensure no impacts on the quality of water in natural channels. • Wastewater from chemical area drains and resin-washing water from the demineralization process is contained in Ratchaburi Power Plant has undertaken regular water quality neutralized basin. After the water is acid-neutral and checks, to ensure that water to be released to natural channels 38 sedimentation, it is released to holding pond and retention meets the Water Characteristics Discharged into Irrigation pond (pond 1 and 2). System of the Royal Irrigation Department No.73/2554 (2011), • Water from the cooling tower is released to holding pond for Industrial Effluent Standards of Notification of the Ministry of sedimentation and cooling. When temperature is down to Industry, No. 2, B.E. 2539 (1996) and the Notification of the 28-30 degree Celcius after 24 hours, it is released to retention Ministry of Science, Technology and Environment, No.3, B.E. pond and treated to return to near-natural condition. 2539 (1996). • Oil is extracted from oil-contaminated water. While the water is released to irrigation pond, the oil would be kept in barrels Wastewater test result and stored at oil/chemical depot for later disposal. The result shows that the wastewater meet the standards set by the Royal Irrigation Department, the Ministry of Industry and the Ministry of Science Technology and Environment. On top of this, the power plant recycles as much treated water as possible to reduce the release into natural channels.
In 2012, Ratchaburi Power Plant retrieved 29.3 million cubic meters of raw water from the Mae Klong River for the generating of 15.9 megawatt-hour and released 4.4 million cubic meters to Bangpa canal. RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
Water Recycling through Reverse Osmosis (RO) and Ultra Filter (UF) Technology The project was conceived to maximize water use. The Cooling Water Volume Reduction and Capacity at Water Reuse Plant (CWRP) was constructed. Water from Ratchaburi Power Plant holding pond undergoes the process that allows treatment to Raw water (Million Cubic Meters) the cell level, under the Ultra Filter (UF) and Reverse Osmosis Waste water (Million Cubic Meters) (RO) technology, to allow the safe reuse. In 2012, 734, 747 Electricity Generated (Million Megawatts-Hours) cubic meters were treated by the RO and UF technology and 325,692 cubic meters of RO water was produced, equivalent to 2.5% of raw water used in the generating process.
The power plant also initiates a natural approach to reduce 38.4 the released water volume. The 350-rai land in the west of the 35.3 32.5
power plant was turned into the organic demonstration field, 29.3 23.4 24.5 28.3 which can make use of the treated water. In cooperation with 24.6
20.5 24.3 the Military Engineer Department in Ratchaburi Province, 40 17.1 17.4 12.7 14.1 15.9 39 rai was turned into a rice field and its output is presented to 17.6 the department. The rest is the water catchment area, being 9.6 7.7 the sanctuary and source of food for marine lives and birds 8.0 6.4 6.3 4.5 4.4 as well as the nature-learning center for the youth and general 4.0 public. Ratchaburi Power Plant also designs a sprinkling 2006 2006 2007 2008 2009 2010 2011 2012 system, which feeds trees in the premise with the water treated accordingly to the Royal Irrigation Department’s standards.
This helps reduce the volume of water to be released to natural Volume of water treated by Reverse channels. Osmosis (Ro) and Ultra Filter (Uf) Technology and reused in 2012
Waste water used (Million Cubic Meters) RO water output (Million Cubic Meters) 93,052 85,740 74,438 67,454 64,865 60,358 59,042 46,946 47,094 46,542 45,493 43,723 43,823 34,417 33,190 30,685 30,615 27,481 27,518 21,961 21,033 20,926 18,283 15,760
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Social & Environment Responsibility Report 2012
Air quality management To prevent and mitigate impacts from fuel combustion in the generating process, despite having natural gas as primary fuel, the Company acknowledges and emphasizes the preventive and monitoring system to assure minimum impacts. Measures seriously undertaken by Ratchaburi Power Plant are as follows;
• The thermal power plant’s combustion system is equipped with the low NO burner and and the flue gas re-circulation, to reduce nitrogen oxide. • At the thermal power plant, the flue gas desulfurization (FGD) equipment with 97.2% effective of desulfurization. The equipment is activated when the generator is fuelled by bunker oil, the auxiliary fuel. Effective of desulfurization for over 95%, the FGD equipment is vital for the combustion of 40 sulfer-containing fuel like bunker oil. This is for long-term environmental protection. • The combined cycle power plant, driven by natural gas, is equipped with the dry low NO burner. When diesel is in use, it will be injected with demineralized water to keep the temperature below the nitrogen oxide formation point. • Aside from mitigating impacts from the burning system, there is a system to monitor preventive measures through the installation of Continuous Emission Monitoring Systems (CEMs). Through CEMs, air from the stack is detected for the volume of nitrogen oxide, sulfur dioxide, carbon dioxide and opacity in every 15 minutes. The reading is automatically reported to the control room and the Pollution Control Department and appeared on the sign boards in front of the power plants. This is to ensure that the air quality remains within the standard criteria.
In case of malfunctions which raise the air quality level near the standard criteria, officers are immediately alerted for a prompt check and problem solving. If the level keeps moving up, the generating capacity will be lowered until the level falls to the normal level. Without success, the power plant will notify the National Control Center and ask for the immediate shutdown. RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
• Aside a close watch at the power plant, communities are located above or below wind direction from the power plant. assured of safety through the installation of the Ambient Air No correlation with fuel was found, at the incident occurred Quality Monitoring System (AAQMS) at four stations nearby when the generator was fuelled by natural gas. Ozone level the plant - Ban Chao Nua, Tambon Banrai; St. Antonio has usually exceeded standard criteria in the dry season and Church, Tambon Phaengphuay; Bangkado Temple, Tambon all stations detected that on the same day. Ban Singh; and Phoratburana Temple, Tambon Phongsawai. The system will detect sulfur dioxide, nitrogen oxide, ozone Combustion does not directly generate ozone in the and particulate matter smaller than 10 micron, and total atmosphere, which rather formulates on phytochemical suspended particulate around the clock, to assure that the reaction - with the mixture of nitrogen oxide, oxygen and air emitted from the power plant does not affect the hydrocarbon having sunlight as the catalyst. Thus, ozone has environment and surrounding communities. The communities been high in the dry season since 1997, according to the are informed of the data on a monthly basis. Pollution Control Department’s air quality check in Muang district of Ratchaburi province. Then, Ratchaburi Power Plant Ratchaburi Power Plant must meet the Emission Standard from was not yet constructed. New Power Plant of Notification of the Ministry of Industiry (2004) and the Notification of the Ministry of Science, Technology and Nevertheless, the Company takes the problem into 41 Environment (1996). Meanwhile, the ambient air quality must be consideration. “The study project to survey and analyze the in strict compliance with the Notification of National Environment cause of ozone around Ratchaburi Power Plant and Ratchaburi Board No. 10 (1995), 24 (2004), 28 (2007) and 33 (2009). province” was conceived in 2008 and carried out by SECOT Co.,Ltd. (licensed by the Office of Natural Resources and Air quality monitoring results Environmental Policy and Planning to complete environmental Throughout 2012, pollutants in air emitted from the power impact assessment reports). Its objective was to find the cause plant’s stack - sulfur dioxide and nitrogen oxide - were within of high ozone in the area and solutions. The study showed positive levels as well as dust opacity, whenever the generators that nitrogen oxide (NO) emitted from Ratchaburi Power Plant were fuelled by natural gas and/or oil. was not the primary cause of high ozone in Ratchaburi province. It was found that on the same day and time, ozone To verify that the monitoring results were within standard level at all air quality control stations was at high level and one and the environment remains intact, Ratchaburi Power Plant some days slightly exceeded the standard criteria. Considering runs the automatic 24-hour air quality check through its air wind direction, wind from Ratchaburi Power plant did not hit quality control stations. The stations monitor sulfur dioxide some stations. Thus, high ozone in the province was partially
(SO2), nitrogen oxide (NO2) , total suspended particulate (TSP), formed outside the survey area. Regardless of this fact, and particles not larger than 10 micron (PM10). Throughout Ratchaburi Power Plant has strictly followed through the
2012, all were within standard criteria, except ozone gas (O3) preventive, corrective and mitigating measures as specified in which exceeded the standard criteria on one day at all stations, the EIA report. Social & Environment Responsibility Report 2012
1-hour average of SO2 1-hour average of NO2 (part per billion) (part per billion)
Ban Don Modtanoy Ban Khlong Khae Ban Don Modtanoy Ban Khlong Khae Ban Bangkado Ban Chaonua Ban Bangkado Ban Chaonua
600 340
1-hour standard not exceeding 300/ppb 1-hour standard not exceeding 170/ppb 300 170
42
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
1-hour average of Ozone (O3) 24-hour average of total suspended (part per billion) particulate (μg/m3)
Ban Don Modtanoy Ban Khlong Khae Ban Don Modtanoy Ban Khlong Khae Ban Bangkado Ban Chaonua Ban Bangkado Ban Chaonua
200 660
1-hour standard-not exceeding 100/ppb 24-hour standard - not exceeding 330 micrograms 100 per cubic meter 330
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
Noise management • Officers at the power plant must wear noise-protection Noise generated by generating activity mostly derives from equipment like ear plugs, when in areas where noise level is boilers, gas turbines and vehicles communiting in the power above 90 decibel (A). Their presence in the area must not plant area. Aside from the buffer zone bordering the power exceed 8 hours per day. plant from community areas, rows of trees around the area • Regularly measure noise level. Noise scale at 3 stations - the serve as noise barriers. There are also the following noise- power plant, Ban Samruan and Ban Chaonua - is measured controlling measures: 3 days in a row every 3 months.
• Halt loud activities at night, to not disturb residents nearby Notably, the power plant’s noise must be maintained at the the power plant. These include activities that generate noise level that does not disturb communities in accordance with the level above 85 decibel (A) in a distance of 1 meter from noise National Environment Board and must be at the level safe for origin, under the noise level regulations for industrial plants. all employees working inside the power plant in accordance • Apply noise-controlling equipment inside the power plant with the Interior Ministry’s regulation. during operating hours, focusing on the machinery or equipment of which noise level is above 85 decible (A) to Noise test results keep the level below the 85-decibel (A) limit. They are: In 2012, the test in March, May, August and November 43 o Install silencers on the pressure valves at the Soot Blower indicated full compliance to the National Environment Board’s Blow Down Tank and at the Ban Tharab water pumping Announcement No.15 (2007) and the Industry Ministry’s station. Annoucement on noise disturbance and industrial noise o Install mobile silencers during the cleaning of steam pollution (2005). The average and maximum noise level was turbines ahead of generator activation. within the stardard criteria of no more than 70 decibel (A) and 115 decibel (A), respectively. o Build a dome over the generator’s burner, to reduce the generator’s noise from the inside. o Growing trees around the power plant to establish a noise barrier.
Power Plant Location Ban Chaonua Ban Samruan
Leq 24 hr Lmax Leq 24 hr Lmax Leq 24 hr Lmax
March 54.1-56.0 86.5 60.0-61.6 97.6 58.7-66.4 98.0
May 58.6-59.1 88.2 58.3-59.9 99.8 55.7-63.5 92.1
August 61.1-61.7 92.8 59.1-59.8 100.5 61.0-67.5 97.2
November 59.2-61.0 85.4 63.3-68.0 99.2 63.8-64.6 113.1
Standard 70 115 70 115 70 115
Standard : National Environment Board’s Announcement No.15 (2007) and Industry Ministry’s Announcement (2005) Measuring unit: decibel A (dB(A))
Leq 24 hr = 24-hour average scale
Lmax = maximum scale Social & Environment Responsibility Report 2012
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Waste and unused materials management Waste from power generation management Power plant waste is classified into 2 major categories - Hazardous and non-hazardous wastes from power generation general waste and hazardous waste. like oil-tainted gloves, fiberglass and oil filters are taken care 1. General waste - recyclable waste, wet waste (food), and of by an authorized company, in full compliance to the Industry non-disposable or non-recyclable waste Ministry’s regulation on waste disposal (2005). Others like 2. Waste from generating process: Hazardous waste including oil-tainted water is handled by a contractor, which will separate used lubricant, oil-contaminated cloth/gloves, and non the oil for reuse. hazardous waste such as Air Inlet Filter insulation wooden paper packages. In 2012, Ratchaburi Power Plant contracted outsiders to handle 128.98 tons of waste. Contractors were selected based on General waste management their “reuse” ability. For instance, some materials were recycled - Recyclable waste: Recycle Bank* to buy recyclable waste or used to generate steam in industrial estates lessening from all units inside the power plant and transfer it to contaminated underground water ane environmental. Of all recycling contractors. waste, 67.25 tons was sediment from wastewater treatment - wet waste and non-disposable or non-recyclable waste: Ban system, 20.6 tons of used lubricants, 5.89 tons of used resin, Rai Municipality is hired to collect the waste which will end 12.28 tons of ragged cloth/tainted gloves, 3.26 tons of up at landfills. Last waste segregation takes place at landfills. fiberglass, 12.41 tons of burner deposits or scale, 4 tons of In 2012, the municipality collected 22 tons of non-disposable water-contaminated oil, 1.97 tons of brick insulator, 0.30 ton waste. of expired light bulbs, 0.62 ton of filters, and 0.20 ton of diesel.
* Remark:Ratchaburi Power Plant initiated for promoting waste selection and recycling in order to reducing waste volumn and resources used in waste management. the RecycleBank. 1,315 kilograms,toppedthe listofrecyclableitemssoldto recycled 4,685kilogramsof waste. Paperboxes,amounting reduce impactsontheenvironment. Intheyear,Company These aretocutdownnaturalresourceconsumptionand conserve theenvironment,andtousebothsidesofpaper. foam, topromotereplacementplasticwithclothbags, to by theRecycleBank-schemestoreduceplasticand reduction andrecycling,throughvariousschemesundertaken In 2012,RatchaburiPowerPlantcampaignedforwaste Recyclable wastemanagement
-Volume (kilogram) boxes Paper
1,315 Recycle Wastein2012 (used on Paper sides) both side) (used onboth Paper Paper boxes 677 Paper scrap 987 bottles Plastic
196 bottles Plastic Paper scrap bottles Glass 549 Others Othes Glass bottles 565 bird-nesting andegg-laying places, whilesomebirdsnest Naturally-grown andplantedtrees inthepowerplantbecomes – TringaTetanus,IrenaPuella andSaxicolaStejneger. discovered. In2012,3new species ofbirdsarediscovered around thearea.Meanwhile,newspecieshavebeen discovered inthefirstyearofstudy(2007)arestillfound indicates nochangeinthesurroundingecology.Thespecies original ecologicalenvironmentandthepowerplant’s.This remained wildlifesanctuary,reflectingthesimilarityoftheir during 2009-2012.Theareaaroundthepowerplanthas The diversityandabundanceanalysisfoundnoalteration international unionforConservationofNature(IUCN) is conservedaccordingtonear-endangeredtherulesof Weaver andPloceusphilippinus.TheAsianGolden near-endangered IndianCormorant,Watercock,AsianGolden (2005b)’s rulesliketheendangeredPurpleHeronand Natural ResourcesandEnvironmentalPolicyPlanning that 5wildlifespecieswereprotectedundertheOfficeof not protectedaccordingtotheregulation.Itwasalsofound 4 reptilesand69speciesofbirds.Twentyfourare Of total,73areprotectedunderaministerialregulation(2003): relation abundanceand37lowabundance. Of total,30showedhighrelationabundance,moderate 10 amphibians,reptiles,73speciesofbirds,and4mammals. wildlife withinthe1-squarekilometerradiusofbufferzone: In 2012,RatchaburiPowerPlant’ssurveyfound97speciesof proliferation acrossthepowerplant. counting ofbirdspeciesanddiversitytheirpopulation operations onwildlifehavebeenmonitored,throughthe wildlife sanctuaryorhometomigratorybirds.Impactsofthe raw waterandrainwaterholdingponds-ispreservedas ones. Theecologicalsystemofwatersources-reservoirsfor been thesanctuaryofwildlife-bothlocalspeciesandmigratory preserved underthewatercatchmentproject.Theareahas and biodiversity.Theecologicalsystemisrevitalized Ratchaburi PowerPlantemphasizesonecologicalconservation monitoring Ecological conservationandbiodiversity
RATCHABURI ELECTRICITYGENERATING HOLDINGPCL.
45 Social & Environment Responsibility Report 2012
around the piling gypsum boards, left over from the power plant’s desulfurization process. The endangered Purple Heron Wildlife species found in which nested in the area during 2003-2006 and were unseen Ratchaburi Power Plant during 2007-2010 returned to the scene in 2011 and are still in August 1997-2012 seen.
1997 1998 1999 2000 Environmental-friendly procurement 2001 2002 2003 2004 In the past year, the Company paid more attention to 2005 2006 2007 2008 environmental-friendly procurement, with the adustment 2009 2010 2011 2012 towards green procurement. Initially, the Company required 0 20 60 80 enviornment-friendly procurement for office supplies. It started with the sourcing of products with “No.5” energy-saving labels and green labels, products with recycled parts, and products
with carbon labels that show higher CO2 reduction.
46 The procurement rules are set for the sourcing of raw materials, equipment and parts for the power plant. The rules specified the properties, delivery condition and delivery acknowledgement for all types of procurement - like items for the power plant, chemicals and others - to cover key details of all equipment, storage procedure and emergency preparation. This is to assure compliance with the power plant’s environment, occupational health and safety rules. In particular, chemical procurement required the specification of name, type, size, chemical and physical properties, material safety data sheet (MSDS), the distribution license, and the requirement for the sellers to reuse or properly thrash the containers. Notably, most items required by the power plant are mostly supplied by world-class suppliers who apply environmental-friendly standards in their manufacturing and distribution and have proved concrete results.
amphibians reptiles The Company is in the process of documenting the products bird with “No.5” energy-saving labels and green labels, products mammals with recycled parts, and products with carbon labels that show
higher CO2 reduction, to outline the Company’s procurement criteria and condition. RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
Environmental-friendly products The Company also embarked on other measures to minimize As an independent power producer which supplies 14% of pollutants, like the application of the Carbon Capture Storage the country’s installed capacity, the Company must ensure concept into the spirulina algae cultivation research project. all power plants’ readiness in responding to the demands of The spirulina algae as well as algae cultivated for biodiesel customers - Electricity Generating Authority of Thailand and production are fed on waste carbon dioxide from Ratchaburi Provincial Electricity Authority - as specified in the power Power Plant, the country’s biggest by capacity. Another purchase agreements. Meanwhile, the efficiency of power measure involves the promotion of community forests, to plants’ environment quality control must be maintained, to increase community participation in forest conservation as minimize social and environmental impacts from electricity forests are the natural carbon sink. generation. These measures are undertaken out of the Company’s The Company’s electricity is generated by advanced acknowledgement and care, to ensure that the power plants’ technology that promises efficient environment management. electricity is environmental-friendly and that the efficiency to Ratchaburi Power Plant, in particular, invested over Bt4,000 serve power users is maintained. million in environment equipment which is highly efficient in reducing pollutants. 47
One of the Company’s focuses is fuels. Of all fuels required for the generating of total 6,303 megawatt, natural gas accounts for 78% of the capacity, hydropower 7% and renewable energy - solar, wind and biomass power 2.5%. These fuels are considered clean and produce minimum social and environmental impacts. This means the Company’s electricity is highly environmental-friendly.
In the past year, all power plants carried out the outage maintenance as planned, allowing them to satisfy customers’ demands and meet the legal requirements on environment quality management. Social & Environment Responsibility Report 2012
Socially-Responsible Activities
48
Throughout these years,the Company has determined to do the business on a basis of socially-responsible way,and taken into account all shareholders interest. In this regard, the Company intends to learn about and respond to demands of all stakeholders. The responsibility is shared by all business in handling and addressing demands of each group of stakeholders, to establish trust and positive relationship. This will remain the Company's business foundation and allow sustainable growth.
Risk and risk management Globalization opens and connects the world, speeding up and combustion waste which could impact communities and the widening news circulation. Economic and social advancement environment. Thus, starting a power plant is controlled and leads to greater exploitation of limited natural resources, and regulated by the government, starting from the bidding as hence greater impacts on society and the environment. Under carried out by the Energy Regulatory Commission in line with those changes, businesses must take into account the Power Development Plan (PDP). After the bidding, the bid “stakeholders” who are impacted by their operations and winners are subjected to submit environment impact review their roles and approaches to handle the increasing assessment reports, which must encompass participation from diversity of individuals, interests groups and organizations. communities around the new power plants as communities are the projects’ direct stakeholders. They play the role in Electricity is fundamental infrastructure for economic ensuring the development brings about best interests to expansion, bringing improvement to the quality of life of all in communities, society and the environment. Community and society. Electricity security is thus the national security. public trust and acceptance is a key success factor of the Electricity generation also requires fuel and leaves behind development and solid/sustainable business development. RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
Meanwhile, larger population leads to higher electricity demand and higher electricity generation. Coupled with climate change as a result of global warming, public awareness and interest in the environment has grown, leading to the establishment of many private development organizations and people’s networks who have pushed forward environmental issues. Embarking on a new power plant thus requires closer involvement with these groups.
Social management strategies Social responsibility has been the Company’s priority in extending the responsiblity to cover all stakeholders, on the conviction that the Company’s sustainable business presence requires safeguarding and developing society as well as achieving financial goals. The Company’s social management framework covers the following 4 strategies: 49
1) Upholding and abiding by laws is the Company’s fundamental social responsibility as business laws generally are geared towards consumer protection, competition, environment, equality and safety. Upholding and abiding by the laws affirms the Company’s intention to take responsibility for consumers/customers, to nurture fair competition, to protect the environment, to ensure equitable treatment to all stakeholders, and to assure work-related safety. 2) Supporting and responding to the government’s policy. As electricity is the government-controlled public utility, the Company’s operations are under the government’s conditions. Profitability thus depends on reasonable grounds, for stakeholders’ stability. The Company strives for operating efficiency and competitiveness, to continue its role as a power producer according to the government’s policy. 3) Engage in community’s quality of life and social development as a responsible organization, particularly involving communities near the Company’s premises. The Company schemes and takes part in activities that benefits communities and society, to establish trust. 4) Maintain business ethics which influences the Company’s trustworthiness and ensures business continuity in all circumstances. Social & Environment Responsibility Report 2012
Stakeholders of RATCH The Company has been committed to social responsibility and all shareholders’ interests. In this regard, the Company intends to learn about and respond to demands of all stakeholders, not only those directly affected by the Company’s operations but also all others. The responsibility is shared by all business units in handling and addressing demands of each group of stakeholders, to establish trust and positive relationship. This will remain the Company’s business foundation and allow sustainable growth.
50
The Company’s stakeholders
RATCH
Shareholders Employees Customers Trade partners
Business Community Co-investors Creditors partners
Government Media Social groups Competitors agencies /academics and thought leaders RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
Engagement process and guidelines to address each group of stakeholders
Stakeholders Demands Process Guidelines
Customers o Readiness to o Regular machinery Determined to be a leading power producer in the region, promptly deliver maintenance to address power demand in the industrial sector, the goods and address o Secure storage of customer overall economy and households as well as to compliment their demands information the national power stability through: o Quality products and o Regular meetings and seminars o Maintaining efficiency in power distribution and output services for opinion exchange and quality, by producing power accordingly to customers’ o Ethics-based relationship enhancement specification operations o Generating and distributing power as specified in o Maintain and contracts enhance good o Strictly upholding and complying with requirements and relationship conditions under the power purchase agreements 51 o Following customers-specified regulations and criteria o Securing customers’ secrets, by not disclosing the information without their consent o Improving and maintaining good relationship with customers, for smooth operations and trust
Employees o Salary, welfare and o Provide the Company's, Specifying the code based on the labor law and fairness, benefits employee's and executives's and applying the intenationally recognized standards to o Occupational health Code of Ethics to use as a treat employees with fairness and safety framework together with o Merit-based remuneration setting o Skill development honesty, moral principal, and o Regularly ensuring occupational health and safety at o Job security and transparency workplaces advancement o Promoting continuous employee skill development o Avoiding unfair actions which may affect employees’ job security and treating employees with politeness and human-dignity respect Social & Environment Responsibility Report 2012
Stakeholders Demands Process Guidelines
Trade partners o Transparent and o Taking complaints Treat trade partners fairly, maintain equitable interests in fair short-listing o Heeding advice through line with related laws and regulations, and clearly specify and selection meetings and formal/informal selection criteria and credentials, through: o Appropriate price gathering o Ensuring fair, transparent and accountable procurement timely and process payments o Putting in place clear surveillance system according to the o Strengthening trade partners according to corporate contracts governance principles o Supporting trade partners who honor responsibility to society and environment
Business o Benefits o Setting meetings for business Having business partners take responsibility in the work partners o Occupational health partners and the management process concerning occupational health and safety as well 52 and safety o Opening a channel to receive as knowledge/skill development, for efficient and effective o Knowledge and skill their opinions capability, through: development o Paying out a fair share as required by law o Improving business partners’ capability accordingly to their nature of business
Community o Confidence and trust o Host public hearing on Uphold community engagement to become their good o Community proposed projects, to seek neighbor under the thought-sharing and joint-action engagement their opinions and concept for good understanding and trust through: o Environmental care engagement in surveillance o Community relations activities to address community o Information o Open power plants for needs and create maximum benefits in education, disclosure community visits health, sports and religion, for example o Community o Consult community through o Partial revenue contribution to Power Development Fund development the environmental inspector under the Energy Business Act BE 2550 for power team plants vicinities community development o Consultation with community through the environmental inspector team
Shareholders o Returns and o Annual shareholder meeting Operate business under corporate governance for business growth o Quarterly briefings continued growth and added value thus positive returns o Rights to information o Shareholder visits to power to shareholders o Compliance to plants corporate governance RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
Stakeholders Demands Process Guidelines
Co-investors o Fulfill business plans o Joint meetings Found business on fairness for trust, cooperation, and o Avoid conflict of good relationship which will culminate in sustainable interest capability and efficiency of the joint investment, and success of such investment
Creditors o Ability to repay, with o Joint meetings Strictly honor conditions and requirements specified in the good and punctual contracts through: returns o Not demanding, taking or making any dishonest o Maintain cautious payments but profitable o Reporting accurate, punctual and consistent financial operations information
Government o Comply with related o Joint meetings o Set guidelines in dealing with government agencies agencies laws and regulations o Welcome related government based on corporate governance principles and cooperate 53 o Campaign against agencies’ visits with government agencies on academic fronts and demands and o Host public hearings supports for their activities corruption o Provide financial supports to the agencies’ activities
Media o Disclose prompt, o Multi-channel information Emphasize on disclosing information to the media, for clear and accurate disclosure accurate, concise and quick dissemination to the public information o Quarterly press conferences on through: o Arrange interviews financial results and company o Press releases on major events with executives strategies o Press conferences on quarterly operaling performance o Site visits o Special executive interviews on special occasions o Continuous and regular activities to strengthen relationship
Social groups/ o Operate with o Heed opinions Uphold the principle in disclosing complete, clear and academics and concerns in impacts o Welcome suggestions and accurate information, and welcome suggestions from thought leaders and emphasis on complaints all parties for positive understanding and collaboration environment, society o Follow articles or news in to reduce possible conflicts or impacts on the business. and community different media This, also going along with participation in community and o Disclose business social development, is undertaken through: information in o Socially-responsible business practices transparent manner o Information in annual reports and CSR reporting in o Preserve natural accordance with the internationally-accepted Global resources and Reporting Initiative (GRI) environment Social & Environment Responsibility Report 2012
Stakeholders Demands Process Guidelines
Competitors Follow competition Learn from public channels Legally promote free trade and competition through: rules in moral and o Avoidance of actions which directly and indirectly ethical way and com- intimidates or defame competitors ply with the laws o Campaign against threats and trade barriers Promote free trade, by o Not putting competitors in a disadvantageous situation not robbing competi- tion opportunities from competitors
Employee connection and development 54 In 2012, the Company was geared towards expanding Employees’ work livelihood was in focus, through the business in the domestic and overseas markets, under more improvement in workplace environment and quality of living, challenging strategies and fiercer competition. Human resource the adjusted and improved pay system to motivate highly- is the key mechanism to achieve sustainable expansion and talented employees in preparation for current business achievements. Aside from equitable treatment without operations and future expansion, and a campaign for discrimination in race, nationality, sex, complexion or religion awareness and understanding in the new common values under the supervision of the HR and remuneration committee, which will be a key foundation towards a change in corporate for advancement accordingly to the business strategy and culture. direction, the Company undertook adjustment in HR policies to meet the enhanced mission. To support business expansion, employee esteem and organizational image, in the past year the Company The Company stepped up on recruiting talented and commissioned the new permanent office construction and a experienced personnel, particularly to fill high-ranking executive management reshuffle. For legal compliance and international posts. For greater strength, executives of the entire group standards in terms of safety, occupational health and were reshuffled to allow new management skills and environment, the Company set up a business unit to directly experiences so that they can grow along with the organization. take charge of the new permanent office management. Moreover, the Company has the policy to take care of employees and create capable, ethical and talented personnel The Company’s personnel nomination and selection criteria to whom the Company’s achievements are the priority. The are in line with business plans. All employees must come under Company promoted goodness and ethics among employees, the selection process, whereby they are subjected to ensuring they are aware of responsibility for themselves and competency tests to guarantee that the Company has the others and engagement in social and community development. “right” persons to help it achieve the determined goal. RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
Employee selection process Behavioral and Competency Based Interview Applicants RATCH people
“To be the leading independent power producer in the region trusted by the public”
- Ability test Good, talented and quality people - Psychological test whose attitude - Analytical test aligns with corporate values
The Company has prepared employees to grow together to 55 enhance capability for greater individual ability and corporate competitiveness, through job reshuffle opportunities. There are opportunities for overseas posts at the Company’s projects in Australia and Lao PDR. The employee development is designed according to their areas of work. Employees are also groomed on general management, to encourage and ready them for career advancement. Social & Environment Responsibility Report 2012
The Company draws up training criteria to ensure that personnel is prepared to assist the corporate goal. Employees High-level executive at all level are provided with skill training necessary and appropriate to particular positions, duty and responsibility.
Middle-level executive Generally, operating-level employees must be trained on technical skill and business knowledge. Primary-level executives must be equipped with necessary technical skills; Primary-level executives aside from knowledge in their jobs, they must have the art in handling people for higher work efficiency as well as human relations skill. Operating-level employees The Company also targets to improve middle-level executives’ skills in materializing the Company’s policies in their respective areas. Their business units are required to come up with 56 business plans and clear action plans and the executives can lead them professionally. They must demonstrate virtuous and ethical behavior and enhance the leadership. Executive Development Program Leadership /Managerial Skill For high-level executives, they are trained to efficiently apply Conceptual/People and Technical Skill knowledge in organizational management. Opportunities are Technical Skill and Business Knowledge offered for experience and knowledge sharing, for the better system and management procedure. They are encouraged to improve their vision and knowledge and acquire new experiences.
Human resource development activities in 2012 were as follows: RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
Activities Operating-level Primary-level Middle-level High-level employees executives executives executives
Orientation √
Ratchaburi Power Plant site visit √
Site visit to Hongsa Power Plant, Lao PDR √√√√
English skill training √√
Technical skill training √
Local cultural training for overseas-posted √√√ employees
Safety training for supervisors and √√ executives 57
Personality and dining etiquette courses √ for executives
Basic fire extinguishing and high-rise √√√√ evacuation course
Energy knowledge course by Thailand √ Energy Academy
Advance certificate course on public √ economic management by King Prajadhipok’s Institute
RATCH Volunteering The Company in the meantime promotes employee engagement In 2012, the Company hosted 11 CSR activities that involved in Corporate Social Responsibility (CSR) activities, allowing “RATCH Volunteer” the activities are ranged from environmental employees at all levels in planning and undertaking CSR conservation,educational and youth activities, religions and activities for community and social benefits. Employees are culture activities. Some are initiated by employee clubs. Last encouraged to volunteer for the Company’s and clubs’ CSR year, there were 164 RATCH Volunteers, which accounts for activities under “RATCH Volunteering” project. Employees are 95 percent of the whole number of staff, who dedicated their allowed to take upto 3 days per calendar year for volunteer 301 hours to repay the society. purposes and entitled to extra scores in annual performance appraisal in return for their volunteer. Social & Environment Responsibility Report 2012
Establishing new core values: Path to the goal As the Company is geared towards more overseas investment, the core value has changed accordingly for the changing course and the more challenging competition. In the meantime, all employees are invited to take part in the change from the beginning as sense of ownership and pride built up on the engagement will help guide all towards the desirable behaviors.
Throughout 2012, the Company campaigned for awareness of the new core values and instill them as well as desirable behaviors in accordance with the values both directly and indirectly in forms of internal communications channels, activities, and meetings. Moreover,the values are applied in many employee relations activities such as family day,sport 58 day,and the Company's traditional and cultural activities.
The Board of Directors demanded evaluation of the awareness and values be part of the Company’s 2012 corporate KPI, which required the survey on all executives and employees. A number of 165 (or 92.69% of all 178 employees) completed the survey. It showed 90.44% of executives and employees were aware of and understood the new values, which met the criterion. In the next years, the campaign will be beefed up to ensure all employees’ greater understanding and cooperation to the 4 values. RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
New common Symbols Guidelines Desirable behaviors values
Professionalism • Proficient in their jobs • Responsible for success or failure of business • Respectable units and the organization • Responsible for jobs and • Having the sense of ownership about the the corporate image organization • Possessing professional conduct • Being inspirational • Transferring knowledge to others • Following business and social etiquettes • Respecting themselves and others • Being punctual at all occasions • Open and adaptable to changes to individuals policies and changing circumstances • Being positive 59 • Ready for domestic and overseas posting • Commanding communication and presentation skills
Passion for • Determined towards • Being committed and devoted Excellence excellence • Constantly improving work efficiency and work • Improving the capability procedure of themselves and teams • Self-improvement and yearning for new • Being undeterred by knowledge obstacles • Being creative and comprehensive • Being determined to overcome problems or obstacles • Passionate for quality and above-standard achievements • Responsible and ready to take on more challenging tasks • Planning clearly or envisioning framework or goal before acting • Possessing the "Can Do" attitude • Forecasting problems or evaluating the situation, and preparing solutions in advance • Thinking out of the box and having the forward- looking view, to create new things Social & Environment Responsibility Report 2012
New common Symbols Guidelines Desirable behaviors values
Collaboration • Being compassionate • Sincere and willing for knowledge and experience • Caring, helping and sharing and ready to float opinions to other team taking care of others members like siblings • Creating the trusting, supporting and collaborating • Trusting and being environment sincere to others • Taking part in team goal setting and the team's • Respecting their team achievement • Acknowledging individual differences and understanding their behaviors • Coordinating with all groups and at all levels for good relationship • Treating others with friendliness and care • Accepting majority opinions and understanding responsibility as a team member • Putting mutual benefits as priority 60 • Forgiving and understanding others • Volunteering on inter-unit activities and the organization's activities • Neutralizing differences or reducing conflicts for mutual benefits • Smiling and greeting all in all occasions • Expressing gratitude and apology at all occasions • Open to suggestions or advice with respect to others' rights • Seizing opportunities to make new friends and nurturing good relationship with internal and external members
Good • Being honest • Carrying out tasks in righteousness, transparent governance • Being virtuous and and fair manner ethical • Treating others equitably and keeping promises, • Honoring the integrity based on corporate interests and good values • Avoiding actions that harm themselves and the organization • Following the law, rules, regulations and the Company's policies • Keeping the Company's secrets and business information • Showing volunteering spirit and devoting own time for the sake of others or society
The Company has the confidence that the 4 new core values will inspire all employees towards the behaviors that will allow the Company to achieve its mission and vision. This will pave way for sustainable development and further business expansion in the future. RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
Healthcare and occupational health: On occupational health, the Company last year adopted the “5S” activity to improve the workplace environment for tidiness, Cleanliness and safety safety, good hygiene and favorable work atmosphere. The as the central part of operations activity drew participation from employees at all levels and was Aside from welfare and financial assistance for employees’ implemented continuously to make it part of corporate culture. quality of living, the Company also promotes and supports Employees were engaged in a contest to find the persons who good health among employees through the regular constantly kept their desks clean and tidy, in line with the “5S” dissemination of health-related knowledge and advice through activity. multi-channels like e-mails, the intranet, announcement boards, and internal TV circuit. Necessary vaccination is The Company believes that safety, occupational health and provided like vaccines for tuberculosis (Type B) and influenza. workplace environment is a key factor for efficient and effective Annual tests on physical fitness and strength are hosted, to operations. The systems to manage safety, occupational health promote health self management. The Company also promotes and workplace environment are improved to meet the laws, employees’ physical and mental health through a number of international standards and other regulations applied to clubs engaging with football, badminton and golf, for example. establish sustainable work-related safety culture for employees, The annual sport day is also hosted. contractors, visitors or others in the Company’s premises. 61
The Company’s new permanent office houses an indoor fitness In the past year,there were no work-related accidents either center for after-hour exercise, equipped with modern exercise to the Company’s employees or others. equipment to boost blood circulation, improve the respiratory system and improve muscle strengthening. Through qualified experienced trainers, the Company guides employees on equipment usage and advises them on sports science and appropriate exercising choices. depending on their ages and health conditions. Social & Environment Responsibility Report 2012
Ratchaburi Power Plant's safety measures Through the past years, Ratchaburi Power Plant have ensured Process to instill culture on safety, that its operations would not be harmful to workers, community occupational health and environment and the environment, through systemic risk management. While all risks of power plants are envisaged, appropriate Promote and support controlling measures are devised to bring the risks to employee engagement acceptable levels. Related laws and regulations are taken into consideration. The following measures are in place for Assure the efficiency of preventive controlling efficiency; and corrective measures for risks of danger and environment impacts - All persons in the premise must strictly follow safety rules and measures. Instil and raise employee awareness - All persons must attend an orientation course before entering on the signigicance of safety and the premise. occupational health - All persons must envisage possible risks from their tasks 62 and devise risk controlling measures accordingly. Such must Monitor and review the implementation be presented to the supervisor at least 5 working days of safety and occupational health measures before they carry out their tasks. outlined in the annual operating plan - The safety of heavy equipment, machinery, slings, chains and prime power tools must be certified before entering the premise. The Company has emphasized on power plants' safety - Supervisors, task leaders or unit chiefs must ensure measures, under the aims to achieve zero losses or accidents compliance to the measures from all persons. harmful to all in the power plants - including the employees - Those violating the safety rules and measures, regulations, of the Company, contractors and nearby communities and to orders or announcements will be barred from entering the keep power plants from any risks. Throughout the past years, premise. the Company's power plants have been instructed to regularly - Area supervisors, security officers, task leaders, supervisors, monitor, evaluate and improve safety measures, to ensure that and security department must jointly examine work safety lives and assets of all persons in the premises are protected. at least once a week.
At Ratchaburi Power Plant, the Company's primary power plant, safety measures and procedures are clearly specified and strictly implemented. Safety culture is also incorporated into the operating process , through the standard regulations that all workers in the premise must follow.
RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
Emergency prevention and mitigation Emergency plans for natural disasters Preventing the unexpected events and risk management are From the great flood in 2011, Ratchaburi Power Plant has the core of the power plants' operations and the measures to drawn up an emergency plan for floods. A consulting firm was protect communities around the power plants. Each power hired to study the possibility of a flood around the power plant plant must envisage the unexpected events, which could be and nearby areas, to devise preventive measures and harmful to employees and others working inside the premises. preparation for the emergency.
All power plants are required to come up with emergency plans, to reduce and tackle possible risks as well as prepare for what may come. Measures and procedures specified for the emergencies are aimed at minimizing impacts on communities and the environment.
Each year, all power plants of the Company carry out emergency drills, to evaluate and improve the plans and procedures for maximum efficiency and effectiveness. Each 63 drill will encompass local government units in the respective areas.
Contingency plan at Ratchaburi Power Plant Emergencies at the power plant can be driven by the generating activity and natural disasters.
There are 4 emergency plans to address generting-related emergencies. 1. Fire emergency plan 2. Chemical spill emergency plan 3. Gas leak emergency plan 4. Radiation emergency plan
Ratchaburi Power Plant conducts annual drills and training. In 2012, 30 level-1 fire drills, a level-2 fire drill, and a level-3 fire drill were carried out. There were 5 drills for chemical spill emergency, 3 for gas leak emergency, 1 for radiation emergency, and 1 for flood emergency. Business units were clearly given roles and responsibility in each simulated drill, so that all officers and business units realize their parts and mission. Social & Environment Responsibility Report 2012
Community and social development In 2012, the Company rolled out a series of social activities, to show responsibility to society which will bring about a good corporate image. The summary of the activities is as follows:
1. “Love the Forest and the Community” project In cooperation with the Royal Forestry Department, the project conceived under the memorandum of understanding dated 25 January 2008 entitled both parties to primarily conserve community forests via assistance to community for such conservation as guided by Their Majesties’ sufficiency philosophy and wishes. Both have completed the 3 primary activities - community forest contest, Kla Yim community forest leaders’ network seminar and Kla Yim Youth Camp. 2012 64 marked the fifth and the last year of the first phase. On 30 September 2012, the Company and the Royal Forestry Department signed the MoU to launch the second phase which Responsibility for goods and services will run from 2013 through 2017. As electricity must be transmitted through the high-voltage
grid to 2 key customers - Electricity Generating Authority of Conclusion of “Love the Forest and the Community” Thaialnd and Provincial Electricity Authority, the current and project Phase I (2008-2012) voltage must meet the specification in the power purchase The business plan requires the Company to get deeply involved agreements. Meanwhile, the Company’s power plants must with social responsibility on realization that it is a key factor be ready to generate and transmit electricity at all time. All towards sustainable business development. Since 2007, the equipment involved with the transmission must be ready and “Love the Forest and the Community” project has been the safe at all time. company’s key social activity. The Company sought cooperation from the Royal Forestry Department, leading to Goods and services data is reported to the customers the memorandum of understanding dated 25 January 2008 to periodically and such information would not be revealed launch the “Love Forest and the Community” project, binding without the customers’ consent. The Company also have a both parties in primarily conserve community forests via particular unit at the Company’s office and the power plant, assistance to community for such conservation as guided by to take charge of the communications between the Company Their Majesties’ sufficiency philosophy and wishes. The 3 and the customers and the between the power plant and the primary activities - community forest contest, Kla Yim customers, for goods and services improvement. community forest network conference, and Kla Yim Youth Camp have been completed. Compliance with related laws and mitigation of generating impacts on community and environment demonstrates the Company’s responsibility to customers, to assure them that the Company’s goods are environmental-friendly and safe to community. This is an indirect responsibility to customers.
RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
model and learning center for other communities. Objectives They must have the following qualifications: 1. Follow Her Majesty the Queen’s wish to raise public 1) Community forest formed with Royal Forestry awareness on national forests conservation Department’s approval or 2. Help push forward the application of the royal ideas in 2) Community forest once obtaining Royal Forestry strengthening community’s self-sufficiency Department’s approval and 3. Strengthen community and establish community network for 3) Community forest still in existence effecient community forest management in line with the o sufficiency economy philosophy Reviewing and judging process The coordinating committee proposed the Royal Results Forestry Department the establishment of 3 judging Community forest contest committees for the “Love the Forest and the The project’s primary activity to honor the community forests Community” project, consisting of the department’s with outstanding and systematic management of the forest officials, employees of Ratchaburi Electricity involving all parties in the community - households, temples Generating Holding PCL, experts, academics and and schools - in safeguarding, retoring and preserving the officers with experience in community forest support. forests as well as in making use of the forests in everyday’s o Judging panel for the “Love the Forest and the 65 life in a sufficient way. From 2008-2012, the forests should Community” project having the Department’s deputy set a learning model for other communities. The winner in director-general as chairman and having the the national level is bestowed HRH Princess Maha Chakri Department’s and RATCH’s officers as members. Sirindhorn’s trophy. They ruled on the national-level winner and outstanding (area-specific) awardees as well as Contest plan awardees at all levels. The list was then announced Step 1: Contest designing and delegation of responsibility by the Royal Forestry Department. The Royal Forestry Department assigned local units – the o Four regional selection committees having chiefs of Forest Resources Management Office and regional offices the Forest Resources Management Office and – to recruit qualified community forests. The “Love the Forest regional offices as members. They shortlisted and Community Project” coordinating committee was community forests from all regions for the national- established to smooth liason between the department and level contest and for the outstanding prize on eco- Ratchaburi Electricity Generating Holding PCL. Its tourism. responsibility was to lay down the contest plan, coordinate, o Nineteen provincial selection committees having evaluate and appoint working committees. chief of the Forest Resources Management Office Step 2: Identify criteria of exemplary community forest and as chairman who tasked provincial working review committee establishment committees with the nomination of community o Exemplary community forest: community forests with forests for provincial-level contests. Only one outstanding and systematic management of the community forest was nominated for the regional- forest involving all parties in the community - level contest. households, temples and schools - and being a role Social & Environment Responsibility Report 2012
Prizes o Judging criteria based on four sustainable resource management aspects - social aspect, economic aspect, sustainability, and energy and environmental Category Prize conservation. o Project period Best National - HRH Princess Maha Chakri Community Forest (1) Sirindhorn’s trophy Period Detail - Bt 200,000 fund for community forest conservation
February-April - Establish the selection committee for Regional-level - Honorary plaque from Natural the provincial and Forest Resources community forests (4) Resources and Environment Management office-level selection Minister - Take applications from community - Bt 100,000 fund for community forests nationwide forest conservation
May - Select the provincial-level community Outstanding - Honorary plaque from Natural 66 forests community forest (1) Resources and Environment Minister June - Select Forest Resources Management - Bt 100,000 fund for community Office-level community forests forest conservation July - Select 4 outstanding regional-level Provincial-level - Honorary plaque from Royal community forests community forests Forestry Department Director- July-August - Select the national-level winner and (66) General outstanding community forest - Bt 25,000 fund for community September - Announce and award the prizes for forest conservation the annual “Love the Forest and Complimenary - Honorary plague from Royal the Community” project awards (66) Forestry Department Director- General - Bt 10,000 fund for community forest conservation RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
Conclusion of community forest contests 4,412 community forests participated in the contest. During 2008-2012, 714 awards were presented to community • 2008: about 862 community forests forests. • 2009: 674 community forests • 2008: 125 awards • 2010: 735 community forests • 2009: 190 awards • 2011: 1,162 community forests • 2010: 132 awards • 2012: 982 community forests • 2011: 134 awards • 2012: 133 awards
Summarized contest results
Year Awardees
2008 Total 125 community forests • Best National community forest 2008 67 Khao Wong Community Forest, Moo 4, Tambon Wang Takhe, Nongbua Rahew district, Chaiyaphum • 4 outstanding regional-level community forests North: Ban Mae Raharn Community Forest, Moo 4, Tambon Bankard, Mae Sariang district, Mae Hong Son Northeast: Noneyai Community Forest, Tambon Siew,E-se, Pho Srisuwan district, Si Saket Central and East: Phuyang Community Forest, Moo 12, Tambon Thungluang, Pak Thor district, Ratchaburi South: Thamphueng Community Forest, Moo 5, Tambon Tonyuan, Phanom district, Surat Thani • 120 provincial community forests
2009 Total 190 community forests • Best National community forest 2009 Huay Saikhao Community Forest, Moo 6, Tambon Tha Pladook, Mae Tha district, Lamphun • Outstanding community forest (food abundance) Don Chaopoo Community Forest, Moo 3, Tambon Saimoon, Nam Phong district, Khon Kaen • 4 outstanding regional-level community forests - North: Ban Wangtamon Community Forest, Moo 2, Tambon Nakhunkrai, Srisawang district, Sukhothai - Central and East: Ban Yangthone Community Forest, Moo 3, Tambon Srimongkon, Sai Yok district, Kanchanaburi - Northeast: Wangkok-Khaosaluad, Moo 5/17/19/21, Tambon Huay Yai Jiew and Moo 10, Tambon Watabaek, Thepsathit district, Chaiyaphum - South: Ban Sakaew Community Forest, Moo 8, Tambon Saithong, Chaiburi district, Surat Thani • 64 provincial community forests • 120 complimentary awards
Social & Environment Responsibility Report 2012
Year Awardees
2010 Total 132 community forests • Best National community forest 2010 Baan Huay Rai Burapa Community Forest, Moo 10, 4, Tambon Oobmoong, Nongwuasaw district, Udon Thani • Outstanding community forest on eco-tourism Ban Thamphueng Community Forest, Moo 5, Tambon Tonyuan, Phanom district, Surat Thani • 4 outstanding regional-level community forests - North: Ban Samkha Community Forest, Moo 6, Tambon Huasua, Mae Tha district, Lampang - Central and East: Ban Nonehinphueng Community Forest, Moo 3/4/5, Tambon Dongbang, Prachantakham district, Prachin Buri - Northeast: Ban ALor-Doneban Community Forest, Moo 10, Tambon Nadee, Muang district, Surin - South: Ban Thoongsoong Community Forest, Moo 4, Tambon Khaoyai, Ao Luek district, Krabi • 63 provincial community forests • 63 complimentary awards
68 2011 Total 134 community forests • Best National community forest 2011 Baan Klang Community Forest, Moo 6, Tambon Bang Toey, Muang district, Phang-Nga • Outstanding community forest on “forest-loving youth” Ban Nongphuk, Moo 10, Tambon Pua, Chiang Klang district, Nan • 4 outstanding regional-level community forests - North: Ban Pakluay Community Forest, Moo 8, Mae Sariang district, Mae Hong Son - Central and East: Ban Huaysaphan Samakki Community Forest, Moo 2, Tambon Nongrong, Phanomthuan district, Kanchanaburi - Northeast: Dong Krasaen Community Forest, Moo 12, Tambon Tha Champa, Tha Utane district, Nakhon Phanom - South: Aow Aiyor Community Forest, Moo 4, Tambon Namtok, Thoongsong district, Nakhon Si Thammarat • 65 provincial community forests • 63 complimentary awards
2012 Total 133 community forests • Best National community forest 2012 Ban Huaysaphan Samakki Community Forest, Moo 2, Tambon Nongrong, Phanomthuan district, Kanchanaburi • Outstanding community forest on “Sustainable development” Ban Denpattana Community Forest, Moo 12, Tambon Pua, Chiang Klang district, Nan • 4 outstanding regional-level community forests - North: Ban Meesuk, Moo 8, Tambon Wangchan, Sam Ngao district, Tak - Northeast: Ban Tad Rinthong Community Forest, Moo 6, Tambon Thatthong, Phukiew district, Chaiyaphum - Central and East: Ban Khaomusi Community Forest, Moo 10, Tambon Nongprue, Nongprue district, Kanchanaburi - South: Ban Chalapornpattana Community Forest, Moo 13, Tambon Sukhirin, Sukhirin district, Narathiwat • 64 provincial community forests • 63 complimentary awards RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
Kla Yim Youth Camp Results of Kla Yim Youth Camp project Targeting young conservationists to help conserve the forests - Youth can improve their learning and understanding in and forest sustainability. The camp helps raise conservation community forests and natural forests in social, economic awareness among the youth and educate them on the value and forest sustainability aspects. of forests, community forest conservation and energy and - Develop awareness in value of community, realizing the forest environment conservation in light of global warming. The camp value as community food source, loving their communities features expert lecturers and for better knowledge transfer and and forests in their communities, and realizing their role to understanding, learning through their five senses - hearing, preserve community forests for the next generation seeing, smelling, tasting, touch and their heart. The Kla Yim - Youth learn the relationship of trees and energy, understand camp was hosted 11 times during 2008-2012, encompassing the global warming, and realize the need of energy saving 890 young people from all parts of the country. to ease global warming - Communities have younger generation to maintain and preserve community forests
69
Year Location No. of participants
2008 1st: Ban Nongree Community Forest, Nong Ya Plong district, Phetburi 60
2009 2nd: Doi Suthep-Pui National Park, Chiang Mai 160 3nd: Doi Luang National Park, Chiang Rai
2010 4th: “Ustream to Downstream” Youth Camp, Samut Songkhram 270 5th: Southern Kla Yim Youth Camp, Ban Thamphueng Community Forest, Tambon Tonyuan, Phanom district, Surat Thani 6th: Northeastern Kla Yim Youth Camp, Chaiyaphum
2011 7th: Central Kla Yim Youth Camp at Kung Krabaen Bay Royal Development Study Center, 160 Tambon Khlongkud, Tha Mai district, Chanthaburi 8th: Northern Kla Yim Youth Camp, Mae Moh, Lampang
2012 9th: Love Forest Youth Camp, Samut Prakan 240 10th: Southern Kla Yim Youth Camp, Phang-Nga 11th: Northeastern Kla Yim Youth Camp, Sakon Nakhon Social & Environment Responsibility Report 2012
Community Forest Leaders’ Network Results Seminar - Community forest leaders learn new knowledge and The forum where community forest leaders exchange their experiences, beneficial for their community forests. experiences in developing and managing forests. Here, they - Community forest leaders secure new friends, for form a learn new forest-conservation ideas and approaches, value of network in the future. the forests, and success in community forest management - Community learns and understands more about energy, from community forest contest winners. The activity is realize the necessity of energy conservation, and gain more strengthening community forest leaders’ bond and establishes knowledge in community energy. the network for the exchange in community forest management knowledge which is geared towards the same goal - forest Activities related to the “Love the Forest and the sustainability. For five years, the activity drew participation Community” project designed to support community forest from 640 community forest leaders across the country to the management’s capability following 8 seminars. • Nature trails that turn community forest to natural classrooms for unlimited ecological learning. The project involves all parties in the community in initiating and 70 Year Activity designing the trails as well as producing learning media for people in the community and outsiders. The project was kicked off in 2010, emcompassing 10 community forests. 2008 Northeastern community forest leaders’ seminar 1. Ban Tha Papao Community Forest, Tambon Tha Pladook, at Khaowong Community Forest, Tambon Wang Mae Tha district, Lamphun Takhe, Nongbua Rahew district, Chaiyaphum 2. Khao Ai Pode, Tambon Sub Takian, Chaibadan district, Lop 2009 Northern community forest leaders’ seminar at Buri Ban Tha Papao Community Forest, Tambon Tha 3. Ban Sakaew Community Forest, Tambon Saithong, Chaiburi Pladook, Mae Tha district, Lamphun district, Surat Thani 2010 1st: Northern community forest leaders’ seminar 4. Khao Wong Community Forest, Tambon Wang Takhe, at Jae Son National Park, Lampang Nongbua Rahew district, Chaiyaphum 2nd: Central and eastern community forest 5. None Yai Community Forest, Tambon Siew/E-Se, Pho leaders’ seminar in Suan Phueng district, Srisuwan district, Si Saket Ratchaburi 6. Khaosaluad Community Forest, Tambon Watabaek, 2011 1st: Northeastern community forest leaders’ Thepsathit district, Chaiyaphum seminar at Baan Huay Rai Burapa Community 7. Ban Phu Yang Community Forest, Tambon Thungluang, Pak Forest, Udon Thani Thor district, Ratchaburi 2nd: Southern community forest leaders’ seminar 8. Ban Yang Tone, Tambon Srimongkol, Sai Yok district, in Aow Luek Community Forest, Krabi Kanchanaburi 9. Khaokham Hinyoke Community Forest, Tambon Taladraeng, 2012 1st: Central and eastern community forest Ban Khewa district, Chaiyaphum leaders’ seminar at Ban Huay Saphan Samakki 10. Wang Takian Community Forest, Tambon Thasailuad, Community Forest, Kanchanaburi Mae Sot district, Tak 2nd: Northern community forest leaders’ seminar
at Ban Meesuk Community Forest, Tak In 2012, all 10 nature study trails are completed, and opened.
All the 10 communities educated people about forests, biodiversity and the forests’ benefits through the nature trails. RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
• 84 Community Forest Reforestration for the King in celebration of His Majesty the King’s 7th cycle birthday anniversary on 5 December 2011 Oriented to tree growing in community forests to promote trees’ carbon dioxide absorption as carbon sink and following His Majesty the King’s initiative on “growing 3 types for 4 benefits”. Promoted in the project are trees for use, foods and economic purposes. A total of 840,000 trees, of 126 species, were planted at 84 community forests in 64 provinces.
• Kla Yim City Forest for the King in celebration of His Majesty the King’s 7th cycle birthday anniversary on 5 December 2011 Set to grow tree in people’s heart, targeting 84 educational institutions and temples nationwide. Schools and temples are turned to forest learning centers to educate the youth of tree species and to encourage them in designing learning materials 71 upon the knowledge for the schools. Trees promoted under the project are: Royally-bestowed auspicious trees of 76 provinces At least 20 species of sweet-smelling flowers At least 20 species of trees used for food Suitable species like auspicious birthday trees, institutions’ official trees, local trees, trees in literature and trees in Buddhism history
• Learning center at Ban Huayrai Burapha Community Forest for the HRH Crown Prince Maha Vajiralongkorn in celebration of the 5th cycle of birthday anniversary on 28 July 2012 The learning center where community members in Tambon Oopmoong and its network can learn and jointly develop community forest management. It is also the gesture of all parties and all community members’ determination towards sustainable forest conservation. an exhibition of community’s progress in forest biodiversity conservation is featured along with local wisdom. The learning center is also a meeting venue, to promote learning and community participation. Through the nature study trail, the general public experience nature and natural studies. There is a seedling nursery where seedlings cultivated to promote reforestation are available for the general public. Rare local herbs are grown and expanded, for academic purpose and local use. From the learning centre, the community forest concept will be replicated by nearby communities and society. Having Ban Huayrai Burapha Community Forest as the model for public learning, it brings pride to the community. Social & Environment Responsibility Report 2012
• “Native trees - Community food” Book for the Queen in or make references from the book. The book will be the celebration of Her Majesty’s 80th birthday anniversary medium to raise public awareness in nature around them and on 12 August 2012 tree species, which will establish their bond with nature and To promote knowledge about trees for food and herbs to encourage them to preserve plants. community forests nationwide, which will help encourage conservation of these trees in community forests. Targeting • Evaluation of “Love the Forests and the Community” community forests and the general public, the book portrays project the value of forests as a key source of food and water, vital To obtain the end-result of the project, for the improvement to the living of community and society. It also introduces of future plans, the Faculty of Forestry, Kasetsart University, native “food’ trees to the general public, to raise their forest is assigned to play the central role in assessing community conservation awareness. forest management under the project since 2010. The evaluation compares award-winning community forests with The book will be distributed to communities participating those winning no awards. The evaluation of the “Love the with the “Love the Forest and the Community” project Forest and the Community” project can be summarized as natiowide, students and the general public. The book’s follows: 72 contents include: 1) A change in community’s attitude in the more positive • Records of Her Majesty’s activities in forest conservation way through the project period in these areas: • Details of the Royal Forestry Department’s community • Community forest management under a community projects and the “Love the Forest and the Community” forest committee and public participation. Award project winners’ attitude is better than those winning no • A list of 150 native “food trees” in community forests award, indicative of most community forests’ focus on nationwide vital as a food source for communities and community-inclusive management to ensure herbs, and their benefits sustainable forest protection from the entire community. • Dependence on community forests for food and wood as • Planning, regulations, rules and forest resources and well as for religious purposes environment conservation. The overall attitude • Details of 150 native food trees covering their scientific improves as award-winning community forests information, ecology, use and photos continue to uphold their management plans. Unawarded forests’ attitude improves in the accelerated The book project has raised public awareness in Her Majesty pace. Driven by the urge for a prize, community the Queen’s vision in the conservation of forest resources as members are enthusiastic in taking parts in all the vital food and water source for her citizens. Communities community forest-related activities, particularly the are educated of the value of community forests as a main food management planning which could win their community source, which should strengthen their sense of ownership. forests an award - the honor and pride to their Students and the general public can also obtain knowledge communities. RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
• On compliance with the sufficiency economy, 2) Change in community forest fertility, considering the types communities’ attitude is overall positive and improves of forests, the species and the number of big trees, the in an accelerated pace as communities have applied ratio of big trees to overall areas, biodiversity of big trees, the philosophy into their everyday’s life. Involving in their biomass, carbon dioxide absorption, and overall community forest management, they automatically fertility. The study shows overall positive condition of obtain the understanding in the philosophy as the fertility and signs of improvement depending on the type sustainable forest management concept is built up on of forests. Dry evergreen community forests tend to the philosophy. Those community forests will become demonstrate highest fertility, followed by dry dipterocarp true forests in a sustainable way depends on the forests and mixed deciduous forests.
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pattern of use, particularly direct use. The concept is 3) On improvement guidelines, the study team, basing their annual benefits must not exceed increases in annual views on community information and opinions during the output. The project has obvioiusly played a part in study and evaluation period, comes up with the following applying the philosophy with community forest proposals; management, to ensure the balanced use of forests. • Maintain and promote the project’s outstanding feature • On energy and environment conservation, community’s through the 3 main activities - community forest contest, attitude is overall positive and continues to improve. community forest leaders’ network seminar, and youth Most award-winning community forests emphasize on camp - as these are the catalyst for higher awareness in use of wood as an energy source, realizing that the local forest conservation. forest condition will improve if trees are tended, with • Introduce new activities related to community forest twisted and dead branches being cut. Their goal is to management, for higher management efficiency. improve the forest condition and win an award from Suggested activities are: the project. The cut wood is a good source of energy. • Community’s attitude towards the project is overall positive and tends to improve, as the project is leading to community forest improvement. Social & Environment Responsibility Report 2012
Promote energy and environmental conservation, 2. Education for Career Empowerment in encouraging communities to rely more on low-cost Lao PDR alternative energy. Promote and strengthen communnity understanding The Company is a major Thai investor in Lao PDR’s electricity in the global warming, including them into voluntary generating, with combined investment of over Bt 70,000 million. greenhouse gas reduction scheme through forestation Supporting economic development, the Company takes into and agriculture. This should further bring good consideration social and environmental responsibility. On social reputation to the communities, the Company and the responsibility, the Company initiated a project in support of project. Lao PDR’s policy to improve education and vocational skill Introduce activities for awarded community forests like and produce workforce for the labor market which is expanding a career development project for products made of in line with economic growth and foreign direct investment output from the forests, the development of eco- particularly in the electricity generating industry. tourism, academic training on forestry, herbs and widelife, as well as field trips. The “Education for Career Empowerment” project was Promote forest diversity, biomass and appropriate use launched in cooperation with Lao PDR’s Ministry of Education 74 of firewood through activities like native tree plantation, and Sports. Under the memorandum of intent signed on 27 fire protection, the making of annual timetable for non May 2011, the project aims to provide educational opportunities -timber forest product collection, and training on to students and teachers in Lao PDR, so that they can improve firewood. their knowledge, expertise and skills for the benefits of their Promote community knowledge in community forest work and career in the future. ecological management and their community forest potential analytical ability through training on a simple The Lao government holds this as a pilot social responsibility forest survey and data analysis to determine the fertility project that other private companies are encouraged to follow, of their own community forests. to respond to social needs and lift up Lao citizens’ quality of Sponsor a national academic conference on community living in a concrete way. The project’s details cover: forests, where academics and community forest 1) Course scholarships are provided to vocational students representatives exchange their views, knowledge and under the conditions set jointly by the Lao PDR’s Ministry of experiences and learn new initiatives in community Education and Sports and the Company. The number of forest development. scholarships is set accordingly to the allocated budget. Take the lead in laying down community forest 2) Academic and skill training scholarships are provided for management foundation, targeting young generation students, teachers and general public. Lao PDR’s Ministry in local areas and community forest leaders. Through of Education and Sports and the Company jointly work out the youth, local wisdom will live. Meanwhile, there the number of scholarships and training courses useful for should be an accessible data network, which should both Lao PDR and Thailand. Initially, the courses focus on strengthen the community forests. mechanic engineering, electricity, and other engineering areas, for example. RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
3) Other supports on a case by case basis. In 2012, the project’s goals were achieved as follows: - The curriculum and teaching papers for skill training in 3 areas - program for machine control (PLC), metal piercing and machine maintenance - were developed. - Prepare training plan and budget for 2012-2013 academic year, for 120 senior students. - Finalize scholarship criteria for vocational teachers, supporting their further studies for higher vocational and bachelor degrees. - Select 10 teachers for specialized training and award scholarships to vocational teachers in support of their further studies for higher vocational and bachelor degrees. - Provide lab equipment and install the equipment at the labs of Vientaine Polytechnic College, Pakpasak Technical 75 College and Lao-German Technical School. - Install lab equipment for the labs of Vientaine Polytechnic College, Pakpasak Technical College and Lao-German Technical School for senior students’ training. Experiences from the labs will be developed and replicated at other vocational schools in other provinces. • Vientaine Polytechnic College is the pilot lab for PLC training. • Lao-German Technical College is the pilot lab for metal piercing. • Pakpasak Technical College is the pilot lab on machinery maintenance. - Survey for further lab installation at the technical colleges in Vientiane, Luang Prabang and Xayaburi. Social & Environment Responsibility Report 2012
Community care In 2012, communities around the Company’s and subsidiaries’ power plants were the priority of community care.
Power Development Fund Activities at Pratu Thao Power Plant, Tambon Kong, Kongkrailas district, Sukhothai
1) Scholarships In cooperation with Sukhothai Primary Educational Service Area Office, poor students of Pradu Thao School who possess good grades and behavior were selected for 106 scholarships. The scholarships for 4 levels are worth totally Bt 141,400. • Kindergarten level, 41 scholarships, Bt800 each 76 • Prathom 1-4, 39 scholarships: Bt 1,500 each for those with good records and Bt 1,000 each for those with good performance • Prathom 5, 14 scholarships: Bt 2,000 each for those with good records and Bt 1,500 each for those with good performance • Prathom 6, 12 scholarships: Bt 5,000 each for those with good records and Bt 1,800 each for those with good performance The scholarship program has continued since 2008 as a mechanism to establish community acceptance and trust towards the power plant. In 2012, the Company hosted the scholarship presentation ceremony for the 2012 academic year to 102 students of Pratu Thao School, Tambon Kong, Kongkrailas district, Sukhothai, on Thursday 15 November 2012. • Pre-school (3-year), 20 students • Kindergarten 1: 9 • Kindergarten 2: 11 • Prathom 1: 9 • Prathom 2: 11 • Prathom 3: 9 • Prathom 4: 4 • Prathom 5: 15 • Prathom 6: 14 RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
Aside from better quality of life through educational 2) Ratchaburi Power Plant visit and network of schools opportunities to the youth, the scheme also helps lessen around the power plant household expenses, leading to positive community attitude Plant visit is designed to give the right information on power towards the project and friendly co-existence. More discussion plants and to forge relationship with groups residing around on the power plant followed. the power plant, including schools and teachers. In 2012, the Company hosted a visit to Ratchaburi Power Plant for 2) Community visit and complaint taking Arunothai School’s network. They observed the power The Company has the community relations team, which plant’s electricity generating process and exchanged views establishes communications with communities and receive on local cirriculum for the network of schools around the their complaints. The team makes regular visits to power plant. They also observed Ratchaburi Power Plant’s communities. In 2012, monthly visits were arranged and no community career development schemes. Participants of the complaint was filed. visit during 5-7 August 2012 expressed satisfaction and brought with them better understanding in electricity Activities at Sao Thian Power Plant, Tambon generating process. Krainai, Kongkrailas district, Sukhothai 3) Community visit and complaint taking 77 1) Scholarships In 2012, the community relations team made out regular In cooperation with Secondary Educational Service Area visits to nearby communities and received complaints on Office 38 and Sukhothai Primary Educational Service Area loud noise and hot air which affected their rice fields. The Office, poor students from 8 schools around the project who complaints were filed and the problems were solved. possess good academic scores and behavior were selected for scholarships. In the area, there were 7 primary schools Problem solving and 1 secondary school. • Hot air: The air stack was adjusted higher which satisfied those who filed the complaints. 180 scholarships worth Bt 294,5000 were put in 3 categories: • Noise: The environment team asked the affected for more • Primary level, 113 scholarships, Bt 1,500 each detail and installed noise-measuring equipment at 3 • Lower secondary level, 45, Bt 1,800 each points, to prove the noise level. One fan in the generator • Higher secondary level, 22, Bt 2,000 each was turned off, which lowered the noise. A noise barrier construction is planned to solve the problem in the long For the 2012 academic year, 180 students were presented term. scholarships at the ceremony on 31 May 2012. Social & Environment Responsibility Report 2012
Activities in Ratchaburi province training; hosting of a community meeting to brainstorm on 1) Extension of community energy plan for Ratchaburi community forest management plan as well as annual The project was carried out in cooperation with Ratchaburi’s budgeting set according to priorities; ensuring community Energy Office, covering Tambon Tharab in Muang district actions go as planned; and advising on tips for sustainable and Tambon Bansing in Photharam district, during October community natural resources and environment development. 2011 and November 2012. The two areas are adjacent to • Training Ratchaburi Power Plant and Ratchaburi World Cogeneration’s The process to educate community forest committees on premise. Details are on Page 35 planning, explain forest management planning to communities, and present forest management plan to local 2) Ratchaburi’s community forest enhancement project and related agencies for their supports. It must be assured The project was carried out in cooperation with the Royal that the forest management and exploitation of forest Forestry Department’s community forest management office, resources are in line with laws and regulations, while local to establish community forests in Ratchaburi under the plan knowledge and wisdom can be appplied for sufficient living to preserve forests as the natural carbon sink. This is also and developed into a career to boost household income. to promote the right understanding in electricity generation • Forest management supports 78 and raise energy-saving awareness. The project covers the The process to support communities in devising forest following areas; management plans, with knowledge accumulated from the • 2 in Muang district day community members approved the community forest • 9 in Photharam district registration. They are guided on prioritizing management • 8 in Jom Bueng district activities, budgeting and delegating responsibility in the • 9 in Pak Thor district management, operation and supporting accordingly to their projects as approved by the Royal Forestry Department for Six associated activities are to support: sustainable and maximum benefits to community members. • Community forest survey and establishment They are guided in filing for the Company’s supports. The process to prepare community data for community forest Through the process, the department and the Company can application filing (extension). Officers were dispatched to join advise and take part in problem forecasting and strategy forest survey and measuring; coordinate with area leaders; adjustment, to ensure maximum value of the management. establish relationship with communities, explain and • Ratchaburi community forests’ network seminar introduce community forest-promoting activities; participate The process to steer the community forest project forward, with community meetings; and write up the community forest through a network where knowledge and experience in the project accordingly to the Royal Forestry Department’s management of community forests in Ratchaburi province guideline (Community Forest 1-3). The project proposal was can be exchanged. This is to strengthen the relationship of submitted to the department for the approval and registration community forest leaders in the province, so that their unity of the community forests. The proposal also serves as the can be used to promote the community forest concept in communities’ action master plan. other areas. • Community forest support The process to draw public participation in nurturing, maintain and revitalize the community forests before and after the Royal Forestry Department’s approval is granted. This includes the selection of community representatives for RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
• Energy and environmental conservation • Host the annual 2012 seminar for teachers in “For our The process to educate communities on electricity, energy neighbourhood” project (an education network) under conservation and environment conservation through lectures “Enhance teaching technique with project approach”. and community development projects. This is to improve the teaching skills of teachers of the 27 networked schools near the power plant. Drawing As of 2012, the activities were in stage 3 - training on the 87 teachers, the seminar at Ban Krud Beach Front development of community forest management plan. In the Hotel in Prachuab Khiri Khan had Dr. Prasong stage, they were educated on the power plant, electricity Mateapinitkul from the Institute for the Promotion of generating and environmental management through field trips. Teaching Science and Technology and his team as the The community relations team’s survey found that public speaker. attitude towards the Company has improved and communities • Organize the “energy and environment conservation are more open to absorb the Company’s information. The 28 youth leaders” training, bringing 95 teachers and community forests encompasses total areas of 13,230 rai. Prathom 5 and Prathom 6 students from the 27 networked schools to the training at Ruamtawan 3) Ratchaburi Power Plant’s community care Center, Kanchanaburi. The training was part of extra- Ratchaburi Electricity Generating Co., Ltd, the subsidiary cirriculum learning, according to local cirriculum on 79 which operates Ratchaburi Power Plant, is determined to alternative energy and environment devised jointly by take care of nearby communities as a “good neighbor”. A Ratchaburi Power Plant and the school network. The series of activities have been rolled out to improve the quality participating youth were intended to lead in the of life in various areas like education, sports, health and formation of the energy and environment conservation career development. There are also activities to promote club in their respective schools. understanding and relationship with nearby communities and • Annual 2012 scholarships to extend education promote public participation in its activities - in the planning opportunities to the youth. In the 7th year, the and execution stages - for mutual benefits. Major activities Company awarded 1,009 scholarships to students of in 2012 are: the 27 network schools, worth totally Bt 2,002,000. (1) Quality of life improvement The scholarship presentation ceremony was hosted at (1.1) Education and youth the multi-purpose pavilion of Wat Banmai Buppharam The Company teamed up with the network of nearby School, Tambon Watkaew, Bang Phae district, schools, 27 in 9 Tambons, in hosting major educational Ratchaburi. These students joined the writing and activities and projects. painting contest under the “Follow His Majesty’s • School executive development, a brainstorming footstep, developing Ratchaburi” theme, initiated in seminar on educational planning where the network celebration of His Majesty the King’s 7th cycle birthday schools’ plan and the Company’s were integrated. anniversary. The scholarships in the year were • Support the establishment of a teacher council, classified in 3 levels. representing schools near the power plant which won Kindergarten level: 198 scholarships, Bt 1,000 each the contest on local cirriculum highlighting alternative Primary school level: 629, Bt 2,000 each energy and environment, and the panel to revise 21 Secondary school level: 182, Bt 3,000 each local cirriculum. This is to ensure that the cirriculum could be started in the 2013 academic year. Social & Environment Responsibility Report 2012
Throughout the past 7 years, Ratchaburi Power Plant had • Meditation project for good physical and mental health awarded 6,878 scholarships worth a total of Bt 14 million. for residents around the power plant. Ratchaburi Since 2008, Ratchaburi Power Co.,Ltd. has taken part in this Electricity Generating Co.,Ltd. hosted this in cooperation scholarship scheme. with Phaneonphloo Temple in Tambon Bangpa during • Annual party for the National Children’s Day. Hosted for 10-17 September 2012, to extend knowledge on the the eighth year, the party on 13 January 2012 was themed benefits of meditation on physical and mental health - the “good kids, good society, good life” and secured principle of holistic health approach for a good health and cooperation from Ratchaburi Power Co.,Ltd., local immunity. Trained meditators were expected to apply the administrative bodies, teachers from the near-power plant knowledge with themselves and others, to reduce school network, students’ parents, and partners in the sickness. Phra Maha Seephrai A-phatharo from Voranaram province and nearby areas. The activities were designed Temple in Chon Buri and his 40-monk troupe were the for “play and learn” through a variety of activities like speakers. Over 1,500 participants showed up, consisting games from the school network, a science and energy of officers from Tambon Health Promoting Hospital, vehicle, cartoons, Ratchaburi Hospital’s activities, a Tambon Municipality and Tambon Administration in 9 power plant tour tramp, free hair cuts, rides and over 50 Tambon around the power plant as well as the general 80 food stalls. Over 10,000 children and their parents living public. The event took place at the meditation sala at around Ratchaburi Power Plant appeared at the party. Phaneonphloo Temple, Tambon Bangpa, Muang district, (1.2) Health and health services Ratchaburi. • Mobile medical and dentist services - which are free of • Community health personnel training. Through the little charge - are one of the Company’s focuses. This initiative angel and community dentist projects, scholarships were has won cooperation from all parties like the Tambon extended to young people selected for studies in nursing Municipality, Tambon Administration, village chiefs, health and dental care. They will become professional nurses offices, health volunteers and private organisations like and dental officers for the health offices at 9 Tambons Muang Ratch Hospital which provided the medical team near the power plant. Achievements in 2012 are as for health and oral checks and the group of local follows; traditional masseuses. In 2012, 6,318 residents were • Four students graduated with a nursing degree from served. Boromarajonani College of Nursing, Ratchaburi, and • Ratchaburi Power Plant hosted a training for officers of started working in their home areas. Another 4 are Tambon Health Promoting Hospital and health volunteers completing the course. of 9 Tambons surrounding the power plant. Themed • Two students graduated with a dental care certificate “Holistic healthcare”, the 2012 training as part of the “For and were posted at Damnoen Saduak Hospital and Our Neighborhood” (health group) scheme had Amnuay Tambon Bansing Health Promoting Hospital. A student Fuangfookitchakarn, a director of the Chiang Mai is completing the degree. traditional Thai medicine association, Health Office 10, as the speaker. The holistic approach offers an alternative that the hospital’s officers and health volunteers can apply with their health schemes designed for people in their respective areas. The training was held for three groups during 11-13 June 2012, covering 237 participants. RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
(1.3) Sports • Ratchaburi Power Plant’s Mini Football Academy 2012 The Company launched the Ratchaburi Power Plant Mini recruited 30 youngsters from the 9 Tambon around the Football Academy in 2011, to promote football skills power plant. All attended advance football skills training by development of young people in Ratchaburi province and national footballers during 1 June 2012-25 November 2012, raise their playing standard to that of the international level. totalling 28 weeks. In 2012, the scheme was designed to further train the (2) Ratchaburi Power Plant’s environmental inspector academy’s graduates for the national youth football league. Ratchaburi Power Plant kicked off the second series of the Achievements in 2012 were as follows: environmental inspector project (2011-2013). The inspectors committee will monitor and ensure the power plant operations • Training of Ratchaburi Power Plant’s youth team, consisting are in line with Ratchaburi Power Plant’s measures to prevent, of attendants of Mini Football Academy Classes 4 and 5. mitigate and minimizing environmental impacts as well as the • 1st prize of the Ratchaburi competition under the Prime environment quality monitoring plan as specified in the Minister Cup tournament (14-year-old) environmental impact assessment report. The committee will • 4th place in the West Region tournament under the Prime also coordinate with the power plant in environmental Minister Cup tournament (14-year-old) inspection as well as disseminate information, facts, opinions • A place in the quarter-final round of Manchester United and suggestions on the power plant’s environment-related 81 Premier Cup 2011 (MUPC 2011), for players aged no more activities to the joint committee on Ratchaburi Power Plant’s than 15 years environmental monitoring and community environmental • Ratchaburi Power Plant’s Mini Football Cup 2012. Ratchaburi development. The committee’s activities in 2012 are as follows: Power Plant in cooperation with local administrative bodies o Host a meeting every quarter o in the surrounding 9 Tambons hosted the “Ratchaburi Power Host two activities to empower and educate the environmental inspectors committee Plant’s Mini Football Cup 2011” during 5-11 April 2012. 1. Grooming on general environmental knowledge and Eighteen teams vied for the victory during the 7-day event. environment management criteria Ratchaburi Power Plant was the main sponsor: 25 uniforms 2. A field trip to Map Ta Phut community, Rayong to enhance for football players and team officers of each team and the their knowledge and experience financial support of Bt 3,000 for each of the 9 Tambon. (3) Development and farmers groups empowerment • The 2012 winning team was from Tambon Banrai, which Ratchaburi Power Plant provided financial supports to 13 was presented the trophy and a Bt 20,000 cash prize. development and farmers groups in the nearby areas, to The 1st runner-up was Tambon Phaengphuay Youth finance their plans in 2012, on hope that the supports will Team, winning a trophy and a Bt 15,000 cash prize; the strengthen their operations and develop new careers for 2nd runner-up was Tambon Watkaew Youth Team, additional income. Moreover, Ratchaburi Power Plant also winning a trophy and a Bt 10,000 cash prize; and the 3rd provided training on farm crop and vegetable plantation as runner-up was Tambon Samruang Youth Team, winning well as organic fertilizer making to the development groups. a trophy and a Bt 5,000 cash prize. Tambon Tharab Youth Team won the “Fair Play” prize. Social & Environment Responsibility Report 2012
(4) Participation with Corporate Social Responsibility- Department of Industrial Works (CSR-DIW) Ratchaburi Electricity Generating Co.,Ltd. enrolled into the Department of Industrial Works’ corporate social responsibility project, targeting industrial plants nationwide. A committee was set up to ensure the plant’s social responsibility under the CSR-DIW, consisting of the management team of Ratchaburi Electricity Generating Co.,Ltd. and officers. It has met the CSR-DIW criteria after the coaching from the Department of Industrial Works’ experts and the report was reviewed by the department’s advisor and submitted in September 2012. The Company is awaiting the evaluation, vying for the CSR-DIW Award to be presented by the Department of Industrial Works in November 2012.
82 Activities in Pathum Thani 1) Scholarships In cooperation with Pathum Thani Primary Education Service Office Area 1, Ayutthaya Primary Education Service Office Area 2, Secondary Education Service Office Area 3 and Secondary Education Service Office Area 4, the scholarships have been extended since 2007 to promote education of students living around the Company’s operating premise in Tambon Khlong Kwai, Sam Kok district, Pathum Thani. Students with good behaviors and outstanding academic scores were selected for the scholarships. Students from 21 schools - encompassing schools in Som Kok and Lad Lum Kaew districts of Pathum Thani as well as Bang Sai and Lad Bualuang disricts of Ayutthaya - are entitled to the scholarship program.
Types of scholarships 3 levels, totalling 252 scholarships worth Bt 425,000 • Primary school level: 208 scholarships, Bt 1,500 each • Lower secondary school level: 38 scholarships, Bt 2,500 each • Higher secondary school level: 6 scholarships, Bt 3,000 each RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
Humanitarian assistance 6) Restoring an old wood building, submerged in water for a period Humanitarian assistance remains a vital and necessary issue for Thai of time society, mostly extended in the form of non-binding donation of 7) Restoring the submerged library Providing dance costumes and money, equipment and other supports. local musical instruments damaged by the flood
In the past year, the Company’s major humanitarian assistance, which Involvement in the restoration of Tambon Khlong Kwai Health involved financial aid and supports from employees, was to Promoting Hospital in Tambon Khlong Kwai, Sam Kok district, rehabilitate Khlong Sa (Sapha Withaya Uthit) School in Pathum Thani Pathum Thani and Tambon Khlong Kwai Health Promoting Hospital in Pathum 1) Restoring the building, mostly the fixing of floor, walls,
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Thani, which were devastated by the 2011 flood disaster. The ceilings, glass doors, officers’ room, windows and the safety Company donated a sum of money through the Thai Listed room to prevent electrocution and short circuits Companies Association to assist flood victims, which later helped set 2) Replacing damaged medical equipment like stethoscope and up the Thai Stock Market Flood Relief Fund. The Company also oxygen tank with accessories, wound stitching kits for small introduced the “Return schools to our children, nurture community operations, hand-squeezing pulmonary resuscitation relationships” project, to restore primarily schools and hospitals in equipment, digital blood pressure machine, dual blood flood-affected areas. pressure monitor, emergency baby-delivery kits, and patient mattress. As a member of the Thai Listed Companies Association, the Company 3) Replace damaged office equipment like desks, the drug volunteered to take care of the restoration of Khlong Sa School cabinet and chairs (Sapha Withaya Uthit) School in Pathum Thani and Tambon Khlong 4) Replace the damaged mosquito control machine and other Kwai Health Promoting Hospital in Pathum Thani. The work was equipment completed in 2012. 1) Involvement in the restoration of Khlong Sa School (Sapha Withaya For community participation in all steps, the Company involved Uthit) School, in Tambon Khlong Kwai, Sam Kok district, Pathum community leaders, religious leaders, representatives from Thani local government units, and other stakeholders in the tasks to 2) Meeting with the school to hear its needs and coordinate with ensure that the process properly and thorougly addressed the Thai Listed Companies Association and the Fund for the budget problems and properly answered community needs. Igniting 3) Installation of a water filter sense of ownership, their involvement should lead to 4) The construction of a highly-elevated one-storey building, of which determination to maintain the properties in a sustainable way. lower floor is open for for multi-purpose functions This should also raise their morale and unity. Khlong Sa School 5) Restoring the school’s landscape and Tambon Khlong Kwai Health Promoting Hospital now can resume their normal educational and medical services. Social & Environment Responsibility Report 2012
CSR innovation and innovation promotion
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The Company has acknowledged the responsibility for stakeholders and sought continual improvement, to achieve public acceptance as specified in the Company’s Vision.
Since establishment, the Company has acknowledged the • Encourage the power plants’ participation in the Department responsibility for stakeholders and sought continual of Industrial Works’ CSR-DIW project. Ratchaburi Power improvement, to achieve public acceptance as specified in the Plant joined the scheme last year. Company’s Vision. Since 2010, the Company has continually • Improve the power plants’ generating efficiency against lower improved the social and environmental responsibility and taken fuel consumption, to respond to the country’s economic and this as a CSR innovation. The innovations can be summarized social development. Electricity generating technology as follows; innovation has been closely monitored, for the application with power plants which are subjected to annual maintenance Operational innovation and equipment replacement. • Improve the organizational values, in raising awareness and • Improve the system to handle generating pollutants, waste promoting social and environmental responsibility among water, waste and biodiversity at power plants, to maintain it employees which now shape employee behavior. This was above the legal requirements. World-class environmental started in the past year. management standards are applied. Ratchaburi Power Plant • Employees’ social activities, organized to promote and boost last year applied the OHSAS 18001 and integrated it with employee participation in the activities initiated by the the ISO 14001 to increase the efficiency in handling and Company and employees. maintaining the impacts on health and living condition of community and society – the Company’s basic responsibility.
RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
• Engage in carbon emission management to reduce the global • Collaborate with the Department of Environmental Quality warming, through energy-saving schemes in power plants Promotion, the Ministry of Natural Resources and and the application of Carbon Capture Storage to feed Environment, in biodiversity conservation, through spirulina algae with waste CO2. Under a 2-year research, it participation with seminars for an exchange of ideas and is proved that the algae that can absorb CO2 9 times higher progress on the Company’s biodiversity conservation than big trees. The research project is in the commercialization practices exercised at the power plants as well as the process. conservation of community forests in cooperation with the Royal Forestry Department. • Cooperate with the Electricity Generating Authority of Organization-level innovation Thailand, a major shareholder, in synchronizing social Sustainable business development requires collaboration from activities, for greater benefits to the economy, society and other parties, for success and maximum benefits to society. In the environment. In the past year, both parties brainstormed the past year, the Company forged cooperation with other on cooperation on projects for the next year. organizations in carrying out the following social activities: • Cooperate with the Ministry of Energy and Ratchaburi • Collaborate with the Royal Forestry Department, the Ministry province in extending energy-saving and community energy- 85 of Natural Resources and Environment, to promote and saving projects in the province, which is the company’s expand the community forest concept nationwide. primary electricity generating location. The project was Communities are encouraged to take part in forest kicked off last year at two pilot villages in Muang district and conservation and make use of forests without harming them. Photharam district. The project raised community awareness Forest existence ensures watersheds, a source of food and in energy saving and knowledge in managing energy energy. Beside, it is the natural carbon sink that efficiently consumption in everyday’s life. reduces the global warming, for the benefit of entire society. • Cooperate with the Royal Forestry Department, the Ministry · Sign a cooperation pact with the Department of Alternative of Natural Resources and Environment, to promote the Energy Efficiency and Development, the Ministry of Energy, establishment of community forests in 28 villages which Bangchak Petroleum PCL and Loxely PCL for an algae-to- encompass over 13,000 rai in total area. The forests will help biodiesel project, extended from the project to feed spirulina absorb carbon dioxide and create favorable environment for algae with Ratchaburi Power Plant’s waste CO2. The land the province and the country. is being prepared for the cultivation of algae at Ratchaburi Power Plant. The cooperation demonstrates the Company’s Innovation promotion determination in combating global warming, for the sake of The social responsibility innovation has been revealed to society and the environment. stakeholders directly and indirectly through various • Participate in the Sustainability Business Development communications channels, like the shareholders’ meetings, Institute of Thailand Environment Institute, to extend the seminars, exhibitions, the Company’s web site, advertisement, efforts in combating global warming and conserving the press releases, as well as the visits and discussion with all types environment. The Company has engaged in the institute’s of media - television, radio, newspaper and online agencies - to activities to exchange experiences with and learn from other ensure all stakeholders’ thorough access to the Company’s members, in order to improve the Company’s patterns information. particularly involving environmental protection and global warming. Social & Environment Responsibility Report 2012
Social responsibility reporting
The Company has set social responsibility standards, to raise • Reporting soical and environmental activities to the awareness and improve the understanding on social executive board at the monthly meetings responsibility among executives and employees. The guidelines • Presenting monthly social and environmental activities cover the following areas: summary reports to the Board of Directors • Regularly keeping employees informed about the 1. Responsibility which is open for external audit Company's social and environmental activities 2. Transparent dissemination of the Company's activities to • Posting social activities on the Company's web site and related parties through Thai Listed Companies Association's CSR Club 3. Ethical business practices, upholding integrity, equality and which is overseen by the Stock Exchange of Thailand and 86 fairness through Thailand Business Council for Sustainable 4. Respect stakeholders' interests by opening for stakeholders' Development (TBCSD) opinions on the Company's activities • Including volunteering programs into the Company's 5. Uphold the rule of law with the concrete integration of laws activities, like the Company's anniversary or annual holiday and regulations into the Company's operations trips, and allowing employees to join community activities 6. Honor international principles like treaties acknowledged which is a way to promote the Company's social activities by international organizations 7. Respect human rights and individuals’ equitable rights, Since 2010, the Company has embarked on social and acknowledging all individuals’ rights under the laws environmental responsibility reporting, to inform stakeholders and the general public about the Company's social and The Company has also forged external cooperation with the environmental activities. The report covers details in the public and private sectors and and private organizations, to following areas: jointly steer forward the Company's social activities for maximum benefits to society. All employees are welcomed to • Business operations - vision and mission reflecting the make suggestions and participate in social activities. principle and guidelines of responsible companies, the good corporate governance structure and operating results In carrying out social activities, the Company forges cooperation • Environment and safety measures - the policy on with other parties: in the public sector like the Royal Forestry environment and safety, nature restoration, and waste and Department, the Ministry of Energy and provincial government inventory management units; in the private sector like youth development associations, • Social measures - policy on labor and employees, employee schools and temples. This reflects the Company's move to welfare, employee development and training, as well as become a responsible corporate citizen. Social and supports to communities located around operating environmental activities are also directly and indirectly premises disseminated through: RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
The 2012 social responsibility report covers details in the following key areas:
• Sustainable development - the summary of business plans; the framework designed towards good corporate governance, ethical and honest business doing, as well as responsibility to society, community and the environment which will ensure solid and sustainable business growth • Risk management - the policy and governance measures 87 to minimize business risks • Sustainable business development - key concepts towards business risk management, strategies and approaches to manage risks, and the Company's operating results which reflect business sustainability • Environmental-friendly operations - the Company's approaches to handle environmental impacts from the generating process and the environmental-friendly generating process with new initiatives for carbon emission reduction, waste water recycling, and power plant ecological conservation, and etc • Socially-responsible operations - the summarized reflection of the Company's business model that is built on moderation, caution, risk management, ethics, zero exploitation to avoid making excessive profits at the cost of social disadvantages, respect in human rights, anti- corruption, and readiness to return benefits to society and all stakeholders
In the report, the Company discloses complete, concise and clear information in easy-to-understand language, with the avoidance to use technical terms. Information from outside organizations are property referred to. The sources of such information and the accuracy is verified. The report is disseminated in various channels. For the convenience the readers Not only it is printed in Thai,it is also provided in CD Rom in both Thai and English ,and through the Company’s website.