The Future Smart Water for All Contents

We see the Future Smart water for all Contents

07 28 41

Message from the President Policy Sustainability Customer Satisfaction Management and Chief Executive Officer • East Water and Sustainable Development (Disclosure 102-43, 102-44, 418-1) (Disclosure 102-14) • Membership in Sustainable Development • Complaints and Complaint Handling Networks • Moving toward Becoming the National Water Management Organization • Sharing Knowledge with the Society 10 • Employees’ Quality of Life 34 • Employee Complaint General Information (Disclosure 102-6, 102-45) • Performance and Sustainability Responsible Operations 58 Awards in 2018 • Ensuring stability of Water Grid system • Skills matrix in 2018 • Volume of pumped water • About this Report Water Management for Mutual • Key Stakeholder Involvement Success (Disclosure 303-2) • Sustainability Materiality Index • Responsibility for changes to quality Identification Framework of East Water of water sources • Responsibility for construction impacts 62 83 98

Building sustainable growth with Employee Information SDG Index total water solutions (Disclosure 102-7, 102-8) (Disclosure 201-2) • Management of electricity cost

74 85 99

Corporate Governance Community Sustainability GRI Content Index (Disclosure 205-2) Projects (Disclosure 203-1) • Community Sustainability Projects • Innovation for Water Conservation Sustainability Report 2018 6 Eastern Water Resources Development and Management Public Company Limited

With its potentials and expertise in total water solutions, the Company strives to establish water stability for Thailand’s development towards prosperity and sustainability Sustainability Report 2018 7 WE SEE THE FUTURE... Smart water for all

Message from the President and Chief Executive Officer (Disclosure 102-14) In 2018, the growth of the industrial and consumption sectors and the climate at war room meetings, starting from changes were major factors for water management in the eastern coastal region. 2019. The 3-year human resources Therefore, the Company strived to accommodate a wider range of water supply management master plan for 2018 - needs of its customers which are private and governmental organizations 2020 has been developed and in the industrial estates and the consumption sector which includes, among others, the Performance Management System the Provincial Waterworks Authority, municipalities and communities. (PMS) was fine-tuned in 2018 for greater The development of smart water solutions for these customers has been treated efficiency and fairness of performance as a priority in a bid to provide the industrial and consumption sectors with assessment. The Company has defined innovative water management services that help save energy, reduce water loss core competencies and communicated and cost of operations and maintenance, system maintenance cost, are them to employees across the business environmentally friendly, and contribute to the increase of water resources group to develop the competencies of Thailand. The Company has also attached importance to continuous of employees and embrace the high- development of advanced technological capabilities to strengthen is potentials performance culture by 2019. and be poised for growth opportunities amidst the expansion of the industrial sector in the Eastern Economic Corridor (EEC) region. This year, the Company Due to the earnest dedication and signed 4 sale and purchase agreement to supply raw and industrial water of determination of the Board of Directors, more than 25 million cbm and the revenue will be recognized from 2019 onwards. executives and employees, the Company has earned recognition With 26 years of experience and expertise in water management for the creation and trust from its stakeholders. This is of economic value and sustainable society, the Company aims to serve major evident from the Company’s industrial zones in the eastern region of Thailand through its water pipeline network achievement of the “Excellent” rating which is approximately 491.8 kilometers in length to achieve mutual growth. under the Corporate Governance Guided by its vision of To be the leader in total water solutions of the country, Report (CGR), the distinction as the Company targets to link all major water sources in the Eastern Economic 1 of 79 listed companies recognized Corridor (EEC) region by 2019. as sustainable stocks on the “Thailand Sustainability Investment” list with As part of its 2018 strategy implementation, the Company has established outstanding environmental, social and the standard raw water pricing structure to be enforced in 2019. A feasibility corporate governance performance, study of the water management project was conducted to support the model and the recognition award in development initiative under the Energy and Water Resources Management the Sustainability Report Awards 2018. System (EWMS) project. Through this project, technology-assisted monitoring of water levels in reservoirs is exercise to maintain water reserve at 25% of the With its potentials and expertise in total volume of water sold or higher in a bid to achieve effective water management, water solutions, the Company strives a proper balance between available water resources and the volume of water to establish water stability for Thailand’s sold as well as to ensure the adequacy of water supply in each year in lights development towards prosperity and of customers’ needs. Further, the Company will support the crop planning promotion sustainability. program initiated by the Royal Irrigation Department and local agencies by sharing primary data and information about water situations with relevant parties

Jirayut Rungsrithong President & Chief Executive Officer DRIVING THE ECONOMIC GROWTH Driving the economic growth To provide total water solutions that meets the demand of all users and to create economic stability and sustainability Sustainability Report 2018 10 Eastern Water Resources Development and Management Public Company Limited

General Information (Disclosure 102-6, 102-45) Social and Environmental Performance and Sustainability Awards in 2018 Care for the communities Provide clean water Grow along the water grid of to communities totaling Covering 491.8 km. 4.71 Million liters 13,830 34.58 (Disclosure 102-7, 201-1) in length across (drinking water supplied trees rai of land districts municipalities by trucks, packaged water cups, 18 34 bottled water, tube water supply, (based on the ratio of 400 trees per Economic 50 subdistrict administrative and water distribution to communal rai of land) organizations waterworks system). Revenue Net proﬁt 3,120.05 million baht1 1,044.72 million baht

Wastewater treatment project Employee for cafeterias in engagement is 12 schools 80.20% The amount of dissolved oxygen (DO) on average in treated water is improved (higher than the previous year) to above 4 mg/L. Sales and service revenue Other revenue 94.64% 5.36%

1 of 79 Governance listed companies recognized as 1 sustainable stocks (Thailand Sustainability Investment 2018: THSI), 588.90 12.75 337.21 th Million baht2 Million baht Million baht and marking the 4 consecutive year of this achievement Revenue contribution Community development OPEX to the government investment Sustainability Excellent rating under the Corporate Governance Reporting 2 of Thai Listed Companies (CGR)

0.20 241.93 Baht / Share3 Million baht Dividend to shareholders Salary and awardRECOGNITION in the Sustainability Report Awards 2018 employee beneﬁts 3 organized by the Thai Listed Companies Association

Corporate Governance and Sustainability Award Remark: 4 Achievement of a score of 95 1 Based on the Company’s separate financial statements. score in the 2017 AGM assessment conducted 2 Refers to taxes on income and dividends. 4 by the Thai Investors Association 3 The 2018 interim dividend was paid from the first-half operating results in accordance with the resolution passed by the Board of Directors at its Meeting No. 9 on 9 August 2018 at the rate of Baht 0.20 per share. The final dividend from the operating results during July - December 2018 will be proposed by the Board of Directors to the 2018 Annual General Meeting of Shareholders on 22 April 2019. Sustainability Report 2018 11 WE SEE THE FUTURE... Smart water for all

Social and Environmental

Care for the communities Provide clean water Grow along the water grid of to communities totaling Covering 491.8 km. 4.71 Million liters 13,830 34.58 (Disclosure 102-7, 201-1) in length across (drinking water supplied trees rai of land districts municipalities by trucks, packaged water cups, 18 34 bottled water, tube water supply, (based on the ratio of 400 trees per Economic 50 subdistrict administrative and water distribution to communal rai of land) organizations waterworks system). Revenue Net proﬁt 3,120.05 million baht1 1,044.72 million baht

East Water - Professional Expert in Total Water Solution Services through Raw Industrial Water Pipeline Network System water water

(Disclosure 102-1) Recycled Tap water water

Eastern Water Resources Development and Wastewater Drinking Management Public Company Limited (East Water) treatment water Ticker symbol: EASTW Registered capital: • Tap water: Comprehensive management solutions and engineering services for both surface and Bath 1,663.73 Million desalinated sea water with state-of-the-art technologies in production maintenance and The Company is a provider of total water management distribution solutions services which include: (Disclosure 102-2) • Drinking water: Production of clean, safe, alkaline • Raw water: Procurement of raw water, investment drinking water. and installation of pipelines, as well as ensuring • Wastewater treatment: To service tailor-made for sufficient raw water to satisfy demands year-round. each business, controlling wastewater effluent • Industrial water: Installation of production system quality using technologies such as activated sludge of water for industrial use, ensuring that the quality and membrane bioreactor. matches customers’ requirements, be it by • Recycled water: Providing service and installation clarification, reverse osmosis, demineralization, of water recycling system for reuse in industrial or sea water reverse osmosis desalination. operation. Soi Sukhumvit 3

Chatuchak Park 5 Lat Phrao Intersection Sukhumvit Road R. M. S. Industrial Service Company Limited Workshop

Line House

Don Muang Tollway Lat Phrao Road Eastern Water Resource Manage and Development PCL. Phahon Yothin Road

Thairath Thai Airways International Newspaper Public Company Limited Soi Vibhavadi Rangsit 5

Eastern Water Resource Manage and Development PCL. Soi Vibhavadi Rangsit 16 Soi Vibhavadi Rangsit 3

Securities and Industrial Estate Authority of Thailand Exchange Commission

Klong Bang Sue

Head Office(Disclosure 102-3, 102-4) Rayong Operations Center East Water Building 477 Sukhumvit Road, KM. 201, 1 Vipavadeerangsit 5, Huay Pong, Amphur Muang, Rayong Vipavadeerangsit Road, Jomphol, 21150 (Thailand) Jatujak, Bangkok 10900 (Thailand) Sustainability Report 2018 13 WE SEE THE FUTURE... Smart water for all

Vision for Sustainable Growth Missions “To be the leader towards stakeholders in total water solutions To develop the security and maintain 1 stability of water resources in response of the country” to the long-term water demand

To expand the investment in water 2 related business for continuous and sustainable growth.

To increase competitive advantages 3 through technologies and innovations.

To develop human resources and 4 improve management efficiency

To be socially and environmentally 5 responsible and establish good relationships with all stakeholders in accordance with corporate governance principles.

SMARTSMART WATERSMART WATERSMART SOLUTIONS WATER SMARTSOLUTIONS WATER SOLUTIONSSMART WATER SOLUTIONS WATER SOLUTIONS SOLUTIONS

Raw Raw IndustrialRaw IndustrialRaw IndustrialRawTapIndustrialRawTap IndustrialDrinkingTap IndustrialTapDrinking WastewaterDrinkingTap DrinkingWastewaterTap WastewaterDrinkingRecycledWastewaterDrinkingRecycled WastewaterRecycled WastewaterRecycled Recycled Recycled water water waterwaterwaterwater waterwaterwaterwaterwaterwater waterwaterwaterwaterwaterwater watertreatmentwater watertreatmentwater treatmentwaterwatertreatmentwaterwatertreatmentwatertreatmentwater water water Sustainability Report 2018 14 Eastern Water Resources Development and Management Public Company Limited

Business Structure of the East Water Group (Disclosure 102-5) The Company’s core business is the total water • 2 wastewater treatment and recycled water supply solution services while the tap water supply business business units: Wastewater management facilities and related business are operated under concession at Lakchai Muang Yang Industrial Estate and licenses by Universal Utilities Pcl. (UU) which is the at Ratchaburi Glass Industry Company Limited. Company’s subsidiary. The group’s business consists • 4 subsidiaries: Nakornsawan Water Supply Company of 3 clusters as follows: Limited, Bangpakong Water Supply Company Limited, • 9 tap water supply business units: Sattahip Waterworks, Chachoengsao Water Supply Company Limited, Koh Lan Waterworks, Bowin Waterworks, Nong Kham and Egcom Tara Company Limited. Waterworks, Koh Samui Waterworks, Rayong Waterworks, Chonburi Waterworks, Lakchai Muang Yang Industrial Estate Waterworks, and Hua Ro Waterworks.

Raw Water Business Eastern Water Resources Development and Management PCL

100% Tap Water Supply Business Universal Utilities PCL

Tap Water Supply 100% 100% 100% 90% • Sattahip Waterworks • Rayong Waterworks Nakornsawan Bangpakong Chachoengsao Egcom Tara • Koh Lan Waterworks • Chonburi Waterworks • Bowin Waterworks • Lakchai Muang Yang Water Supply Water Supply Water Supply Co., Ltd. • Nong Kham Waterworks Industrial Estate Co., Ltd. Co., Ltd. Co., Ltd. • Koh Samui Waterworks Waterworks • Hua Ro Waterworks

Wastewater Treatment and Water Recycling • Wastewater management facility at Lakchai Muang Yang Industrial Estate • Wastewater management facility at Ratchaburi Glass Industry Company Limited

Service Areas, Customer Segments and Raw Water Distribution Channels (Disclosure 102-6) The Company is the largest business operator in developing water pipeline systems and supplying raw water to industrial and general consumption users in the eastern seaboard areas of Thailand. The Company’s key strengths include its comprehensive, modern and efficient water grid and pumping systems that link key water sources in the eastern region and cover the eastern coastal areas in the 3 provinces. The Company has the capacity to supply raw water to sufficiently meet current and future demands of the local business operators in a sustainable manner while other business operators still have limitations in terms of service areas, water source volumes and stability, and water distribution systems. In 2018, the Company segmented its industrial and general consumption users according to service areas, i.e. 1. Mab Ta Phud, 2. Ban Chang - Sattahip, 3. Bo Win - Pluak Daeng 4. Chonburi, and 5. Chachoengsao, in a bid to develop an effective and appropriate water management plan based on local demands both at present and in the future. Sustainability Report 2018 15 WE SEE THE FUTURE... Smart water for all

Corporate Governance Structure (Disclosure 102-7, 102-18, 102-20, 102-22, 102-23) In 2018, the Board of Directors reviewed the structures Office of the Securities and Exchange Commission (SEC) of the subcommittees with a view to achieving while the responsibilities regarding the nomination have a balanced segregation of duties and responsibilities been transferred to the Nomination and Remuneration among the subcommittees while simultaneously Committee to promote agility. pursuing its sustainable development goal. The Governance and Nomination Committee has been Presently, the Company has 5 subcommittees as follows: re-established by the Board of Directors as the 1) Audit Committee, 2) Investment Committee, Corporate Governance and Sustainability Development 3) Risk Management Committee, 4) Corporate Committee which is chiefly responsible for ensuring Governance and Sustainability Development the sustainability development and the compliance Committee and 5) Nomination and Remuneration with the 2017 Corporate Governance Code of the Committee.

Board of Directors Eastern Water Resources Development and Management Public Company Limited

Nomination and Audit Investment Risk Management Corporate Governance and Sustainability Remuneration Committee Committee Committee Development Committee Committee

President and Chief Executive Ofﬁcer

President and Chief executive officer office Company Secretary Office Internal Audit Department

Corporate Business Operations Business Finance and Strategy Office Development Office Office Supporting Office Accounting Office

Corporate Business Development Operations & Customer Human Resources Finance Strategy Department Department Service Department Department Department

Corporate Engineering Facility & Maintenance Business Administration Accounting Communication Department Department Department Department

Construction Project Information Technology Management Department Department

AS OF December 2018 Sustainability Report 2018 16 Eastern Water Resources Development and Management Public Company Limited

Board Skills matrix in 2018

Names of Directors Position on the Board and Subcommittees Private Organization Organization Private Management Public Organization Management Management Water Engineering Economics/Finance/Accounting Laws Audit Corporate Public Policy, and CSR Governance Technology Information 1. Mr. Veerasak Kositpaisal ✓ ✓ ✓ ✓ - Chairman of the Board of Directors (Independent Director) 2. Mr. Amorn Laohamontri ✓ ✓ ✓ - Board of Directors (Independent Director) 3. Pol. Maj. Gen. Vichai Sangprapai ✓ ✓ ✓ - Chairman of the Audit Committee (Independent Director) - Chairman of the Nomination and Remuneration Committee - Member of the Corporate Governance and Sustainability Development Committee 4. Mrs. Tatchada Jitmahawong ✓ ✓ ✓ - Chairman of the Corporate Governance (Independent Director) and Sustainability Development Committee - Member of the Audit Committee 5. Col. Premjiras Tanathaipakdee ✓ ✓ - Member of the Nomination (Independent Director) and Remuneration Committee - Member of the Corporate Governance and Sustainability Development Committee 6. Mr. Surachai Kanasa ✓ ✓ - Chairman of the Investment Committee (Independent Director) - Member of the Nomination and Remuneration Committee 7. Mr. Oran Vongsuraphichet ✓ - Member of the Investment Committee (Independent Director) - Member of the Nomination and Remuneration Committee 8. Mr. Kritsada Sunkhamani ✓ ✓ ✓ - Member of the Risk Management (Director) Committee - Member of the Investment Committee 9. Mr. Virgilio Jr.Cervantes Rivera ✓ ✓ ✓ ✓ - Member of the Investment Committee (Director) 10. Mrs. Asvini Tailanga ✓ ✓ ✓ - Chairman of the Risk Management (Independent Director) Committee - Member of the Audit Committee 11. Miss Somchint Pilouk ✓ ✓ - Board of Directors (Director) 12. Mr. Jirayut Rungsrithong ✓ ✓ ✓ ✓ ✓ ✓ - Member of the Investment Committee (Director and Chief Executive Officer) - Member of the Risk Management Committee Advisors 1. Mr. Vicha Nilpetploy ✓ ✓ - Advisor to the Investment Committee 2. Gen. Trairat Rangaratna ✓ - Advisor to the Audit Committee 3. Mr. Siwa Sangmanee ✓ ✓ - Advisor to the Risk Management Committee Sustainability Report 2018 17 WE SEE THE FUTURE... Smart water for all

Subcommittees having key roles in the Company’s and hiring regulation, the budgeting, accounting corporate governance are: and finance regulation, and the contract management regulation, as well as worked 1. Corporate Governance and Sustainability with an external consultant on the internal Development Committee (Disclosure 102-32) control adequacy assessment in accordance The Corporate Governance and Sustainability with requirements stipulated by the Office of Development Committee consists of 3 independent Securities and Exchange Commission (SEC) and directors and has 2 main duties as follows: the law compliance assessment in support of 1) Corporate Governance: To consider policies the non-compliance risk mitigation and and practices regarding corporate governance, prevention. Performance of the Compliance anti-corruption and business ethics of the Division is regularly reported to the Corporate group to ensure alignment with requirements Governance and Sustainability Development of the Stock Exchange of Thailand (SET) and Committee. (Disclosure 102-17) the Office of the Securities and Exchange the Company has the Business Relations Commission (SEC) or supervisory bodies & CSR Division which is directly responsible concerned. The Committee shall review such for promoting CSR in process to ensure that policies and practices at least annually and the Company’s business is operated with exercise supervision and monitoring to ensure responsibility towards communities, society consistent and proper compliance therewith. and environment. 2) Sustainability Development: To determine sustainability-related policies, strategies and 2. Risk Management Committee action plans through effective water The Risk Management Committee consists of 3 management that is anchored around the aims members and is chiefly responsible for the formulation of sharing water source with communities and and review of the Risk Management Policy for alignment maintaining balances in ecosystems. To build with the objectives, goals, strategies and risk appetites. confidence among its stakeholders through The Risk Management Committee also supervises and transparent and auditable work processes supports risk management activities according to the according to the framework of the Global Risk Management Policy, gives recommendations, Reporting Initiative (GRI). To ensure that the endorses the risk management plan, monitors and management operates business with the review risks, and communicates and advises about risk concept of social and environmental management to align the enterprise-wide risk responsibility to promote enterprise-wide management practices. The Risk Management Division alignment with the Company’s key objectives, and every functional unit of the Company are jointly goals and strategies. responsible for the analysis and review of risk factors The Corporate Governance Division and their implications for the Company’ successful which reports to the Company Secretary business plan execution as well as the proposal of Office is responsible for monitoring the group- appropriate risk management approaches which will wide compliance and developing and form part of the Company’s risk management plan. communicating a compliance checklist across The division is also in charge of tracking the progress the organization to support the supervision of of enterprise-wide risk management implemented by compliance with applicable rules, regulations, all functional units and presenting the progress updates requirements and laws. The Coporate to the Risk Management Committee. Governance Division also in charge of liaising with the Office of Securities and Exchange 3. Audit Committee Commission (SEC) and the Stock Exchange of The Audit Committee consists of 3 independent Thailand (SET) to make required disclosures directors and is responsible for reviewing the Company’s according to applicable timeline. In 2018, the financial reports, the internal control and risk Company reviewed the corporate governance management systems, and the compliance with laws, principles of the group by applying the 2017 rules and regulations governing business activities and Corporate Governance Code of the Office of transactions with connected interest or potential Securities and Exchange Commission (SEC) conflicts of interest. The Audit Committee is also within the scope appropriate to the Company’s empowered to select auditors and determine audit business context as well as updated Code of fees. In 2018, the Charter of the Audit Committee was Conduct of the group for alignment with the updated to additionally include the review of the anti- reviewed corporate governance principles of corruption process and the review of the internal the Company. In addition, the Compliance processes relating to corporate governance, the whistle Division, in collaboration with relevant teams blowing program and the complaint handling and the Legal Division, reviewed 3 regulations procedures. of the Company, namely the procurement Sustainability Report 2018 18 Eastern Water Resources Development and Management Public Company Limited

“EASTW” Shareholders (Disclosure 102-5) The Company’s top 10 major shareholders as at the book-closing date 28 December 2018 is listed below.

No. Shareholder No. of Shares Percentage (%) 1 Provincial Waterworks Authority 668,800,000 40.20% 2 MANILA WATER (THAILAND) COMPANY LIMITED 311,443,190 18.72% 3 Industrial Estate Authority of Thailand 76,000,000 4.57% 4 Mr. Min Tieanworn 34,500,000 2.07% 5 Aberdeen Standard Small Cap Fund 30,226,600 1.82% 6 BNP PARIBAS SECURITIES SERVICES, LONDON BRANCH 29,812,100 1.79% 7 Aberdeen Standard Long Term Equity Fund 27,465,700 1.65% 8 Thanachart Low Beta Fund 25,181,300 1.51% 9 Aberdeen Standard Growth Fund 25,159,500 1.51% 10 Thanachart Prime Low Beta Fund 23,728,200 1.43% Other shareholders 411,408,559 24.73% ToTal 1,663,725,149 100% Source: Thailand Securities Depository Company Limited Remark: The first and the third shareholders were the major shareholders from the government sector while the second shareholder was a juristic person. All these 3 shareholders had a role in determining management policies and their representatives were proposed for appointment as directors at the Company’s shareholders’ meeting.

About this Report (Disclosure 102-10, 102-45, 102-46, 102-48, 102-49, 102-50, 102-51, 102-52, 102-53, 102-54) Chachoengsao, as well as the Company’s business This 2018 Sustainability Report is the 8th in a series operations at the Bangkok head office. This report does of the Company’s annual sustainability reports and not include Universal Utilities PCL. which operates tap is intended as a means to disclose policies, strategies, water business under concession licenses and drinking impact management, and corporate performance water supply business. which reflect the Company’s economic, social and environmental responsibility towards stakeholders This report contains material changes from 2017 that is material to the Company’s sustainability as follows: development. The contents are categorized based on 1. The Business Sustainability Policy which has 6 sustainability approaches which are intended for the been approved by the Company’s Corporate management of impact on stakeholders in all key Governance and Sustainability Development processes of the Company’s business operation. This Committee report is developed in accordance with the core option 2. The calculation of employee injury rates is based on of the sustainability reporting framework of the the Human Resources Department’s formula Global Reporting Initiative (GRI) at the limited assurance for calculating working hours per person per annum. level. Information contained herein is for the reporting 3. The Bangpakong pressure booster station was period of 1 January to 31 December 2018. discontinued. Thus, the Company has 15 primary stations in total, decreasing by 1 from 2017. This report covers only the Company’s total water solution business, particularly raw water pumping and This Sustainability Report is certified in accordance distribution through its water grid of 491.8 kilometers with the limited assurance procedure by a third-party in 3 eastern provinces, i.e. Rayong, Chonburi and assurance practitioner with expertise in validating and Sustainability Report 2018 19 WE SEE THE FUTURE... Smart water for all assuring the accuracy and reliability of information disclosed according to the Global Reporting Initiative In case of inquiry, Standard (GRI Standard) at the core option and limited please contact: assurance levels. Top executives have been involved in the selection process which is compliant with Miss Chatkaew Poomarin, Acting Vice President, Corporate Communication the Company’s procurement and hiring regulations. Department Process for Defining Report Content: The 2018 Eastern Water Resources Development and Sustainability Report Working Team consists of Management Pcl. representatives from all departments of the Company East Water Building and is appointed by the President & Chief Executive 1 Vipavadeerangsit 5, Vipavadeerangsit Road, Officer. The working team arranged brainstorming Jomphol, Jatujak, Bangkok 10900 (Thailand) sessions and meetings to jointly consider, review and analyze material sustainability topics and the Telephone : 02-272-1600 Ext. 2326 conclusions were proposed to the President and E-mail : [email protected] Chief Executive Officer for approval and to the Corporate Governance and Sustainability Development This Sustainability Report and the sustainability reports Committee for acknowledgment before disclosure in of previous years are available for download on the the Sustainability Report. East Water’s website at www.eastwater.com Key Stakeholder Involvement (Disclosure 102-40, 102-42, 102-43, 102-44) A sustainability report working team has been established by the Company and is tasked with the key stakeholder identification and review which are conducted annually. The identification and review are based on the levels of the stakeholders’ influence and impact on the Company’s business operations as well as the influence and impact of the Company’s current and future business operations on the stakeholders. Information gained through these processes is applied to the improvement of the strategy planning for greater alignment with the needs of stakeholders and sustainable mutual value. The Company’s stakeholders are classified into 8 groups as follows:

Stakeholder Expectation Engagement Approach Frequency

1. Existing - Stability of the water pumping system in terms - Water war room meetings - 12 times/year customers of the quantity and quality of water sources - Meetings between executives - 1 time/year - Regular calibration of water meters for metering and major customers accuracy and reliability - Satisfaction survey - 2 times/year - Punctual completion of construction projects - Project progress monitoring - 1 time/year punctually as planned - Customer complaint channels - Throughout - Business expansion plan and identification of the year long-term water reserve sources - Communication via group - Throughout - Availability of clear and timely information and text service of Line application the year updates about water situation and quality - Meeting on special days/ - Throughout - Personnel development occasions the year - Relations activities 2. Potential - Total water solutions that match the needs of - Meeting on special days/ - 4 times/year customers each Customer at reasonable prices occasions - Meetings with the top - Based on management the Company’s programs 3. Local - Road rehabilitation according to applicable - Meetings with the users of - 2 times/year government standards Bangpakong River Basin agencies and - Commuter safety and fast problem-solving - Public relations activities for - Based on project communities - Punctual completion of construction as panned projects availability - Follow-up meetings on - Upon community-related issues complaints and resolution Sustainability Report 2018 20 Eastern Water Resources Development and Management Public Company Limited

Stakeholder Expectation Engagement Approach Frequency

3. Local - More active roles in the community and - Compliance with regulatory - On going government environmental development to foster the rules and regulations agencies and sustainable development of communities - Satisfaction surveys - Once every communities - Water management and CSR activity plans that 2 years (Continued) are mainly based on the problems and needs - Life quality and environmental - Monthly of communities, particularly the drought issues development activities for and crises communities - Water sharing with communities along the - Climate forecasts based on - 1 time/year water grid different climate models - Compliance with the agreement on the cease (climate change preparedness of water pumping from Bangpakong River and response plan) when the salinity level reaches the predetermined trigger points 4. Investors and - Suitable rates of returns and dividends - Annual General Meeting of - 1 time/year shareholders - Timely supply of clear and complete information Shareholders (AGM) and news to investors and shareholders - Site visits - 2 times/year in accordance with the SET’s requirements - CSR activities - 1 time/year - Positive performance outlook and opportunities - Satisfaction survey - Once every for continuous business expansion 2 years - Transparent and socially and environmentally - Release of financial - 4 times/year responsible organization performance (MD&A) - Regular IR activities - Inquiry response via telephone - Throughout and e-mail the year 5. Royal Irrigation - Water management according to the plan - Water war room meeting - 12 times/year Department jointly developed with the Royal Irrigation - Relations activities Department - Meetings with non-agricultural - 5 times/year - Provision of support beneficial to communities water users - Exchange of information and technologies - Meeting on special days/ - 2 times/year occasions - Communication via group - Throughout text service of Line application the year 6. Executives and - Employee relations activities to promote - Employee satisfaction and - 1 time/year employees good work atmosphere engagement survey - Compensation and benefit packages that are - Meetings of 2 welfare - 4 times/year fair and comparable to industry benchmarks committees - Development of professional knowledge - Meetings of the Occupational - 12 times/year and skills to achieve professionalism Safety, Health and - Good quality of life and work environment Environment Committee - Career path and succession plan - Multiple suggestion and - 12 times/year - Streamlined processes for greater efficiency complaint channels - Corporate culture that foster sustainable growth 7. Business - Transparent and fair procurement and hiring - Meeting to clarify the scope - Upon each partners processes of project worth Baht bidding 7.1 Trading - Streamlined procurement and disbursement 1 million or higher partners processes - Relations activities - 1 time/year 7.2 Contractors - Easy and fast access to clear information and - Site visits - 2 times/year news - Progress follow-up meetings - Upon each - Business expansion plan for growth bidding - Development of project staff - Satisfaction survey - 2 times/year Sustainability Report 2018 21 WE SEE THE FUTURE... Smart water for all

Stakeholder Expectation Engagement Approach Frequency

8. Regulators - Constructions that do not have impact on - Meeting on special days/ - 3 times/year 8.1 Government communities occasions agencies - Post-construction road rehabilitation according - Follow-up and coordination regulating to applicable standards with relevant officials construction - Timely and fast problem-solving - Study of requirements - Upon each works and specified in permit applications construction permits project

8.2 Department - Compliance with the labor laws and the - Study of the provisions of - 1 time/year of Labour Occupational Safety, Health and Environment Act laws Protection - Compliance with the Empowerment of Persons - Complaints from relevant and Welfare with Disabilities Act government agencies - Meeting with responsible - 1-2 times/year officers on various occasions

8.3 SEC and SET - Implementation of anti-corruption initiatives - Study of rules, regulations, - 60 times/year - Compliance with applicable laws and requirements, notification corporate governance principles and laws enforced by SEC and SET - CSR Club meetings - 4 times/year - Participation in training courses - Based on and seminars arranged by courses SEC and SET arranged by SEC and SET

Sustainability Materiality Index Identification Framework of East Water (Disclosure 102-47) In 2018, the Company identified sustainability topics defined from the perspective of materiality indices based on internal and external stakeholders, issues that are considered important factors that have influence or are key variables for by more than one group of stakeholders, and the Company’s achievement of strategic goals and compliance with applicable legal requirements. sustainability. Such assessment was collectively conducted by the 2018 Sustainability Report Working 3. Validation Team based on the Global Reporting Initiative Standard The validation is conducted by the working team (GRI Standard) using the following procedures. and proposed to the President and Chief Executive Officer for consideration and subsequently Materiality Assessment Process the Corporate Governance and Sustainability 1. Identification Development Committee for acknowledgment Consideration is given to sustainability topics prior to disclosure. relating to internal and external factors, i.e. the Company’s strategy, risk factors and business 4. Conclusion opportunities, audit matters (high importance), risk issues (high importance), news that are in public 5. Review attention, complaint topics, and the needs and This Sustainability Report is reviewed by an expectation of stakeholders. independent third-party assurance practitioner with expertise in validation and assurance under 2. Prioritization the Global Reporting Initiative Standard (GRI Materiality topics are prioritized according to Standard) at the core option and limited assurance their influence on the achievement of the levels. This provides reasonable assurance that Company’s strategic goals in economic, social and this Sustainability Report is complete, valid, environmental dimensions. The prioritization is reliable, in accordance with the GRI Standards also based on their relevance to the materiality as shown in the Appendix. Sustainability Report 2018 22 Eastern Water Resources Development and Management Public Company Limited

Sustainability Materiality Matrix 19 issues and 18 indicators are identified per the below summary.

EWG GRI Sustainability Internal and External Factors Stakeholder Expectations Sustainability Standard Topics Aspects Title 1. Continuous Corporate Strategy Existing Customers • Cost Energy growth 1. Implementation of projects 1. Business expansion plan management (302-4) that provide long-term and identification of (electricity Emissions returns immediately long-term water reserve expense/water (305-2) 2. Development of a standard sources tariff structure pricing structure Investors management) Business Policies based on 1. Suitable rates of returns • Climate Economic 2018 Corporate KPIs and dividends change and Performance 1. Sustained growth rate of 2. Business expansion plan business (201-2) total revenue for sustainable growth opportunities (consolidated net profit and 3. Being an organization that • Profit and Economic EBITDA Margin) contributes to Thailand’s growth Performance 2. Contractual volume of energy-saving (201-1) industrial water supply development through 3. Control of operating the reduction of expenses electricity expenses, (disbursement of annual which are the major cost investment budget, water of water pumping, by 5% tariff structure management, Suppliers and control of per-unit cost) 1. Business expansion plan Risk Factors for growth 1. Business interruption 2. Enforcement of the Water Resources Act 2. Alliance Corporate Strategy Current Customers • Water grid Water manage- 1. Enhancement of customer 1. Stability of the water stability (303-1) ment for satisfaction through service pumping system in terms • Customer General mutual quality and efficiency of quantity and quality satisfaction Disclosures success 2. Provision of total water of water sources management (102-43, 102-44) solutions at appropriate 2. Regular calibration • Complaint Customer prices and with quality of water meters for management Privacy assurance metering accuracy and (418-1) 3. Development of good reliability relationship with major 3. Access to clear and stakeholders accurate information and Business Policies based on updates about water 2018 Corporate KPIs situation and quality in 1. Satisfaction of customers a timely manner to towards services delivered facilitate proper at operating sites preparations 2. Implementation of the IT 4. Punctual completion of development master plan construction projects punctually as planned 5. Adequate sources of water reserve in light of consumption needs 6. Public relations activities on different occasions to survey opinions on services Sustainability Report 2018 23 WE SEE THE FUTURE... Smart water for all

EWG GRI Sustainability Internal and External Factors Stakeholder Expectations Sustainability Standard Topics Aspects Title 2. Alliance Risk Factors 7. Proper balance between manage- 1. Satisfaction of customer/ administrative costs and ment for users pricing mutual 2. Rigid pricing policy 8. Measures to prevent air success 3. Impact of natural disaster backflow after water pipe (Continued) on the Company’s water repair sources (quantity and Investors quality) 1. Higher frequency of 4. Weaknesses in work investor relations processes and practices activities, company/ Complaint Topics site visits, and meetings 1. Poor quality of tap water between executives and 2. Tap water outage investors as well as 3. Unusually high water bills provide investors with useful knowledge and information in a timely manner to support decision-making Suppliers 1. Streamlined procurement, hiring and financial processes for greater speed and agility Royal Irrigation Department 1. Implementation of the water usage plan jointly developed with the Royal Irrigation Department 2. Exchange of information and technologies Executives and Employees 1. Employee relations activities to promote good work atmosphere Tenants 1. Higher frequency of the inspection and maintenance of common areas and building utility system of East Water Building to ensure service availability 2. Regular improvement of the maintenance and repair system Local Government Agencies and Communities 1. Climate forecasts based on different climate models (climate change preparedness and response plan) Sustainability Report 2018 24 Eastern Water Resources Development and Management Public Company Limited

EWG GRI Sustainability Internal and External Factors Stakeholder Expectations Sustainability Standard Topics Aspects Title 3. Holistic Complaint Topics Communities and • Responsibility Water impact 1. Impact from pipework and government agencies towards (303-2) mitigation construction (road damage, 1. Rehabilitation of roads changes in for water inconvenient traffic to original or better the quality of manage- conditions, and accidents) conditions/ensure safety water sources ment Risk Factors of commuters/solve • Responsibility Management 1. Impact from operations on problems quickly/ towards Approach communities, the society complete construction impact from (103-2, 413-2) and environment as planned construction 2. Compliance with the activities agreement on the cease • Post- Local of water pumping from construction Community Bangpakong River when rehabilitation (413-2) the salinity level reaches the predetermined trigger points Investors 1. Being a socially and environmentally responsible organization 4. Adding Corporate Strategy Current Customers • Corporate Employment value to 1. Implementation of the 1. Development of values (401-1) quality human resources master personnel’s technical • Employee personnel plan knowledge about water data Risk Factors and its properties to • Life quality of 1. Occupational safety facilitate effective employees 2. Adequacy and quality of problem-solving • Complaint General personnel Suppliers management Disclosures 3. Inefficient project 1. Development of service (102-43, 102-44) management capabilities and • Development Training and communication towards Education effectiveness to support becoming (404-1, 404-2) effective decision-making a national and fast problem-solving/ water service inquiry response provider 2. Development of • Employee Occupational knowledge and skills of satisfaction Health and project personnel and and engage- Safety staff for effective inquiry ment (403-1, 403-2) handling Tenants 1. Close supervision of and training for janitorial service staff and security guards Executives and employees 1. Compensation and benefit packages that are fair and comparable to industry benchmarks 2. Development of professional knowledge and skills to achieve professionalism 3. Good quality of life and work environment 4. Career path and succession plan Sustainability Report 2018 25 WE SEE THE FUTURE... Smart water for all

EWG GRI Sustainability Internal and External Factors Stakeholder Expectations Sustainability Standard Topics Aspects Title 5. Innovative Corporate Strategy New Customers • SMART Water water 1. Promotion of customer 1. Water solutions at WATER (303-1) solutions awareness about corporate reasonable prices SOLUTIONS products and services in terms of total water solutions 2. Cost reduction in production, pumping and distribution, and internal processes Risk Factors 1. IT threats and network security 6. Business Corporate Strategy Communities and • Corporate Anti- integrity 1. Responsibility for society, government agencies governance Corruption communities and the 1. More active roles in • Anti- (205-2) environment as well as the community and corruption corporate image environmental • Economic Economic 2. Systematic risk development to foster value for Performance management and business the sustainable community (201-1, 203-1) operations in compliance development of and with rules and regulations communities environmental Business Policies based on 2. Water management and development 2018 Corporate KPIs CSR activity plans that are 1. Compliance with the 2018 mainly based on the CG Code of SET problems and needs of Risk Factors communities 1. Compliance with internal 3. Water sharing with and external rules and communities along the regulations, including laws water grid 2. Corruption Investors 1. Transparent operation and management Suppliers 1. Transparent and auditable operations Royal Irrigation Department 1. Continuous, consistent and timely support for activities that benefit communities SEC and SET 1. Anti-corruption initiatives 2. Compliance with applicable laws and adherence to corporate governance principles PAY INTENSIVE RESPONSIBILITY TO SOCIETY Create stability to society and community

To provide sustainable water solution with responsibility for society and community and encourage good quality of living for sustainability development Sustainability Report 2018 28 Eastern Water Resources Development and Management Public Company Limited

Policy Sustainability

The Company believes that the development of professional capabilities alone is not enough. It also takes ethical conduct, transparency, integrity, responsibility, and competitiveness to achieve desired stability and sustainability. The word “responsibility” in this context refers to responsibility towards oneself, the organization and the stakeholders. As an operator of natural resource business, the Company’s operational foundations and all processes are built around the goal of satisfying the needs of stakeholders and the considerations of economic, social and environmental impact, and are guided by the strategic framework referred to as “3 creations and 3 developments” to strengthen and drive the Company towards solid growth. creations Strategic framework of developments

Creating Creating Creating acceptance stability mutual value

Developing Developing Developing water and Promotion of quality Encouraging environment of life in lifelong campaign communities learnings Sustainability Report 2018 29 WE SEE THE FUTURE... Smart water for all

East Water and Sustainable Development In 2018, the Company embarked on business expansion into “total water solutions” to provide integrated services of raw water, industrial water, tap water, drinking water, wastewater treatment and recycled water services to clients in its operating areas (Chachoengsao, Chonburi and Rayong) and the Eastern Economic Corridor (EEC) zones in the eastern region of Thailand. The Company also renewed its vision, mission and strategy and defined its business direction and the Sustainability Policy for greater clarity. To strengthen its internal management foundation, the Company changed the structure of the Board and established the Corporate Governance and Sustainability The Company’s Sustainability Policy was approved by Development Committee which is chiefly responsible the Corporate Governance and Sustainability for the formulation of sustainability-related policies, Development Committee on 28 November 2018 and strategies and plans that are in alignment with the addresses the following dimension: Company’s business operations in economic, social 1. Corporate governance and environmental aspects. The Corporate Governance 2. Responsibility towards water quality change and Sustainability Development Committee also 3. Innovation management supports and promotes the Company’s activities that 4. Human rights and employment for sustainable contribute to the goals of sustainability and are economic growth connected with corporate strategy that is executed by 5. Involvement in community and social development management and addresses social and environmental and learning advocacy responsibility, positive relationships with stakeholders, transparency, and compliance with corporate governance principles. Sustainability Report 2018 30 Eastern Water Resources Development and Management Public Company Limited

8 Key Operation Guidelines (Disclosure 102-9)

1. Identify and analyze target industry 6. Contract and Customer Relationship Management • The Company aims to provide services to • In an effort to maintain customer satisfaction, domestic customers, i.e. industrial estates, multiple measures are implemented and factories, district administration organizations. regularly assessed in support of continuous In parallel, total water solutions ranging from improvement of the service quality and raw water, industrial water, tap water, drinking standards to meet customers’ needs. water, wastewater treatment and recycled water services are provided to customers in 7. Financial management operation areas and other locations with strong • Emphasis is placed on effective internal control investment potentials in Thailand. systems, continuous financial risk management, and preparation of an annual financial report 2. System design and development using appropriate accounting policies and • In designing and developing systems, information management systems of recognized advanced water management technologies standards. The report is certified by an auditor and innovations are employed for greater to ensure transparency and accuracy, reflecting effectiveness in terms of speed, accuracy, solid credit rating and credibility. water loss and cost reduction, and to cater to the needs of each customer. 8. Governance • Honesty, transparency, and auditability are 3. Water source and pipe network development central to the Company’s Code of Business • The water source databases of the Company Conduct and are the principles by which all and the Royal Irrigation Department are linked employees abide in their operation. Risk and integrated to enable accurate analysis and assessment and Business Continuity Planning assessment of water resources in different (BCP) are conducted annually. scenarios, and improve the effectiveness of water resource and cost management. The Company applies international regulations and standards as its guiding framework for business 4. Project management (construction projects) management to enhance its operations and drive • Construction is a major phase of each project and towards sustainability (Disclosure 102-12) as described exerts impact on almost the entire spectrum of below. stakeholders. To alleviate unfavorable impact, operating standards are jointly established and 1. Sustainability reporting standards of the Global agreed upon between contractors and local Reporting Initiative (GRI) communities 2. Securities and Exchange Act 3. 2017 Corporate Governance Code of the SEC 5. Community management 4. The Company’s Sustainability Policy • Effective water management is practiced to 5. The Anti-Corruption Policy of the Thai Institute of accommodate business needs and, at the Directors Association same time, upgrade the quality of life of 6. International Standards for the Professional residents in communities along the 491.8 km Practice of Internal Auditing water grid under the 3-pronged development 7. Notifications of the National Environment Board framework focusing on water and environment 8. Ministerial Regulation on Standard for Administration campaign, promotion of quality of life in and Management of Occupational Safety, Health communities, and encouraging lifelong and Environment B.E. 2549 learnings 9. Building Control Act Sustainability Report 2018 31 WE SEE THE FUTURE... Smart water for all

10. ISO 9001:2015 (Quality Management Systems) and of emission factors according to the standard ISO 14001:2015 (Environmental Management of the Energy Policy and Planning Office, Ministry Systems) of Energy 11. Professional practice standards applicable to 14. Labor laws and other laws applicable to human holders of license for professional practice under resources management the Engineer Act B.E. 2542 and the Engineering Profession Act B.E. 2505 In addition to the adoption of the aforementioned 12. Sustainable Development Goals (SDGs) of the regulations and standards, the Company joins various United Nations networks to create synergy, strength and sustainability 13. Greenhouse gas inventory according to the World through collaboration. Resource Institute’s guidelines and the estimation

Membership in Sustainable Development Networks (Disclosure 102-13)

Agency/Organization Benefits 1. Thailand’s Private Sector Collective Action Coalition Against Building trust and confidence in transparency Corruption (CAC) of business operations, which is a vital issue for all sectors By Thai Institute of Directors Association, Thai Chamber of Commers, International Chamber of Commerce Thailand, Thai Listed Companies Association, Thai Bankers’ Association, Federation of Thai Capital Market Organizations, Federation of Thai Industries, and Tourism Council of Thailand 2. Public-Private Partnership Committee on Water Resources Networking with business operators who are Management in Western Region the Company’s customers in the industry. Established by Federation of Thai Industries 3. Eastern Region Water War Room Working Group Closely monitoring and solving water issues in the Eastern region. Members are business operators in the industrial sector, Industrial Estate Authority of Thailand, Water Institute for Sustainability, and Irrigation Department 4. Member of CSR CLUB Building networks and gaining access to news updates about the CSR that the Stock By Thai Listed Companies Association Exchange of Thailand considers important 5. Committee Member and Technical Member Academic networking in water management at national level By Thai Waterwork Association 6. Member of Advisory Panel of the Eastern Forest Complex Joining forces in the preservation of forests Conservation Committee which are the origins of major water sources for the Company. By National Park Innovation Institute, National Park Office, National Park, Wildlife and Plant Conservation Department KEEP THE ENVIRONMENT CLEAN AND SAFE Keep the environment clean and safe

To provide efficiency water solution by paying intensive responsibility to environment and pollution control to maintain ecological balance Sustainability Report 2018 34 Eastern Water Resources Development and Management Public Company Limited

Responsible Operations Ensuring stability of Water Grid system (Disclosure 303-1)

Continuous industrial expansion in Eastern Thailand To ensure adequate raw water supplies for the current makes the region a key strategic point for investment and future customer demand, we have urgently in Thailand. Furthermore, the government’s Eastern enhanced the stability of our raw water transmission Economic Corridor (EEC) Project has led a significant network (Water Grid). development and transformation in the 3 provinces of the eastern region, i.e. Rayong, Chonburi, and Therefore, in 2018, to support the growth and Chachoengsao, especially in “Water” resources which investment of the industrial sector, East Water are essential for strengthening economic security. introduced the state-of-the-art innovation and technology in water management to further improve With this foreseen transformation, East Water has our service from the provider of “raw water” to the estimated an increase in water demand in the eastern provider of “Total Water Solutions” with the region by over 200 million cbm per year in the next customized system for each group of water users 10 years, increasing challenge for the Company including raw water, industrial water, tap water, as a government mechanism for developing water drinking water, wastewater management, and recycled system for industrial and domestic use in Eastern Thailand. water, and covering 4 service areas in 3 provinces.

BANGKOK

New City

MOTORWAY CHACHOENSAO

Laem Chabang New City Port

Industrial CHONBURI (EEC area and service areas of Estate EW with illustration of water transmission network of 491.8 kilometers that connect main water sources in Eastern Thailand)

ATTRACTIONS RAYONG

Double Track Rail High-Speed Rail New City

East Water Grid Map Ta Phut Port U-Tapao International Airport Sustainability Report 2018 35 WE SEE THE FUTURE... Smart water for all

The water sources and usage in each of our service Reserved water means the water sources that provide areas could be analyzed as follows: source backup for the main water sources. The water must be reserved beforehand Rayong for use upon low water level in the main Most water users are those in industrial sector who use sources or water shortage. The reserved water from 3 major reservoirs, i.e. Dok Krai, Nong Plalai, water sources are Samnak Bok pond, and Prasae reservoirs. Chachoengsao pond, and Bang Phra reservoir. Chonburi and Bo Win - Pluak Daeng The area is the country’s new strategic line. Most Regarding water sources allocated by the Royal water users in the area are those in the household Irrigation Department, each year the Irrigation Office consumption sector. However, according to the 9 holds a meeting of non-agricultural water users geographical condition, the area has only two water (household and industrial consumers) to agree on reservoirs, Nong Kho and Bang Phra, causing the area water allocation for permitted users. Annual water to rely on raw water from Nong Plalai and Prasae allocation round starts in November and lasts until reservoirs in Rayong through EastWater’s transmission October of the following year. During the water network. allocation period, meetings will be held to monitor water consumption, which varies with the water Chachoengsao situation, and make additional water allocation when Most water users in the area are those in the household there is additional inflow of water to the reservoirs. consumption sector with the Bang Pakong River as the main source of water. However, as Chachoengsao As for water pumping from the Bang Pakong River, faces saltwater intrusion, some areas suffer from East Water will only pump water in the rainy season. freshwater shortage in the dry season. To ensure year- During the past year, water pumping was carried out round water supply, raw water must be purchased from July - December 2018 and the water was from private water sources during the dry season while, distributed mainly to household and industrial during the rainy season, water must be pumped from consumers in Chachoengsao with part of it being the Bang Pakong River for temporary storage at our diverted to Bang Phra reservoir and Samnak Bok pond water reserve pond, Samnak Bok pond, for use during as reserved supply for water users in Chachoengsao the dry season. and Chonburi areas in the dry season. The water sources that East Water manages are surface Regarding water management in 2018, water water that can be pumped up from water sources pumping at all sources was carried out in accordance which can be divided into two categories according to with a water allocation permit, and additional raw the usage, i.e. main water source and reserved water water was purchased from private sources to ensure source. security of water supply in Chachoengsao during the dry season. However, most of the water used was Main water means water sources that are allocated from water sources in the area to reduce the electricity source by the Royal Irrigation Department cost for water pumping. including Nong Kho, Dok Krai, Nong Plalai, Prasae and Bang Phra reservoirs (from The total amount of water pumped up for management 1 February - 30 September 2018). This also during 2018 (for use in 2018-2019) was 243.00 million includes other sources of water that can cbm, lower than the previous year’s volume, due to be pumped out for use each year. The the self-reliance of some tap water users who used water supply comes from the seasonal alternative sources of water in Chonburi during the runoff at sources like the Bang Pakong rainy season. Total volume of water pumped from River and other private water sources. main water sources could be categorized as follows: Sustainability Report 2018 36 Eastern Water Resources Development and Management Public Company Limited

Table showing volume of water from main water sources managed by East Water in 2017 - 2018

Total volume of water for management Allocated Water Pumped Pumped Storage (as per Water Source Capacity the water Water Water Remark allocation permit) (2017) (2018) Million cbm Million cbm Million cbm Million cbm Rayong 1. Prasae Reservoir 248.00 88.00 41.20 38.77 In 2018, the Company used 15.83 million cbm of water from Prasae-Khlong Yai Pipeline and 22.94 million cbm of water from Prasae-Nong Plalai Pipeline. 2. Nong Plalai 163.75 120.00 102.35 115.49 3. Dok Krai Reservoir 79.41 116.00 81.39 77.11 Allocated water of 116 million cbm was higher than the reservoir capacity as the volume of possible water inflow to the reservoir was also taken into account. Chonburi 4. Bang Phra Reservoir 117.0 10.00 - 5.88 The Company got a water consumption permit (temporary) (temporary) to use 10.00 million cbm of water in Bang Phra Reservoir (between 1 February - 30 September 2018). In January 2018, the Company used the remaining reserved water of 2.16 million cbm and the allocated water of 5.88 million cbm. 5. Nong Kho Reservoir 21.40 16.70 20.02 10.81 In 2018 (January - December 2018), the Company used 10.81 million cbm of water from Nong Kho Reservoir. Considering the water allocation round of 2017 - 2018 (November 2017 - October 2018), the Company used 11.22 million cbm of water from Nong Kho Reservoir, the volume of which is under the permitted volume of 16.70 million cbm Chachoengsao 6. Bang Pakong River - 27.00 7.31 6.05 Water pumping was carried out only in the rainy season and in accordance with the agreement made with Chachoengsao Province. Part of the water was diverted to store at Bang Phra Reservoir and Samnak Bok Pond as reserved water for Chachoengsao and Chonburi in the dry season. In 2018, the Company pumped water from the Bang Pakong River to supply Chachoengsao area, with the remaining 0.74 million cbm of the pumped water being kept at Samnak Bok Pond as reserved water. 7. Private Water Sources - - 0.25 8.00 Water from private water sources was distributed to Chachoengsao area in the dry season and 2.98 million cbm from private water sources was stored at Samnak Bok Pond as reserved water. 8. Rainwater from - - 0.26 0.26 Accounting for 5.59% of the total volume of water Samnak Bok Pond in the pond calculated from average monthly rainfall x surface area (according to the average volume of rainfall in the report on study of suitability and survey on design of raw water pipeline for Prasae - Nong kho - Bang Phra Reservoirs, Faculty of Engineering, Kasetsart University, February 2018). Total - 377.70 252.78 262.37 Sustainability Report 2018 37 WE SEE THE FUTURE... Smart water for all

In creating stability of the Water Grid to ensure (Source: http://www.onep.go.th/climatechange/ sufficient water supply in the long term, East Water index.php/about-east-5) has referred to the study on climate forecast in the eastern region by the Office of Natural Resources To cope with the potential drought in the eastern and Environmental Policy and Planning (ONEP) using region, the Company has established a plan to enhance the MRI GCM model developed by the Meteorological stability of the water transmission network which Research Institute of Japan and the climate change consists of 3 components: data sets obtained from the climate change model. • Raising water capital capability The historical data of daily rainfall and temperature • Developing Water Grid from the Thai Meteorological Department and • Collaborating with various agencies involved the Royal Irrigation Department (1979 - 2006) and and making weather forecast the daily rainfall, temperature, and wind speed from the model (1979 - 2006, 2015 - 2039, 2075 - 2099) were I Raising Water Capital Capability: used to analyze the hotspots. According to the study: The Company has established short-term, medium-term, • The risk of flood in the near future is less than and long-term development plans for sources of water the base year while the risk in the far future capital to ensure stability of raw water sources to build is higher than that in the near future. customer confidence in the next 20 years. Adjustments • The risk of drought in the near future is higher were made to the previous year’s plans to keep up than the base year and the risk in the far future with the current situation and to ensure that water is higher than that in the near future users would not be affected. Details of the plans are as shown below.

Demand & Supply Forecast 20 yrs.

900 1. Raising the 3. Klong Luang 6. Prasae additional water 7. Thab Ma pond 8. Prasae additional water 9. Water diversion Klaeng 850 efﬁciency of 40 Million cbm allocation 50 Million cbm 20 Million cbm allocation 70 Million cbm district 70 Million cbm Bang Pakong River 4. Thab Ma pond (Klong sapan-PS-NK-BP) (Klong Wang Ta 800 by 20 Million cbm 27 Million cbm Not-PS-NK-BP) 2. Klong Phan Thong 5. Private ponds 750 20 Million cbm 4 Million cbm

700 719

650 649 Forecast water capital 600 719 Million cbm 579 550 559

500 509 450 438 400 Current water capital 350 398 Million cbm 296 300 279 278 282 282 256 251 260 250 Water volume (million cbm) volume Water

200

150

100

0 2012 2013 2014 2015 2016 2017 2018 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2019

II Developing Water Grid: The Company has continuously enhanced the capability of Water Grid. In 2018, the Company continued its attempt in the 5 projects carried on from 2017 and the progress is as follows: (1) Energy and Water Resources Management System Project Phase II (EWMS Phase II) To study and install necessary measuring equipment to support EWMS in water management and link data of water sources from the Royal Irrigation Department to the Company’s data in order to monitor and more accurately forecast the water situations in the eastern region. The project was completed in 2018. Sustainability Report 2018 38 Eastern Water Resources Development and Management Public Company Limited

(2) Construction of the 2nd Nong Plalai - (EEC), the Thai Meteorological Department, the Nong Kho raw water pipeline Department of Royal Rainmaking and Agricultural To respond to water demand in Chonburi and Aviation. Bo Win - Pluak Daeng areas and prepare for possible water shortage in the future. The Availability of Water Grid pipeline has a transmission capacity of 60 million Water loss control is always one of the priorities of cbm of water per year. The raw water pipeline East Water as we are committed to obtaining maximum installation was completed in 2018 and the benefits from the water pumping that requires both water transmission could not be underken energy and water resources in order to efficiently through the network. As for 2019, the pump deliver water to our customers. station improvement program is under discussion and is expected to complete in 2020. With that goal in mind, the Company has initiated the (3) Enhancement of pumping capacity from the Pipeline Risk Prioritization, details of which are shown Bang Pakong river under “Innovative Water Conservation Solutions” (Page To raise efficiency of the water pumping system 97), to assess potential risks from pipeline leaks to pump water from the Bang Pakong river to throughout the 491.8 kilometers stretch of the Water Bang Phra reservoir by 20 million cbm per year Grid and to identify appropriate methods and to prepare for future water demand in technologies for maintenance and prevention as well Chachoengsao and Chonburi. The project is as estimate the future maintenance cost to extend the expected to complete in 2020. life of the water pipeline and achieve maximum cost III Collaboration and weather forecast: To ensure effectiveness. This is due to the increasing trend of the that the Company’s water management plan is volume of non-revenue water (NRW), with 3.50% appropriate and in line with the current situations, reported in 2018, caused by the leaks in the East Water has worked closely with relevant Bang Pakong-Chonburi pipeline and the 2nd Nong Plalai- agencies such as the Royal Irrigation Department, Nong Kho pipeline. Water War Room, Eastern Economic Corridor Office

(Pumped Volume - Customer’s Consumption - Reserved Volume) % NRW = X 100 Pumped Volume

Non Revenue Water 4.00% 3.50% 3.43% 3.50% 3.28% 2.90% 3.00% 2.69% 2.44% 2.50% 2.23% 1.94% 2.00%

1.50%

1.00%

0.50%

0.00% 2011 2012 2013 2014 2015 2016 2017 2018

Remark: In October 2018, some water was pumped and supplied to Bang Pakong Provincial Waterworks Authority but no charge was recorded in accounting. Sustainability Report 2018 39 WE SEE THE FUTURE... Smart water for all

Table showing volume of pumped water in 2018

Volume of water Volume of water Volume of stored water Month pumped distributed measured Water Loss %NRW (cbm) (cbm) (cbm) (cbm) January 22,265,657 21,600,185 0 665,472 2.99% February 19,752,438 19,174,562 0 577,876 2.93% March 22,423,929 21,154,031 0 1,269,898 5.66% April 21,998,281 20,452,850 381,086 1,164,345 5.29% May 21,432,147 20,598,681 522,391 311,075 1.45% June 22,050,268 20,588,698 919,856 541,714 2.46% July 23,161,049 21,533,008 1,157,954 470,087 2.03% August 22,965,383 22,111,385 494,380 359,618 1.57% September 21,462,817 20,915,420 0 547,397 2.55% October 20,945,041 20,174,058 81,536 689,447 3.29% November 21,135,022 19,763,909 139,092 1,232,021 5.83% December 23,115,719 21,730,097 20,733 1,364,889 5.90% 262,707,751 249,796,884 3,717,028 9,193,839 3.50%

Remark: Out of the pumped water from Samnak Bok Pond, 3.72 million cbm was reserved water from the Bang Pakong River and private water sources in 2018. The Company has continued its commitment to Medium-term water shortage prevention plan in establish stability and reliability of the water pumping the event of drought and distribution system and set the target that there Despite no drought in 2018, the Company still shall be no damage to the machinery and equipment implemented the systematic water shortage prevention to the level that causes disruption to the system and plan in order to prepare for any potential water there shall be no suspension of water distribution from shortage problem in the next 1 - 2 years. In so doing, the Water Grid. Also, the temporary shutdown for the Company ran the simulation of water situation to maintenance is capped at 8 hours each time provided study water shortage of the major reservoirs, namely that Class A machinery or equipment must not Dok Krai, Nong plalai, and Khlong Yai reservoirs, experience a shutdown. by constructing 4 scenarios as follows:

50% 10% 5% 2.5%

Water volume is at Drought as in 2004-2005; Drought as in 1997; Severest drought in average yearly level ; 10% probability 5% probability 20 years; 2.5% probability 50% probability (water to be pumped (Water to be pumped (Water to be pumped and diverted from and diverted from and diverted from Prasae - KhlongYai Prasae - KhlongYai Prasae - KhlongYai pipeline and Prasae - pipeline and Prasae - pipeline and Prasae - Nong Plalai pipeline) NongPlalai pipeline) NongPlalai pipeline) Sustainability Report 2018 40 Eastern Water Resources Development and Management Public Company Limited

Simulation of Water Situation in Dokkrai, Nong Plalai and Khlong Yai Reservoirs from 2017-2019 with 3 years’ water reserve

Year 2017 Year 2018 Year 2019 400 Scenarios: 380 Water inflow to the reservoirs at yearly average level 360 Water inflow to the reservoirs at the lowest level in 20 years (2.5%) 340 Water inflow to the reservoirs at Year 1997 level 320 (5%) Water inflow to the reservoirs at the same level as 300 Water storage of 283.36 million cbm in 2004-2005 (10%) 280 260 240 220 200 180 160 140 120 100 80 60 40 Minimum Storage of 19.50 million cbm 20 0 Jan 19 Jan 18 Jan 17 Oct 19 Oct 18 Oct 17 Sep 19 Sep Sep 18 Sep Sep 17 Sep Feb 19 Feb 18 Feb 17 Dec 19 Dec 18 Dec 17 Nov 19 Nov Nov 18 Nov Nov 17 Nov July 19 July 18 July 17 Aug 19 Aug Aug 18 Aug Aug 17 Aug May 19 May 18 May 17 June 19 June 18 June 17 April 19 April 18 April 17 March 19 March March 18 March March 17 March The operations undertaken in 2018 according to Tap Water Consumption at East Water (Disclosure the water shortage prevention measures could be 303-1) summarized as follows: In addition to the attempts to create security of water 1. Pumping and diverting water from Prasae reservoir capital to support the country’s economic growth, through the pipeline to Khlong Yai reservoir the Company also attaches importance to 2. Pumping and diverting water from Prasae reservoir the economical use of water in the office building through the pipeline to Nong Plalai reservoir through the 3R Principles, i.e. Reduce, Reuse, and 3. Pumping water from the Bang Pakong river to be Recycle. Recycled water was used for toilet flushing reserved at Samnak Bok Pond using the Company’s and water saving campaigns were launched to promote pumping system at the Bang Pakong River Pump economical use and conservation of water among Station employees. 4. Pumping and diverting water from Nong Plalai reservoir for distributing to Chonburi and Bo In 2018, the Company’s average monthly consumption Win-Pluak Daeng areas of tap water was 2,806.41 cbm. The main sources of 5. Acquiring additional private water sources water supply were the Metropolitan Waterworks Authority (MWA) and the Provincial Waterworks Authority (PWA). Details of the water consumption by area are as follows: Sustainability Report 2018 41 WE SEE THE FUTURE... Smart water for all

Average Water Usage Total Water Usage Location Water Supplier (cbm / month) (cbm) East Water Head Office1 MWA 2,542.25 30,507.00 Operations Office2 PWA 65.25 783.00 20 Water Pump Stations3 PWA 194.16 2,330.00 Staff residence4 PWA 4.75 57.00 Total 2,806.41 33,677.00 Remark: Data 1 shows water usage in the Head Office (22nd–26th Floors) and all common areas. Data2 shows water usage at Rayong Operations Center and Laem Chabang Office. The water meter at Chachoengsao Office is combined with the water meters of Chachoengsao Pump Station and other offices in the area. Data3 shows water usage of 6 pump stations supplied by PWA. The Company produced tap water for use at 7 pump stations by using raw water considered NRW. These pump stations are Nong Plalai Stations 1-3, Nong Plalai Pressure Booster Station, Bang Pakong River Station, Nong Kho Station, and Prasae 2 Station. The remaining stations do not have tap water supply. Data4 shows water usage at Executive Residence at Rayong Operations Center. The residence at Chachoengsao Lift Station shares the water meter with Chachoengsao Pump Station. For other residences, the Company produced tap water by using raw water considered NRW. Customer Satisfaction Management (Disclosure 102-43, 102-44, 418-1) To live up our corporate value that focuses on service The result of customer satisfaction survey in each delivery and customer care as well as to maintain the service area revealed that the outstanding corporate desired customer satisfaction level, the Company has image in customers’ view was due to the stability and continuously improved our service provision by trustworthiness of the organization and its expertise in hearing customer complaints and suggestions (Voice water management. of Customer) through various channels including telephone, email, the Company’s website, site visit Regarding service expectations, the areas that during major festivals, and annual satisfaction customers had the highest expectation were the survey. The data will be compiled, analyzed and quality of water distribution service and control center subsequently brought to the consideration at the service as well as the quality of repair and maintenance meetings of the Operations & Customer Service service, followed by the disclosure of news and Department as well as the management meetings in information and the ability to meet customers’ needs order to continuously improve our service delivery to respectively. Relevant management therefore efficiently respond to needs and requirements of each attaches importance to the Control Center which is group of customers. the center of receiving and notifying information relating to quality and water distribution. Focus is given In 2018, the proportion of raw water distribution by to accuracy and speed of information disclosure. Also, service area was as follows: in 2018, the Company improved the water quality information disclosure by adding another data access Chachoengsao area channel through the Company’s website to facilitate Chonburi area 4.40% more convenience to water users. 14.20% Overall Customer Satisfaction Score: 2016-2018

Bo Win- 4.49 PluakDaeng area 4.34 4.23 11.50%

Maptaphut area Ban Chang and 60.70% Sattahip area Year 2016 Year 2017 Year 2018 9.20% Sustainability Report 2018 42 Eastern Water Resources Development and Management Public Company Limited

According to the 2018 customer satisfaction survey, of the customer, and coordinate with persons involved the satisfaction level is higher than the average to identify the causes, solutions, and preventive satisfaction level of the past 3 years by 3.62%. The measures to avoid recurrences. The AE then takes Company and parties involved realize the importance responsibility for following up on the matter and of maintaining the satisfaction level and focuses on providing updates to the customer until the complaint continuous improvement to data provision service. is resolved. Also, the AE will obtain the customer satisfaction result for the complaint handling and Complaint Handling Process prepare a complaint summary report on complaints When a customer complaint is received, an Account for submission to the parties involved and the Executive (AE) will keep a log of the complaint management on a monthly basis. specifying details, complaint category, contact details

Request additional information

Not pass Pass

Person Account Executive (AE) Resolve Assess result Prepare Report to ﬁling a complaint the complaint summary report the management

Keep complaint log - Complaint details - Contact information

Complaints and Complaint Handling and prevention measures within the specified time Although the Company received No. complaints in frame according to the internal control system relating 2018, the Company realizes the importance of to complaint handling and prevention. Once the complaint handling and prevention. Complaint receipt cbmcomplaint is solved, the customer would be asked and cbmhandling processes have been established to rate their satisfaction level and the results would whereby cbmcomplaints and service requests would be compiled for further reporting to the management be cbmcategorized and forwarded to the respective on a monthly basis to support continuous improvement cbmresponsible persons for root cause analysis, to the complaint handling process. cbmidentification and implementation of solutions Complaints received by the Company in the past:

Date/Month Issue Complaint Heading /Year 20 April 2016 Water volume and 1. Due to the drought, the water capital in the area was lower than pressure were the average. insufficient from 2. Adjusted the pumping system to get supplement water from Nong Kho 20-21 April 2016. Pump Station to increase water supply and pressure in the area, making the water pressure and distributed volume rise to the normal level. 12 May 2016 Raw water looked 1. Due to the drought, raw water must also be pumped from private cloudy and had sources to supplement the water distribution in the area. unpleasant smell. 2. Gave clarification of the cloudy and smelly raw water to the customer and discussed the plan to change water sources and improve blow-off. 11 October Water was very cloudy, Removed sediments before the water distribution point. 2017 and the customer requested that examination be made Sustainability Report 2018 43 WE SEE THE FUTURE... Smart water for all

In addition to paying visits to customers to survey their To continuously enhance understanding and confidence satisfaction level and listen to complaints, each year among customers, the Company organized the following the Company also invites customers to the meetings to events with the customers: share updates and useful information as well as give comments and suggestions for the purpose of service improvement.

Activity Target Group Objective / Details of the Project East Water Open House • New accounts To introduce the Company to new and • Potential customers future water users as well as interested (new opportunities) persons and give knowledge and • Existing customers who are understanding of water management and interested distribution with modern technology to • Customers in the industrial build confidence and support decision estates (End Users) making to become water users in the future. Education Seminar • Existing customers To report the current situation of water • Customers in the industrial sources and the future outlook as well as estates (End Users) the update on quality of water sources and management and prevention measures to boost confidence among water users.

Based on the Company’s capabilities and business In 2018, the Company carried out the stakeholder opportunities, the Company has determined its busi- satisfaction survey in the service areas (Chachoengsao, ness direction to achieve long term sustainability by Chonburi, Rayong) under the topic of Future Business building on its raw water and tap water business with Opportunities. According to the survey on water the aim of enabling industrial entrepreneurs an access recycling process, 38.90% of the customers have to smart water solutions. already installed water recycling system while 61.10% have not yet had any. The data obtained from the With the wastewater treatment initiatives, wastewater survey would be further applied to identify business has been treated to meet the regulatory standards development opportunities with the customers to for effluent and to be suitable for reuse in the achieve sustainable business relationships. manufacturing process, resulting in water cost saving for the industrial entrepreneurs as well as environmental-friendly and economical use of water resources. Sustainability Report 2018 44 Eastern Water Resources Development and Management Public Company Limited

Adding Value to Quality Personnel 1. Corporate Cores Value reflects the underlying objective of creating sustainable (Disclosure 102-16) and stable business. As a water business operator, the Company attaches importance and has responsibility In 2018, the Company’s Vision and Mission were to our stakeholders. Such priorities have led to the revisited and revised. To ensure alignment and common East Water Group’s Core Competency of “SHARP” direction, a brainstorming session was organized to which would be continuously reinforced and translated identify a set of the Company’s Core Competency that into the behaviors exhibited by our employees. EWG’s Core Competency

S H A R P

Result Proactive & Stakeholder Holistic Adaptability Creative Focus Thinking Acceleration Thinking

The East Water Group’s Core Competency consists of: Adaptability Ability to work efficiently despite changes and ability Stakeholder Focus to adjust work plans and work methods that are Strong determination and attempts to deliver service flexible and suitable for the situations or persons to that fulfill the needs of all stakeholders (both internal achieve the goals and external) including staff, government agencies, private sector, business alliances, the community and Result Acceleration the public Commitment and dedicated effort to achieve success for the assigned tasks and meet the goals and Holistic Thinking expectations in a timely, efficient and appropriate Ability to see things as a whole and look at the problems manner, resulting in the maximum achievement for or challenges from every angle as well as ability to the operations and the organization as a whole clearly connect correlated data and all components of the matter including impact to the organization to Proactive and Creative Thinking arrive at the concept of the matter Ability to be proactive and creative to come up with new ideas, methods or innovations for improvement and development of work systems to enhance efficiency at individual, team and organization levels Sustainability Report 2018 45 WE SEE THE FUTURE... Smart water for all

2. Moving toward Becoming the belonging and encouraging new employees to exhibit National Water Management and strengthen their Core Competencies. Organization (Disclosure 404-1 ,404-2) Post-activity evaluation : Everyone passed the test with the average score of 85% Human Resource Development Satisfaction level : 92% East Water aims to develop the capabilities of our staff to realize our new vision and mission, and to prepare Personnel Capability Development and Evaluation for our entrant in the total water solutions business. In 2018, the Company focused on enhancing employee Moreover, the Company is committed to addressing capabilities to ensure alignment with the corporate the age and gender diversity which is one of the strategies and promote career advancement of the workplace challenges of the organization. To achieve employees. Human Resource Department worked that, the Company has established HR Master Plan to closely with line managers of each function in enhance capabilities of staff in different areas and to developing Individual Development Plan (IDP) and pass on knowledge throughout the organization with Annual Training Calendar in addition to other formats the aim of becoming a High-Performance Organization of development such as self-learning, work & Learning Organization in the future. Thee pillars of assignments, coaching. Training courses facilitated the HR Master Plan are New Employee Onboarding, in 2018 could be categorized as follows: Personnel Capability Development and Evaluation, and Organizational Knowledge Management. 1. Core Course These courses are compulsory courses that must New Employee Onboarding • be taken by all levels of employees to ensure The Company’s employee orientation program compliance with the provisions of laws and features the integrated approach of lectures and the policies stipulated by the Stock Exchange knowledge-based activities to provide new employees of Thailand, the Securities and Exchange information on key policies and standards for business Commission, and the Thai Listed Companies operation of the Group as well as the basic knowledge Association as well as the Company’s policies. about total water solutions. New employees will The Annual Training Calendar has been drawn join site visits to learn about raw water, tap water up with the collaboration of all parties involved. production and wastewater treatment. Lectures given by senior executives demonstrate “Priority” and In 2018, focus was given to organization “Attention” given to new employee onboarding as it • development to achieve sustainability. Work is considered that the onboarding program would lay processes have been improved. Adjustment was strong foundation for new employees and make them made to the roles and responsibilities of the clearly understand the business operation and able to Corporate Governance and Nomination deliver the desired performance. Committee to cover sustainability development and the Committee name was changed to Topics of the lectures on basic knowledge include: Corporate Governance and Sustainability • Raw Water Management Development Committee. Quality management, • Tap Water Business Management risk management and internal IT systems have • Total Water Solutions been revisited to enhance work efficiency. Thus, in addition to the regulatory requirements Topics of the lectures on key policies and standards such as Energy Conservation Course or Safety, include: Occupational Health and Working Environment • Safety, Occupational Health and Working Course, another 38 training courses that support Environment the aforesaid operation were organized to • Anti-Corruption Policy and Employee Code of ensure that relevant employees at all levels Conduct have adequate knowledge and understanding • Human Resource Management Policy to efficiently and correctly perform their tasks. • Sustainability Policy and CSR Framework Key courses in 2018 included: • Sustainability Course, GRI Standard In addition to building strong foundation of business • CG Code, Corporate Governance Principle knowledge, a number of activities have been designed and Code of Conduct to instill corporate culture and foster positive • ISO 9001, 14001, 45001: 2018 relationship among new employees to prepare them • Microsoft 365, IT Security Awareness to work together in the future. Events are organized to allow new employees an opportunity to meet with 2. Managerial Course and listen to the Company’s policies from senior These courses focus on building positive executives with the purpose of creating the sense of • relationship with government and private Sustainability Report 2018 46 Eastern Water Resources Development and Management Public Company Limited

sectors, promoting knowledge on government • Water Management Model policies related to the Company’s business • Project Management and Construction operation, developing leadership among Control executives at all levels, and grooming talent to • Engineering and Maintenance Management take on supervisory role in the future. There was • Water Transmission System Control a total of 19 courses under this category. • Effective Sales & Marketing Key courses in 2018 included: • Powerful mindset & Emotional Quotient • The 4 Essential Roles of Leadership • PPPs for Executive Program 4. Elective Course • Water Management Leader • The Company also arranges other training • Driving Performance by OKRs courses to promote employees’ self-development. • Executive Management Development Highlighted courses available in 2018 included Program English proficiency courses specifically designed • Thailand National Defence College (TNDC) based on nature of tasks of each group of employees such as English for Law and 3. Functional Course International Express Pre-Intermediate, English These courses focus on developing functional for E-mail and International Express • competencies of employees to be able to Pre-Intermediate, and Enhancing English efficiently carry out their current and Communication. Retirement planning courses future responsibilities as well as exhibit included Provident Fund Investment for SMART professionalism. The courses provide knowledge Retirement, and “Happy PVD Company” Project. and skills necessary for business growth and sustainability. The training plan in 2018 Results of Personnel Capability Development highlighted proactive marketing strategies, Average training hours were 76 hours per person product development, and operational per year. efficiency. The courses have been designed by • Male employees: An average of 87 hours per person Human Resource Department in collaboration per year; Female employees: An average of 66 hours with executives of each function and include per person per year both technical skills and soft skills to improve • Executive level: An average of 129 hours per person all relevant skills. Also, DISC theory was applied per year; Supervisory level: An average of 94 hours in some development courses. There was per person per year a total of 313 courses under this category. • Operating officer level: An average of 67 hours Key courses in 2018 included: per person per year • Project Feasibility Study, Laws on Investment

Number of Cost Course (%) (%) Courses (million baht) Core Course 38 15% 1.25 21% Managerial Course 21 8% 2.35 41% Functional Course 177 70% 2.04 35% Elective Course 17 7% 0.18 3% Total 253 100% 5.82 100%

The Company conducts annual performance evaluation Organizational Knowledge Management against KPIs on employees at all levels as well as As the society is experiencing changes due to competency assessment and work quality assessment technological disruption, the aging of the workforce or by supervisors to make employees realize their generation disruption poses the risk of losing workforce capabilities and improvement as well as to encourage knowledge and experience from retirement of aging continuous learning. In 2018, the Company was experts or resignation of younger talents. Therefore, developing performance evaluation system that is Knowledge Management becomes another challenging aligned with and reflects the Company’s Goals and and significant strategy for organizational development Vision. Also, adjustment was made to the Company’s and capability development of personnel in various Core Competency and Managerial Competency. As a fields as well as the tool for retention of critical result, the 2018 corporate performance assessment knowledge in the organization. was undertaken based on KPIs and quality of work only, and the overall performance was higher than that of the previous year. Sustainability Report 2018 47 WE SEE THE FUTURE... Smart water for all

In 2018, the Company initiated the Knowledge Sharing Philippines, and bring back the knowledge to further Contest 2018 to promote knowledge sharing and improve our work systems. transfer as well as systematically gather and store workforce knowledge and experience in the internal The human resource development budget of Baht 6.10 knowledge warehouse (Internal Web). Contest winners million (or an average of Baht 0.03 million per person) were given an opportunity to attend the “2018 IWA could be divided into: World Water Congress & Exhibition in Tokyo” to obtain • Budget for New Employee On Boarding: Baht 0.10 global water management business perspective. million Post-contest activities were held for knowledge and • Budget for Personnel Capability Development experience sharing among relevant parties between and Evaluation: Baht 5.82 million group companies to build on the idea and apply • Budget for Organizational Knowledge the knowledge to problem solving and system Management: Baht 0.18 million improvement of the group companies in 2 issues. The project was a pilot project for enhancing and Talent Management and Succession Plan integrating knowledge for system improvement in order To support the business growth and to increase the to achieve continuous quality improvement and number of talents with competencies necessary successfully implement best practices. for successful implementation of the Company’s business strategies and outstanding performance, Moreover, the Company organized knowledge sharing the Talent Management and Succession Plan was from 148 employees and 1 executive retiring in 2018. under formulation process according to the framework Courses included: laid out in the HR Master Plan and is expected to • Presentation & Infographic completely formulated in the following year. • Advance Excel • Budgeting and SAP Budget Report In 2018, the Company engaged the service of HR • Workflow System management development consultant to revisit • Introductory PLC Programming relevant criteria and guidelines covering Performance • Security Awareness Management System (PMS), Career Path Development, Talent Identification and Succession Plan, with the key Training materials and contents would be stored in the purpose of aligning and connecting all the systems to Company’s Internal Web to serve as main source of deliver sustainable performance for the organization knowledge for interesting employees to access at any and to lead the organization toward the goal of time. becoming High Performance Organization. Also, in developing the succession plan, critical jobs in the Besides internal knowledge sharing, in 2018, the Company group companies were identified to support further also arranged for continuous exchange of information and successor preparation. Upon completion of the experience in accounting and finance system and investor succession plan development process, the individual relations system with Manila Water (Thailand) Co., Ltd., development plan would be created to prepare the Company’s shareholder. In addition, a field trip was employees for future career advancement. organized to study work systems at Manila Water (MWC), Talent Succession Planning Framework

Succession Planning Framework and Overview

Identify core positions Identify potential successors Design training courses that require succession planning with suitable qualiﬁcations to develop and groom successors and potential

POSITION

Identiﬁcation Successor Identiﬁcation Successor Development Plan of Core Positions Process and Assessment

• Identify strategic core positions • Identify successors from various • Establish IDP for successor development. (Mission Critical Position: MCP) sources such as Talent Pool, • Give significant and challenging according to the criteria. qualified personnel, assignments to successors. • Create Success Profile of each core or external recruitment. • Apply various development approaches position to determine qualifications • Establish Personal Profile of such as Job Shadowing or Job Rotation. and expectations. the selected successors. • Carry out regular assessment. Sustainability Report 2018 48 Eastern Water Resources Development and Management Public Company Limited

Sharing Knowledge with the Society government officers. The learning plan included As an organization with expertise in water management learning approaches and methods, time frame, for the eastern coast area, one of the areas with details of the training and assessment, and covered complex water management issues, the Company knowledge, competencies, skills and experiences in organized knowledge sharing activities to various groups the various areas such as: through a variety of approaches: • Leadership and Management in the Private Sector 1. Public Service Executive Development Program • Organizational Management (PSED) by Institute for Good Governance • Formulation and Implementation of Strategies Promotion, Office of the Public Sector and Action Plans Development Commission (OPDC) The Company has been selected by the Institute The training program included not only the for Good Governance Promotion, Office of the Pub- experience sharing by the President & Chief Executive lic Sector Development Commission (OPDC), to join Officer. Other executives were also assigned to the Public Service Executive Development Program facilitate the knowledge sharing session about the for 8 consecutive years since 2011 with a total of 8 Company’s business. Furthermore, the participants government officers received training at East Water were given opportunities to share their views to date. With the Company’s senior executives beneficial to the organization to further enhance serving as mentors, the government officers in the efficiency. younger generation were given opportunity to learn about work processes in the private sector as part 2. Student Internship Program of the cooperative program to create and develop The Company arranges a student internship program new generation of government officers as change to provide work experiences in the real-world con- leaders in the public sector and the strong workforce text to university students to develop their compe- for country development in the future. tencies and prepare them for their future career life. Number of students joining the program could be During the program, learning plan was developed summarized as follows: by the Company, the mentors, and the participating

Student Internship Program

Year Year Year Year 2015 2016 2017 2018

6 5 4 4 persons persons persons persons

Bachelor’s Degree Diploma

In addition to the opportunity to develop new skills 50% of the prevailing highest minimum wage rate to and get hands-on experience provided to the the interns at least once a month). participating students during the internship program, the Company also arranged for mentors to provide Employees’ Quality of Life coaching throughout the internship period, accident Compensation Management, Pay Structure, and life insurance coverage, daily allowance for Compensation & Benefits (Remuneration Policy) internship as stipulated by laws (in accordance with The Company has a policy to determine remuneration the Notification of the Ministry of Labour prescribing appropriate for employees at all levels and, on a the rules regarding protection for interns, Section 2, short-term basis, reflecting the Company’s operating Items 10 and 11 which stipulates that the Company is results each year as well as comparable to companies required to pay allowance at the rate not less than in the same industry. (Disclosure 401-1) Sustainability Report 2018 49 WE SEE THE FUTURE... Smart water for all

In determining remuneration, the Company adopts Employee welfare management attempts include: the Pay for Performance approach by using Key Welfare Committee (Disclosure 102-41) Performance Indicators (KPIs) in annual performance The Company does not have a labor union, but the assessment of employees at all levels. Individual KPIs Welfare Committee has been established pursuant to are aligned with the team and organizational KPIs Section 97 of the Labour Protection Act B.E. 2541 to set common direction toward the goals and whereby Committee Members are elected to serve on achievement of the Company’s vision and mission. the Committee with a 2 years’ term of office. All full-time employees are entitled to apply as candidate In the long term, performance evaluation and and cast vote to elect the Committee Members. For capability assessment are carried out to determine this purpose, the Election Committee would be set up remuneration that is commensurate with the to oversee the election to ensure transparency. employees’ competencies and capabilities. Priority is also given to talent development for career In the past, the Company had only one Welfare advancement. In addition to compensation review, Committee. However, in 2018, with the growing East Water regularly revisits the Company’s welfare number of employees and employee diversity, the benefits review through the Welfare Committee Company additionally organized an election of the Meeting that comprises representatives of employees Welfare Committee for Rayong operating site. As who give opinions and suggestions on the organization’s a result, the Company currently has 2 Welfare welfare benefits to ensure that the benefits offered Committees, one at the Head Office and another at are suitable for the changing economic and social the Rayong operating site, comprising a total of 10 situations. members (accounting for 4.52%) who are representatives of employees at all levels of the Head Office and In 2018, the Company carried out several human Rayong operating site. The Welfare Committees are resource development initiatives according to the HR responsible for overseeing and supervising the provision Master Plan including Performance Management of welfare benefits as well as holding discussions and System (PMS), Career Path, and Succession Plan, and providing suggestions beneficial to the Company and would continue developing the processes with the the employees. The Welfare Committee at the Head purpose of becoming High Performance Organization. Office would complete its term in May 2019 while the Welfare Committee at Rayong operating site would complete its term in May 2020. The Welfare Committee Members

by corporate by by level gender region

supervisory male Central level 1 person employees 4 persons Region 5 persons operating female Eastern ofﬁcer level 9 persons employees 6 persons Region 5 persons

Performance of the Welfare Committee in 2018 Employee Welfare and Benefits (Disclosure 401-2) (1) Considered the list of employees with appropriate The Company provides welfare benefits to alleviate qualifications for loan interest support burden on employees on an equal basis. These benefits (2) Held consultations for employees to be entitled to could be classified as follows: receive medical examination and treatment at (1) Basic welfare benefits that are provided to desired accredited hospitals all employees on an equal basis: (3) Obtained and communicated welfare and benefits - Annual physical checkup data such as provident fund to employees - Childbirth cost (4) Listened to employees’ suggestions and feedback - Health insurance and escalated the matter to the management, - Group life insurance for example, flexible benefits, Internet speed, etc. - Compensation for loss of income due to sickness / disability / death - Disaster relief Sustainability Report 2018 50 Eastern Water Resources Development and Management Public Company Limited

(2) Flexible welfare benefit that is available for can take part in creating opportunities and improving employees based on their necessity within the quality of life for the disabled to the same level specified limit. New employees will be entitled as normal persons, the Company has hired the disabled to this benefit on pro rata basis. as full-time employee since 2017 (under Section 33). (3) Maternity leave In so doing, the Company gives the disabled (4) Provident fund equal opportunity as other employees in terms of task (5) Retirement benefit (N/A) assignments based on knowledge and expertise as well (6) Employee stock options (N/A) as compensation and benefits in accordance with the Empowerment of Persons with Disabilities Act B.E. 2550. Workplace environment In 2018, some of the area in the Head Office was To uphold the basic human rights, in 2018, the allocated for a canteen and a fitness center to promote Company posted a job announcement to recruit the employee health and wellness and thus enhance the disabled from outside to work for the group companies quality of working life. to give a chance for disabled persons to work full-time and live a normal life as well as support development Respect for Human Rights of the organization. Realizing that the Company is part of the society that

Actions taken to ensure compliance with the Empowerment of Persons with Disabilities Act, B.E. 2550 (2007) Number of disabled persons supported by East Water (persons) 2016 2017 2018

Section 33 Hiring persons with disabilities 1 1 1

Remitting contributions to the Fund for Section 34 Empowerment of Persons with Disabilities 1 1 -

Granting concessions and arranging Section 35 a place for the disabled persons to sell goods or services, employing under a temporary employment contract, - - 1 providing training, aids or equipment, sign language interpreters or any other assistance to the disabled persons or their caregivers. 2 2 2

Safety, Occupational Health and Working thoroughly understand and seriously implement the Environment behavior-based safety (BBS) principles. With that in The Company attaches importance to safety, mind, the Company organized workshops for target occupational health and working environment employees at operating level who are working in the management with the “Zero Workplace Accident” operating sites and exposed to various risk factors as target. In addition to carrying out operation in well as operating officers at the Head Office with up accordance with the laws, the Company adopts to 3 years of service in order to encourage employee relevant standards to create safe workplace participation and involvement in workplace safety. environment and enhance the quality of life of employees, business partners, and contractors. In 2018, one minor accident occurred to 2 employees and 1 contractor who fainted after working in the confined The Company is determined to apply behavior-based space. All of them were taken to the hospital for safety (BBS) approach to employees at all levels as medical treatment immediately after the accident. BBS is one of the widely acceptable techniques that Seriousness of the accident as specified in the Company’s could reduce accidents and injuries as well as instill Safety Manual could be categorized into 3 levels safety culture in the organization when all employees as follows: Sustainability Report 2018 51 WE SEE THE FUTURE... Smart water for all

1. Minor accident means: The employee has 3. Severe accident means: The employee suffers minor injuries and could resume work after severe injuries (and required to be off for longer receiving first aid or medical treatment or must than 30 days), loss of limb, disability, or loss of be absent from work no longer than 3 days or life. The damage to properties costs Baht 700,000 the accident results in the damage of not more or higher and/or the production process than Baht 100,000 while causing no interruption is interrupted for more than 8 hours and/or to the production process and/or no impact to the external environment is impacted. the Company’s internal environment. 2. Moderate accident means: The employee is In response to the aforementioned accident, injured to the level that the doctor requires the Company set up an investigation committee to him/her to be off from work for more than analyze the root cause and identify preventive 3 days but not more than 30 days, or the cost measures to avoid recurrences. The urgent measures of damage to properties ranges between taken by the Company were organizing training for Baht 100,000 – 700,000 and/or the production employees working in the confined space and arranging process is interrupted for up to 8 hours and/or for oxygen meters and additional ventilation system. the Company’s internal environment is impacted. Work-related illness rate, injury rate and fatality rate (Disclosure 403-2) are as shown in the table below.

Number of total work-related injuries - Employees (Injury Frequency Rate: IFR) (Table1)

Year Total work-related injury - Employee 2014 2015 2016 2017 2018 Number of casualties (persons) M F M F M F M F M F Total - Head Office (Bangkok) 0 0 0 0 0 1 0 0 0 0 - Minor injury 0 0 0 0 0 1 0 0 0 0 - Moderate injury 0 0 0 0 0 0 0 0 0 0 - Severe injury 0 0 0 0 0 0 0 0 0 0 Total - Operating Sites 0 0 0 0 0 0 0 0 2 0 - Minor injury 0 0 0 0 0 0 0 0 2 0 - Moderate injury 0 0 0 0 0 0 0 0 0 0 - Severe injury 0 0 0 0 0 0 0 0 0 0 Injury Frequency Rate (IFR) - Head Office (person per one 0.00 0.00 0.00 0.00 00.00 million hours worked) Injury Frequency Rate (IFR) - Operating Sites (person per one 0.00 0.00 0.00 0.00 16.01 million hours worked) Injury Frequency Rate (IFR) - Total Employees (person per one 0.00 0.00 0.00 0.00 4.64 million hours worked)

Number of lost time injuries - Employees (Injury Severity Rate: ISR) (Table 2)

Year Lost time injury - Employee 2014 2015 2016 2017 2018 Number of casualties (persons) M F M F M F M F M F Head Office (Bangkok) 0 0 0 0 0 0 0 0 0 0 Operating sites 0 0 0 0 0 0 0 0 1 0 Injury Severity Rate (ISR) - Head Office (person per one 0.00 0.00 0.00 0.00 0.00 million hours worked) Injury Severity Rate (ISR) - Operating Sites (person per one 0.00 0.00 0.00 0.00 8.00 million hours worked) Injury Severity Rate (ISR) - Total Employees (person per one 0.00 0.00 0.00 0.00 2.32 million hours worked) Sustainability Report 2018 52 Eastern Water Resources Development and Management Public Company Limited

Lost Time Injury Rate (LTIR) = (Number of lost time injuries X 1,000,000)/Number of hours worked by gender Male = 4.79 Female = 0.00 Lost Day Injury Rate (LDIR) = (Number of lost work day X 1,000,000)/Number of hours worked by gender Male = 4.79 Female = 0.00 Injury Rate (IR) = (Total injuries X 1,000,000)/Number of hours worked by gender Male = 9.58 Female = 0.00 A minor accident occurred to one contractor. The accident statistics could be summarized as per the table below. Number and Severity of accidents-Contactor (Table 3)

2017 2018 ตารางสรุปจำ�นวนและความรุนแรงในการเกิดอุบัติเหตุ- ผู้รับเหมา(ตารางที่3) Total Injury Injury Total Injury Injury casualties Severity of injuries Frequency Severity casualties Severity of injuries Frequency Severity Project / Subcontract work (persons Rate Rate (persons Rate Rate

Minors Moderat Severe Minors Moderat Severe M F IFR ISR M F IFR ISR M F M F M F M F M F M F Improvement of electricity 0 0 0 0 0 0 0 0 0.00 0.00 0 0 0 0 0 0 0 0 0.00 0.00 system 115/22-3.3 kV at Chachoengsao and Bang Pakong Pump Stations Construction of the 2nd 1 0 1 0 0 0 0 0 0.00 6.88 0 0 0 0 0 0 0 0 0.00 0.00 Nong Plalai - Nong Kho Pipeline Improvement of 0 0 0 0 0 0 0 0 0.00 0.00 0 0 0 0 0 0 0 0 0.00 0.00 Chachoengsao Pump Station Acquisition and installation 0 0 0 0 0 0 0 0 0.00 0.00 0 0 0 0 0 0 0 0 0.00 0.00 of the 7th set of pump- motor with power system at Bang Pakong Pump Station Pipeline maintenance 0 0 0 0 0 0 0 0 0.00 0.00 1 0 1 0 0 0 0 0 2.63 Total statistics on safety and work-related accidents of subcontractors for big projects 2.63 (only for projects with contract, pipeline maintenance, security service, cleaning service, gardening service and assistant mechanics, totaling 130 persons), excluding Head Office * Number of hours worked per person per year (Contractors) = 365 days x 8 hours = 2,920 hours Lost Time Injury Rate (LTIR) = (Number of lost time injuries X 1,000,000)/Total number of hours worked = 2.63 Lost Day Injury Rate (LDIR) = (Number of lost work day X 1,000,000)/Total number of hours worked = 2.63 Injury Rate (IR) = (Total injuries X 1,000,000)/Total number of hours worked = 2.63 Sustainability Report 2018 53 WE SEE THE FUTURE... Smart water for all

Based on the statistics of the past work-related area under responsibility. The number of working team accidents, most of the accidents occurred at operating members is as stipulated by the Ministerial Regulation sites. To ensure flexibility as well as fast and efficient of the Ministry of Labour on the Prescribing of standard incident management, the Company has established for administration and management of occupational two working teams to work on safety, occupational safety, health and environment B.E. 2549, Chapter 2, health, and working environment, i.e. one at the Bangkok concerning Committee on Occupational Safety, Health Head Office and another at the operating sites, and Environment of the Workplace. Members of both to thoroughly oversee the operations in the respective working teams (Disclosure 403-1) are as follows:

Bangkok Operating Ofﬁce Sites

Chairman 1 person 1 person

Committee member at supervisory level persons persons representing the employer 2 4

Committee member persons persons representing employees 3 5

Occupational safety officer at professional level person persons (Also serve as commitee secretary) 1 1

Roles and responsibilities of the 2 committees cover: 2. The manual on requesting permission to work in 1. Occupational health management the Company’s premises was formulated as a tool 2. Working environment for systematic operation control of highly hazardous 3. Fire prevention and fire fighting tasks as well as the monitoring and controlling of 4. Working with machines contractors’ operations to ensure that safety check 5. Confined spaces procedures are carried out before, during and after 6. Electrical safety operations, and to prevent any loss due to accidents 7. Health examination of employees and incidents arising from highly hazardous tasks. 8. Workplace welfare 3. The Contractor Management Manual was 9. Safe weight limit formulated by trainings on safety and quality 10. Work-related illness management system (ISO) that were provided to 11. Smoke-free area contractors prior to entering the operating sites to 12. Building control ensure that the Company’s related parties and 13. Construction site safety contractors perform their duties under the agreement to support the Company’s safety, Activities undertaken in 2018 occupational health and environment management 1. The safety manual for controlling operations system and the Thai laws. The manual specifies associated with risks was formulated to give operating framework related to health and occupational safety guidelines for main contractors environment as well as safety management for and sub-contractors working in the Company’s contractors and will be applied to all contractors premises to follow to ensure their compliance as working for the Company. required by law. Key information in the manual 4. The operating processes were examined, and advice includes safety guidelines for hazardous tasks and and trainings were given to all outsourced tasks associated with fire risk, do’s and don’ts for companies responsible for the Company’s projects. safe operation, and accident reporting. Monthly follow-ups were conducted to reiterate safety concerns and prevent outsourced staff from any accidents. Sustainability Report 2018 54 Eastern Water Resources Development and Management Public Company Limited

Safety Activities Emergency Management The Company has continuously organized safety ac- The Company gives priority to emergency management tivities for employees including: to prepare for any incident and reduce any potential 1. Safety communication: A monthly journal on impact to the Company’s employees and properties. safety, health, and environment (SHE News) is issued Measures implemented by the Company in 2018 were: to share news and create awareness of safety, good health, and environmental consciousness among 1. The Business Continuity Management Manual and employees. the Business Continuity Plan were formulated and 2. Safety training: The training plan on safety, tested at East Water’s Head Office and Rayong occupational health and working environment has Operations Center to review and revise the BCP. been established for each group of employees. The critical situations covered by the BCP are: Examples of the 6 courses facilitated in the past • Fire year are: • Earthquake • Flood Risk Assessment Course: Hazard identification and • Pipeline break / leak work risk assessment - Methods and steps to identify • Political unrest the degree of risk of all work-related hazards covering The test was conducted on completeness of the work processes, work premises, equipment, personnel Business Continuity Plan and knowledge/ that may cause injury, illness, or damage to properties understanding of various functional units, and environment or all of them combined. The course preparedness of alternate sites, communication also addresses the principle and approaches for and coordination between internal functions and safety and occupational health risk assessment, external entities the necessity of risk assessment, estimation of risk 2. Annual fire drill was held at East Water’s Head level taken into consideration the severity and Office and all operating sites (Chachoengsao, probability of the hazards in order to determine if the Chonburi and Rayong provinces) to prepare for risk is acceptable or not, and unacceptable risk control evacuation and test the fire prevention system. In planning. so doing, cooperation was obtained from all parties involved such as the local authorities, fire stations, First Aid and Cardio Pulmonary Resuscitation (CPR) police stations, hospitals, training centers, and Training: First aid training is critical and necessary for neighboring buildings, and the desired results were all employees in order to be able to provide first aids achieved. to the injured or sick persons to keep them safe until 3. Training sessions were organized to provide they can get medical treatment at the hospital. The knowledge and understanding to employees at all participants were taught how to examine the injured/ levels at the operating sites who work in the sick person to identify any life-threatening injuries, how confined space. A total of 44 employees to provide basic to advanced first aid including CPR, completed the training for approvers, controllers, bleeding control, first aid for all types of wounds, shock, operators, and rescuers. poisoning, broken bones and fractures, and mental 4. Training sessions were organized to provide health emergency, and how to move the injured/sick knowledge and understanding about safety person to the hospital. The training was extremely techniques such as electricity-related tasks, etc. useful for all operating officers and was particularly to employees at operating and supervisory levels. designed to provide first aid knowledge and practices 5. Work-related prevention and reduction measures that correspond to the frequent work-related accidents were implemented in the office premises and while also including first aid for other emergencies to operating sites. All sub-contractors were required ensure that the participants obtain the maximum to attend the safety training before commencing benefit. their tasks. In 2018, a total of 428 sub-contractors received the training. Sustainability Report 2018 55 WE SEE THE FUTURE... Smart water for all

Communication and Engagement Activity

1. Internal communication activities were carried out through 3 main activities: - “CEO Town Hall Meeting” was held on 12 March 2018, with 216 employees attending the meeting. During the meeting, the management reported the Company’s performance and shared the SMART WATER 4.0 business direction, the Company’s strategies in 2018, customer relationship management as well as internal organization capability management and improvement to work standards and safety. - “MOVE#1 Activity” was arranged on 9 April 2018, with 168 participating employees, to communicate 2018 business direction that about the New Core Competency “SHARP” focuses the Company’s progress under “MOVE” and explained the expected employee concept. competencies including “Sharp”, Stakeholder MOVE : Coworker relationship development Focus, Holistic Thinking, Adaptability, Result MOVE : Work standards / safety / Acceleration, Proactive & Creative Thinking. maintenance task / project Moreover, Mr. Veerasak Kositpaisal, Chairman, contract management / gave a lecture on the topic of “Employees technology systems / cost and CG” focusing on transparent business management system to enhance operation, and adoption of the late King cost efficiency Bhumibol Adulyadej’s philosophy of “sufficiency MOVE : East Water to connect closer to economy” consisting of 3 pillars, i.e. Moderation, water users to make a more Reasonableness and Self- immunity that would precise forecast and anticipation lead to sustainability. of changes and market demand - “Conversation with the Management” was held - “EWG Day” was held on 14 September 2018 on 14 December 2018 with 298 employees with 250 employees participating in the participating in the event. The event was held event. During the event, the President and to share the 2018 operating results of the Chief Executive Officer shared key news and group companies, project achievements and information as follows: challenges in the year 2019 (1) The Company has revisited and created new vision and mission to build on the success 2. Employee activity clubs - To encourage employees of raw water and tap water and move toward to engage in leisure-time activities and build becoming a To be the leader in total water good coworker relationships. At present, the solutions of the country. Company has 9 activity clubs including 1) EWG (2) To support the Smart Water Solution, the Badminton Club with weekly sessions for member total water solution business, the Company employees and badminton competitions between changed the corporate identity by adding the Company, tenants and related companies, green color to represents life and sustainable 2) Healthy make Beauty Club (Yoga Club) with environment to achieve stronger corporate weekly yoga classes, 3) East Water Group Golf Club, image. 4) Variety Volunteering Club, 5) EWG Football & - “CEO Town Hall Meeting and CG Day” was Sports Club, 6) Sport Area Club, 7) EW Running Fun held on 8 October 2018 with a total of 186 Club, 8) EW Photo Club, and 9) EWG Cycling Club. employees joining the event. The President and Total number of members of all clubs is 251 Chief Executive Officer communicated employees. Sustainability Report 2018 56 Eastern Water Resources Development and Management Public Company Limited

3. CSR Activities - Blood donation: East Water has worked with Phramongkutklao Medical Center in arranging blood donation activities for 12 consecutive years since 2007. In 2018, 4 blood donation activities were arranged, resulting in a total of 98,850 cc of blood which can be of use to approximately 282 patients (approximately 350 cc used per one patient). - Collaboration with Corporate Communication Department to promote employee participation in CSR activities such as 1) Planting trees for the community forest of Ban Nong Muang in honor of H. M. King Maha Vajiralongkorn, 2) Model School Project - Canteen wastewater treatment, 3) Building temporary check dam and planting trees for the community forest of Ban Sam Phran, 4) Releasing crabs for ecosystem rehabilitation, 5) Kathin Ceremony 2018, etc. All the CSR activities, which were joined by more than 100 employees of the group companies, aimed to promote employee understanding and involvement in CSR activities for the environment and the community that are beneficial to the society in order for the Company to gain the trust, reliability and acceptance as part of the society. 4. Happy PVD Company Initiative: In 2018, the Company joined the “Happy PVD Company” Initiative of the Securities and Exchange Commission (SEC) and the Stock Exchange of Thailand (SET) to promote employee savings for a good quality of life after retirement through Provident Fund. The Company’s Provident Fund Committee attended the training and subsequently shared the knowledge to the Provident Fund Members who have been encouraged to save at the highest rate of 15%. The savings rates of employees during the past 3 years from 2016 - 2018 were as follows:

Number of members (%) Savings rate (%) 2016 2017 2018 2-4 - - 0.50 5-8 23.70 27.40 32.60 9-12 29.00 28.30 29.00 13-15 37.90 32.10 26.70 Non-member* 9.40 12.20 11.20 Total 100.00 100.00 100.00

Remark: * Non-member includes new employees, contract staff, and employees resigning from the Fund. Sustainability Report 2018 57 WE SEE THE FUTURE... Smart water for all

According to the 2018 data, the top 3 savings rates In 2018, no complaint was received through the chosen by the employees were 8% (60 persons or suggestion box while 3 complaints related to 31%), followed by 15% (59 persons or 30%) and 10% employee misconduct were received through (55 persons or 28%). The Provident Fund Committee other channels. There was no labor or human right and the Human Resource Department would organize issue. For all the complaints received, the Company more activities to encourage employees to give has already taken actions according to the complaint priority to long-term savings and choose to save at handling process. the highest rate for a financially secure retirement. Employee Satisfaction and Engagement Employee Complaint In 2018, the level of employee satisfaction with the The Company has the Whistle Blowing Policy that work was 77.75%, an increase of 1.29%, and the allows board members, executives, employees employee engagement level is 80.20%, an increase and all stakeholders to file complaints, blow the of 2.98%. whistle, or make suggestions. Also, mechanisms and procedures are in place to ensure the The higher scores could be attributable to the confidentiality of identity and protection of the improvement in internal communication channels whistleblowers/the persons filing complaints. through development of a more variety of channels Channels for filing complaints, blow the whistle that are easily accessible, more instant and available or make suggestions are: in interesting formats. With increasing communication frequency through a variety of channels such as CEO Company’s website Town Hall Meeting, email, social media platforms such as Facebook, LINE group, and internal web portal, etc., Email to the President & CEO the score of the 2018 employee satisfaction survey and the Audit Committee on the topic of Internal Communication was 82.38%, an increase of 1.41% from the previous year. Suggestion box Letter

Results of Employee Satisfaction and Engagement Survey from 2015 - 2018

81.00% 80.00% 80.20% 79.00%

78.00% 77.22% 77.75% 77.00% 75.60% 76.00% 75.25% 76.46% 75.00% 74.00% 73.97% 73.00% 72.60% 72.00% 71.00% 70.00% 69.00% 68.00% 2015 2016 2017 2018

Employee Satisfaction Employee Engagemnet Sustainability Report 2018 58 Eastern Water Resources Development and Management Public Company Limited

Water Management for Mutual Success

Responsibility for changes to quality of water sources (Disclosure 303-2)

“Water” normally has its natural cycle. However, when (Source: The Water Source Management project by the cycle is interrupted or when a balance could not Kasetsart University). The reservoir supplies water into be sustained, a change will start. The change may be the newly emerged irrigation areas and for the caused by the volume of river water or evaporation, general consumption and industrial sectors. It also which will consequently affect the ecological system. helps prevent and mitigate damage from the floods in The change of water flow and volume of rain water the areas, pushes the saltwater into the Prasae River could also affect the quality of water. According to the during the drought season, and serves as a major monitoring of water parameters, it was found that the center of tourism and a water source to accommodate quality of water in various water basins including water future economic growth in Rayong. In 2018, sources in the eastern region such as reservoirs and the Company pumped a total of 38.77 million cbm natural paths of water started to decline and such trend of water (within the water allocation limit of 88 million would continue further. This issue has captured high cbm by the RID.) attention of the customers. The Nong Pla Lai Reservoir is situated in Pluak Daeng The reservoirs in the eastern region are of larger sizes Subdistrict, Pluak Daeng District, Rayong. Its storage and are important to agricultural activities in the irrigation capacity was 163.75 million cbm. The volume of the areas. These water sources are also areas for fish water flow into the reservoir was 202.79 million cbm breeding, tourism and recreational purposes. They help (Source: The Water Source Management project by prevent flooding. Apart from the said benefits, the Kasetsart University). The reservoir supplies water into reservoirs also help supply water to the consumer and the irrigation areas in Baan Kai District. It helps prevent industrial sectors for country development. The water and mitigate damage from the floods and supplies volumes in the reservoirs pumped by the Company are water to the producers of tap water in Rayong, based on the allocation permits granted by the Royal namely Rayong Waterworks and Ban Chang Waterworks. Irrigation Department which is a government agency It is a major water source for the industrial sector. responsible for allocating water to each sector by taking In 2018, the Company pumped a total of 115.49 million into consideration the availability of water supply in cbm of water (within the water allocation limit of 120 that particular year. million cbm by the RID.) The Dok Krai Reservoir is located in Mae Nam Khu 16% Subdistrict, Pluak Daeng District, Rayong. Its storage 37% capacity was 79.41 million cbm. The volume of the water flow into the reservoir was 160.94 million cbm Agricultural Sector (Source: The Water Source Management project by Industrial Sector Kasetsart University). The reservoir supplies water into 20% General Consumption the irrigation areas in Baan Kai District. It helps prevent floods in the Rayong Basin areas and serves as fish Ecological System Conservation breeding grounds and recreational spots. It is a major water source for the industrial sector. In 2018, 27% the Company pumped a total of 77.11 million cbm of water (within the water allocation limit of 116 million Criteria for allocating water in reservoirs in the eastern cbm by the RID.) region (Source: Royal Irrigation Department’s information on agriculture and water capacity in The Bang Phra Reservoir is located in Bang Phra Chachoengsao, Chonburi, Rayong, Chanthaburi and Subdistrict, Sriracha District, Chonburi. Its storage Trad) capacity was 117 million cbm. The volume of the water flow into the reservoir was 53.61 million cbm Details of the importance of each water source used (Source: The Water Source Management project by by the Company are as follows: Kasetsart University). The reservoir supplies water into The Prasae Reservoir was located in Pa Yoob Nai the irrigation areas in Chonburi. It serves as an area for Subdistrict, Wang Chan District, Rayong. Its storage fish breeding and recreational purposes. It also supplies capacity was 248 million cbm. The volume of the water to the producers of tap water in Chonburi, water flow into the reservoir was 266.90 million cbm Sustainability Report 2018 59 WE SEE THE FUTURE... Smart water for all namely Chonburi Waterworks and Pattaya Waterworks. of natural raw water per year was 3,344 million cbm It is a major water source for the industrial sector. (Source: The Office of Large Scale Water Resources In 2018, the Company pumped a total of 5.88 million Development by the Royal Irrigation Department). cbm of water (within the water allocation limit of The river is vital to the ecological system, helping deter 10 million cbm by the RID.) the flow of saltwater and serving as a water source for general consumption, agricultural and other activity The Nong Kho Reservoir is situated in Nong Kham purposes. It also helps support the industrial sector. Subdistrict, Sriracha District, Chonburi. Its storage In 2018, the Company pumped a total of 6.05 million capacity was 21.40 million cbm. The volume of the cbm of water. water flow into the reservoir was 20.93 million cbm (Source: The Water Source Management project by Since The Company’s operations involve pumping Kasetsart University). The reservoir supplies water into water directly from the water sources; this could may the irrigation areas in Chonburi. It serves as an area for changes to the volume of water, evaporation, and the fish breeding and recreational purposes. It also supplies flow of water even though there was no release of water to a producer of tap water in Chonburi, namely contaminated waste from the system. However, as the Sriracha Waterworks. It is a major water source for the water sources used by the Company are mostly industrial sector. In 2018, the Company pumped a reservoirs and natural water sources which are shared total of 10.81 million cbm of water (based on the by more than 1 user; it is impossible to clearly evaluate water allocation limit of 10 million cbm by the RID.) impacts incurred directly as a result of the Company’s operations. However, the Company continues to use The Bang Pakong River is an important, large source water according to the mutually agreed upon rules to of water of the Chao Phraya River. Its average volume minimize any possible impacts to such water sources.

Summary Table of Water Sources Utilized by the Company and Their Importance to Local Communities Total Volume of Water for Management Storage Volume of Capacity Water Sources allocated water Pumpted water Importance of water sources (as per water (2018) to local communities allocation permit)

million cbm million cbm million cbm Rayong areas 1. Prasae Reservoir 248.00 88.00 38.77 • To supply water to plantation areas in the Prasae project. • To prevent saltwater intrusion. • To prevent flooding in Klaeng District, Rayong. • To reserve raw water for eastern seaboard industrial estates. 2. Nong Pla Lai Reservoir 163.75 120.00 115.49 • To supply water to plantation areas in the Baan Kai Agricultural project • To prevent floods in Rayong • To supply water for general and industrial consumption with a future plan to supply water to Sattahip areas for industrial project expansion • To be fish breeding grounds and areas for tourism and recreation 3. Dok Krai Reservoir 79.41 116.00 77.11 • To supply water to plantation areas in the Baan Kai Agricultural project • To prevent floods in Rayong • To supply water for general and industrial consumption • To be fish breeding grounds and areas for tourism and recreation Chonburi and Bo Win - Pluak Daeng areas 4. Bang Phra Reservoir 117.0 10.00 5.88 • To support agriculture in 8,500 rai of land (temporary) (temporary) • To supply water for general and industrial consumption • To be fish breeding grounds and areas for tourism and recreation Sustainability Report 2018 60 Eastern Water Resources Development and Management Public Company Limited

Total Volume of Water for Management Storage Volume of Capacity Water Sources allocated water Pumpted water Importance of water sources (as per water (2018) to local communities allocation permit)

million cbm million cbm million cbm 5. Nong Kho Reservoir 21.40 16.70 10.81 • To supply water to current creeks to support agriculture in 7,500 rai of land • To supply water for general and industrial consumption • To be fish breeding grounds and areas for tourism and recreation Chachoengsao areas 6. Bang Pakong River - 27.00 6.05 • To maintain the ecological system • To deter the flow of saltwater • To be a water source for general, agricultural and industrial consumption 7. Private water sources - - 8.00 8. Rainwater from 0.26 Samnak Bok Pond Total 377.70 262.37

The Company realizes its responsibility for the quality the water content in the Nong Pla Lai Reservoir. of water and keeps monitoring and checking the water In the Nong Pla Lai Reservoir, water levels must be quality on a monthly basis. It was found that the managed according to the Upper Rule Curve and quality of water in certain reservoirs has been changing. EC values must be monitored on a continuous The Company therefore presented information of basis. results of the reservoir water quality surveys at the Meeting of the Eastern Water Operations Center (Water Nonetheless, the Company submitted its study results Warroom). The meeting deemed that there should be to the Royal Irrigation Office 9 which is responsible a study of root causes of the changing quality of water for managing water in such reservoirs as it would be in Dok Krai Reservoir and Nong Pla Lai Reservoir. beneficial to all sectors’ consideration of reservoir The Company then hired an advisor from Kasetsart water management (Source: A Full Report on the University to conduct the study and identify the root Project on Study of Water Quality in Dok Krai Reservoir causes of the changing quality of water in both and Nong Pla Lai Reservoir, the Department of Earth reservoirs which affected the Company’s use of water. Sciences, Faculty of Science, Kasetsart University, The study was to identify the values of electrical June 2018). conductivity (EC) in soil, surface water, and underground water in order to determine the root causes of the As for the Bang Pakong River which is a natural water changing water quality. It was found that the EC values source, based on the studies of the environmental of the surface water flowing into the reservoirs were changes among different agencies, it was found that high. Consequently, the Total Dissolved Solid (TDS) the problem of saltwater intrusion was experienced values in the reservoirs were high and the solid in certain areas which led to a lack of water in the materials were accumulated at the bottom of the drought season. Realizing such impacts, it was the reservoirs. Thus, the quality of the Company’s water Company’s policy to pump water from the Bang Pakong supply to the customers has reduced and may exceed River only during the rainy season. In 2018, the Company the maximum level specified in the contracts with the pumped a total of 6.05 million cbm of water from the customers. Hence, in order to mitigate any possible Bang Pakong River from July 2018 to December 2018 impacts from the changing water quality, the EC values or 0.18% (not more than 5%) of the average volume in both reservoirs must be controlled as follows: of natural raw water per year. The Company also provided collaboration to the government and its 1. Dok Krai Reservoir: The RID must manage water neighboring communities in strictly complying with levels according to the Upper Rule Curve and the agreement to stop pumping water whenever follow up on EC values in the reservoir on an the saltwater level reaches a specified limit. This is to ongoing basis. encourage all sectors to access public water sources 2. Nong Pla Lai Reservoir: The good quality water must in a comprehensive manner according to their priorities be diverted from the Khlong Yai Reservoir to dilute and necessities in life. Sustainability Report 2018 61 WE SEE THE FUTURE... Smart water for all

Responsibility for 1. Prepared an additional standard checklist for project management to cover concrete measures construction impacts to prevent pollution and minimize construction (Disclosure 413-2) impacts. 2. Determined a set of standards for inspecting In 2018, most of the construction projects took place road restoration works along pipelines. The across the areas of the Company. Nevertheless, representative of the local authority that approved to prevent any possible impacts on neighboring the construction shall also join the work inspection communities and the environment, the Company and certification. strictly enforced the compliance with standards of 3. Held meetings with contractors and representatives work control and safety of relevant regulatory bodies of local authorities to jointly determine problems, as well as enhanced its operational procedures as root causes, and solutions to the problems as well compared to 2017 as follows: as closely monitor progress updates on a weekly basis. 4. Enhanced efficiency of the complaint handling process.

Diagram showing the complaint handling process from the Company’s construction project operations

Petitioner Complaint receiving channels Recording A copy sent to Monitoring Reporting Collecting departments problem solving E-mail compliant concerned progress results data Website Social Media Parties Holding department Making summary report Letter meetings to follow-up work concerned - Monthly report (for the management) Meeting with - Annual report (for contractors Corporate Governance and Sustainable Development Committee) Taking actions

NO Monitoring / If exceeding limit follow-up

YES Report to all concerned

Collecting information / Finding ways to prevent the problem to recur

Construction Management Department making monthly report

Complaints about impacts on neighboring communities projects, it was found that in 2018 there was one In 2018, the Company applied the results of complaint in 2017 for which relevant actions had not Chulalongkorn University’s “Project to study guidelines yet been completed. The complaint was about the to improve project management services for enhanced return of traffic surface in the construction area of efficiency” to its operations with a view to increasing raw water pipeline from a private water pond in its construction project management efficiency and Chonburi (the pipeline laying work and construction of solve the problem of project delays in the future. a low-pressure water pump station). The Company The Company’s improvement and development together with the community continuously joined the efforts were for the whole construction process efforts to discuss and solve related problems as well as encompassing pre-construction operations (Pre- survey and design road repair work plans to prevent a Construction Phase), construction work control repeat of the related problems. This is to ensure procedures and follow-up of work progress to ensure that the road repair work meets standards and meeting completion deadlines (Construction Phase), requirements of the community and results in normal and guidelines for evaluation of construction project traffic flows. The Company completed its repair work results (Post-Construction Phase). in December 2018. In January 2019, the Company and the community conducted an onsite visit to check the Based on the collection of all complaints from various road condition and the finished work was handed over channels concerning the Company’s construction to the community. Sustainability Report 2018 62 Eastern Water Resources Development and Management Public Company Limited

Building sustainable growth with total water solutions (Disclosure 201-2) Climate change impacts have been witnessed globally. based on the key factors including eco-business trends The average global temperature has increased by and, most importantly, the government policy on the East approximately 1 degree Celsius over the past 100 years. Economic Corridor (EEC) Development Plan. This EEC Thailand has also been affected by the climate change. project is an extension of the existing eastern seaboard For example, in 2011, Thailand experienced the great areas with a view to increasing Thailand’s competitiveness. flooding crisis that affected the areas of the Chao Phraya As a result, the demand for water with quality standards River and the Mekong River. In 2015, the drought crisis hit has been increasing. the areas of the Chao Phraya River and the Maeklong River. These natural disasters created extensive damage From the above factors, the Company started expanding to all sectors. The Company realized the importance of its footprint to the total water solutions field which covers the problem and thus provided water management raw water, industrial water, tap water, drinking water, solutions to the water users in the said areas such that wastewater treatment and recycled water for use by they could overcome the problem successfully. [Source: various industrial customers. This helps reduce the burden Climate Change from World Meteorological Organization of investments and expenses of the customers in an (WMO)] efficient manner as well as ensures security in terms of water volume and quality. The water standard is consistent However, the aforesaid actions are based on short-term and and does not change according to fluctuations in medium-term plans. To be prepared for weather condition weather conditions and seasons. The Company also has fluctuations in the long-run and to ensure security of advantages in terms of funding and experts because the water volume and quality, the Company has established business of supplying water through pipelines requires a water quality improvement plans for natural raw water, high amount of investment funds for the construction and industrial wastewater, and recycled water in order to ensure installation of water pipelines, the construction of pump maximum benefits of water use. The Company considers stations, the sourcing of water capital, and the expertise its customers’ needs including the needs for consistent in sending requests to relevant agencies. quality water as well as business growth opportunities Sustainability Report 2018 63 WE SEE THE FUTURE... Smart water for all

With the present marketing opportunities and corporate “Industrial Water” services that suits the needs of capability, the total water solutions business is expected the Company’s water users. This helps solve the to continue to grow. It is the Company’s policy to drive quality problem of natural raw water, allows the its total water solutions business towards sustainability by operators to have sufficient clean water for use, expanding its raw water business under the concept of and reduces the waste of raw water resources. Also, supporting industrial operators to access a full range of the industrial water can be used in the production water services according to their needs and providing or work of the water users immediately so that the solutions to water volume and quality problems business operators do not need to have their own as well as cost management in terms of prices and water treatment process or clean water production cost-effectiveness. The guidelines are as follows: system at their premises. 1. Total water solutions: To expand the current 3. Industrial estate water management (Operation raw water business customer base by offering and Maintenance) and wastewater treatment additional services such as raw water management, services: To focus on water quality assurance tap water, reverse osmosis seawater, wastewater services according to laws and regulations and reuse treatment and water recycling. New water users of water in the production process. This helps inside and outside of the eastern region will be the reduce expenses relating to clean water purchases Company’s main focus. The Company has a plan for business operators and encourages optimal use to establish a team of professionals to provide of water resources with less environmental impacts. consultation services for total water solutions to both new and current water users. In providing total water solutions services, we always focus on customizing our services to meet the needs 2. Industrial water services to solve quality of different water users both in the consumer and problems: To move from the provision of raw industrial sectors as follows: water services to the provision of treated water or

1. Raw water desalinated sea water with state-of-the-art Procurement of raw water, investment and technologies in production maintenance and installation of pipelines, as well as ensuring distribution. sufficient raw water to satisfy demands year-round. 4. Drinking water 2. Industrial water Production of clean, safe, alkaline drinking water. Installation of production system of water for 5. Wastewater treatment industrial use, ensuring that the quality matches To service tailor-made for each business, controlling customers’ requirements, be it by clarification, wastewater effluent quality using technologies reverse osmosis, demineralization, or sea water such as activated sludge and membrane bioreactor. reverse osmosis desalination. 6. Recycled water 3. Tap water Providing service and installation of water recycling Comprehensive management solutions and system for reuse in industrial operation. engineering services for both surface and Sustainability Report 2018 64 Eastern Water Resources Development and Management Public Company Limited

All services are based on different types of contracts which are customized to cater to the needs of each industrial estate as follows:

1 Short-term contracts Engineering Procurement Construction: EPC are to provide services relating to the construction of systems or installation of pipelines where as customers are managers of the systems and owners of the assets after their construction completion. 2 Long-term contracts:

BOT BTO BOO (Build-Operate-Transfer) (Build-Transfer-Operate) (Build-Operate-Own) The Company provides services The Company constructs systems The Company constructs systems relating to the construction of or installs pipelines and transfers or installs pipelines and manages systems or installation of pipelines ownership of the assets to the systems. Upon contract expiry, and management of the systems the customers immediately after the Company still owns the assets. after the construction completion. the construction completion. Ownership of the assets will be The Company will manage transferred to the customers upon the systems until contract expiry. contract expiry.

In 2018, the Company successfully conducted its total water solutions business by entering into contracts with Thailand’s leading companies as follows:

Number of projects Type of service Eastern Outside of Total region eastern region Tap water/Industrial water 2 - 2 Wastewater treatment /Water recycling - 1 1 Sustainability Report 2018 65 WE SEE THE FUTURE... Smart water for all

• Tap Water and Industrial Water Businesses a key driver of electricity production and The Company entered into agreements to buy/sell distribution business development. The volume industrial water with the following 2 parties: of water usage is estimated at 60,000 cbm/day - Amata Water Public Company Limited: The and the contract tenor is 25 years. The water agreement is to distribute industrial water to supply will begin in 2022. the Amata City Industrial Estate areas in Rayong with the objectives to increase its capacity to • Wastewater Treatment/Water Recycling provide relevant services to the customers The Company entered into a contract to construct within the industrial estate and to ensure water a water recycling system with Ratchaburi Glass source stability as well as create confidence Industry Company Limited. The company is an among the customers in the long-run. The affiliated company of Bangkok Glass Public volume of water usage is estimated at around Company Limited which is mainly engaged in 15,000 cbm/day and the contract the business of glass container production. tenor is 30 years. The water supply will begin The objective of the contract is to recycle treated in 2021. wastewater. The maximum volume of water usage - Gulf PD Company Limited: The agreement is to is 1,000 cbm per day. The contract tenor is 15 years. provide industrial water to the Gulf Power Plant Currently, the construction was completed and the in Pluak Daeng, Rayong. The power plant is part operation already commenced in 2018. of the business group of Gulf PD Company Limited. The production capacity is 2,500 In this regard, accumulated consumption of each megawatts. It is located in the Rojana Industrial type of water and consumption volume in each Park Rayong 2 project areas. The agreement geographical area under the plan for new customers objectives are to increase security and stability during 2019-2023 can be summarized below. of the water utility system as it is considered

1. Forecast of accumulated water consumption among new customers by type of service

Forecast of accumulated water consumption

70,000,000.00

60,000,000.00

50,000,000.00

40,000,000.00

30,000,000.00

20,000,000.00 Water volume (million cbm) volume Water 10,000,000.00

- 2018 2019 2020 2021 2022 2023

Wastewater treatment / Water recycling Tap water / Industrial water

Remark: This is the forecast of customers’ demand for water in the future which may be subject to changes according to customers’ investment plans. Sustainability Report 2018 66 Eastern Water Resources Development and Management Public Company Limited

2. Forecast of proportions of demand for tap water, industrial water and treated/recycled wastewater by geographical area

Proportion of demand for tap water/industiral water in each area (during 2018-2023)

Rayong Area Bo Win - Pluak Daeng Area Chonburi Area Chachoengsao Area Outside Eastern Region

Proportion of wastewater treatment/wastewater recycling in each area (during 2018-2023)

Chonburi Area Outside Eastern Region Sustainability Report 2018 67 WE SEE THE FUTURE... Smart water for all

3. Forecast of revenue growth from total water solutions business (Disclosure 201-1, 201-2)

Forecast of revenue growth from total water solutions business

30.00% 26.30% 25.00% 20.85% 20.00% 17.25% 15.00% 13.29% 10.00%

5.00%

0.01% 0.14% 0.00& 2018 2019 2020 2021 2022 2023

Remark: This is the forecast of future performance which may be subject to changes according to customers’ water consumption plan.

Based on the graph above, it is found that the revenue growth rate of total water solutions business will hit the highest level in 2021 because it is the year in which the projects in the EEC areas will be implemented and start using water services. The average revenue growth rate over the next 5 years (2019-2023) will be at around 13% per annum.

Management of electricity cost The main operating costs of the Company were depreciation and electricity costs accounting for 38% and 29.59%, respectively.

Diagram showing elements of operating costs (Disclosure 201-1, 302-4)

Raw Water Electricity Depreciation Maintenance Others

Energy consumption is directly related to the volume of water pumped through the water grid which comprises 15 main pump stations and 59 power sub-stations/water gauge stations along the 491.8 kilometre stretch. Connecting All Main Water Sources in Eastern Thailand with over Kilometers

Connecting All Main Water Sources in Eastern Thailand with over Kilometers

Sustainability Report 2018 68 Eastern Water Resources Development and Management Public Company Limited

ขอมูล มกราคม 2562 Connecting All Main Water Sources in Eastern Thailand with over Kilometers

Private Pond Private Pond Water Pumping Station

ขอมูล มกราคม 2562 As of January 2019 Water Pumping Station

LIMIT WATER LOSS TO LOWER THAN

PUMPING Prasae Water Pumping Station

LIMIT WATER LOSS TO LOWER THAN ขอมูล มกราคม 2562

PUMPING

LIMIT WATER LOSS TO LOWER THAN

PUMPING Sustainability Report 2018 69 WE SEE THE FUTURE... Smart water for all

Private Pond Private Pond Water Pumping Station

As of January 2019

Water Pumping Station

Prasae Water Pumping Station Sustainability Report 2018 70 Eastern Water Resources Development and Management Public Company Limited

The Company has continuously studied the application Summary of the Company’s energy efficiency of technological and innovative solutions in its water improvement projects for 2018 (Disclosure 302-4): management to reduce energy demand for water pumping. Examples are as follows: 1. Chiller Maintenance Project: The project took place in the area of the Chiller Room on the 9th 1. Pump Audit Project: A project to determine floor of the East Water Building with the purpose energy saving solutions by collecting information to reduce electricity consumption. As the chiller from various pump stations to analyze their had been used on an ongoing basis and sediments performance. Each individual pump will be had been deposited in the chiller duct system, the considered to identify ways to reduce energy cooling performance had dropped leading to less consumption. Please refer to additional details in energy consumption efficiency. The Company then the section of “Innovative Water Conservation cleaned the chiller system and it was found that Solutions” (Page 97) the level of electricity consumption declined. 2. Electricity Cost Reduction Project Through Use Before the project took place, the level of of Solar Energy: More details are available in electricity consumption was at 1,308,395 kWh/year. the section of “Innovative Water Conservation After the implementation of the project for two Solutions” (Page 97) months (March-April 2018), the level of electricity consumption in April 2018 decreased by 58,652.61 Furthermore, the Company continuously implemented kWh/year. energy conservation projects for its core and 2. New High Performance Air Conditioning System supporting operations to reduce energy consumption Project: The current air conditioning system and improve energy efficiency organization-wide consumed high electricity energy and after it was through its energy management working group. The used for long hours, its cooling performance project objectives are to manage costs and expenses dropped. Thus, the Company decided to replace of the organization and to help fight against “global the current system with 10 new high efficiency air warming”. Although the Company’s core business conditioning units in order to improve air cooling process may not directly result in the emission of performance. Before the maintenance of the air greenhouse gases, its other activities may be conditioning system, the electricity consumption indirectly contributing factors such as use of level of the system was at 110,520.34 kWh/year electricity, paper, or coolants in air-conditioning and the replacement with the new air conditioning systems. The Company’s energy conservation activities system with high performance, the electricity covered the following operating areas: consumption level dropped by 49,759.40 kWh/year. The installation of the new high performance air 1. Eight water pump stations were registered as conditioning system was completed on 31 January controlled factories, namely Nong Pla Lai Pump 2018. Station, Dok Krai Pump Station, Pressure Boosting 3. Water Management Measures: Efficient water Station, Bang Pakong Pump Station, Chachoengsao source management led to reduction in energy Pump Station, Bang Phra Pump Station, Mab consumption per unit of 0.35 kWh/cbm or 8% Ta Phut Pump Station and Samnak Bok Pressure compared to that of 2017. The total energy saving Boosting Station. (In 2018, the last three stations was 7,751,612 kWh/year. were registered as controlled factories.) 2. Controlled building - one building which is East The Company has developed its energy conservation Water’s headquarters. Each year’s targets of and innovation plan to be carried out in 2019, details energy consumption reduction will be based on of which are as follows: the prior year’s energy saving performance results. The targets are set at organizational, product 1. The project to establish a floating solar farm and service, and equipment levels taking into in potential areas of the Company such as consideration energy loss and energy efficiency the Mab Ta Phut Raw Water Reserve Pond. improvement opportunities. 2. The project to improve performance of pumps 3. Power sub-stations - 59 stations according to the results of the Pump Audit project in order to reduce energy consumption. For example, new pumps may be bought to replace old ones in broken, improper or low performance condition. Sustainability Report 2018 71 WE SEE THE FUTURE... Smart water for all

Energy consumption of 2018 (kWh)

Water Pumping Station Head Office Power sub-station

The Company’s energy consumption in 2018 included and the water management measures (7,751,612 kWh only the electricity consumption which totaled or 27,905,803.20 MJ). (Energy reduction (kWh) * 3.6 = 104,544,871 kWh. This was calculated based on the Energy reduction (MJ). Source: http://www.eppo.go.th/ energy used by the pump stations, the head office at info/cd-2015/index.html) the East Water Building, and power sub-stations along pipelines of the Company. The energy reduction of The said energy consumption was comparable to the 16,500,784 kWh which is equivalent to 59,402,822.40 MJ emission of carbon dioxide of 52,795 tons in 2018 which or 14% compared to 2017 was achieved. The energy was lower than that in 2017 by 15%. The Company reduction was attributable to the 2 energy efficiency achieved the reduction in energy consumption per unit improvement projects (108,412 kWh or 390,283.20 MJ) of 0.35 kWh/cbm or 8% compared to that of 2017.

0.39

0.38 0.38

0.37

0.36

0.35 0.35

0.34

0.33 2017 2018

*This was calculated based on the levels of energy consumption at pump stations as compared to the total amount of water pumped for the whole year. Sustainability Report 2018 72 Eastern Water Resources Development and Management Public Company Limited

Comparison of energy consumption and greenhouse gas emission (2015 - 2018)

160,010,000 151,037,404 143,958,534 140,010,000

121,045,655 130,010,000

104,544,871 120,010,000

100,010,000

60,010,000

40,010,000

20,010,000

10,000 2015 2016 2017 2018

90,000 83,373 80,000 79,512

70,000 62,823 60,000 52,795 50,000

40,000

30,000

20,000

10,000 2015 2016 2017 2018 Sustainability Report 2018 73 WE SEE THE FUTURE... Smart water for all

Calculation method for greenhouse gas emission (Disclosure 305-2) **GHG emissions = Activity Data (kWh) X Emission Factor

Electricity emission factor = 0.505 kg-CO2/kWh

Energy used for water pumping + energy used at headquarters during 2018 + energy used at power sub-stations GHG = [(water pumping station) 100,745,771 kWh + (pumping stations with separate meters) 256,100 kWh + (headquarters) 3,543,000 kWh] x 0.505 kg-CO2/kWh

= 52,795,160 kg-CO2

= 52,795 TonCO2 Source: This is based on the Emission Factor Calculation by the Office of Energy Poliicy and Planning (EPPO), Ministry of Energy at http://www.eppo.go.th/index.php/en/en-energystatistics/co2-statistic?orders[publishUp] =publishUp&issearch=1 Sustainability Report 2018 74 Eastern Water Resources Development and Management Public Company Limited

Corporate Governance (Disclosure 205-2)

The Board of Directors formulated the corporate The Company always complies with the CG Code of the governance policy in writing on 1 August 2003 and assigned Group which contains the following 8 principles: the Corporate Governance and Sustainability Committee to review the policy and guidelines on good corporate Principle 1: To realize the roles and responsibilities governance at least once per year to ensure compliance of the Board of Directors as a leader with requirements of the Stock Exchange of Thailand (SET) to create the long-term value for the and the Office of the Securities and Exchange Commission organization (SEC). Results of the review must be submitted to the Board of Directors for consideration and approval. The Board of Directors is appointed by the shareholders to be responsible for the overall operations of the In 2018, the Company conducted the 12th review of the Company, to have authority to give instructions, grant corporate governance principles for its business group by approval and monitor the implementation of the referring to the SET’s 2012 Corporate Governance Code Company’s strategies, and to oversee business for Listed Companies and the SEC’s 2017 Corporate operations, risks, financial stability and the organizational Governance Code for Listed Companies. After due structure. Please refer to details of the scope of consideration, the Board of Directors opined that the authority, duties and responsibilities of the Board of Company should be able to implement all of the Directors in the section of “Management Structure.” corporate governance principles. Thus, the Corporate in the 2018 Annual Report (Page 45). Governance and Sustainability Development Committee proposed the Company’s Corporate Governance (CG) Code The Board of Directors’ Meeting No. 10/2561 held on to the Board of Directors for consideration and approval 17 August 2018 resolved to approve the vision, mission at the Board of Directors’ Meeting No. 14/2018 held on and strategies of the business group for 2019-2021 11 December 2018. The Company’s CG Code shall be (the 3-year plan) as proposed by the management. used as a guideline for and strictly complied with by The said vision, mission and strategies are aimed at the directors, executives and employees at all levels of strengthening the Company’s competitiveness and the business group. operating results while taking into consideration any long-term impacts. The Company shall operate The Company prepared and disseminated its CG Code business with professional ethics, respect shareholders’ and Code of Conduct of the East Water Group through rights, take responsibility for shareholders and other electronic media at www.eastwater.com and the stakeholders, contribute benefits to society, improve Company’s internal web for easy access and learning. New or reduce negative effects on the environment, and employees are also required to sign and acknowledge the be able to adapt to changing business factors. Please Code of Conduct document on the date of orientation to refer to details of the vision, mission and strategies in affirm a commitment to comply with the Code of Conduct. the section of “Policy and Business Overview.” in the The Code of Conduct is one of the topics under the good 2018 Annual Report (Page 32). corporate governance principles which must be complied with. Also, new directors are required to sign and Principle 2: To define key objectives and goals in acknowledge the Company’s CG Code on the date of support of business sustainability orientation. The Board of Directors shall oversee and ensure that In order to ensure that all employees have knowledge the Company has key objectives and goals in support and understanding about rules, regulations and business of its sustainability. The Company’s vision is to be a ethics of the East Water Group and are able to perform leading provider of total water solutions in Thailand. duties correctly and properly, the Company requires that Its objectives are to secure security and stability of all employees conduct a test regarding the good corporate water sources, to grow its investment in the total governance principles and the anti-corruption policy water solutions business, and to achieve ongoing and through the Company’s intranet system on an annual sustainable growth while taking responsibility for basis. The test results shall be used to evaluate the level communities, society and the environment as well as of knowledge and understanding of the employees to establishing good relationships with its stakeholders. further enhance communications and improve their Please refer to additional details in the section of knowledge and understanding such that they truly realize “Policy and Business Overview” in the 2018 Annual their duty to promote the good corporate governance Report (Page 32). practices within the organization. The Company shall always review and update such test to keep up with changing laws and regulations. Sustainability Report 2018 75 WE SEE THE FUTURE... Smart water for all

Principle 3: To enhance effectiveness of the Board by the Thai Institute of Directors (IOD) and other of Directors reputable institutes.

The Company established the structure of its Board Principle 4: To recruit and develop high-level of Directors in alignment with the public limited executives and manage human resources company law and the 2017 CG Code of the SEC, especially in terms of size, composition and proportion The Board of Directors assigned the Nomination of independent directors. That is, the Board of Directors and Remuneration Committee to be responsible for of the Company consists of at least 5 members but determining the criteria and method for nominating not more than 12 members and independent directors persons to the positions of President and Chief must represent at least one-third of the Board Executive Officer, top executives of affiliated members. In 2018, the Board of Directors consisted of companies, and chief officers of different functions. 12 qualified members. Of this, 8 members or two-thirds This is to ensure that high-level executives have of the total members were independent directors. The knowledge, skills, experiences and characteristics independent directors shall not be involved in the that are required for driving the organization towards management and shall not be shareholders of the its goals. Please see additional details in the section Company. In addition, 3 out of 8 independent directors of “Nomination and Appointment of Directors and served as members of the Audit Committee. Top Executives” in the 2018 Annual Report (Page 65). The Chairman of the Board of Directors was also an independent director and did not serve as The executives are encouraged to attend training chairman or member of any subcommittee. He shall be courses with the Institute of Research and Development responsible for supervising, monitoring and ensuring for Public Enterprises (IRDP) and the Executive that the duty performance of the Board of Directors is Development Program (EDP) hosted by the Thai Listed efficient and meets the key objectives and goals of the Companies Association (Thai LCA). The employees also organization. have their individual development plans (IDP). The Board of Directors assigned the Nomination and Principle 5: To promote innovation and operate as Remuneration Committee to determine criteria and a responsible business method for nominating persons as directors in line with relevant requirements and to consider remuneration The Board of Directors realizes the importance of of the Board of Directors and respective subcommittees and provides support for the creation of innovation to before submission to the Board of Directors for add value to the Company’s business. Therefore, endorsement and to a shareholders’ meeting for one of the Company’s missions is to enhance approval. Remuneration payments shall be appropriate, its competitiveness through modern technology adequate, fair, rewarding and able to retain qualitative and innovation. directors as well as in line with interests of the shareholders and not too high that the directors In addition, the Company has stipulated its work cannot perform work independently. (Please refer philosophy based on the concepts of accountability to details of the duties and responsibilities of the and equal treatment that will gain trust from its Nomination and Remuneration Committee according stakeholders as follows: to its Charter at www.eastwater.com.) (1) Shareholders The Company laid down a set of practices to enhance The Company realizes it shareholders’ basic effectiveness of the Board of Directors. For example, rights and always facilitates convenience to their the Board of Directors’ meeting schedule shall be exercising their rights, for example, the rights determined in advance for the entire year so that all as stipulated in laws or the articles of association directors can allocate time to attend the meetings of the Company, the rights to attend together. The performances of the Board of Directors, shareholders’ meetings and vote, and the rights the subcommittees and each individual director/ to express opinions freely, and the rights to give committee member shall be evaluated and evaluation suggestions and comments on the Company’s results shall be used for improving each individual business operations as the real owners of the director/committee member’s performance Company. The Company shall maintain its accordingly. The Company has the policy to support stable financial status and treat all shareholders its directors to attend trainings and knowledge equally irrespective of whether they are major development courses continuously in various fields or retail, individual or institutional, or Thai or such as corporate governance, risk management, foreign shareholders. internal control, water technology and relevant laws in order to help them efficiently perform duties (2) Employees and oversee business operations. The directors are The Company respects legal rights of all encouraged to attend useful training courses hosted employees and provides a positive and safe Sustainability Report 2018 76 Eastern Water Resources Development and Management Public Company Limited

work atmosphere for them. It also provides 1. The Company’s website: good welfare schemes and fair employment www.eastwater.com conditions comparable to market situations. At the Company, the efficient use of human 2. E-mails: resources is encouraged. The Company is • Audit Committee: regarded an equal opportunity employer, [email protected] supporting its employees to take part in the • President &CEO: operations and to have a strong commitment [email protected] to performing duties. The Company laid down • Corporate Secretary: work guidelines for directors, executives and [email protected] employees of the group companies in the Code of Conduct of the East Water Group. (The details 3. Regular mails: of the Code of Conduct of the East Water Group • Audit Committee are available at http://investor.eastwater.com/ Eastern Water Resources Development and th/corporate-overview/corporate-governance) Management Public Company Limited East Water Building, 25th Floor, (3) Customers 1, Soi Vibhavadi Rangsit 5, Vibhavadi The Company strives to meet customer Rangsit Road expectations by providing water management Chom Phon Subdistrict, Chatuchak District, services to satisfy the needs of all customers with Bangkok 10900 due care and equitable treatment and solving problems relating to the services in a timely 4. Opinion Box: manner to ensure quality standards of services Human Resources Department in all areas. Apart from the aforesaid channels, the Company (4) Trading partners and creditors established the investor relations function to receive The Company complies with contract conditions opinions and complaints from its stakeholders and and provisions and discloses the true financial investors. The guidelines and procedures for handling status of itself and its subsidiaries. The complaints of stakeholders were clearly written in the Company has never used the funds from its Code of Conduct of the East Water Group. To preserve loans for other purposes than those specified the rights and privacy of the complainants, the in the loan agreements. The Company also laid complainants will be protected and their personal down the policy to treat creditors with fairness information will be kept confidential. and responsibility, containing practical guidelines on guarantee conditions, capital management, Principle 6: To ensure that appropriate risk and default payments in a clear and concrete management systems and internal manner. controls are in place (Disclosure 102-11) (5) Society and the environment The Company operates business as a socially The Company’s risk management function is under responsible organization. It respects and the supervision of the Corporate Strategy Department. complies with laws, rules and regulations The risk management function will coordinate with concerned. It also realizes the importance of the internal audit function which performs work complying with standards relating to independently in developing and reviewing the occupational health, safety and environment to effectiveness and adequacy of the risk management prevent any possible impact or damage to lives systems and internal controls and submitting review and properties of people, communities and the reports to the Audit Committee. Such reports are also environment. disclosed in the Annual Report. Please refer to additional details in the section of “Internal Control (6) Competitors and Risk Management” in the Annual Report (Page 72). The Company complies with the principles of fair and legal competition. It shall not seek Principle 7: To ensure reliability of financial confidential information of its competitors information and disclosure through the use of fraudulent or inappropriate methods. The Company places importance to the disclosure of correct information according to requirements of The Company has a number of communications relevant supervisory bodies. Also, it has developed channels through which its stakeholders can various information disclosure channels that are easily send their opinions, complaints or other matters as follows: Sustainability Report 2018 77 WE SEE THE FUTURE... Smart water for all accessible to all stakeholders. It emphasizes the The Company assigned the compliance function and importance of information disclosure and the financial analysis and investor relations function transparency of operations to its directors, executives to disseminate its financial and general information and employees; and creates a mechanism to handle to its shareholders, investors, securities analysts, complaints appropriately and fairly for both investment credit rating agencies, and supervisory complainants and subjects of complaints in the Code bodies concerned through various channels. For of Conduct of the East Water Group. example, relevant reports are submitted to the SET and the SEC and are published in the Company’s The boards of directors of the Company and its website in the topic of “Investor Relations Information” subsidiaries shall ensure that the management for ease of access by interested persons. disseminates key information in a comprehensive and timely manner. Such key information includes financial If shareholders, investors and relevant parties have any reports or other non-financial explanations and inquiries, they can contact the financial analysis and analysis whether it is required by law or based on a investor relations function at Tel. 0 2272 1600, voluntary basis. All information will be published Ext. 2438, 2411 or Email: [email protected] or through the system of the Stock Exchange of Thailand the Company’s website at www.eastwater.com. and via www.eastwater.com and www.uu.co.th in both Thai and English. The management always presents In 2018, the financial analysis and investor relations most up-to-date information and also provides function held a number of activities to disseminate contents to the investor relations function of and explain information and allow participants to the Company. ask questions. The activities were also joined by the high-level executives to help answer the questions. The details can be summarized as follows:

Types of activities Unit: Time • Press Meeting 1 • Credit Rating Review 1 • Company Visit 11 • Conference Call 14 • “SET meets retail investors” (Opportunity Day) 1 • Site Visit 2 Principle 8: To support engagement and In 2018, the Company held the 2017 Annual General communication with the shareholders Meeting of Shareholders on Monday 23 April 2018 at The Company realizes its shareholders’ basic rights and the Vibhavadi Ball Room A-B, Centara Grand at Central always facilitates convenience to their exercising rights, Plaza Ladprao. The Company had not convened for example, the rights to buy, sell or transfer shares, any extraordinary general meeting. To facilitate the rights to the Company’s share of profits, the rights convenience, the Company checked meeting to receive sufficient news and information through documents in advance as well as provided information available channels and at proper times, the rights to and answered inquiries. attend and vote at shareholders’ meetings, the rights to elect or remove directors, and the rights to receive The Company gave due care to the shareholders’ updates of changes in the Company to support decision meeting and facilitated convenience to the making. shareholders prior to the meeting date, for example: The Company has the policy to encourage all • Allowing the shareholders to propose meeting shareholders to attend shareholders’ meetings to agenda items to the shareholders’ meeting and equally exercise their rights at the meetings. The propose candidates for directors 3 months in Company requires that an annual general meeting of advance from 1 October to 31 December 2017 shareholders be held once per year within 4 months through the SET’s information system and the from the last day of the accounting period of the Company’s website. Company. In the case where it is urgent to propose a • Providing information of the meeting date and meeting agenda item which is affecting or relevant to the meeting agenda for the 2017 AGM to the shareholders’ interests or any conditions or rules shareholders through the SET’s information system or regulations or laws where it is mandatory to seek and the Company’s website at least 30 days prior approval from the shareholders; the Company may to the meeting date. convene an extraordinary general meeting of • Submitting meeting invitation letters and meeting shareholders on a case by case basis. agenda details to the shareholders together with Sustainability Report 2018 78 Eastern Water Resources Development and Management Public Company Limited

proxy forms for those unable to attend the As for measures to prevent a conflict of interest, the meeting in Thai and English; as well as providing Company stipulated operating guidelines for its meeting documents to the shareholders at least employees to comply with. According to the guidelines, 28 days prior to the meeting date and publishing the employees shall perform duties with honesty and relevant information in the newspaper for integrity, comply with laws and regulations, and put 3 consecutive days at least 3 days before the their own interest second to the interest of the meeting date. The Company disclosed its meeting Company. The employees shall not use internal invitation letter and meeting supporting documents information of the Company for personal gains. in its website 30 days before the meeting date. The directors, the high-level executives or the first 4 executives next to the top executive, and the On the date of the 2017 AGM, the Company facilitated holders of the positions equivalent to the fourth- convenience to its shareholders as follows: ranking executive positions shall report the shareholding status of themselves and related parties • The e-voting program was adopted and the barcode at the time of assuming the positions to the SEC system was used for the vote counting process. within 30 days from the dates of first assuming the • Three representatives from the legal firm and the positions. They shall also report any change to the shareholders at the meeting were asked to inspect the shareholding status within 3 days from the date of such vote counting process at the meeting. change. Furthermore, directors, executives and • Before the Meeting started, the Chairman of the permanent employees of the Company and their Meeting informed about the voting and counting spouses and minor children are not allowed to buy procedures for each agenda item. Before the Meeting and sell the Company’s securities during the 1-month passed a resolution for any agenda item, the Chairman period prior to the disclosure of financial statements would allow all shareholders to ask any question or to the SET and during the 3-day period after the give any comment about the Company’s operations disclosure of financial statements to the SET. and advise the shareholders to discuss the particular matter within an appropriate time frame. The The Company prepared and announced the adoption shareholders also had the equal rights to provide of the “Code of Conduct of the East Water Group in suggestions. The directors and executives gave clear 2003. The current version has been updated to ensure answers to all questions before the meeting was asked alignment with the Anti-corruption policy of the to vote. For the election of directors, the Chairman organization and the guidelines for evaluation of asked the shareholders to vote in a separate ballot for Thailand’s Private Sector Collective Action Coalition each individual director. Against Corruption (CAC) and renewal of the CAC’s • The Chairman informed the meeting of the voting membership certificate. In 2018, the new name “Code results for each agenda item before proceeding with of Conduct of the East Water Group” was approved the next agenda item and before the end of the by the Board of Directors’ Meeting No. 14/2018 held meeting. The Chairman conducted the meeting on 11 December 2018. The recent Code of Conduct according to the Company’s articles of association and contained the following 14 topics. in accordance with the order of the agenda items specified in the invitation letter. An exception applies 1) Human rights and labor in the case where the meeting resolves to change the 2) Occupational health, environment, wellness, order of the agenda items with a vote of not less than and safety two-thirds of the number of the shareholders present 3) Anti-corruption at the meeting. There was no change in the order of 4) Giving or receiving of gifts or assets or other the agenda items as specified in the AGM invitation kinds of benefits letter. The meeting considered all agenda items and 5) Ethics regarding procurement and treatment of the Chairman informed the shareholders that the trading partners shareholders with at least one third of the total shares 6) Conflicts of interest issued may ask the meeting to consider other business. 7) Related party transactions 8) Political actions After the end of the 2017 AGM, the Company published 9) Treatment of information and assets the AGM resolutions through the SET’s information 10) Information disclosure and communication system immediately within the same day of the 11) Transactions undertaken by the East Water meeting. The Company also prepared minutes of the Group (EWG) meeting with important and comprehensive contents 12) Conducting businesses in other countries including resolutions of the meeting and clearly 13) Trading competition specified voting results as approval, disapproval and 14) Anti-money laundering abstention. The said meeting minutes were posted in the Company’s website and submitted to the SET The Company disseminated the Code of Conduct of within 14 days from the meeting date. the East Water Group through electronic media at Sustainability Report 2018 79 WE SEE THE FUTURE... Smart water for all www.eastwater.com and the Company’s internal web Activities to Promote Morality in 2018 for easy access and learning. New employees are also required to sign and acknowledge the Code of Conduct Anti-Corruption document on the date of orientation to affirm a On 3 April 2015, the Company was certified as commitment to comply with the Company’s Code of a member of Thailand’s Private Sector Collective Action Conduct. The Code of Conduct is one of the topics Coalition Against Corruption (CAC). The project was under the good corporate governance principles which originated by the Thai Institute of Directors (IOD) and must be complied with. Also, new directors are received support from the government and the Office required to sign and acknowledge the Company’s of the National Anti-Corruption Commission (NACC). CG Code on the date of orientation. In 2018, the Company’s CAC membership certificate was renewed according to the resolution of the CAC’s The Company’s AGM held in 2018 obtained a score meeting to endorse the matter in Q3/2018 on of 95 from the Thai Investors Association. The Company 5 November 2018. The said certificate shall be valid also got an “Excellent” rating according to the 2018 for 3 years from the date of the resolution. Corporate Governance Report of Thai Listed Companies assessment by the Thai Institute of Directors. The rating The Company stipulated best practices regarding was based on consideration of the corporate internal fraud and corruption for its directors, executives information published through the communications and employees in the Anti-corruption policy. channel of the SET and other documents of the The policy has been revised every year and is Company. Moreover, the Company was granted 2018 disseminated to the exuctives, employees and Sustainability Report award in the category of related parties through the Company’s website. Recognition. Please refer to more details of the policy at http:// investor.eastwater.com/storage/company-subsidiary/ corporate-governance/20180925-eastw-anti- corruption-policy-2018-th.pdf. In 2018, the Company organized and attended a number of seminars and activities relating to good corporate governance and Anti-corruption to raise awareness among its directors, executives and employees about the importance of corporate governance and anti-corruption practices within the organization as follows: Sustainability Report 2018 80 Eastern Water Resources Development and Management Public Company Limited

- On 15 June 2018, the Company facilitated the “New Era of Governance & Internal Controls” training course for its executives and employees. The instructor of the course was an advisor from EV Corporate Services Co., Ltd. There were a total of 50 executives/employees attending the course as follows:

By Employee By Geographical By Employment Total Level Location Agreement

5.43 10.86 6.33 19.91 2.71 22.17 0.45 persons By Employee By Geographical By Employment 50Total Executives Level 12 persons Central Location Region 44 persons Permanent Agreement employees 49 persons accounting for Supervisors 24 persons Eastern Region 6 persons Contractual employee 1 persons 5.43 10.86 6.33 19.91 2.71 22.17 0.45 22.62%persons Operating officers persons By Employee 14 By Geographical By Employment 50 Executives persons Central Region persons Permanent employees persons Level 12 Location 44 Agreement 49 Totalaccounting for Remark: The number of the Company’s employees at the end of 2018 was 221 Supervisors 24 persons Eastern Region 6 persons Contractual employee 1 persons 22.62% 5.43Operating 10.86 officers 14 persons6.33 19.91 2.71 22.17 0.45 50 persons - On 9 August 2018, the CompanyExecutivesRemark: The number facilitated of the Company’s12 personsthe employees “New atCentral the CG end of CodeRegion 2018 was 2017 221 44 and persons New Laws” Permanent training employees course 49 forpersons its accounting for directors, executives andBySupervisors employees. Employee The24 instructor persons of ByEastern the Geographical course Region was 6 an personsadvisor fromByContractual EmploymentEY Corporate employee 1 Services persons Co.,Total22.62% Ltd. There were a total Operating Level Level of 39officers directors/executives/employees 14 persons LocationLocation attending the course AgreementAgreement as follows:

7.69Remark:By5.43 Employee The 10.86 number 3.62 of the Company’s 6.33 6.33 employees at 15.83theBy19.91 end Geographical of 2018 was 221 1.81 2.71 17.19By22.17 Employment 0.45 0.45 39 persons 50Total Executives Level 1712 persons persons Central Location Region 44 35 persons Permanent Permanent Agreement employeesemployees 49 38 personspersons accounting for Supervisors 248 persons persons Eastern Region 64 persons persons ContractualContractual employeeemployee 1 1 personspersons 7.69 3.62 6.33 15.83 1.81 17.19 0.45 17.64% Operating officers persons 22.62%persons ByOperating Employee officers 14 persons By Geographical By Employment 39 Executives persons Central Region persons Permanent employees persons Level 17 Location 35 Agreement 38 accounting for Remark: The number of the Company’s employees at the end of 2018 was 221 Total Remark:Supervisors The number of the Company’s8 persons employees at Easternthe end of Region2018 was 221 4 persons Contractual employee 1 persons 17.64% 7.69Operating officers3.62 14 6.33 persons 15.83 1.81 17.19 0.45 39 persons ExecutivesRemark: The number of the Company’s17 persons employees atCentral the end of Region 2018 was 221 35 persons Permanent employees 38 persons accounting for BySupervisors Employee 8 persons ByEastern Geographical Region 4 persons ByContractual Employment employee 1 persons Total17.64% Operating Level Level officers 14 persons LocationLocation AgreementAgreement - On 6 September 2018, the employees joined a seminar on the National Anti-Corruption Day 2018 under the 0.45Remark:By7.69 Employee The number 3.62 of the Company’s 6.33 6.79 employees at 7.24theBy15.83 end Geographical of 2018 was 221 1.81 7.24By17.19 Employment 0.45 topic ofpersons “Thai People Know and Fight against Corruption” hosted by the Anti-Corruption Organization of 1639Total Executives Level 171 persons persons Central Location Region 16 35 persons Permanent Permanent Agreement employeesemployees 16 38 personspersons Thailand.Thereaccounting for were a total of 16 executives/employees attending the seminar as follows: Supervisors 08 persons persons Eastern Region 04 persons persons ContractualContractual employeeemployee 0 1 personspersons 0.45 6.79 7.24 7.24 7.24%persons Operating officers persons 17.64% ByOperating Employee officers 1514 persons By Geographical By Employment 16 Executives persons Central Region persons Permanent employees persons Level 1 Location 16 Agreement 16 accounting for Remark: The number of the Company’s employees at the end of 2018 was 221 Total Remark:Supervisors The number of the Company’s0 persons employees at Easternthe end of Region2018 was 221 0 persons Contractual employee 0 persons 7.24% 0.45Operating officers 15 persons6.79 7.24 7.24 persons 16 Executives persons Central Region persons Permanent employees persons Remark: The number of the Company’s1 employees at the end of 2018 was 221 16 16 accounting for BySupervisors Employee 0 persons ByEastern Geographical Region 0 persons ByContractual Employment employee 0 persons Total7.24% Operating Level Level officers 15 persons LocationLocation AgreementAgreement

6.78Remark:0.45 12.22 The number of the Company’s 64.71 6.79 employees at 58.82the7.24 end of 2018 was 221 24.89 82.357.24 1.36 personspersons By Employee By Geographical By Employment 18516Total Executives Level 151 persons persons Central Location Region 130 16 persons Permanent Permanent Agreement employeesemployees 182 16 personspersons accounting for Supervisors 270 persons persons Eastern Region 550 persons persons ContractualContractual employeeemployee 3 0 personspersons 6.78 12.22 64.71 58.82 24.89 82.35 th 1.36 - On83.71%7.24% 8 Octoberpersons 2018, theOperating Company officers organized 14315 persons a number of activities on the occasion of the 26 Anniversary 185 By Employee By Geographical By Employment Executives persons Central Region persons Permanent employees persons of the East Water Group and Level the CG Day15 with Mr. Veerasak Location Kositpaisal,130 Chairman of theAgreement Board of 182 Directors Totalaccounting for Remark:Remark: TheThe numbernumber ofof thethe Company’sCompany’s employeesemployees atat thethe endend ofof 20182018 waswas 221221 giving a keynote addressSupervisors on “EWG and 27Sustainable persons Development” Eastern Region to55 the persons Company’sContractual directors, employee executives 3 persons 83.71% 6.78Operating 12.22 officers 143 64.71 persons 58.82 24.89 82.35 1.36 185and employees.persons There were a total of 185 directors/executives/employees joining the event as follows: ExecutivesRemark: The number of the Company’s15 persons employees atCentral the end of Region 2018 was 221 130 persons Permanent employees 182 persons accounting for SupervisorsBy Employee 27 persons EasternBy Geographical Region 55 persons ContractualBy Employment employee 3 persons 83.71%Total Operating Level officers 143 persons Location Agreement

Remark:6.78 12.22 The number of the Company’s 64.71 employees at the58.82 end of 2018 was 221 24.89 82.35 1.36 persons 185 Executives 15 persons Central Region 130 persons Permanent employees 182 persons accounting for Supervisors 27 persons Eastern Region 55 persons Contractual employee 3 persons 83.71% Operating ofﬁcers 143 persons

Remark: The number of the Company’s employees at the end of 2018 was 221 Sustainability Report 2018 81 WE SEE THE FUTURE... Smart water for all

- On 7 November 2018, the Company facilitated the “Fighting against Corruption” training course for its directors, executives and employees. The lecturer of the course was Dr. Mana Nimitmongkol, Secretary-General of the Anti-Corruption Organization of Thailand. There were a total of 66 directors/executives/employees attending the course as follows:

By Employee By Geographical By Employment Total Level Location Agreement

5.88 12.67 11.31 25.34 4.52 29.86 66 persons By Employee By Geographical By Employment Executives Level 13 persons CentralLocation Region 56 persons Permanent Agreement employees 66 persons accountingTotal for Supervisors 28 persons Eastern Region 10 persons Contractual employee 0 persons 29.86% Operating5.88 12.67 officers persons 11.31 25.34 4.52 29.86 persons By Employee 25 By Geographical By Employment 66 Executives Level persons CentralLocation Region persons Permanent Agreement employees persons Total Remark: The number of the13 Company’s employees at the end of 2018 was 221 56 66 accounting for Supervisors 28 persons Eastern Region 10 persons Contractual employee 0 persons 5.88 12.67 11.31 25.34 4.52 29.86 29.86%persons Operating officers 25 persons - From 19 November - 14By DecemberEmployee 2018, the CompanyBy Geographical asked its executives andBy employees Employment to conduct 66 Executives 13 persons Central Region 56 persons Permanent employees 66 persons aaccounting knowledge for test about Remark:corporate Level The number governance of the Company’s employeesprinciples at the end Locationand of 2018 anti-corruption was 221 measures. AgreementThe results of the test Total BySupervisors Employee 28 persons ByEastern Geographical Region 10 persons ByContractual Employment employee 0 persons would be used to improve Levelknowledge and practice communication Location in the following year.Agreement There were a total Total29.86% Operating5.88 12.67 officers 25 persons11.31 25.34 4.52 29.86 of66 213 employeespersons conducting the test as follows: Executives7.69Remark: 14.03 The number of the 13 Company’s persons74.66 employees atCentral 66.06the end of Region 2018 was 221 56 persons 30.32 Permanent 95.48 employees 66 persons 0.90 accountingpersons for 213 BySupervisors Employee 28 persons ByEastern Geographical Region 10 persons ByContractual Employment employee 0 persons Executives Level 17 persons CentralLocation Region 146 persons Permanent Agreement employees 211 persons accountingTotal29.86% for Operating officers persons Supervisors 3125 persons Eastern Region 67 persons Contractual employee 2 persons

96.38% Operating7.69Remark: 14.03 The numberofficers of the 165 Company’s persons74.66 employees at 66.06the end of 2018 was 221 30.32 95.48 0.90 persons By Employee By Geographical By Employment 213 Executives Level persons CentralLocation Region persons Permanent Agreement employees persons Total Remark: The number of the17 Company’s employees at the end of 2018 was 221146 211 accounting for Supervisors 31 persons Eastern Region 67 persons Contractual employee 2 persons 96.38% Operating7.69 14.03 officers 165 persons74.66 66.06 30.32 95.48 0.90 persons By Employee By Geographical By Employment 213 Executives 17 persons Central Region 146 persons Permanent employees 211 persons accounting for Remark: Level The number of the Company’s employees at the endLocation of 2018 was 221 Agreement Total BySupervisors Employee 31 persons ByEastern Geographical Region 67 persons ByContractual Employment employee 2 persons Level Location Agreement Total96.38% Operating7.69 14.03 officers 165 persons74.66 66.06 30.32 95.48 0.90 213persons Executives0.45Remark: The number of the 17 Company’s persons 0.45 employees atCentral 0.90the end of Region 2018 was 221 146 persons Permanent 0.90 employees 211 persons - The Companypersons assigned two people to attend the “Anti-Corruption the Practical Guide (ACPG)” training course accounting for BySupervisors Employee persons ByEastern Geographical Region persons ByContractual Employment employee persons 2 Executives 31 persons Central Region 67 persons Permanent employees 2 persons as follows: Level 1 Location 2 Agreement 2 accountingTotal96.38% for Operating officers 165 persons Supervisors 1 persons Eastern Region 0 persons Contractual employee 0 persons

0.90% Operating0.45Remark: The numberofficers of the Company’s 0 persons 0.45 employees at 0.90the end of 2018 was 221 0.90 persons By Employee By Geographical By Employment 2 Executives Level persons CentralLocation Region persons Permanent Agreement employees persons Total Remark: The number of the Company’s1 employees at the end of 2018 was 221 2 2 accounting for Supervisors 1 persons Eastern Region 0 persons Contractual employee 0 persons 0.45 0.45 0.90 0.90 0.90%persons Operating officers 0 persons By Employee By Geographical By Employment 2 Executives 1 persons Central Region 2 persons Permanent employees 2 persons accounting for Remark: Level The number of the Company’s employees at the endLocation of 2018 was 221 Agreement Total BySupervisors Employee 1 persons ByEastern Geographical Region 0 persons ByContractual Employment employee 0 persons Total0.90% Operating0.45 Level officers 0 persons 0.45 0.90Location 0.90Agreement persons 2 Executives persons Central Region persons Permanent employees persons 9.05Remark: The number of the Company’s1 employees at 5.88the end of 2018 was 221 2 3.17 8.60 2 0.45 accountingpersons for BySupervisors Employee 1 persons ByEastern Geographical Region 0 persons ByContractual Employment employee 0 persons 20 Executives 0 persons Central Region 13 persons Permanent employees 19 persons accountingTotal0.90% for Operating Level officers 0 persons Location Agreement Supervisors 0 persons Eastern Region 7 persons Contractual employee 1 persons 9.05% Operating9.05Remark: The numberofficers of the20 Company’s persons employees at 5.88the end of 2018 was 221 3.17 8.60 0.45 20 persons By Employee By Geographical By Employment Executives persons Central Region persons Permanent employees persons - TheTotal Company communicated Remark: Level The numberits anti-corruption of the Company’s0 employees policy at the end Locationto of 2018its wasnew 221 2013 employees throughAgreement their orientation19 accounting for as follows: Supervisors 0 persons Eastern Region 7 persons Contractual employee 1 persons 9.05 5.88 3.17 8.60 0.45 9.05%persons Operating officers 20 persons By Employee By Geographical By Employment 20 Executives 0 persons Central Region 13 persons Permanent employees 19 persons Totalaccounting for Remark: Level The number of the Company’s employees at the endLocation of 2018 was 221 Agreement Supervisors 0 persons Eastern Region 7 persons Contractual employee 1 persons 9.05% Operating9.05 officers 20 persons 5.88 3.17 8.60 0.45 20 persons ExecutivesRemark: The number of the Company’s0 persons employees atCentral the end of Region 2018 was 221 13 persons Permanent employees 19 persons accounting for Supervisors 0 persons Eastern Region 7 persons Contractual employee 1 persons 9.05% Operating officers 20 persons

Remark: The number of the Company’s employees at the end of 2018 was 221 Sustainability Report 2018 82 Eastern Water Resources Development and Management Public Company Limited

- The Company assigned 1 person to attend the “CG Code Disclosure Guidelines Based on the Concept of Apply or Explain” seminar as follows: By Employee By Geographical By Employment Total Level Location Agreement

0.45 0.45 0.45 person By Employee By Geographical By Employment 1 ByExecutives LevelEmployee 0 persons ByCentral GeographicalLocation Region 1 persons By Permanent EmploymentAgreement employees 1 persons Total Totalaccounting for Supervisors Level 0 persons EasternLocation Region 0 persons ContractualAgreement employee 0 persons Operating0.45 officers 1 persons 0.45 0.45 0.45%person Executives0.45 persons Central0.45 Region persons Permanent 0.45 employees persons 1 person 0 1 1 1accounting for SupervisorsExecutivesRemark: The number of the Company’s0 persons employees at EasternCentral the end of RegionRegion 2018 was 221 01 persons ContractualPermanent employeesemployee 01 persons 0.45%accounting for OperatingSupervisors officers 10 persons Eastern Region 0 persons Contractual employee 0 persons 0.45% Operating officers 1 persons ByRemark: Employee The number of the Company’s employees atBy the endGeographical of 2018 was 221 By Employment - The Company assigned Remark:the 2The employees number of the Company’s to attend employees atthe the end“Creating of 2018 was 221 a Worksheet for Anti-Corruption Measures” trainingTotal course as follows: Level Location Agreement

By0.90 Employee By0.90 Geographical By0.90 Employment persons 2 ByExecutives LevelEmployee 0 persons ByCentral GeographicalLocation Region 2 persons By Permanent EmploymentAgreement employees 2 persons Total Totalaccounting for Supervisors Level 0 persons EasternLocation Region 0 persons ContractualAgreement employee 0 persons Operating0.90 officers 2 persons 0.90 0.90 0.90%persons Executives0.90 0 persons Central0.90 Region 2 persons Permanent 0.90 employees 2 persons 2 persons 2accounting for SupervisorsExecutivesRemark: The number of the Company’s0 persons employees at EasternCentral the end of RegionRegion 2018 was 221 02 persons ContractualPermanent employeesemployee 02 persons 0.90%accounting for OperatingSupervisors officers 20 persons Eastern Region 0 persons Contractual employee 0 persons 0.90% Operating officers 2 persons ByRemark: Employee The number of the Company’s employees atBy the endGeographical of 2018 was 221 By Employment Remark: Level The number of the Company’s employees at the endLocation of 2018 was 221 Agreement Total - The Company assigned the 4 employees to attend the “CG Code Workshop” training course as follows: By0.45 Employee 0.45 0.90 By1.80 Geographical By1.80 Employment persons 4 ByExecutives LevelEmployee 1 persons ByCentral GeographicalLocation Region 4 persons By Permanent EmploymentAgreement employees 4 persons Total Supervisors Level persons EasternLocation Region persons ContractualAgreement employee persons Totalaccounting for 1 0 0 Operating0.45 0.45 officers 2 0.90 persons 1.80 1.80 1.80%persons Executives0.45 0.45 1 0.90 persons Central1.80 Region 4 persons Permanent 1.80 employees 4 persons 4 persons 4accounting for SupervisorsExecutivesRemark: The number of the Company’s1 persons employees at EasternCentral the end of RegionRegion 2018 was 221 04 persons ContractualPermanent employeesemployee 04 persons 1.80%accounting for OperatingSupervisors officers 21 persons Eastern Region 0 persons Contractual employee 0 persons 1.80% Operating officers 2 persons Remark: The number of the Company’s employees at the end of 2018 was 221 Remark: The number of the Company’s employees at the end of 2018 was 221 Sustainability Report 2018 83 WE SEE THE FUTURE... Smart water for all

Employee Information (Disclosure 102-7, 102-8)

Number of employees 2015 2016 2017 2018 Total employees 169 168 214 221 By Type of Employment Permanent employees 166 165 210 217 Contractual employees 3 3 4 4 By Employment Level Executives 11 13 18 19 Supervisors 23 24 27 31 Operating officers 135 131 169 171 By Age Range Less than 30 years 34 28 33 35 30-50 years 121 122 158 163 More than 50 years 14 18 23 23 By Gender Male 94 93 105 107 Female 75 75 109 114 By Geographical Location Central Region 117 117 148 151 Eastern Region 52 51 66 70

Rates of new hires and resigning employees by gender, age range, and geographical location (Disclosure 401-1)

Number of employees 2015 2016 2017 2018 Total new hires 32 19 65 23 By Age Range Less than 30 years 17 8 18 13 30-50 years 15 10 45 10 More than 50 years 0 1 2 - Rates of new hires (%) 19% 11% 30% 10% By Gender Male 22 9 19 11 Female 10 10 46 12 By Geographical Location Central Region 8 6 7 12 Eastern Region 24 13 58 11 Total resigning employees 23 20 19 16 By Age Range Less than 30 years 3 6 5 6 30-50 years 19 13 11 10 More than 50 years 1 - 3 - Rates of resingning employees (%) 14% 12% 9% 7% By Gender Male 14 10 7 9 Female 9 10 12 7 By Geographical Location Central Region 18 17 15 10 Eastern Region 5 3 4 6 Sustainability Report 2018 84 Eastern Water Resources Development and Management Public Company Limited

Statistics on employee sick leave by gender and geographical location (Disclosure 403-2)

Number of Number of working Number of sick leave Sick leave rate *Occupational employees hours hours (%) Disease Rate (ODR)

Male 107 208,864.00 4,059.50 1.94 0.00 Female 114 222,528.00 5,073.50 2.28 0.00 Remark: *Occupational Disease Rate: ODR Total number of occopational disease case/1,000,000 hours worksed

Number of Number of sick leave employees Number of working hours hours Sick leave rate (%) Bangkok Male 54 105,408.00 2,297.00 2.18 Female 97 189,344.00 4,700.50 2.48

Number of Number of sick leave employees Number of working hours hours Sick leave rate (%) Eastern Operation Site Male 53 103,456.00 1,762.50 1.70 Female 17 33,184.00 373.00 1.12 The Company adopted the Human Resources Information System (HRIS) to manage information of its employees, sick leave requests, welfare disbursement requests and other work-related matters. The number of working hours was calculated according to the work rules according to which an employee is required to work 8 hours a day. Thus, the number of working hours per person in 2018 was calculated as follows:

Number of working hours per person per year = 8 hours* ((5 days * 52 weeks) - 16 days) = 1,952 hours. Sustainability Report 2018 85 WE SEE THE FUTURE... Smart water for all

Community Sustainability Projects (Disclosure 203-1) The Company has the policy to conduct business along the Company and the communities in the operating with community sustainability in all of the Company areas, and has incorporated the communities to be part operating areas and give precedence to the continuous of the improvement and development of the projects. development of community wellbeing based on the Hence, the community sustainability projects have been mutual consumption of water resources. improved in terms of process and operation practices with the ‘3 creations and 3 developments’ strategy, In addition, the Company determines to arrange for a focusing on creating acceptance, creating stability, and survey on water demand for communities located along creating mutual values for moving towards sustainable the Company’s new raw water pipeline as part of the development. The strategy led to the relationship suitability study. The survey is clearly included as part establishment with local government authorities and of the engineering system. Before the construction starts, communities along the Company’s 491.8 km water the Company and contractors hold a meeting with grid. The attempt is based on the King Bhumibol’s community leaders and villagers to provide information philosophy of ‘Understanding, Reach, and on the project and gather the community’s needs and Development’ to achieve sustainable development problems for improvement or hardship mitigation through the corporate social responsibility activities in as well as to help improve villagers’ quality of life. 3 dimensions, i.e Developing water and environmental campaign, Developing promotion of quality of life in The Company has established the community communities, and Developing encouraging lifelong sustainability projects with the collaboration between learnings.

The corporate social responsibility activities were carried dimensions out in 3 as follows Developing water and I. environmental campaign • Wastewater treatment project on pilot school cafeterias • Restoration of natural resources and water sources project (including forestation, release of aquatic animals) • East Water Water Conservation project (including youth camp, water quality inspection at the Company’s sources of water capital) • Water for Communities project (including providing cup water, bottled water, water service mobile unit for community and public services) • Training on production control and maintenance of community tap water Project (integrated with Fix It Center project) • CSR activities for communities along the Prasae-Klong Yai raw water pipeline

Developing promotion Developing encouraging of quality of life in 2. communities 3. lifelong learnings • Occupational training Project • Water-air aerator prototype Project (reducing expense, increasing income as per t • East Water Sufficiency Economy Learning Center, he Sufficiency Economy principle) Klong Khuen district Project • Friendship football competition Project • Computer training for the disabled Project • Annual Kathin religious ceremony Project • Support for activities/projects for common benefit of government agencies, communities, and charity organizations • Production of souvenirs for the Company’s CSR activities Sustainability Report 2018 86 Eastern Water Resources Development and Management Public Company Limited

Wastewater treatment project on pilot school cafeterias

During 2011-2013, the Company had established for more sustainability and continued raising awareness the project by granting fund to the participating of the youth and school personnel on water schools from the East Water Young Leader Camp, conservation since water is a vital factor for the living. and providing hands-on knowledge and guidance The project provides the source of knowledge in water at the site. In practice, wastewater treatment of management in practice and targets to have one pilot Chachoengsao Provincial office of Natural Resources school, diamond level, per each education area, with and Environment was used as the model for installation a total of seven schools by 2019. of wastewater treatment system at the schools. Then in 2014, the Company evaluated the results from the In 2018, the Company cooperated with the seven system operation to learn about problems and made education areas for assessment of 12 schools under suggestions for project improvement. the project in 5 aspects; namely 1) installation and use of wastewater treatment system, 2) wastewater In 2016, the Company joined the Primary Educational treatement control, 3) water quality treatment in the Service in seven education areas (in Chachoengsao, final phase, 4) recycling water after treatment, Chonburi, and Rayong provinces) in carrying out the 5) knowledge base sharing on wasterwater treatment project on wastewater treatment for water released inside and outside the school. The schools that passed from school cafeterias. The project has been improved the evaluation and were awarded are as follows: Sustainability Report 2018 87 WE SEE THE FUTURE... Smart water for all

Chum-chon Baan Nhong Yai Baan Nhong Sai Baan Wat-suwan-rangsan School School Talad Nern Hin Diamond School Chachoengsao Rayong Primary School level Rayong Primary Primary Educational Educational Service Chonburi Primary Educational Service Service Area Office 2 Area Office 2 Educational Service Area Office 1 Area Office 2

Chum-chon Borisat- Baan Kong Dara Namtal-Tawan-Aok School Golden School Chonburi Primary level Rayong Primary Primary Educational Educational Service Service Area Ofﬁce 1 Area Ofﬁce 3

Baan Nhong Wah School Silver Chachoengsao level Primary Educational Service Area Ofﬁce 2

Wat Juk Cher Baan Tup Rang Baan Map Lum Bid School School School Bronze level Chachoengsao Primary Chonburi Primary Chonburi Primary Educational Service Educational Service Educational Service Area Office 1 Area Office 2 Area Office 1

The Company targeted one pilot school with diamond level in each education area with a total of 7 schools in 2019. From the evaluation, there are 3 education areas remained with no school in a diamond level. Hence, the Company will drive the schools in these areas to achieve the target in 2019 and will announce and award the pilot schools who achieve this target in 2020. From 2021 onwards, for project sustainability, the Company together with the seven education areas will monitor and evaluate the results of the diamond-level pilot schools every year. Sustainability Report 2018 88 Eastern Water Resources Development and Management Public Company Limited

Water-air Aerator Prototype for Knowledge Sharing with Communities

Following the contest on water management innovation using the 3R (Reduce, Reuse, Recycle) principle in 2010, the Company came up with an idea to turn the classroom innovation into tangible community benefit. The Company selected the innovation on construction of water-air aerator by Ubol Ratchathani Technical College (receiving a consolation prize). The innovation was brought for application in a collaboration with the Environment Worrier / Water Inspector Group of Chachoengsao province, Water Quality Monitoring Center of Pluak Daeng District, Rayong Province, and Ubol Ratchathani Technical College.

2013 2014-2016 2017 Ubol Ratchathani Technical Company expanded the Company expanded the College instaled four aerators project to the two technical knowledge base by installing at some households of colleges (Rayong and aeretors to Pattaya Technical Chachoengsao Ua Artorn Chachoengsao) by installing College, and joined the four Community and measured three aertors under the technical colleges and the Dissolved Oxygen (DO) water-air aerators the Eastern Institute of value to test the efficiency. construction workshop Vocational Technology in organizing the water-air aerator construction workshop to pass on the knowledge to communities with the course facilitator from the Chaipattana Foundation.

In 2018, the Company, together with the four vocational colleges and the Eastern Institute of Vocational Technology built a water-air aerator prototype, aiming for an even better prototype especially in terms of efficiency, material cost and energy cost saving, as well as easiness and convenience for construction, to pass on the knowledge to the communities. The efficiency of the machine will be tested by the Chaipattana Foundation with further advice acquired to establish the aerator construction course curriculum for knowledge sharing with the communities. The Company sets the goal to join the technical colleges in the operating areas in 3 provinces (Rayong, Chonburi, and Chachoengsao) in 2019 to organize the workshops to pass on the knowledge of construction and maintenance of an aerator to the interested communities and organizations. Sustainability Report 2018 89 WE SEE THE FUTURE... Smart water for all

Conservation and restoration of Baan Sampran community forest with community participation using the People’s State concept

The first pilot plot of land that the Company selected east in a project to conserve and restore Sampran is Baan Sampran community forest in Klong Takrao community forest using the People’s State concept. subdistrict, Tha Takiap district, Chachoengsao province. The project, planned for four years (2017-2020), involves The community is located adjacent to Khao Ang Rue Nai maintaining the existing forests and forestation for Wildlife Sanctuary, which is the watershed forest of Bang planting more 1500 trees a year. Planting 6,000 trees Pakong River. Flowing through the community is Klong throughout the four-years period will capture as much Si Yat stream which is vital to the ecosystem of the as 10,440 tons of carbon (Carbon Capture Estimate in area that connects five provinces in the east. The Dry Evergreen Forests; Dr. Somsak Sukwong). community forest project covers the area of 32-0-03 rai of land and the villagers were granted permission to In 2018, the Company participated with the network of take care of the community forest since 15 July 2016. community forests that connect five provinces in the Sampran Village Leader and the Sampran Community east by organizing activities to conserve and restore Forest Committee jointly take charge of the project. Sampran Community Forest, e.g. constructing survey route around the community forest and firebreaks, Since 2017, the Company has joined the network of protecting the forests, as well as planting more community forests that connect five provinces in the 1500 trees.

Conservation and restoration of Baan Nong Muang community forest with community participation using the People’s State concept

Baan Nong Muang Community Forest Committee are in charge of the project. Since 2017, the Company has joined the network of community forests that connect five provinces in the east in a project to conserve and restore the community forests using the People’s State concept, covering Baan Nong Muang areas. The project, planned for five years (2017 - 2021), involves maintaining the existing forests and planting more 3,800 trees a year or additional 15,200 trees. Hence, it is expected to capture as much as 30,400 tons of carbon throughout the The second area that Company selected as the pilot five-years period (Carbon Capture Estimate in Dry project is Baan Nong Muang in Chum Saeng subdistrict, Evergreen Forests; Dr. Somsak Sukwong). Wang Chan district, Rayong Province. The community, lying adjacent to the Prasae Reservoir, has a geographical In 2018, the Company participated with the network characteristic of both plains and mountainous areas, of community forests that connect five provinces which is vital to the ecosystem of the forest area that in the east by organizing activities to conserve and connects five provinces in the east and Prasae watershed. restore Baan Nong Muang Community Forest, The community forest project covers the area of e.g. constructing survey route around the community 96-0-55 rai of land. The community was granted permission forest and firebreaks, protecting the forests, as well as on 25 April 2017. Baan Nong Muang village leader and planting more 3,800 trees. Sustainability Report 2018 90 Eastern Water Resources Development and Management Public Company Limited

Repair and Construction Center for the Community (Fix It Center)

In 2008, the Company initiated a project on tap water quality of life of the communities in water solution. maintenance and training on community tap water The project received cooperation from Universal management. The project was based on data acquired Utility Public Company Limited to provide training on from a survey on tap water demand of communities along tap water maintenance and management of community the raw water pipelines with an intent to provide the tap water system for community committees and communities access to clearn water supply for good authorities from local administrative bodies so that these quality of life. The survey result revealed that tap people are able to run an efficient and sustainable water system in several communities cannot be used community tap water system. effectively. The Company is determined to elevate the

2012 2016-2017 2018 Company adjusted Company, in collaboration Company cooperated with the training format to be with Eastern Insitute of the Eastern Institute ‘community teaches Vocational colleges, and the of Vocational Technology community’ together with Metropolitan Waterworks to provide the Community on-the-job training, by the Authority, organized the Tap Water Maintenance instructor who received Production Control and training course into training and was able to apply Maintenance of Community the Fix It Center program. the knowledge into the Tap Water training, both community’s tap water basic and practical courses. system to make it more efficient. Sustainability Report 2018 91 WE SEE THE FUTURE... Smart water for all

Later in 2018, the Company and the Eastern Institute of Vocational Technology established the Fix It Center and provided repair and maintenance services for the community tap water system in total of 9 locations as shown below.

College Location for Repair of Community Tap Water System Map Ta Phut Technical College Moo 10, Nhong La Lok Subdistrict, Baan Kai District, Rayong Province Rayong Technical College Moo 8, Nhong La Lok Subdistrict, Baan Kai District, Rayong Province Pattaya Technical College Nhong Pla Lhai Subdistrict Municipal Office, Bang La Mung District, Chonburi Province Chonburi Technical College Moo 4, Mhon Nang Subdistrict, Panutnikom District, Chonburi Province Moo 10, Mhon Nang Subdistrict, Panutnikom District, Chonburi Province Chanthaburi Technical College Moo 11, Baan Mab Oon, Khao Bai Sri Subdistrict, Tha Mai District, Chanthaburi Province Moo 6, Baan Nhong Chavi, Khao Bai Sri Subdistrict, Tha Mai District, Chanthaburi Province Baan Kai Technical College Moo 9, Nhong La Lok, Baan Kai Subdistrict, Rayong Province Thai-Austrian Technical College Moo 5, Na Chorm Thien Subdistrict, Sattahip District, Chonburi Province

CSR Activities for Communities along Prasae-Klong Yai Raw Water Pipeline (Disclosure 203-1) Regarding the Company’s project on diversion of project to divert water from Prasae Reservoir to Klong water from Prasae Reservoir to Klong Yai Basin, the Yai Reservoir in Rayong Province. The meeting agreed Company organized the meeting to enable an on water supply for the development of community, integration of water management among all the society, and the environment taking into stakeholders, including government sectors, private consideration the systematic allocation of social and sectors, and the people in the communities. The environmental budget in 2016. In parallel, a committee meeting resolution resulted in the improvement of for CSR budget administration, made up of water users, community quality of life for water supply sufficiently the Royal Irrigation Department, and local government and equally and supporting the communities bodies, was established to jointly consider and grant during droughts. The Company delivers water to the approval for projects and budget. community tap water system for 15 communities located along the water pipeline free of charge. The During 2015-2017, the Company sponsored the project, generating year-round water supply, benefits budget in total of Baht 8,957,783 for 19 development water users of over 4,000 households. In 2018, projects along Prasae-Klong Yai water pipeline. the Company supported the water supply to the communities along this water pipeline for 267,710.10 In 2018, the Company sponsored the budget in total cbm. of Baht 4,048,100 for the development of communities, the society, and the environment along the Prasae- In addition, an agreement between the Royal Irrigation Klong Yai water pipeline in 10 projects. The Company Department and East Water was made in 2015 on and the CSR committee conducted field verification water management to divert water between Prasae to monitor the progress and project evaluation of and Klong Yai reservoirs through the pipeline. A water the CSR projects granted during 2015-2017, it is found management group to manage irrigation water outside that the communities completed all projects according the agricultural sector was established under the to plan. Sustainability Report 2018 92 Eastern Water Resources Development and Management Public Company Limited

10 Klong Nam Daeng (1) Nong Rai *

11 Klong Nam Daeng (2) Pluak Daeng Nong Rai * Pipeline 12 Klong Pa Wai (1) New water distribution point Nong Rai Nong Rai Old water distribution point Subdistrict Nong Rai Waterworks

Klong Nam Laharn Daeng Subdistrict (km.30+985) Waterworks Klong Yai Reservoirs (km.31+900) (km.30+950) Water supply Nong Pla Lhai (km.39+900) Klong Pa Wai pipeline with Reservoirs (km.41+700) Waterworks (km. 37+080) raw water Nong Bua 15 Subdistrict distribution 15 Laharn SAO (2) Laharn points 14 Laharn SAO (1) Laharn

13 Nong Bua (1) Nong Bua

01.

April 2015 Subdistrict February 2017 Subdistrict

Sponsor fuels for Nhong Rai Water distribution points connection Huay Yang solving drought problem and pipeline installation of water pumping station zone 3, Km 6+925 Sponsor water pipeline installation connected from Prasae system zone 4 Kra Sai Bon Water pipeline installation Kra Sai Bon to the Reserviors M.6 and Klong Pai Nuea in Klong Pai Nuea Moo 7

Sponsor water pumps Water pipeline installation Plong Ta Iam Kra Sai Bon for agriculture in Khao Phak Ghood, M.6

02. Water distribution project in the Poh Peang National Park Chum Saeng October 2016 Subdistrict 04.

Repair work of water pipeline, Chum Saeng, Pa Yup Nai, April 2017 Subdistrict expansion zone (right side), 8 points Huay Yarng

Repair work of water pipeline, Kra Sai Bon Water pipeline installation for expansion zone (right side), 5 points Plong Ta Iam agriculture, Ma Pring Moo 5 Repair work of motor and start motor, Chum Saeng, Plong Ta Iam, Building extension of the Agricultural water pumping station zone 1-4 Wang Chan, Pa Yup Nai, Productivity Efﬁciency Increasing Plong Ta Iam Learning Center, Wang Chan district Water ﬂow rate measuring instruments Chum Saeng Repair work of water pipeline, Chum Saeng, Pa Yup Nai 03. expansion zone 1-3 Huay Yang, Plong Ta Iam Staff recruitment for supervising February 2017 Subdistrict pumping station zone 3 and Huay Yang, Wang Wah opening-closing water discharge Song Sa Lueng points to community Repair work of electric system and

equipment of the water pumping Huay Yang

station, expansion zone 3

Repair work of electric system and Kra Sai Bon equipment of the water pumping station, expansion zone 4 Sustainability Report 2018 93 WE SEE THE FUTURE... Smart water for all

01 Chum Saeng (1) Chum Saeng 03 Pa Yoob Nai (1) Pa Yoob Nai

04 Pa Yoob Nai (2) Pa Yoob Nai

Pa Yoob Nai 06 Tha Sao (1) Subdistrict Nong Bua * Ban Khlong Wai Som Prasae Reservoirs บานแกงหวาย Ban Yup Ta Neng อบต.วังจันทร (km.6+400) Ban Tha Sao Khao Chamao

Pa Yoob Nai (km.11+600) (km.2+700) Waterworks Prasae Tha Sao Waterworks (km.14+700) Pumping (km.16+900) Nong Kho Chum Saeng Station Waterworks (km.16+000) Subdistrict

Sala Nam Luek 02 Chum Saeng (2) (km.22+505) Waterworks Chum Saeng (km.22+000) (km.20+805)

05 Chum Saeng (3) Chum Saeng 07 Sala Nam Luek (1) Nong Bua Wang Chan

09 Nong Kho (2) Nong Bua

08 Nong Kho (2) Nong Bua Ta laeng 05. 07.

October 2017 Subdistrict September 2018 Subdistrict

Water pipeline installation for Huay Yang Raw water pipeline installation Huay Yang agriculture, M.4, M.7, M.8 for agriculture

Repair work of water pump, Kra Sai Bon Weed dredging and sediment removal, Huay Yang pumping station, expansion zone 4 M.1 and M.6

Raw water source improvement for 06. community tap water, Nhong Rai Klong Nam Daeng village April 2018 Subdistrict Bio-organic fertilizer production Kra Sai Bon following the Father’s footprint Staff recruitment for supervising Huay Yang, Wang Wah, pumping station zone 3 and Song Sa Lueng Repair work of the pump unit no. opening-closing water discharge points 4’s water gate of the pumping station Chum Saeng (right side) Water distribution points connection Huay Yang Water pipeline construction and pipeline installation of water Wang Chan pumping station zone 3, Km 7+050 for agriculture M.5

Repair work of water pipeline, Plong Ta Iam, Chum Saeng, expansion zone 1-3 Huay Yang, Pa Yup Nai

Repair work of water pipeline, expansion zone 4 Kra Sai Bon,

Repair work for electric system controlling water pump motor of Wang Chan, Cham Koh pumping stations, zone 2 section 3, and zone 4 Maintenance work for mild-steel Plong Ta Iam, Wang Chan water pipeline, expansion zone Huay Yang, Wang Wah (zone 2 section 2 & 3, zone 3) Sustainability Report 2018 94 Eastern Water Resources Development and Management Public Company Limited

Occupational training (Reducing expense, Increase Income, as per the Sufficient Economy Philosophy)

The Company offered vocational courses for housewives, communities and youth from March to November. A total of 1,281 trainees from 30 communities joined the sessions, with the overall satisfaction of 88.75%

Friendship Football

The Company organized 4 friendly football matches tightened tie with local communities. The public sectors and local communities from the 4 districts took part in the events - Klong Khuen District, Chachoengsao Province, and Pluak Daeng, Baan Chang, Muang District, Rayong Province.

Water for Communities Clean free water of 4,443,581 liters in the form of cup and bottle of water (220 ml and 350 ml respectively), 4 mobile water trucks and 5 water tubes were sponsored to local communities’ activities, in 2018. Sustainability Report 2018 95 WE SEE THE FUTURE... Smart water for all

East Water Conservation Network Project

The East Water Conservation Network Project is furthered from the East Water Young Leader Camp which ran from 2007 to 2012 and was executed in integration with the group of environment fighters, water source detectives of Chachoengsao, and surveillance and monitoring center on water quality of Pluak Daeng District, Rayong Province. In collaboration with the two agencies, the Company launched the East Water Conservation Network Project in 2017 with the purpose of exchanging knowledge and experience between the two sites in monitoring and inspecting water quality. The project also encourages youth to care, cherish, maximize water usage, and take care of water resources sustainably. 80 teenagers from 12 schools (40 in Rayong and 40 in Chachoengsao) joined this campaign, who will bring the knowledge from the camp to inspect water quality in the water resources and act as a leader to create collaboration with the community for a better water resource. The project aims to produce 80 young leaders from the conservation project annually. The overall satisfaction from the participated teenagers is 88.22%

East Water’s Sufficient Economy Learning Center Project in Klong Khuen, Chachoengsao

On the occasion of the 20th anniversary, the Company established the East Water’s Sufficient Economy Learning Center in 2012 as a practical place for learning according to King Bhumibol’s idea. The site is situated in 22 rai of land in Klong Khuen subdistrict, Klong Khuen district, Chachoengsao province. The compound serves as a learning area for the Sufficient Economy and New Theory Farming. Farmers can learn how to seek more income and reduce costs. Sustainability Report 2018 96 Eastern Water Resources Development and Management Public Company Limited

2012 2013 2017 An MOU was signed to Company, in collaboration Company and the Operating cede the East Water’s with Klong Khuen Committee improved Sufficient Economy Learning District formulated the Learning Center 's Center to the Office of the Operating Committee landscape for readiness the Non-formal and Informal for the Sufficient Economy preparation to serve the Education in Klong Khuen, Learning Center. community in 2018. with 7 buildings.

In 2018, East Water’s Sufficient Economy Learning from the Learning Center are sold in the market, Center, Klong Khuen, were ready and opened for such as dried mango, coconut, rice, vegetables, etc., to service to the interested people. There are learning generate income to the organization for a sustainable bases on offer such as organic rice, insecticide-free growth. The East Water’s Sufficient Economy Learning vegetable, poultry farming, waste water management, Center served the visit and use of the learning center bio-organic fertilizer production to reduce agricultural services from the the communities and government cost. Meanwhile, a field demonstration allows farmers agencies in total of 11 groups of 367 people, generating to gain greater learning and career skills together profits of over 200,000 baht sale of products and through the learning by doing concept. The produces entrance fees.

Computer Course for Disabled Students Project, Class No.6, 2018 Disabled Students Project to enable the disabled to apply the knowledge to their occupation and job application. The project was trained by the local officers from the Office of the District Non-formal and Informal Education in 11 districts in Chachoengsao. The Company aims that the traineers are able to apply the knowledge for pratical occupation at least 10% of the total participants. In 2018, there were 175 trainees. Based on the result monitoring of the trainees, it is found that certain number of trainees are able to be employed as follows: Since 2011, in collaboration with the Office of the Non- Class No.3 (2015): 18 out of 110 trainees, or 16.36%; formal and Informal Education in Chachoengsao, Class No.4 (2016): 12 out of 105 traineers, or 11.43%; the Company has offered the Computer Short Course for Class No.5 (2017) 28 out of 105, or 26.67%. Sustainability Report 2018 97 WE SEE THE FUTURE... Smart water for all

Economic values of the Company’s Community and Environment Development Projects during 2017-2018 (Disclosure 201-1)

Budget (Baht) Project 2017 2018 Developing Water Infrastructure and Environmental Conservation 10,907,115 8,816,138 (temporary wages, repair and maintenance costs, car rental, activity costs, quality of life improvement) Developing quality of life for communities 5,842,978 3,634,100 Developing Lifelong Learning 1,470,547 299,019 Total 18,220,640 12,749,257

Innovation for Water Conservation (Disclosure 102-9, 303-1)

1. Pipeline Risk Prioritization 2. Pump Audit For over 26 years of the business in raw water The Company has the policy on energy consumption pumping through a large water grid, the Company reduction for environmental conservation and indirect realized the efficiency of the raw water pipeline is carbon dioxide emission reduction. The Company has one of the key risks and has started the Pipeline electricity as the major capital with 15 pumping Risk Prioritization Project to assess risks possibly stations. Dok Krai, the oldest pumping station, has occur from pipeline leaks throughout the 491.8 been used since 1984. Pump Audit Project is initiatied kilometres stretch. The study includes the likelihood to study an individual pump efficiency for the and consequence of failures from the water pipelines associated energy use performance, and energy categorized in 5 risk levels based on the factors cost for running the system, including new pump affecting raw water supply deterioration. The factors replacement opportunities to reduce the energy include material, years in service, corrosion, fracture cost and payback period. history, and the consequence after pipe leak or fracture. The study revealed that the raw water From the inspection of 56 pumps in 13 pumping pipeline with medium risk level is 20.83 km stations in 2018, it is found that replacing the pumps long and the one with high risk level is 22.41 km in line with the usage enables energy cost reduction long. Major factors are contributed from and increase the efficiency of the pumps. In 2019, the materials of the pipeline, corrosion, and Company will use the study result to improve and the pressure from the traffic above the pipeline. develop further work processes. In 2019, the Company will conduct the field survey for the raw water pipelines with medium and higher risk levels. Sustainability Report 2018 98 Eastern Water Resources Development and Management Public Company Limited

SDG Index

SDG GOALS GRI Indicators SR Page

Goal 1 End poverty in all forms everywhere 201- 1, 203-1 10, 11, 67, 85, 91, 97 Goal 2 End hunger, achieve food security and improved nutrition and promote sustainable agriculture 201-1, 203-1 10, 11, 67, 85, 91, 97 Goal 3 Ensure healthy lives and promote well-being for all at all ages 403-2 51, 84 Goal 4 Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all 404-1, 404-2 45 Goal 5 Achieve gender equality and empower all women and girls 102-7, 102-8, 401-1 10, 15, 83 Goal 6 Ensure availability and sustainable management of water and sanitation for all 201-2, 303-1, 303-2 34, 40, 58, 62, 67, 97 Goal 7 Ensure access to affordable, reliable, sustainable and modern energy for all 302-4, 305-2 67, 70, 73 Goal 8 Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all 201-1, 401-1 10, 11, 48, 67, 83, 97 Goal 9 Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation 201-2 62, 67 Goal 10 Reduce inequality within and among countries 401-1 48, 83 Goal 11 Make cities and human settlements inclusive, safe, resilient and sustainable 201-1, 203-1 10, 11, 67, 85, 91, 97 Goal 12 Ensure sustainable consumption and production patterns N/A N/A Goal 13 Take urgent action to combat climate change and its impacts 302-4, 305-2 67, 70, 73 Goal 14 Conserve and sustainably use the oceans, seas and marine resources for sustainable development N/A N/A Goal 15 Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss 201-1, 303-2 10, 11, 58, 67, 97 Goal 16 Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels 205-2 74 Goal 17 Strengthen the means of implementation and revitalize the global partnership for sustainable development 201-1 10, 11, 67, 97 Sustainability Report 2018 99 WE SEE THE FUTURE... Smart water for all

GRI Content INDEX

Page number External GRI Standard Disclosure Scope of Report Omission Note AR SR Assurance GRI 101: Foundation 2016 General Disclosures ORGANIZATIONAL PROFILE 102-1 Name of the organization 12 102-2 Activities, brands, products 12 and services 102-3 Location of headquarters 12 102-4 Location of operations 12 102-5 Ownership and legal form 14, 18 102-6 Markets served 12, 14 102-7 Scale of the organization 10, 15, 83 102-8 Information on employees 83 and other workers 102-9 Supply chain 30, 97 102-10 Significant changes to the organization 18 and its supply chain 102-11 Precautionary Principle or approach 76 102-12 External initiatives 30 102-13 Membership of associations 31 GRI STRATEGY Disclosure 102-14 Statement from senior decision- 7 2016 maker 102-15 Key impacts, risks and opportunities 38, 40 ETHICS AND INTEGRITY 102-16 Values, principles, standards 44 and norms of behavior 102-17 Mechanisms for advice 17 and concerns about ethics GOVERNANCE 102-18 Governance structure 15 102-20 Executive-level responsibility for 15 economic, environmental and social topics 102-22 Composition of the highest governance 15 body and its committees 102-23 Chair of the highest governance 15 body 102-24 Nominating and selecting the highest 16 governance body 102-32 Highest governance body’s role in 17 sustainability reporting Sustainability Report 2018 100 Eastern Water Resources Development and Management Public Company Limited

Page number External GRI Standard Disclosure Scope of Report Omission Note AR SR Assurance STAKEHOLDER ENGAGEMENT 102-40 List of stakeholder groups 19 102-41 Collective bargaining agreements 49 102-42 Identifying and selecting stakeholders 19 102-43 Approach to stakeholder engagement 19, 41 (Direct) users of raw water 102-44 Key topics and concerns raised 19, 41 REPORTING PRACTICE 102-45 Entities included in the consolidated 12, 18 financial statements 102-46 Defining report content and topic 18 Boundaries GRI Disclosure 102-47 List of material topics 21 2016 102-48 Restatements of information 18 102-49 Changes in reporting 18 102-50 Reporting period 18 102-51 Date of most recent report 18 102-52 Reporting cycle 18 102-53 Contact point for questions regarding 18 the report 102-54 Claims of reporting in accordance 18 with the GRI Standards 102-55 GRI content index 99 102-56 External assurance 104 Material Topics GRI 200: Economic Standard Series ECONOMIC PERFORMANCE 103-1 Explanation of the material topic GRI 103 and its Boundary Management Approach 103-2 The management approach and 10, 11, 2016 its components 14, 97 103-3 Evaluation of the management approach 201-1 Direct economic value generated 10, 11, Revenue and and distributed 67, 97 operating expenses GRI 201 of the Company Economic Performance 201-2 Financial implications and other 62, 67 Operations in relation 2016 risks and opportunities due to to the Company’s climate change total water solution business only INDIRECT ECONOMIC IMPACTS 103-1 Explanation of the material topic and its Boundary GRI 103 Management 103-2 The management approach and Approach its components 85 2016 103-3 Evaluation of the management approach Sustainability Report 2018 101 WE SEE THE FUTURE... Smart water for all

Page number External GRI Standard Disclosure Scope of Report Omission Note AR SR Assurance 203-1 Infrastructure investments and 85, 91 Activities that GRI 203 services supported benefit the society, Indirect communities, and Economic environment and Impacts are in connection 2016 with the Company’s business ANTI-CORRUPTION 103-1 Explanation of the material topic and its Boundary GRI 103 Management 103-2 The management approach and Approach its components 74 2016 103-3 Evaluation of the management approach 205-2 Communication and training 74 Permament about anti-corruption policies employees and and procedures contractual employees of the Company who are considered the GRI 205 implementers of Anti- the Company’s Corruption policies as well as 2016 business partners of East Water as this is considered important by more than one group of stakeholders. Material Topics GRI 300: Environmental Standard Series ENERGY 103-1 Explanation of the material topic and its Boundary GRI 103 Management 103-2 The management approach and Approach its components 70 2016 103-3 Evaluation of the management approach 302-4 Reduction of energy consumption 67, 70 Operating sites in 3 Omission of the provinces, namely oil consumption in Rayong, Chonburi and business operation Chachoengsao, where because the oil GRI 302 the Company’s consumption Energy key operations rate is very low 2016 are conducted as and considered well as the energy immaterial if consumption of compared to the the head office total annual energy (East Water Building). consumption rate WATER 103-1 Explanation of the material topic GRI 103 and its Boundary Management Approach 103-2 The management approach and 34, 40, 2016 its components 97 103-3 Evaluation of the management approach Sustainability Report 2018 102 Eastern Water Resources Development and Management Public Company Limited

Page number External GRI Standard Disclosure Scope of Report Omission Note AR SR Assurance 303-1 Water withdrawal by source 34, 40, This includes the 97 use of tap water of operating sites at the head office (East Water Building) and the operating GRI 303 sites in 3 provinces. Water 2016 303-2 Water sources significantly affected 58 The report by withdrawal of water covers only the operating sites in 3 provinces where the Company’s key operations are conducted. EMISSIONS 103-1 Explanation of the material topic and its Boundary GRI 103 Management 103-2 The management approach and Approach its components 73 2016 103-3 Evaluation of the management approach 305-2 Energy indirect (Scope 2) 73 Operating sites in 3 GHG emissions provinces, namely Rayong, Chonburi and Chachoengsao, where the GRI 305 Company’s key Emissions operations are 2016 conducted as well as the energy consumption of the head office (East Water Building). Material Topics GRI 400: Social Standard Series EMPLOYMENT 103-1 Explanation of the material topic and its Boundary GRI 103 Management 103-2 The management approach and its Approach components 48 2016 103-3 Evaluation of the management approach 401-1 New employee hires and employee 48, 83 Employees of East GRI 401 turnover Water as they are Employment major drivers of 2016 the Company’s business operations. OCCUPATIONAL HEALTH AND SAFETY 103-1 Explanation of the material topic and its Boundary GRI 103 Management 103-2 The management approach and Approach its components 50 2016 103-3 Evaluation of the management approach Sustainability Report 2018 103 WE SEE THE FUTURE... Smart water for all

Page number External GRI Standard Disclosure Scope of Report Omission Note AR SR Assurance 403-1 Workers representation in formal 53 joint management–worker health and safety committees GRI 403 403-2 Types of injury and rates of injury, 51, 84 Permanent Omission of Occupational occupational diseases, lost days employees and the absentee rate health and absenteeism and number of contractual of all subcontractors and safety work-related fatalities employees because such figures 2016 including, in are not material case of large- to the Company’s size construction operations. projects, subcontractors. TRAINING AND EDUCATION 103-1 Explanation of the material topic and its Boundary GRI 103 Management 103-2 The management approach and Approach its components 45 2016 103-3 Evaluation of the management approach 404-1 Average hours of training per year 45 Employees of East per employee Water as they are GRI 404 major drivers of Training and 404-2 Programs for upgrading employee 45 the Company’s Education skills and transition assistance business 2016 programs operations.

LOCAL COMMUNITIES GRI 103 103-1 Explanation of the material topic Management and its Boundary Approach 2016 103-2 The management approach and its components 61 103-3 Evaluation of the management approach GRI 413 413-2 Operations with significant actual 61 Implementation Local and potential negative impacts on of the Company’s Communities local communities construction 2016 projects. CUSTOMER PRIVACY GRI 103 103-1 Explanation of the material topic Management and its Boundary Approach 2016 103-2 The management approach and its components 41, 42 103-3 Evaluation of the management approach GRI 418 418-1 Substantiated complaints concerning Customer breaches of customer privacy and Privacy losses of customer data 41, 42 2016 Sustainability Report 2018 104 Eastern Water Resources Development and Management Public Company Limited

LRQA Independent Assurance Statement Relating to Eastern Water Resources Development and Management Public Company Limited’s Sustainability Report for the calendar year 2018

This Assurance Statement has been prepared for Eastern Water Resources Development and Management Public Company Limited (EASTW) in accordance with our contract but is intended for the readers of this Report.

Terms of engagement Lloyd’s Register Quality Assurance (LRQA) was commissioned by Eastern Water Resources Development and Management Public Company Limited (EASTW) to provide independent assurance on its Sustainability Report 2018 (“the Report”) against the assurance criteria below to a limited level of assurance and materiality of the professional judgement of the verifier using LRQA’s verification procedure. LRQA’s verification procedure is based on current best practise, is in accordance with ISAE 3000 and uses the principles of AA1000AS (2008) - inclusivity, materiality, responsiveness and reliability of performance data.

Our assurance engagement covered EASTW’s operations and activities of water pumping and pipeline system in the Eastern region of Thailand, excluded its subsidiary companies. Our engagement specifically covered the following requirements:  Confirming that the Report is in accordance with GRI G4’s reporting guidelines and core option  Evaluating the accuracy and reliability of data and information for only the selected indicators listed below: - Environment: Reduction of energy consumption (GRI 302-4), Water Withdrawal by source (GRI 303-1), Water sources significantly affected by withdrawal of water (GRI 303-2) - Social: Type of injury and rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities (GRI 403-2) Our assurance engagement excluded the data and information of EASTW’s suppliers, contractors and any third- parties mentioned in the Report.

LRQA’s responsibility is only to EASTW. LRQA disclaims any liability or responsibility to others as explained in the end footnote. EASTW’s responsibility is for collecting, aggregating, analysing and presenting all the data and information within the Report and for maintaining effective internal controls over the systems from which the Report is derived. Ultimately, the Report has been approved by, and remains the responsibility of EASTW.

LRQA’s opinion Based on LRQA’s approach nothing has come to our attention that would cause us to believe that EASTW has not, in all material respects:  Met the requirements above  Disclosed accurate and reliable performance data and information as no errors or omissions were detected  Covered all the issues that are important to the stakeholders and readers of this Report. The opinion expressed is formed on the basis of a limited level of assurance and at the materiality of the professional judgement of the verifier. Note: The extent of evidence-gathering for a limited assurance engagement is less than for a reasonable assurance engagement. Limited assurance engagements focus on aggregated data rather than physically checking source data at sites. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been performed.

LRQA’s approach LRQA’s assurance engagements are carried out in accordance with our verification procedure. The following tasks though were undertaken as part of the evidence gathering process for this assurance engagement:  Assessing EASTW’s approach to stakeholder engagement to confirm that issues raised by stakeholders were captured correctly. We did this through reviewing the stakeholders’ engagement process and its associated documented information and records.  Reviewing EASTW’s process for identifying and determining material issues to confirm that the right issues were included in their Report. We did this by benchmarking reports written by EASTW and its peers to ensure that sector specific issues were included for comparability. We also tested the filters used in determining material issues to evaluate whether EASTW makes informed business decisions that may create opportunities that contribute towards sustainable development.  Auditing EASTW’s data management systems to confirm that there were no significant errors, omissions or mis-statements in the Report. We did this by reviewing the effectiveness of data handling procedures, instructions and systems, including those for internal verification. We also spoke with those key people responsible for compiling the data and drafting the Report.

 Sustainability Report 2018 105 WE SEE THE FUTURE... Smart water for all   

Observations Further observations and findings, made during the assurance engagement, are:  Stakeholder inclusive and Responsiveness: We are not aware of any key stakeholder groups that have been excluded from EASTW’s stakeholder engagement process as defined in our Terms of Engagement. However, the context of the Report, as well as EASTW’s approach for addressing sustainability development, has not considered the views and expectations of these stakeholders.  Materiality: We are not aware of any material issues concerning EASTW’s sustainability performance that have been excluded from the Report. It should be noted that EASTW has established extensive criteria for determining which issue/aspect is material and that these criteria are not biased to the company’s management.  Accuracy and Reliability: EASTW should consider improving: - data management systems for collecting and calculating the data and information associated with the selected specific standard disclosures listed above. For example, the management approach for data collection and evaluation of work-hours and OH&S statistics for subcontractors at the Head Office, was incomplete (i.e. some data was omitted), as defined in the GRI Content Index. - processes for internally verifying their data to ensure its accuracy before it is reported. We believe that more systematic and periodic implementation of internal verification will improve the reliability of its data and information and would prevent those errors identified at corporate level.

LRQA’s standards, competence and independence LRQA ensures the selection of appropriately qualified individuals based on their qualifications, training and experience. The outcome of all verification and certification assessments is then internally reviewed by senior management to ensure that the approach applied is rigorous and transparent.

The verification is the only work undertaken by LRQA for EASTW and as such does not compromise our independence or impartiality.

S igned Dated: 20 March 2019 March 20 Dated: Signed

W iriya RattanasuwanWiriya LRQA Lead Verifier

On behalf of Lloyd’s Register Quality Assurance Limited. Represented by Lloyd’s Register International (Thailand) Limited, 22nd Floor, Sirinrat Building, 3388/78 Rama IV Road, Klongton, Klongtoey, Bangkok 10110 THAILAND.

LRQA reference: BGK00000307

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