Corporate Social Responsibility Report 2011

Corporate Social Responsibility Report 2011 VISION To be a world-class organization in electricity business CORE PURPOSE To create and improve the quality of life and strengthen the country’s competitiveness through reliable and affordable electricity services while giving due care to society and the environment

CONTENTS

4 Message from the Governor 18 " 63 * 6 25 (')* #&!"# 8 CSR Vision and Strategies 65 *' 10 38 #+% 75 &%" the Environment 79 +%% 12 CSR Highlights 49 , !"#* 51 + % 17 !"# 54 + !% . &'' 61 #' in the International Standard . ISO 26000 How to read this report EGAT Corporate Social Responsibility Report 2011 was published with a purpose to present to our internal and external stakeholders EGAT’s performance on economic, environmental and social impacts during the reporting year cycle towards the goal of sustainable development. The topics and contents of our reporting this year were prepared following the guidelines as outlined in GRI-G3’s Sustainability Reporting Guidelines & Electric Utility Sector Supplement, and the principles as outlines in the relevant International Standard ISO 26000. For information on !"##$ 2 Electricity Generating Authority of Thailand Corporate Social Responsibility Report 2011 3

EGAT has actively pursued the best and all applicable means to make our dams and power plants coexist in harmony with the society, communities and the environment.

Power Plant Dam 4 Electricity Generating Authority of Thailand MESSAGE FROM THE GOVERNOR

On behalf of the Electricity Generating Authority of with the public and private agencies to lend the helping Thailand (EGAT) I have a pleasure to present to you our hands in providing assistance and relief efforts to the Corporate Social Responsibility Report 2011. This year affected people in 24 provinces countrywide. EGAT’s we continue to prepare our reporting contents covering ' the social and environmental performance indicators and concerted efforts included three phases, namely the % providing of assistance and relief, the restoration of of the Sustainability Reporting Guidelines & Electric Utility ' Sector Supplement. Our reporting topics are also '+$;“providing consistent with the core subjects and issues of social of assistance and relief” phase, EGAT had provided responsibility in the relevant International Standards donations, sustenance kits, and vehicles for transportation ISO 26000 titled “Guidance on Social Responsibility”. '$; the ' phase, !"## EGAT had developed the effective microorganism (EM) as it marked the auspicious occasion of His Majesty stations to produce and distribute EM for treatment the King’s 84th birthday anniversary. As a tribute to His of water as well as trash and sewage. Other activities Majesty the King, EGAT has implemented the “planting carried out during this phase included the organizing of seedlings to conserve watershed forests” project to honor medical mobile units and free eye glasses distribution our Beloved King by joining hands with 143,854 Thai units for the affected people, the repairing of vehicles people in planting 984,000 young trees in areas around ' the reservoirs of EGAT’s nine dams. These dams, to supplying of water pumps to facilitate the water pumping which His Majesty graciously bestowed their names, operation for Rojana Industrial Park in Ayutthaya province consisted of Bhumibol, Sirikit, Srinagarind, Vajiralongkorn, and Navanakorn Industrial Promotion Zone in Pathum Ubol Ratana, Sirindhorn, Chulabhorn, Rajjaprabha, as well Thani province. And during the last phase, the “returning as Lamtakong Jolabha Vadhana hydro power plant. The '+ , EGAT top seedlings planting project was developed in response to management and volunteer employees participated in His Majesty’s initiatives on the sustainable conservation :' of forestry resources and watershed forests. During the in the districts of Bang Plad in Bangkok Metropolis and year, EGAT also carried out a project for the construction Bang Kruai in Nonthaburi province. of 840 check dams in areas around the reservoir of Bhumibol dam and developed a garden in honor of His EGAT also lent our helping hand with the Thai Majesty the King’s 84th birthday anniversary in the vicinity government to Japan to alleviate the suffering and shortage of Mae Moh power plant in Lampang province. caused by the major earthquake and tsunami. We sent % > /+ During 2011, EGAT continued conducting our of two 122 MW gas turbine generators to Japan on power generation and transmission businesses in an behalf of the Thai government after being approached environmentally and socially responsible manner in by Tokyo Electric Power Company (TEPCO) to ease the efforts to realize our vision in becoming a world-class power shortage crisis. EGAT’s contribution helped create organization in electricity generation business while goodwill and promote strong relations between the two embracing the principles of good organizational countries. The Japanese government publicized Thailand’s governance and social responsibility which include assistance and contribution to their people who in turn accountability, transparency, and respect for stakeholder showed their thankfulness and appreciation to the Thai interests. However, during the monsoon season towards government as well as EGAT. the end of 2011, Thailand had experienced the worst ' During the reporting year of 2011, EGAT was of Northern, Northeastern and Central regions along the proud to be an organization which won numerous awards *+/7:$' in recognition of our good corporate governance and reached the mouth of Chao Phraya River and inundated social responsibility from both domestic and international parts of the capital city of Bangkok including EGAT’s six organizations. These awards included two SOE Awards in high voltage substations, EGAT still successfully managed the categories of outstanding organizational management and operated the overall power supply system to secure and outstanding innovation for the solar weighted the electricity demand without any interruption. tracking system installed at Sirindhorn solar cell power plant, the CSR-DIW and CSR-DIW Continuous Awards ;'!"## 2011 in recognition of our social responsibility practices EGAT and our volunteer employees actively participated at 11 locations of EGAT power plants and departments, Corporate Social Responsibility Report 2011 5

EGAT continued conducting our power generation and transmission businesses in an environmentally and socially responsible manner to realize our vision in becoming a world-class organization in electricity generation business.

the Thailand Quality Prize 2011, the crown standard award for Thai CDM projects for the development of irrigation valve based micro hydro projects installed at Mae Ngat Somboon Chon dam and at Kaeng Krachan dam, and ?@/ 2011 for 17 locations of EGAT’s dams, power plants, and regional operation departments. In 2011, EGAT had made a review of our corporate social responsibility master plan in agreement with changing situations, namely the Government’s Statement of Direction (SOD), EGAT’s corporate social responsibility policy and strategies focusing on the conducting of social responsibility embedded in our core business operation or the CSR in process, the formulating of CSR roadmap following the principles as outlined in the International Standard ISO 26000, and the integration of social responsibility in our core business processes. EGAT also actively promoted and supported the building of social responsibility culture and encouraged employees at all levels to involve in the social responsibility initiatives and activities. Meanwhile, EGAT also worked in close collaboration with our social network in undertaking social and community activities for the well-being of communities and the society at large in order to become a role model organization in performing our duties as in the slogan “Power for Thai Happiness”.

(Mr. Sutat Patmasiriwat) Governor Electricity Generating Authority of Thailand 6 Electricity Generating Authority of Thailand ORGANIZATIONAL PROFILE

Name of organization Electricity Generating Authority of Thailand (EGAT) Location of organization’s 53 Charan Sanit Wong Road, Bang Kruai, Nonthaburi 11130 headquarters Nature of ownership operated as both a system operator and Thailand’s largest power producer under the Ministry of Energy (MOE) and the Ministry of Finance (MOF). [? of electric power under the promulgation of the Electricity Generating Authority of Thailand Act B.E. 2511 (1968), amended in B.E. 2535 (1992). Primary brands, products, and/or services \: development 7 lignite by-products. Major customers *]*^ 7]7^ : >:]_*^

Operational Structure Number of power 39 power plants comprising 3 thermal plants, 6 combined cycle plants, generating facilities 21 hydropower plants, 8 renewable power plants and one diesel plant. (Locations) Installed capacity 14,998 (MW) Number of substations 209 (Locations) Voltage levels 69, 115, 132, 230, 300 and 500 (kV) Length of transmission 30,445.22 lines (circuit-kilometers) Power dispatching centers One national control center (Locations) Five regional control centers Coal mining Mae Moh lignite mine located in Lampang province, with 65 plots of concession permits. Investment in electricity EGAT is currently investing in two subsidiaries, one associated company, businesses and two joint ventures. Corporate Social Responsibility Report 2011 7

ELECTRICITY GENERATING AUTHORITY OF THAILAND

Subsidiary Ratchaburi Electricity Generating Holding 45% Public Company Limited (RATCH) Subsidiary EGAT International Company Limited 99.99% (EGAT Inter) Associated company Electricity Generating 25.41% Public Company Limited (EGCO) Joint venture District Cooling System and Power Plant 35% Company Limited (DCAP) Joint venture EGAT Diamond Service Company Limited 45%

Scale of Organization Number of employees 22,680 (Person) Average employee age - 47.5 Average work year - 23.6 Gender - female 21.52% and male 78.48% Level of employee position - management 12.1% and operating employee 87.9% Level of education - Doctorate degree - 0.20% - Master degree - 5.65% - Bachelor’s degree - 25.83% - Vocational education - 68.32% Net revenues 418,445 (Million Baht) Operating expenses 30,704 (Million Baht) Remittance to the Ministry 15,442 of Finance (MOF) (Million Baht)

Markets Served Energy sales 154,817.58 (Million kWh) Metropolitan Electricity Authority (MEA) 45,734.94 (Million kWh) Provincial Electricity Authority (PEA) 106,034.06 (Million kWh) Direct customers and neighboring countries 2,915.82 (Million kWh) Standby power supply 128.04 (Million kWh) In 2011, EGAT underwent an organization restructuring in pursuit of greater the reporting period :${ (January-December 2011) consists of 10 command lines serving by a total of 87 divisions, 2 units |}$ 8 Electricity Generating Authority of Thailand

During 2011, EGAT’s corporate social responsibility CSR VISIONS (CSR) strategies had been revised to be in line with our AND STRATEGIES vision in becoming a world-class organization in electricity :$/~' our strong determination in placing prime importance on the social responsibility implementation, in particular the social responsibility which has been embedded in our core business processes or the so-called “CSR in process”. EGAT’s revised CSR strategies have been incorporated in EGAT’s Corporate Action Plan 2011-2015, in the strategic theme 3 stating that “EGAT will create and improve the quality of life and strengthen the country’s competitiveness through reliable and affordable electricity services while giving due care to society and the environment.” Such strategic themes were also included in the operational goal of P 3.1, stating that to conduct the social environmental practices to achieve the following purposes; “To become an organization with due care to society, community and the environment by adopting the environmental management practices which are higher than the required standard, while endorsing the participatory management in carrying out the social activities to enhance the quality of life on a sustainable and continual basis, focusing on the importance of community involvement in all operational phases and fostering the two-way proactive communication approaches, and raising the public awareness and understanding related to EGAT’s roles and responsibilities in strengthening the security and reliability of the power supply system to facilitate the country’s economic growth”.

EGAT has set up the operational goal and the evaluation of the organization’s performance as follows. Indicators for EGAT’s Corporate Plan Action Plans Indicators Operational Goals Integrate the implementation The integration of EGAT’s Percentage of 100% of of social responsibility social responsibility achievement of the plan achievement projects and activities across implementation plan the organization Promote the social The social responsibility Percentage of 100% of responsibility implementation implementation promotion achievement of the plan achievement plan Promote the social The survey on public The conduct of responsibility implementation acceptance and report of research survey completed stakeholders’ satisfaction by October towards EGAT’s operations and performance plan Corporate Social Responsibility Report 2011 9

EGAT also included the public acceptance governance and the caring for the society, community and indicators of EGAT’s operations and performance in the the environment with integrity, accountability, and fairness. strategic goal S3 which included good organizational

Indicators for EGAT’s Corporate Plan Target Goal in 2011 Goal for the following years Indicator for public acceptance 79% of public acceptance of The continuing increase of public of EGAT’s social responsibility EGAT’s social responsibility acceptance performance performance

EGAT Strategy Roadmap 2011-2015

Vision: To be a world-class organization in electricity business

Core Purpose: To create and improve the quality of life and strengthen the country’s competitiveness through reliable and affordable electricity services while giving due care to society and the environment.

F1:~:

Strengthening core business To be a good corporate governance,

Viability Building growth from non-regulated Financial business social responsibility and environmental friendly organization

S1: Providing high-quality and equitable S2: Enabling electricity business growth S3: To be recognized for good corporate electricity price as well as other non-regulated business governance, social responsibility and environmental friendly organization Stakeholder

P 1.1: Proactively cooperating with Governments, P 2.1: Building growth from electricity business P 3.1: Working with responsibility to support Regulator, Businesses and other responsible and non-regulated business each community, society and environment agencies to enable the better understanding and reliability of the electricity system to support the P 2.2: Supporting the synchronization P 3.2:~ continuous growth and development of Thailand. between the subsidiary companies and use of energy EGAT’s policy P 1.2:% P 3.3:~ facility and transmission P 2.3: Encouraging growth in non-regulated use of energy business P 1.3: P 3.4:+ generation and distribution of electricity

Internal Process with EGAT P 1.4:* support the Vision and Mission of EGAT

P 1.5: Communicating actively with the stakeholders and Thai Society to create accoptance of EGAT’s Business Plans

To be a high performance organization, able to adapt to an ever changing global environment L1: Coutinuously improving human L2: Encouraging morality and L3: Striving for EGAT to be L4: Strengthening management’s resource management system to morale in an environment of a premium learning and ability to meet the various achieve high standrds with our a working culture compliance with development organization that challenges in the business with

Learning employees when comparedto a good corporate governance promotes the development of an effective information & Growth other leading companies system new innovations technology system 10 Electricity Generating Authority of Thailand

During 2011, EGAT had made an analysis of the SIGNIFICANT IMPACTS, country’s electricity situation in relation to the economy, RISKS AND the organizational status, some internal and external impacts and risk factors, as well as the opportunities for OPPORTUNITIES EGAT to implement social responsibility initiatives and activities. A summary of such analysis are as follows: 1. The weather conditions and economic slump The exceptionally cold weather and heavy rains that took place throughout the summer of 2011 were : consumption than the forecast in 2010, coupled with the disastrous earthquakes and tsunami which hit Japan in March 2011 and gravely had negative impacts on the world’s economy including the overall industrial sectors in the United States and European countries. The Thai economy was also severely affected by the unprecedented '$ 2. A decline of EGAT’s share in generating capacity The decline could be contributed to the public +% nuclear power plants, which consequently affected the schedules of EGAT’s power projects. There was an increased risk to a decline of EGAT’s share in electricity generation. EGAT’s approaches to solve this problem included the forging of closer collaboration with related public agencies and the Energy Regulatory Commission of Thailand (ERC) to gain approval for the projects. Better communication with the communities living in the target sites for new power plant project construction was also implemented. 3. The unbalanced fuel diversity The public opposition to new power plant projects and innovative power technologies had caused substantial impacts upon the balance of fuel diversity for electricity generation. EGAT adopted some risk management measures which included the building of better understanding regarding the advantages of new power plant project among the target communities. viability As the government has a policy to cap and situations in the long run were getting weaker which system. 5. The insecurity of electricity supply system During the year, EGAT was also subjected to confront certain operational risks induced by the following internal and external factors: - The aging transmission system and high- voltage substations and facilities which have been in Corporate Social Responsibility Report 2011 11 service for over 25 years could have negative impacts assessment (EIA/HIA) reports, the introduction of numerous upon the security of EGAT’s power supply system. new environmental laws and requirements, and the failure to build better understanding among local communities - The accident-related damages to the existing in the target areas. There was also a number of pending power plants and transmission system might result in supplementary laws and new environmental laws that had the decline of the availability of EGAT power plants. At direct impacts on the construction of EGAT’s new power present, many of EGAT’s power plants located across plants and electricity generation. These factors caused a the country have been in service for many years. Any delay to the schedules of some EGAT’s power development accidents occurring to these plants and facilities could projects. EGAT adopted some risk management measures have negative impacts on the reliability of EGAT’s power which included the proactive communication approach to system as well as on our reputation and public image. gain public acceptance for the projects. - Continuing domestic unrests in the southern 7. The public awareness and understanding border provinces of Thailand and in other regions could regarding EGAT’s operations cause damages to EGAT’s properties and resulted in The risk came from the inability to undertake negative impacts to the power plants and transmission the proactive communication approaches, both for the lines. These posed some risks to the security of power internal and external stakeholders, to establish accurate supply system. % nuclear power plant project development. The situation - The extent of severe damages caused by had some direct impacts on EGAT’s current and future ]?+'^ operations. More proactive communication measures were occurred in 2011 were unprecedented. The severity of implemented to gain more favorable public acceptance. these disasters tended to increase each year. The great '~: 8. The transfer of knowledge among employees and power plant in early 2011 caused disruption to the to continue EGAT’s missions and responsibilities transmission system which might further cause negative The current average age of EGAT’s personnel impacts on other EGAT’s power plants. is quite high and a large number of employees will reach retirement age within the next 5-10 years. EGAT will be 6. The delay of project implementation behind at risk of manpower and work skill shortage in the near schedules future. EGAT have to adopt the personnel management EGAT was unable to complete some projects and development strategies practised by most leading on schedule due to a number of internal and external organizations and to develop EGAT into a learning factors, which included the preparation of project’s organization to boost the high quality and commitment environmental impact assessment and health impact of existing employees. 12 Electricity Generating Authority of Thailand

CSR HIGHLIGHTS EGAT has pledged support and assistance AND ACTIVITIES emergencies IN 2011 2011 was the year when Thailand experienced ' during the monsoon season. in 2011 was ranked by the World Bank as the world’s ! occurred in terms of the amount of water and the number of local people affected. In March 2011, many '%' heavy rainfalls after being hit with a series of severe tropical storms. EGAT promptly responded to the disaster emergencies by joining hands with the government, public and private agencies in providing assistance in forms of donations and sustenance kits. EGAT also set up and '%~ Region Operation Division within Krabi power plant in Krabi province, Surat Thani power plant in Surat Thani province, and Chana power plant in Songkhla province in efforts to provide assistance to reduce the losses in lives, and in social and economic assets affected from '' until the situation was back to normal.

'% : operated in coordination with EGAT headquarters located in Nonthaburi province and EGAT’s other region operation $ '% : support and facilitate the relief activities. EGAT top management and employees volunteered to participate in the preparing of sustenance kits. Trucks and boats Corporate Social Responsibility Report 2011 13 were also provided to transport people living in inundated $/'%+{ '%$ '% provide assistance and reliefs to cope with the sudden and unexpected crisis. In Surat Thani province, EGAT’s temporary evacuation center serves as a shelter for people who had to leave their homes. The center was equipped +' living around the area. After the water level receded, EGAT carried out the rehabilitating activities including the distributing of effective microorganism (EM) for water treatment. EGAT employees volunteered to clean and ::'$ and informal meetings consisting of EGAT representatives, local administrative organizations and community leaders were held to develop plans and preventive measures in preparation for any possible disaster emergencies in the the affected people in 24 provinces across the country. future. %' at EGAT headquarters in Nonthaburi province to serve * '% {' in Krabi and Songkhla provinces actively coordinated for EGAT Governor and EGAT top management to relief efforts with the government agencies and the ensure the reliability of power supply system along with local administrative organizations to provide assistance '+$ to the affected people. EGAT top management and volunteer employees participated in preparing package EGAT also realized that any blackout occurred of sustenance kits and drinking water. Temporary ' kitchens were developed to prepare meals for affected well-being of life and the overall economy. The shortage of people. Boats and vehicles were provided to transport power might also interrupt the water pumping operations relief items to the affected communities. After the $' floodwater subsided, rehabilitation and recovery 2011 posed a high risk to the country’s electricity supply activities were carried out for the affected communities. system, EGAT’s operations were not severely affected due to our well prepared emergency and contingency plans. Toward the end of 2011, Thailand saw more ' ' high water levels interrupted the operations of some of across the country. As the changing global weather EGAT’s power plants, EGAT was able to cooperate with : } the Metropolitan Electricity Authority of Thailand (MEA) beginning at the end of July triggered by the landfall of and the Provincial Electricity Authority (PEA) to provide >+%' ' $ the provinces of Northern, Northeastern and Central Thailand along the Mekong and Chao Phraya river EGAT’s operation to provide mitigation and relief basins. Flooding persisted in some areas until mid-January ' 2012 and resulted in over 13 million people affected three phases, namely the contribution of assistance, % $ * ' ::' '+ in manufacturing disruptions and global supply shortages. communities. EGAT had worked in close collaboration with the The contribution of assistance, mitigation Thai government, the Ministry of Energy, public and and relief. private agencies, as well as the local administrative From the beginning of the disaster, EGAT’s organizations to provide mitigation and relief efforts to activities focused on the providing of assistance and 14 Electricity Generating Authority of Thailand

$>' constructing temporary elevated walkway for community EGAT’s power plants and regional operation departments people; and countrywide. EGAT’s volunteer employees joined hands - Assigning EGAT employees to engage in the in preparing sustenance bags and mobile kitchens were ad-hoc rescue team around the clock to help sick and set up to distribute ready-to-eat meals for affected injured people until the water subsided. people. Also in conjunction with the local administrative organizations, EGAT provided trucks and boats to facilitate the transportation of relief items as well as commuting After the flood began to subsided, EGAT $ % ' coordinated with Bang Kruai Municipality and community ? leaders to rehabilitate the areas by pumping water from support and to organize caravans to deliver necessary the main commuting roads and inundated communities. ?' EGAT also adopted the community involvement and relief center. approaches by developing a caravan of EM spraying and distributing. The EM liquid produced from EGAT’s own EM EGAT also provided assistance and relief to the stations had been distributed to community households communities in the vicinity of our headquarters in Nonthaburi for water and garbage treatment. The approaches enabled '+ community residents living in the districts of Bang Kruai, districts of Bang Plad and Bang Or, in which EGAT has Bang Bua Thong, and Bang Yai of Nonthaburi province always regarded as our “Closed Relatives and Neighbors”. to return home while resuming normal commuting along EGAT had actively worked with Bang Kruai Municipality the Bang Kruai-Sai Noi road. in Nonthaburi province and the community leaders in the districts of Bang Plad and Bang Or in Nothaburi province EGAT also participated in the Ministry of Energy’s +' project in providing assistance to the people affected % 7': ' sandbag barriers and installing water pumps at insecure of Phitsanuloke, Nakhon Sawan, Ayutthaya and Pathum locations; Thani. EGAT’s assistance and support included the % ~ ? setting up of an effective microorganisms (EM) bank to with food, drinking water, bedding and essential items produce 3,000,000 liters of EM liquid for distribution to for affected people moving from their inundated homes; '%{ - Mobilizing assistance from the central operation mobile medical units and eye glass distribution units as departments and regional operation units, EGAT Labor well as the electrical appliances and vehicle motoring Union, and numerous individual groups, agencies and repairing units by local vocational students, and the networks of volunteer organizations to distribute aid and repairing and renovating of schools and nursery centers sustenance kits to the affected people; :'$ - Providing and supplying vehicles such as trucks and boats for transportation in some inundated areas EGAT was also entrusted by the Ministry of and setting up mobile kitchens for distribution of meals Energy with a mission to implement the water pumping and drinking water; to restore the industrial estates. EGAT, in conjunction - Preparing space for public parking lots and with the Department of Energy Business, the Ministry of Corporate Social Responsibility Report 2011 15

Energy, PTT Public Company Limited and other private of water pumps, the design and installation of water pump ' supervising the pumping operation at two major industrial estates, namely the Rojana Industrial Park in Ayutthaya province and Navanakorn Industrial Promotion Zone in Pathum Thani province. Moreover, EGAT received support of water pumps and electric generators from J Power Co., Ltd., a Japanese company, to facilitate the water pumping from these industrial estates. Through these collaborations and efforts, many business companies and manufacturing plants in the industrial estates were able to quickly resume normality of operation, which further contributed We have taken into consideration our efforts should also to the overall effort to restore Thailand’s economy and contribute to the promotion of local products. In 2011, :$ EGAT purchased products for our cold weather relief campaigns from local communities in different regions across the country as means to boost income earning communities among local people in rural areas. The third phase of EGAT’s contribution to relief ' Japanese earthquake and tsunami disaster: place priority to social contribution. EGAT’s returning of A test of goodwill between true friends '+ out by our top management and employees who joined On March 11, 2011, a major earthquake of 9.4 forces to return back to normal the public areas, streets, richter scale hit the town of Sendai in Miyata Prefecture and temples. EGAT employees are proud to be part of of Japan, followed by a gigantic tsunami that wiped out the country’s efforts to help the Thai society at large houses and people lives over large areas. This is one '!"## of the most tragic disasters in the Japanese history that the popular notion that “We Thais will never leave each came with a great loss of lives and properties as well other”, with an ultimate wish to see the Thai people get as serious threats to Japan’s electricity security. The 4.7 back to live normal life on the path to happiness again. GW Fukushima nuclear power plant was so devastated by the tsunami that it had to shut down the operation. Apart from our CSR activities during the great The fact that the disaster occurred during winter made '!"## included the following. with the electricity shortage. EGAT’s blankets for the people affected from EGAT was able to make some contribution to solve cold weather the electricity shortage in Japan after receiving approval During November and December of every year the from the Thai government to send EGAT’s Nong Chok weather in Thailand changes from the rainy season to power station consisting of two 123 MW gas turbine the cool season. This phenomenon is generally induced generators to Japan. These gas turbine generators helped by the cold fronts from high pressure areas moving into ease the shortage caused by the earthquake and tsunami. Thailand, especially in the Northern and Northeastern %>/+ provinces. The mountainous and high plateau terrains of to Japan under the name of the Thai government and these two regions cause the weather to become colder began operation to supply electricity in August 2011. than those of other regions. People living in some areas of these regions may not have adequate clothing to EGAT’s contribution to ease the electricity shortage protect them from the seasonal cold weather and the in Japan also greatly promoted goodwill and international situation put their health at risk. relations between the two countries. The Japanese government publicized our contribution among Japanese EGAT has procured blankets and distributed them people and sent Ms. Makiko Kikuta, Parliament to the people suffered from cold weather every year. Vice-Minister for Foreign Affairs, Ministry of Foreign 16 Electricity Generating Authority of Thailand

Affairs Japan, to present letters of recognition and gratitude related to Thailand’s sustainable development effort. EGAT, to the Thai government and EGAT for our valuable aid in conjunction with Thammasat University, organized and support. EGAT also received letters and post cards a project to disseminate energy knowledge among from many Japanese citizens expressing gratitude for numerous communities in the Southern region. The project our contribution. The mission has been one among our had a focus on electric energy and adopted a new great pride in having an opportunity to represent Thailand approach to encourage the civil sector and communities and the Thai people through this act of goodwill and to participate in its development process. The project’s our unique social value of never letting a friend down in study showed that local people were capable of identifying time of crisis. We at EGAT hope that our small act will local potentials, local wisdom and local resources most contribute to a long lasting relationship between Thailand useful for their own community. The project also had and Japan. an aim to encourage the local people to participate in the making decision process and implementing the EGAT’s outstanding community project in development projects that are appropriate to local 2011 demands and development. Khlong Rua community hydropower plant The Khlong Rua community hydropower plant At Khlong Rua power plant project, EGAT provided is located at Pak Song subdistrict, Pa Toh district in Chumphon province is EGAT’s latest social project. The of small hydropower generators, power distribution lines power plant represents a new and changing trend and other facilities. In 2011, EGAT also provided our employees to work with local people on project construction. The power plant has become a new energy learning center for the communities and serves as a model project that any community can pay a visit to, learn and apply the knowledge for their own future development projects. The project demonstrates that a key to community success lies in the empowering of local communities to apply their wisdom and cost-effective resources to achieve sustainable development. Corporate Social Responsibility Report 2011 17 EGAT’s Social and Environmental Performance consistent with the Principles in the International Standard ISO 26000

Organizational Governance Human Rights and Labour Practices Taking Care of the Environment Fair Operating Practices Consumer Issues Community Involvement and Development Technology and Innovation Development Survey on Public Attitudes towards EGAT’s operations 18 Electricity Generating Authority of Thailand

Organizational Governance Structure ORGANIZATIONAL EGAT’s organizational structure in 2011 consists of GOVERNANCE 10 command lines of operation with 87 divisions serving as the operating units. The organizational structure is under the supervision of a Board of Directors who makes a decision concerning policies, determines corporate strategies, and oversees EGAT’s overall operations in EGAT is a state-owned enterprise operated under compliance with the principles of good corporate the supervision of the Ministry of Finance (MOF) which governance. is EGAT’s major shareholder. EGAT Board of Directors has been established to serve as MOF’s representatives The Board of Directors has also appointed seven to monitor the performance of EGAT’s good corporate committees to handle particular critical issues requiring governance while putting the government’s policies and expert assistance before submitting to the Board. These directions into practices. During 2011, EGAT’s committees include Executive Committee, Audit Committee, performance on organizational governance in accordance Enterprise Risk Management Committee, Corporate with the guidelines of governance, commitments, and Governance Committee, Committee for Deputy Governor engagement governance outlined in GRI-G3 included the Nomination, Committee for Assistant Governor and Division followings. Director Nomination, and Human Resources Committee.

Structure of Organizational Governance

EGAT Board of Directors

Enterprise Executive Audit Risk Corporate Human Committee Committee Management Governance Resources Committee Committee Committee

Committee for Deputy Governor Nomination

Committee for Assistant Governor and Division Director Nomination + Corporate Social Responsibility Report 2011 19

Authority and responsibilities of the Board of Directors To separate the authority and responsibilities between EGAT Board of Directors (according to the Cabinet resolutions in October 4, and in November 22, 2011) supervising bodies, a chairman of the Board of Directors is accordingly not EGAT Governor and will be appointed by Composition Number of Person the Cabinet. EGAT’s Board of Directors has the authority #$\* # and responsibilities in laying down rules and regulations, establishing EGAT’s vision and policies and accountable !$\* ! for the performance of EGAT management, reviewing 3. Independent Directors 7 4. EGAT Governor 1 :}:}: Total 11 (CSR) and EGAT’s initiatives as well as monitoring The number of independent members on EGAT regularly the performance of the management, and Board of Directors was generally greater than the general ' standard requirements. All of them were on the directors’ may occur with an employee, management, or Director pool list of the Ministry of Finance. as well as monitoring the misuse of EGAT’s property and investigating misconduct of illegal or unethical behavior. Mechanism in place for shareholders and employees to provide recommendations and The Corporate Governance Committee in particular has direction to the top management responsibilities in establishing policy, strategies and practical The Ministry of Finance, in its capacity as EGAT’s guidelines for good corporate governance and social major shareholder, can provide recommendations and responsibility, giving recommendations at the policy level direction to EGAT top management through the government on social and environmental performance, overseeing shareholders’ Statement of Direction (SOD) policy : determined by the State Enterprise Policy Committee practices, promoting and encouraging the involvement attached to the Ministry of Finance. EGAT has to adopt of Directors, management, and employees in corporate this statement as guidelines for the formulation of our governance and CSR activities, as well as monitoring state enterprise operational plans. Other mechanism for and reporting the operational outcomes to the Board of submission of recommendations and opinions is present Directors. in a stipulation that representatives from the Ministry of Finance and the Ministry of Energy, which are EGAT’s Number of independent directors regulatory bodies, and independent directors selected from Independence is a key factor to enhance the Ministry of Finance’s name list must be appointed accountability of each Board member for the Board’s to EGAT Board of Directors. It is the duties of these performance. Independent members will be able to use directors to provide opinions and suggestions on good their independent judgments and drive for change or corporate governance issues. inhibition of any execution when necessary. The composition of EGAT Board of Directors includes members from For EGAT employees, the available mechanism various agencies and institutions as follows: in place is a submission through the Relation Affairs Committee which comprises one member of EGAT Board EGAT Board of Directors (according to the Cabinet of Directors as chairman and representatives from the resolution in October 2010) management and EGAT Labor Union as members. The Committee shall have the power and duties as stipulated Composition Number of Person by the State Enterprise Labor Relations Act B.E. 2543 (2000). #$\* # For example, it can deliberate and approve matters !$\* # related to employment conditions and appointment of 3. Independent Directors 7 a person or group of persons to negotiate labor dispute 4. EGAT Governor 1 or minimum wage determination. Total 10 Remunerations The Audit Committee appointed by EGAT Board of Directors is responsible for the evaluation and review of second half of the year by adopting the evaluation criteria +$ 20 Electricity Generating Authority of Thailand including the indicators, scoring weight, and objectives for evaluation are included in the action plan in 2011 and the performance criteria in 2011 which comprise three components, namely the quality of management performance (30 %), the performance achievement goal (67%), and the value-added economic performance (3%), which will be submitted to the Board of Directors for approval in advance before the calendar year ends. Results of performance evaluation at each level which depend on the scores earned will be calculated to determine the : of governorship in accordance with the provisions of the ~~; Employee Act B.E. 2518 (1975) and its amendment, as well as EGAT’s criteria and guidelines for chief executive + by the Ministry of Finance (MOF). The MOF’s relevant been developed and stated in EGAT’s Good Corporate guidelines for this matter state that “the determination Governance Handbook. All executives of deputy governor of performance evaluation criteria must be based on a level and higher must make full disclosure of their assets mutual agreement between both parties which include the :+ state owned enterprise’s Board of Directors and the chief ' $ ': the procurement committee while performing the duty. The Board of Directors has accordingly evaluated EGAT’s Good Corporate Governance Handbook also %+ ' with the memorandum of agreement on performance between personal and public interest, which states that evaluations entered into by EGAT Governor and Deputy %+? Governors, which identify the performance indicators, #$ :+ weighting scores, and measurement criteria. EGAT Governor execution of his or her duties in the forms of, and Deputy Governors were evaluated twice a year for example, gift, souvenir, money compensation, and the evaluation outcomes will be connected to the donation or cash sponsorship for various determination on relevant remunerations and incentives. causes, EGAT’s working committee for the monitoring of state 2. Exploit his or her position and authorities for enterprise performance was set up to review the work : %+ family members, relatives or friends, the said memorandum of agreement on performance 3. Work in competing businesses with EGAT, evaluations. 4. Work for the business of EGAT’s business partners, %+ 5. Accept any special employment that is competitive of performance evaluation to modify the operational with EGAT’s operation, including becoming a plans for the next following year in accordance with project’s consultant and using his/her position the vision and policies established by the government. to create credibility for the said business or The operational plans will be communicated throughout employment, the organization’s command lines. EGAT Board of 6. Utilize his or her access to inside information to Directors accordingly applied the evaluation outcomes : prepared by TRIS Corporation Limited to improve EGAT’s +: performance to formulate the operation review plans for members, relatives, friends and acquaintances, the following year. and $ : Processes in place for EGAT top management : persons, family members, relatives, friends and EGAT has established the processes in place acquaintances. For example, using government- ' provided vehicle for private use, using work of interest are avoided. A process for the disclosures stationary for home use or EGAT tools and ':: machinery to advance the interests of others. Corporate Social Responsibility Report 2011 21

$ %+: cost. As for the aspect of human resources, the challenges or approve certain issues that may become a included the building continuously of socially responsible ' culture. :'{ person. He or she should then remove himself - EGAT’s Codes of Conduct which was issued in or herself from participating in such undertaking, 2002 has been revised to be consistent with the amended and laws and regulations. Ethical codes for EGAT Board of $ %+ Directors, management, and employees are proclaimed %' in compliance with Article 279 of the Constitution for the interest as required in the self-assessment form. Kingdom of Thailand B.E. 2550 (2007) and with the ethical :\\: Thailand. EGAT employees at all levels and in all operation management areas are expected to observe these ethical codes. EGAT has developed a process to determine the ?: - EGAT has adopted the social and environmental management for guiding the organization’s strategies principles as outlined in the International Standard ISO on economic, environmental, and social topics. EGAT’s 26000 titled ‘Guidance on Social Responsibility’ as Committee for Deputy Governor Nomination and Committee guidelines to improve the formulation of EGAT Corporate for Assistant Governor and Division Director are Social Responsibility Master Plan. All core subjects and responsible for selecting and recommending candidates issues of social responsibility are namely the organizational for nomination or rotation for the position of Deputy governance, human rights, labour practices, the environment, Governor, Assistant Governor, and Division Director. fair operating practices, consumer issues, and community Selection criteria and methods for nomination to these involvement and development. positions are in accordance with EGAT’s regulations on nomination and rotation of the Division Director positions EGAT has improved the missions associated with and higher. Executives in these positions are selected by the international standards which include the standardized their knowledge, competency, experiences, work history, quality management systems ISO 9001 for the power ++? plant operation, the environmental management systems $ ISO 14001 for the power plant environmental management, and the occupational health and safety management Revision of statements of missions or values, \~~#""##! codes of conduct and principles relevant to of the state enterprise performance appraisal (SEPA) to economic, environmental, and social performance improve the overall performance. In 2011, EGAT has made revisions of statements of our missions, values, code of conduct and principles Risk management which are relevant to economic, environmental and social EGAT has continuously improved the enterprise risk performance as follows . management system and practices in accordance with the Committee of Sponsoring Organizations (COSO) and - EGAT’s missions relevant to economic performance in compliance with the criteria developed by the Ministry were revised to be in line with the three purposes for of Finance to manage and control organization-wide the establishment of EGAT, as stipulated in the amended risks to be within an acceptable standard. A risk appetite EGAT Act of B.E. 2535 (1992), by adopting the economic +:++ value management (EVM) to improve the overall of the organization and all business lines. Risk residuals performance of EGAT’s operations both at the organizational are included as part of SWOT analysis to be further used and command lines levels. in preparing the organization’s strategic planning. EGAT’s four key strategic aspects are retained which include the % ++ strategic challenges for the following aspects: business, risks, and compliance risks. operation, human resources, as well as other challenges which affect the organization’s sustainability. The outcome Processes for evaluating the top management’s of the review will be adopted to enhance the operational performance performance. For example, in the aspect of business EGAT has developed the following indicators for : the evaluation of EGAT top management’s performance, good public image and public trust, and the maintaining particularly with respect to the economic, environmental of quality power services and the competitive generation and social performance. 22 Electricity Generating Authority of Thailand

Indicator 1 Leadership- comprising the adoption of 7 \ ]~7\^ management strategies and practices “Beyond Expectation, Beyond Imagination” at the Royal to gain recognition among and Jubilee hall, IMPACT Arena, Muang Thong Thani. acceptance from relevant parties as well as to uphold the organization’s Among these SOE awards achieved, the Outstanding reputation. Innovation Award for EGAT’s solar weighted tracking Indicator 2 Vision and decision-making system has been categorized as the award in recognition Indicator 3 Change management of EGAT’s economic, social and environmental initiative, Indicator 4 Risk management :~7\ Indicator 5 Operation in compliance with the organization. Board of Directors’ policies Indicator 6 Stakeholders’ satisfaction In addition, in 2011, EGAT’s power plant and Precautionary approach of principle recognition for their operation and performance. EGAT’s EGAT has also addressed the precautionary Mae Moh power plant was awarded CSR-DIW from the approach of principle by adopting the risk management Department of Industrial Works for the third consecutive principles to prevent any risks that may arise and affect year. Mae Moh power plant which was awarded the the organization’s operations. Risk management has been CSR DPIM award and the green mining award from the applied to the internal control system by using risk Department of Industrial works, has been recognized as factors to formulate the internal control plan and the an organization which operates with due care to the corporate plan at organizational and divisional level. communities and the environment according to the social and environmental aspects developed by the Department Externally developed charters, principles, of Primary Industries and Mines, comprising the recognition and initiatives to which EGAT subscribes of social and environmental responsibility, the conduct of or endorses environmental impact mitigation and preventive measures, EGAT is a state enterprise under the supervision the implementation of occupational health and safety of the Ministry of Energy. In 2011, EGAT won two state activities for employees and surrounding communities, owned enterprise (SOE) awards, held by the Ministry of the development of green areas and landscape for Finance, namely the Outstanding Organizational Management communities, the being of an organization of transparency and accountability, and the utilization of resources for the Outstanding Innovation Award from the development :$!"## of the solar weighted tracking system, installed at facilities, and departments of 28 in number, received the Sirindhorn dam in Ubon Ratchathani province. Mr. Thirachai national occupational safety and health awards 2011 from Phuvanatnaranubala, the Finance Minister, presided the Ministry of Labour. Among these, EGAT’s Nam Phong over the 2011 SOE Awards presentation ceremony on power plant won this award for eleven consecutive years, 31 August 2011, which was organized by the State which emphasizes EGAT’s outstanding performance in occupational health and safety operation. Memberships in associations and national advocacy organizations EGAT has actively joined memberships in associations and advocacy organizations in which EGAT has participated in projects and committees and viewed such memberships as strategic. In 2011, EGAT has been a member of the “Muang Khon Dee (City of Good People) Network”, to take part in mobilizing the national strategies for corruption prevention and suppression :\> Anti-Corruption Commission (NACC). EGAT has also been chosen to enter the 2nd NACC Integrity Awards 2011 Contest. In 2011, EGAT has provided substantive funding beyond routine membership dues to support numerous sporting associations. EGAT granted a 16 million baht Corporate Social Responsibility Report 2011 23

EGAT’s memberships in such associations and Association (TAWA) for the preparation of athletes to national advocacy organizations as well as the contribution enter competition in the 2012 London Olympic Games in of substantive funding beyond routine membership dues England. EGAT also provided funding of 15 million baht well demonstrate EGAT’s key strategies which have been to organize the EGAT Junior Weightlifting Championship adopted in the organization’s corporate social responsibility for the purpose of searching for star weightlifters for implementation. Thailand’s national weightlifting teams. Besides, EGAT has pledged to support the Petanque Association of Groups of stakeholder and basis for selection Thailand from three years (2011-2013), by providing of stakeholders 15 million baht in total over the three period. EGAT also + supported the Thai Government which played host for selected from individuals, groups of individuals or external EGAT 15th Asia Petanque Championship 2011, held in agencies affected from EGAT’ business operations December 2011 at Pitchayanun Petanque court in Nonthaburi including EGAT suppliers. EGAT’s stakeholders consist province. The event was organized to celebrate the of the following: auspicious occasions of His Majesty the King 84th birthday 1. The Government agencies comprising the and to commemorate the 111th birthday anniversary of Ministry of Energy and the Ministry of Finance, Her Royal Highness Princess Mother who was the patron 2. The communities living in the vicinities of power of the association and actively promoted the international plants, along the transmission lines and around standard of Petanque sport in Thailand. the lignite mines and mining facilities, 3. The Energy Regulatory Commission (ERC) of EGAT has also viewed membership in the external Thailand, and research development organization as strategic. In 2011, 4. The electricity users who are customers of EGAT signed a memorandum of understanding with the MEA and PEA. Thailand Research Fund (TRF) for a close collaboration in the “EGAT-TRF Grants for Research and Development Stakeholder engagement Project”, with an aim to co-assist in the development EGAT has been conscious of the effects of our of researchers and research-based knowledge through decisions and activities on the interests and needs of our making research grants, in particular the research and stakeholders. EGAT has also developed a fair and proper development projects to be conducted at the policy level process based on engaging the most relevant groups in the area of energy, society, and the environment. For of stakeholders while incorporating the stakeholder } engagement in the organization’s policies which have provide funding of 20 million baht each which totals 40 been deployed into practices across the organization. million baht. Additional funding will be provided continuously Effective two-way communication channels for stakeholders’ to cover the three year period to maintain the project’s complaints or grievances were developed. For example, total annual budget of 40 million baht. EGAT, TRF and EGAT news and information committee was set up to research grantees will jointly own the intellectual property disseminate news and information regarding EGAT’s derived from the research undertaken under this project, operation activities covering all lines of operation. EGAT’s {: Call Center 1416 and EGAT Post Box 1111 were completed researches. developed to accept public complaints. A survey was 24 Electricity Generating Authority of Thailand also conducted in 2011 on the stakeholders’ awareness, for comparison with EGAT’s performance in the following expression of opinions and expectation from EGAT years. These measures contributed to the promotion of $ EGAT’s good corporate governance practices. from the general public as well as EGAT employees shed light on EGAT’s present status as well as our strength and Key topics and concerns raised through weakness regarding good corporate governance. These stakeholder engagement data were analyzed for subsequent formulation of EGAT’s A summary of stakeholders’ key topics and concerns master plan for good organizational governance. They were raised through the engagement with different groups of also used to improve the communication approaches with stakeholder has been listed as follows: all groups of stakeholder and served as baseline data

StakeholderKey topics and concerns EGAT’s response The Government agencies, the - Observance of the electricity policy developed by - Organizing meetings, seminars Ministry of Energy, the Ministry of the government and trainings Finance - Generating revenues for the government - Implementing activities in - Investment by the government sector to stimulate accordance with the the overall economy government’s policies - Implementation of power projects with minimum - Organizing formal and informal impacts upon communities and the environment meetings - Dissemination of news and information in quick - Formal and informal participa- and timely fashion tion in activities such as sporting games, parties, and site visits (to dams, power plants, etc.) The communities living in the - Development for the well-being of life and - Organizing meetings for the vicinities of power plants, along communities Social, Community and Environ- the transmission lines and around - Control of environmental impacts which harm life in mental Coordination Committee the lignite mines and mining nearby communities - EGAT’s Community Relations facilities - Dissemination of news and information regarding Department EGAT’s operations activities (rationale/ necessity) - EGAT top management - Involvement in decision-making process related to participating in community EGAT’s power projects activities in the vicinity of power - Fair compensations plants - EGAT’s prompt responses to complaints, suggestions - Meetings with community and opinions leaders to listen to their problems and issues - Inviting community representatives to visit the sites of EGAT’s power plants and power projects %;: - Organizing social and environmental projects, such as the Biological way of life, Waen Kaew and Mobile Medical units. The Energy Regulatory - Adequacy and security of electric power - Organizing meetings, seminars Commission (ERC) of Thailand - Reasonable-priced electricity tariff rates and study tours at EGAT’s - Development of power plants utilizing alternative fuel operation facilities as well as at sources electricity utilities oversea - Control of environmental impacts - Organizing both formal and - Organizing meetings, seminars and study tours at informal meetings EGAT’s operation facilities as well as at electricity - Participating in occasional utilities oversea activities - Organizing both formal and informal meetings - Participating in occasional activities The electricity users who are MEA - Reasonable priced electricity fees Developing channels for and PEA customers. - Security of electricity supply suggestions and opinions. - Quality of electricity service - www.egat.co.th - Reliability - EGAT Call Center 1416 - EGAT Information Center located at EGAT’s headquarters (prinfo.egat.co.th) - EGAT’s public relations sections located at regional operation divisions and power plants across the country. Corporate Social Responsibility Report 2011 25

report, following the EIA’s guidelines developed by the HUMAN RIGHTS \>7 AND LABOR PRACTICES and Planning (ONEP). Human Rights Human rights risk situations EGAT has continued conducting business To prevent any conflict regarding political operations while placing greater consideration to the instability and failure of democratic or judicial system, EGAT human rights which is one among seven core subjects has developed the Code of Ethics for the Board of and issues addressed in the International Standard Directors, top management and employees across the ISO 26000 titled “Guidance on Social Responsibility”. In organization to observe the practices of ethical behav- 2011, EGAT’s human rights performance based on the ISO iors, in particular of the democratic principles. EGAT’s 26000’s human rights issues included the due diligence, Code of Ethics prohibits the use of one’s position or human rights risk situations, avoidance of complicity, authority to support or organize any activity in support resolving grievances, discrimination and vulnerable groups, of a political party or a person with political power. civil and political rights, economic, social and cultural However, EGAT has promoted our Board of directors, rights, and fundamental principles and rights at work. top management and all employees to exercise their political rights through voting, joining as membership Due diligence in a political party and participating in the good EGAT has always realized that our operation activities organizational management. might infringe the rights of others, in particular of our stakeholders. Therefore we have been careful to take Also to prevent any involvement in the activities the human rights issue into consideration prior to the development of power plant projects. Activities with life and local culture in communities, EGAT has regards to our compliance to the human rights as integrated an environmental policy and a corporate / social responsibility (CSR) policy throughout the and other relevant laws have been monitored and organization. As for the employment, EGAT has avoided reported to the Ministry of Energy, our regulatory body. all forms of child labor by not hiring workers under the In 2011, EGAT has exercised due diligence as in the legal working age of 18 years old. following activities. EGAT has avoided the culture of corruption by To comply with Section 57 of the Constitution of formulating guidelines for all employees to observe the the Kingdom of Thailand with regards to the right to practices of corruption. EGAT employees are expected receive information and to express opinion on any project : or activity that may affect different aspects of a local ' community, EGAT has organized a number of public with the interest of the organization or the society at meetings to disseminate information on the construction large. The issue of human rights risk situations are also of a double circuit 500 kV transmission line at the addressed in the topic related to EGAT’s Code of Ethics delivery point on the Thai-Laos border (Nan province) /' $ – Nan 2 – Mae Moh 3 (for the section passing the forest conservation area) which will deliver power from Avoidance of complicity the Hongsa lignite power plant in Laos to EGAT power Complicity is associated with the concept of aiding grid. At these meetings, information on EGAT’s project and abetting an illegal act or omission. EGAT has development steps has been provided to local community developed a policy on the avoidance of complicity which representatives living in the area including their rights. requires EGAT top management and employees to strictly observe the principles of good organizational governance EGAT also conducted surveys on public and and refrain from involvement in any practice of human stakeholder opinion regarding the development of Bang rights violation. Six key good organizational governance Pakong combined cycle power plant block 5 project. issues incorporated in this policy were namely the respect for the rule of law, ethical behavior, transparency, the public and relevant parties, including the preparation participatory management, accountability, and of the environmental health impact assessment (EHIA) cost-effectiveness. In 2011, EGAT’s security approaches 26 Electricity Generating Authority of Thailand

+ : be consistent with the international norms and the law country, to denounce all forms of crime, misdemeanor enforcement standards. and act of self-interest, and to treat the others including the stakeholders, with fairness and indiscrimination. Resolving grievances Recognition and praise are also given to employees with EGAT has established the mutual agreement outstanding ethical behaviors and performance. EGAT and put in place the grievance mechanisms for has also developed steps to prevent sexual harassment negotiation between the management and employees. and acts of self-interest and included them in Section The mechanisms have been operated through the 6 of EGAT’s Code of Conduct. EGAT expects that all following channels. employees, particularly the top management, have to accordingly respect human dignity and refrain from all - EGAT Labor Union Relations Committee comprising forms of sexual harassment. nine representatives each from the management and EGAT employees. One member of EGAT Board of Directors Civil and political rights acts as chairman for this committee whose duties are EGAT has respected all individual civil and political to deliberate and give advices regarding rules and rights, including the freedom of opinion and expression. regulations related to employment conditions as well as A complaint management system was set up in conformity :$ \ 7 ~ 7*\ - EGAT Occupational Health, Safety and Work a national complaint management system. The system Environment Committee consisting of nine representatives will enhance the freedom of opinion and expression as from EGAT management, ten from EGAT employees and well as the freedom to exercise political rights among one secretary. The committee’s duties are to deliberate them. Such civil and political rights promotion measures EGAT’s safety of workplace policy and action plans for : the operation of health and safety activities to prevent {$ and mitigate work-related accidents, injuries, and illness as grievance mechanism has been put in place and well as to promote the other health and safety activities. operated to collect information from the public through the following communication channels; - EGAT Working Group on Internal Coordination The Government Website (www.1111.go.th), comprising seven top management, seven employee The Government Hotline 1111, representatives (from EGAT’s Labour Union) and one The Government Post Box 1111, and secretary. It is the working group’s duties to Counter Service 111. coordinate and exchange information among different groups within EGAT. The working group also collects EGAT’s “Complaints and Anonymous Letters employee opinions and submits for consideration by Committee” has been established to process complaints EGAT management. from the public as well as EGAT’s own employees. Other channels to receive public complaints include the Discrimination and vulnerable groups call center number 02-4360000 (20 lines) and the 1416 EGAT has recognized the importance of taking any Emergency Call Center for reports of accidents, failure of approach to ensuring equal opportunities and respect for all individuals. EGAT has examined our own operations to determine whether direct or indirect discrimination is present to prevent any form of discriminating practices against our employees, business partners, customers, stakeholders and anyone else with whom EGAT has any contact or on whom EGAT can have an impact. Guidelines with respect to the values of ethical behaviors are included in Section 5 of EGAT’s Code of Conduct which requires all employees to serve the public with courtesy and in a timely fashion. Activities carried out organization-wide included the raising of employee awareness to embrace ethical behaviors, to perform their daily work with Corporate Social Responsibility Report 2011 27 high-voltage transmission lines and relevant information. Information provided through these channels is updated on a daily, monthly and yearly basis or whenever there are changes of information. Economic, social and cultural rights EGAT has facilitated access to education and lifelong learning for community members and explored ways related to our operation activities to contribute rights. EGAT has implemented the knowledge management project for alternative energy and community power plant development in the southern region with an aim to involve the network of local electricity users in EGAT’s power development activities as well as energy conservation. EGAT has also contributed to the well-being Labor Practices of local communities by carrying out the initiatives for the EGAT’s labor practices in accordance with the conservation promotion, the communication for knowledge International Standard ISO 26000 included the employment building and the restoration of natural resources and the and employment relationship, freedom of association and environment in the conserved forest areas. Moreover, effective recognition of the right to collective bargaining, the “EGAT D.I.Y. Camp” project has been undertaken anti-corruption, conditions of work and social protection, to promote the volunteering spirits among the university social dialogue, human development and training in the students engaged in volunteer camp activities for social workplace, and health and safety at work. and community development. During 2011, EGAT’s labour practices performance EGAT has also worked in close collaboration with have continued to be in line with EGAT’s human resource the Department of Labor Protection and Welfare, the policy and relevant approaches. EGAT’s policy on human Ministry of Labor, to improve our occupational health, resources has placed priority upon the employment for safety and work environment performance and activities. the development of human resources by enhancing the EGAT has accordingly won the national occupational standard of living as well as the security of employment safety and health awards for many consecutive years. and the agreeable work conditions. EGAT’s human resource policy has been regularly revised to achieve Fundamental principles and rights at the policy aims by; work EGAT has allowed all employees to have the freedom 1. Improving the security of employment, the of association and the right to collective bargaining. employee’s spirit and morale and the standards of EGAT’s Labor Union was established comprising living through the promotion for the capable and representatives from members of various committees high performance employees with appropriate within the organization to give advice and voice opinions : on good governance practices. EGAT has also promoted 2. Enhancing the value of employees by promoting and supported many other associations and clubs set up their capability to become professionals in their by employees. In addition, EGAT has not engaged in or career path that are in line the corporate vision ::$ and strategies as well as the situation of the EGAT has also formulated explicit employment practice organization, and the promoting of teamwork criteria regarding personnel hiring, work promotion, salary spirits among them; and additional payment which were in line with job 3. Promoting the performance-oriented requirements as well as free from discrimination based on human resources management with regard to gender, race, religion or cultural background. Moreover, contribution to improved prductivity and optimization all employees have equal access to training opportunity. of human resources; 28 Electricity Generating Authority of Thailand

4. Adopting the management approaches which regarding employee’s gender, race, religion or culture. focus on fairness, transparency and accountability EGAT also provided training opportunity for all employees based on a competency-based performance on an equal and non-discriminatory basis. system; and 5. Encouraging practices of ethical behaviors, EGAT Workforce dedication and self-discipline among employees EGAT has currently employed a total of 23,393 by giving recognition to personnel with ethical employees and workers (as of December 31, 2010): 22,591 conducts who frequently participate in religious, employees and 702 workers. There are also another 5,000 traditional and cultural activities and dedicate subcontract workers. themselves to the interests of the society at large. Recognizing the importance of securing capable workforce on a continuing basis, EGAT had formulated a Employment and employment relation- 5-year manpower plan (2010-2014) to cope with retirement ships of employees in the next 5 years. EGAT observed all of the relevant labor laws and labor practices to ensure compliance to key employment In 2011, EGAT employed a total of 22,680 issues addressed by ISO 26000 - Guidance on Social employees which could be divided by types of Responsibility. We adopted non-discriminatory employment employment, employment contract and employment practices that provided equal opportunity to people of #! all races, colors and genders. To ensure fair employment ! !| : +:: +|:+ criteria on employee’s advancement, income raise, | + and special remunerations that were based on |+$ competency-based performance without any discrimination of 24 employees, which accounted for 0.10% of total employees, resigned during the year comprising 17 from central $ "#$ Age (Year) Total 22 23 24 25 26 27 30 36 37 40 42 43 48 50 53 employees Total (person) Female Male Female Male Male Female Female Female Male Female Male Male Female Male Male Male Male 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 17

"#$ Age (Year) Total 23 24 26 28 44 53 employees Total (person) male 1 1 2 1 1 1 7

Career diversity and equal opportunity EGAT’s promotion of career diversity and equal employees, subcontract workers and temporary workers opportunities was evident from the number of our ::

Employees Age range (Year) Male Female Total (person) 20-30 1,841 457 2,298 31-40 1,390 586 1,976 41-50 5,961 1,804 7,765 51-60 8,508 2,133 10,641 Total 17,700 4,980 22,680 Corporate Social Responsibility Report 2011 29

Subcontract Workers Temporary Workers Age range Male Female Total Age range Male Female Total (Year) (person) (Year) (person) 20-30 35 2 37 20-30 7 2 9 31-40 144 5 149 31-40 42 2 44 41-50 83 16 99 41-50 11 4 15 51-60 14 1 15 51-60 1 2 3 Total 276 24 300 Total 61 10 71

Total workforce by types of employment, employment contract and employment locations Subcontract Subcontract Temporary Temporary & " workers workers workers workers '& * '" * '& * '" * 12,788 9,892 263 38 37 34

Minimum wages for male and female employees EGAT had established the following minimum wage rates for male and female employees based on their educational ?$

Minimum wages for male and female employees by educational levels Educational Level Male (person) Female (person) Total (person) Total (Baht) Bachelor’s degree and higher 4,713 2,574 7,287 12,000 6,659 1,016 7,675 9,000 2,633 843 3,476 7,200 Other 3,695 547 4,242 According to the Wage / Total 17,700 4,980 22,680

Freedom of association and collective bargaining 72.8% of EGAT total employees were under mutual %: negotiation agreement with EGAT’s management. These employees were encouraged to freely join EGAT’s grounds for such accusation. If no grounds for the Labor Union with no risk to their employment security. accusation are established, the investigation will be EGAT supported various Labor Union activities. For terminated. If there were grounds to pursue the example, upon the Labor Union’s request EGAT assisted in investigation, a disciplinary investigation committee will the election process of the Labor Union’s executive board be appointed under EGAT’s directive No. Khor 85/2538 and the deduction of EGAT Labor Union’s membership regarding work suspension, disciplinary investigation, fees from employees’ pay checks. EGAT’s Labor Union disciplinary action and case appeal. was allowed to organize its activities, as EGAT deemed Conditions of work and social protection permission for time off to join the activities. EGAT has set up fair and appropriate wage rates, : Anti-corruption practices employees at all stages of their career. The following EGAT has established and put in place a system measures were implemented in 2011 to ensure employee’s to deal with cases of corruption. Upon accusation of employment security and decent standards of living. 30 Electricity Generating Authority of Thailand

- The establishment of minimum wage rates In compliance with the State Enterprise Workers for all employees that are in accordance with Relations Act B.E. 2543 (2000), EGAT has established the State Enterprise Relations Committee’s the EGAT Labor Relations Affairs Committee which comprises nine representatives each from the management enterprise employment and the Wage Committee’s and EGAT Labor Union. One member of the board of $ directors becomes the Committee’s chairperson and the head of EGAT Labor Relations Division becomes - The establishment of starting wages that are its secretary. This Committee meets once a month. Its determined by an employee’s experience, primary duties are to promote and develop good labor ?$ relations, contemplate improvement of EGAT operation There are minimum and maximum rates for work + of different nature. The rates are competitive when conditions. It also deliberates complaints on imposed comparing with those of the other enterprises disciplinary actions. engaging in the same kind of business. Based on mutual approval of EGAT’s management %::? and employees, EGAT has adopted and put in place the : following good labor relations practices: State Enterprise Relations Committee (SERC) on the minimum standard for state enterprise - President of EGAT Labor Union or a representative $ was allowed to attend EGAT Board of Directors’ meetings to provide data and explanations involving the Labor union. - The establishment of additional welfare and % :: for the operation of EGAT Labor Union and facilitated the nature and characteristic of work performed various aspects of its activities. For example, EGAT or as deemed suitable. They are awarded as supported the Labor Union’s study tours and participation work incentives in addition to normal welfare in domestic and international meetings such as the PSI- :?:$~ /]7/^ : of Chemical, Energy, Mine and the General Workers’ + ]/*^ $ emergency loans. support for the Labor Union’s annual general meetings, an election of its executive committee. Members of EGAT EGAT’s Labor Relations Labor Union’s executive committee from the central EGAT’s labor relations system has been regulated by the State Enterprise Workers Relations Act B.E. traveling expenses to attend the Labor Union’s executive 2543 (2000) and other relevant laws. EGAT has also committee meetings, as if they were working for EGAT. adopted good labor relations practices based on mutual - EGAT’s Working Group on Internal Coordination approval of both parties. was established with seven representatives from the Corporate Social Responsibility Report 2011 31 management and another seven representatives from - Negotiating for additional work preparedness EGAT’s Labor Union. This working committee holds four stipend of 100 bath for normal working days meetings each year as well as coordinates and shares and 150 baht for holidays for employees posted vital information with relevant parties in order to foster at high voltage substations; better understanding and uniform directions of operations. - Providing a total of 6,765,000 baht assistance It also collects employee opinions for consideration by to 2,706 EGAT’s Labor Union members whose EGAT management. houses and belongings were damaged by the - Upon the request of EGAT Labor Union, the '$ ;: !"## _: management agrees to organize an election of the executive appealed for cash donation from EGAT employees committee for EGAT Labor Union at the end of each across the country to purchase New Year gift committee’s term. baskets for EGAT’s employees and military - Representatives of EGAT Labor Union are personnel in the three southern border provinces permitted to address and explain its operations to new of Pattani, Yala, Narathiwat and Chana power employees during their orientation sessions. plant in Songkha. A gift-presentation trip to these locations was organized in January 8-13, Social Dialogue 2012; and The existence of EGAT Labor Union is a testimony - Increasing the amount of funeral wreaths and to the freedom of association and collective bargaining funeral rite assistance for employees and of EGAT employees. Employees can freely voice employee’s family members from 5,000 to 6,000 their opinions and demands through the Labor Union’s baht, effective from October 1, 2011. Total funeral representatives. EGAT also supports the establishment rite assistance given out to members for 2011 of other employee associations by providing necessary was 349,655 baht. venues, facilities and public relations channels for their - A total of 306,303 baht was provided as 303 activities. scholarships and awards for excellent educational achievement to children of EGAT’s Labor Union EGAT Labor Union was founded on 1 May 1975 members, social welfare assistance grants and following the government’s proclamation of the Labor grants to labor leaders. Relations Act. EGAT’s Labor Union membership has grown - EGAT’s Labor Union set up kitchen facilities at from the initial number of 10 founders to the present Wang Noi power plant in Ayutthaya province, number of 16,687. Throughout the past 36 years of its Pathumthani Hospital in Pathumthani province existence, EGAT Labor Union has achieved many and at EGAT headquarters to prepare meals for ' ':\:#>: and negotiating agreements between employees and the 10, 2011, and $: - Negotiate for the proclamation of EGAT’s the introduction of many new policies which led to better Regulation No. 59 - Extra Stipends for High '$ Place and Tunnel Operations B.E. 2547 (2004). EGAT Labor Union’s outstanding performance EGAT supported various employee associations during 2011 included the followings: through permission to use EGAT’s premises, facilities, and public relations channels for their activities. There - Recommending to EGAT top management an are currently 22 different clubs established to promote ' employee dialogues and to improve the standards of victims who are EGAT employees from 10,000 to living of EGAT’s employees. Some of these clubs are the 20,000 baht for a house owned by an employee Buddhist Club, Christian Club, Basketball Club, Amateur or his/her spouse and from 5,000 to 10,000 Radio Club, Mae Moh Bowling Club, Shooting Sport Club, baht for an employee’s rented house. It also Writers’ Club, and Petanque Sport Club. negotiated for the founding of a Flood-victim Loan Fund from which an employee can borrow Personnel Development and Training up to 50,000 baht for a period of 36-months EGAT recognized the importance of continuing with no interest; human resources development and had established a - Negotiating the rights to claim medical expense human resources development policy that included personnel for parents of employees hired after October development at all levels and in all positions both in the 2005; technical and managerial skills. EGAT was determined 32 Electricity Generating Authority of Thailand

2. Four preparation programs for junior and senior executives: preparation programs for Level 8, 9, 10 and 11 personnel. 3. There were training programs on technical and managerial skills organized by the Personnel Development Division and training programs organized by individual command lines such as training programs in electricity generation, development, transmission, fuel, administration, control system engineering, information technology, risk management and knowledge management. to improve the employees’ standards of living with the 4. Promotion of employees’ quality of life program goals of promoting their work capacity and employability. with emphasis on the improvement of physical We have also encouraged our employees to become $ people of ethical behaviors who observed EGAT’s Code 5. External training programs, seminars and of Ethics and transparency principles with regards to high conferences both locally and overseas were % promoted to broaden employee’s perspectives to the good of society. Safe and pleasant conditions of and to create new alliances. work, good quality of life as well as career advancement opportunity were promoted. Standard work environment In 2011, the average training days for training safety and established risk management system for both programs organized by the Personnel Development inside and outside operations were also provided. EGAT Division was 3.76 days per employee per year. This encouraged all employees to participate in suitable CSR number excluded the number of training days provided practices based on our conviction that human resources by individual command lines. These programs were are the key to EGAT’s success as a high-performance designed to support EGAT’s strategic goal of developing {7 EGAT into a successful and high performance organization. for Thai Happiness”. They aimed to improve personnel competency and foster positive attitudes towards working for social and cultural EGAT’s personnel development training pro- causes among EGAT’s employees while creating a corporate grams were designed with the goals of improving work culture of creative work performance. These programs performance for all levels of personnel so that they could placed emphasis on EGAT’s sustainable development achieve EGAT’s principal missions, visions, values and in which their employees became a professional in strategic directions. These programs also gave special one’s own, embraced good moral and ethical standards consideration to the moral and ethical aspects of an :$: employee’s work performance. Their ultimate goal was to recognized as Thailand’s leading organization through the produce model employees with outstanding work capability help of these model employees. and good conducts who were also happy with their work. Personnel performance were improved through a large Promotion of Occupational Health and Safety variety of training techniques such as work coaching, Performance mentoring, counseling, on the job training, special During 2011, EGAT continued to perform our assignment and work rotation. Training evaluation and occupation health, safety and work environment monitoring of these training programs were also included activities in accordance with our policy which states as part of EGAT’s personnel development process. that “to conduct our business activities in a : participatory manner to ensure that all incidents guidelines as follows: and hazardous events are prevented at all times in a proactive manner and with respect to all applicable 1. A total of seven training programs for entry level laws and international standards.” to the highest level personnel which included This policy was implemented under a new employee orientation, young generation fundamental hypothesis that “if an organization development, head of section development, chief of department development, assistant division health, safety and environment management system, director development, division director development, existing work risks will be kept at acceptable level. Such and assistant governor development. system will reduce the chances of accident and prevent Corporate Social Responsibility Report 2011 33

following areas: Give advice on the development of occupational health, safety and work environment management system. Implement safety engineering operations. Develop safety training programs required by laws. Inspect, evaluate and measure elements of work environment such as heat, lighting, noise, dust, chemical substances, bacteria, etc. Inspect and evaluate occupational safety, health and environment management system by persons who are not related to the inspected operative unit. illness from contact with hazardous environment”. The following guidelines were work established for National Occupational Safety and EGAT’s occupational health, safety and work environment Health Award 2011 management. In 2011, EGAT won the national occupational safety and health award from the Department of Labor Protection and Welfare, the Ministry of Labor, during 1. EGAT has implemented a management system that the 25th National Work Safety Week for 28 locations was in line with the Ministry of Labor’s Regulations of EGAT’s power plants and departments. EGAT’s on the Prescribing of Standard for Administration Vajiralongkorn dam and Nam Phong power plant have and Management of Occupational Health, Safety won this national award for eleven consecutive years. and Environment, B.E. 2549 (2006). EGAT had 41 operation areas across the country and Work-related Accidents and Injuries registered them as operative units with the Statistics Department of Labor Protection and Welfare. During 2011, there were 149 cases of work-related Each operative unit set up a bi-party occupational injuries and illness or personnel accidents, 17 cases of health, safety and environment committee which were disabling or severe injuries, 101 cases were consisting of appointed and elected members non-disabling or minor injuries, 2 deaths and 29 cases at the ratio stipulated by the Ministry of Labor’s were pending for conclusion. EGAT’s rate of work-related injuries or illness cases in 2011 decreased by 14.37% regulations. Based on the current number of from 174 cases reported in the previous year. The rates 21,377 eligible employees with voting rights, of disabling or major injuries decreased by 61.36% while there were 238 elected committee members. the rates of non-disabling or minor injuries decreased 2. EGAT’s operative units in each operation area by 20.47%. However, there were fatalities this year. set up an occupational health, safety and (In 2010, there were 44 disabling or severe injuries, 127 environment management system whose ef- non-disabling or minor injuries and no fatalities). : their achievement of international standard cer- EGAT’s disabling injury frequency rate (IFR) was ~ 0.47, a decline of 0.31 (from 0.78 in 2010). The incident Occupational Health and Safety Management rate (IR) of non-fatal work-related injuries and illness System (TIS 18000) and the OHSAS 18000 "$"!"""""%+$ (Occupational Health and Safety Assessment was lower than the disabling injury frequency standard index which is 3.2 for 200,000 employee-hours worked Series). according to the NAICS Code for electric power 3. EGAT’s work safety units and safety generation, transmission and distribution (Injuries Facts personnel had been set up in EGAT’s command line structure to do the following tasks. 3.1 Set up work safety units and safety personnel in all operation areas. 3.2 Set up the Quality and Safety Development Division to make recommendation to the management on various safety management issues and to provide services in the 34 Electricity Generating Authority of Thailand

2010 Edition, the National Safety Council 2008). 2010’s IRS rate was 194.27). This rise was the result of In 2011, EGAT’s disabling injury severity rate (IRS) work-related fatalities in 2011. The disabling injury index was 303.81, which had risen from 2011 by 109.54 (the (DII) rose slightly to 0.14 (compared to the DII rate of 0.08 in 2010). Lost workdays cases, cases without lost workdays and injury frequency rate (IFR) Number (cases) IFR (cases per 1,000,000 employee-hours worked) 450 2.5 400 350 2 300 1.5 250 200 1 150 100 0.5 50

0 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Year Loss of workdays No workdays loss Injury Frequency Rate (IFR)

Number of workday losses, no workday losses and injury severity rate (ISR)

Number of Workday Losses ISR (cases per 1,000,000 working hours) 80,000 1800 70,000 1600 60,000 1400 1200 50,000 1000 40,000 800 30,000 600 20,000 400 10,000 200 0 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Year

Loss of workdays No workdays loss ISR

related injuries or illness, which was higher than a total In 2011, EGAT spent a total of 7,661,966.68 baht of 956,531.04 baht spent in 2010. However, in 2011 EGAT in compensation for employees who experienced work- paid a total of 5,830,906.64 baht for employees’ medical expenses, which was less than the amount paid in 2010. Corporate Social Responsibility Report 2011 35

included the 171 cases of accidents that caused damages Overall, the number of EGAT employees who to motor vehicles, the same number as in 2010; 65 cases experienced work-related injuries and illness in 2011 was of accidents resulting in damages to heavy machines lower than the 2010 disabling and non-disable injuries or (a decrease of 8.45% from 71 cases in 2010); two cases of illness rates. This number has continued to decline since accidents resulting in damages to machinery and equipment 2003. However, EGAT’s injury severity rate had increased (a decrease of 66.67% from six cases in 2011); and due to 2 work-related fatalities in 2011. two accidents resulting in damages to the buildings (the same number as 2010). There were also 95 cases of Property damage accidents accidents resulting in damages to EGAT’s other kinds of In 2011, EGAT encountered 335 cases of accidents property, a decrease of 25.78% from 128 cases in 2010. which caused damages to EGAT’s property, a decline In 2011, the total value of property losses accounted for of 3.94% from 379 cases in the previous year. These 79,105,910.35 baht, a decrease from 208,738,994.64 baht

Number of accidents between 2002-2011 Number (cases) 500 450 400 350 300 250 200 150 100 50 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Fiscal Years Number (cases)

Values of property damages between 2002-2011 Damage values 250

200

150

100

0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Fiscal Years Damage values 36 Electricity Generating Authority of Thailand

We are We behave professionals. ethically. For over 40 years we have provided We lend our helping hands to the Thai consumers with the quality contribute to the well-being electricity services produced from the of communities and the society well-established and reliable electric at large. We always treat all power generation and transmission community members as our system. own family members. Corporate Social Responsibility Report 2011 37

We are innovative. We have also developed our forward-looking younger generation employees which will enable them to create better or more effective technologies to continue to the Thai society. 38 Electricity Generating Authority of Thailand

During 2011, EGAT continued to conduct our operation TAKING CARE in an environmentally responsible manner to ensure the OF THE ENVIRONMENT sound environmental practices in full compliance with all applicable laws and regulations. EGAT has observed in particular the environmental principles as outlined in the International Standard ISO 26000 titled “Guidance on Social Responsibility”, which include the environmental responsibility, the precautionary approach, the environmental risk management, and the polluter pays. Key environmental issues taken into consideration during the year were the prevention of pollution, the sustainable resource use, the climate change mitigation and adaptation, and the protection of the environment, biodiversity and restoration of natural habitats. Prevention of Pollution EGAT has a strong determination to adopt measures to prevent and control the environmental impacts, in particular the organization’s emissions to air such as sulfur dioxides (SO2), nitrogen oxides (NOx) and carbon dioxides (CO2). Discharges to water have been managed in compliance with all applicable environmental laws including the improving of the overall environmental quality. EGAT has also recognized the importance of stakeholders’ involvement and participation. Numerous formal and informal meetings and public hearings were organized to provide opportunities for the views and comments of stakeholder and local people to be heard. A tripartite committee consisting of representatives from both government and civil sector, as well as from EGAT, was established to take responsibility in the monitoring of EGAT’s environmental : in the environmental impact assessment (EIA) report. Sustainable Resource Use EGAT continued pursuing the clean and green energy sources by promoting the development and consumption of renewable and alternative energy, ranging from solar power, wind energy, hydropower to geothermal energy. In 2011, a total of 7,943.63 million kWh of electricity from clean energy sources was produced from EGAT’s power generation system. Corporate Social Responsibility Report 2011 39

Climate Change Mitigation and Adaptation EGAT has actively developed 10 clean development mechanism (CDM) projects as means to reduce greenhouse gas emissionos. Up until 2011, nine out of ten projects received the Letters of Approval (LOA) from Thailand Greenhouse Gas Management Organization (TGO). Among these projects in particular, the irrigation valve-based micro hydro projects installed at Kaeng Krachan and Mae Ngat Somboon Chon dams received the crown standard awards for Thai CDM projects. Promotion of the Environment, Biodiversity and Restoration of Natural Habitats Project Study and Preparation of EIA Reports EGAT has implemented plans in collaboration Combined Cycle Power Projects with numerous organizations and agencies at the regional EGAT has implemented during the year two new level in efforts to minimize possible environmental impacts %:} resulting from land use involving with local communities in Chana combined cycle power plant block 2 and North numerous environmental campaigns and activities. Among Bangkok combined cycle power plant block 2. In May these environmental campaigns is EGAT’s reforestation project 2011, the National Environment Board (NEB) approved which was developed in commemoration of the Royal Golden an EIA report for Chana power plant block 2. In August Jubilee in 1984. The project has recovered an area of 384,418 2011, EGAT submitted an EIA report to seek approval for rais of the former degraded forests which account for over the development of North Bangkok power plant block 2 53 million trees in total. The project which adopted the project. The decision for the latter was under pending for sustainable forestry practices has contributed to the protection consideration by the Expert Committee on EIA reports of of biodiversity and restoration of natural habitats in 49 government, state enterprise, and joint venture with the provinces across the country. EGAT has also implemented private sector development projects. the plant genetics conservation project under the royal initiatives of HRH Princess Maha Chakri Sirindhorn. An Clean Coal Technology Power Projects area totaling 21,006 rais around 12 of EGAT’s dams and Implementation of clean coal technology power projects reservoirs has been allocated to be developed into areas for is one among EGAT’s alternatives for development of power preserving local and traditional strands of herbs and plants generating sources to cope with the increasing demand for in efforts to value, protect, and restore local ecosystem. electricity resulting from economic growth and to lower the risk from relying heavily on natural gas. At present, EGAT Environmental Performance has conducted an EIA and feasibility report for a new power In 2011, EGAT continued actively implementing our generating plant in the southern province, which includes environmental operations and activities as anchored in our the development of jetty pier and transportation route for corporate social responsibility and environmental policies. importing good quality coal. To secure the reliability of the Outstanding activities carried out during the year included national power system while responding to the government’s the preparation of EIA reports for EGAT’s on-going policy in optimizing the domestic fuel sources, EGAT has development projects which adopted the public participatory also projected to develop a new power plant to replace processes, the pollution control and management which the aging Mae Moh thermal power plant, units 4-7. adopted new technologies capable of emissions control An environmental health impact assessment (EHIA) study better than required standards, and the implementation of has been conducted for this project as EGAT has to clean development mechanism or CDM projects. ::*> Resources and Environment with respect to the prescription for the industrial projects or activities which may cause severe impact on the environment, natural resources, and community health. 40 Electricity Generating Authority of Thailand

Wind Turbine Power Project Pollution Control and Management In 2011, EGAT’s 18 MW Lam Takhlong wind turbine Air Quality Management power project has been further developed. The project was EGAT’s pilot wind turbine scheme to undergo the conduct of EIA study. In December 2011, the EIA report for the Lam Takhlong wind turbine project received approval from the Expert Committee on EIA reports of government, state enterprise, and joint venture with the private sector projects.

Transmission System Network Development Project EGAT has planned and developed new transmission system projects to increase the capability of transmission lines and ensure the continuity and reliability of power supply system. A number of transmission system interconnection CO2 Emissions projects have been developed to receive electric power from EGAT has well recognized that electricity generation IPP projects in neighboring countries. In 2011, EGAT has activities resulting in the release of carbon dioxides (CO2) prepared an initial environmental examination (IEE) report for to ambient air and the environment. As Thailand’s largest the construction of a double circuit transmission lines entitled power producer engaging in electricity generation and a double circuit 500 kV transmission line at the delivery point transmission, EGAT has actively monitored and disseminated on the Thai/Laos border (Nan Province) - Nan 2 - Mae Moh 3 data and information on the volume of CO2 emissions (for the section passing the forest conservation area) to generated from power generation activities via the website deliver power from Hongsa lignite power plant in Laos to www.egat.co.th, to ensure our operational transparency under EGAT power grid. The double circuit 500 kV transmission the good governance principles. EGAT has also addressed line link to the substation in Nan province and Mae Moh the global warming issues by implementing the reforestation substation. The project’s EIA report has been under approval project in honor of His Majesty the King and the clean process by the Expert Committee on EIA reports of development mechanism or CDM projects. government, state enterprise, and joint venture with the private sector projects. Emissions of CO2 from EGAT’s power plants during 2011 totaled 40.92 million tons. The CO2 by fuel types consisted of 21.77 million tons from natural gas, 0.97 million tons from fuel oil, 0.03 million tons from diesel, and 18.15 million tons from lignite.

Natural Gas 21.77 million tons

Diesel 0.03 million tons

Fuel Oil 0.97 million tons

Lignite 18.15 million tons Corporate Social Responsibility Report 2011 41

CO2 Emissions from EGAT’s Power Plants in 2011

CO2 Emissions (tons) kg CO2 / kWh Diesel oil Fuel oil Lignite Natural gas Total January 1,177 22,428 1,577,676 1,882,418 3,483,698 0.55 February 1,118 24,186 1,427,814 1,973,345 3,426,463 0.54 March 1,483 - 1,612,022 1,975,143 3,588,649 0.57 April 1,558 79,619 1,537,229 1,692,994 3,311,400 0.58 May 952 73,873 1,641,729 2,013,139 3,729,692 0.58 June 6,203 168,339 1,576,389 1,791,505 3,542,435 0.59 July 5,267 210,533 1,626,007 1,756,500 3,598,306 0.61 August 2,685 96,499 1,473,385 1,847,569 3,420,139 0.54 September 1,453 198,536 1,421,356 1,785,820 3,407,165 0.53 October 2,477 48,779 1,471,090 1,620,607 3,142,953 0.52 November 990 30,084 1,351,242 1,729,692 3,112,007 0.55 December 4,356 14,761 1,431,997 1,705,831 3,156,945 0.57 Total 29,719 967,636 18,147,935 21,774,563 40,919,853 0.56 Sources: 1. Environmental Division, EGAT (February 2012) 2. EGAT Fuel Consumption Monthly Report prepared by the System Control and Operation Division. (Data available in February 2012) Remarks: 1. CO2 emissions calculation is based on the 2006 IPCC Guidelines for National Greenhouse Gas Inventories, Volume 2 – Energy 2. kgCO2/kWh refers to the volume of CO2 emissions (kilograms) per kilowatt-hour calculated from EGAT’s energy generation in 2011 (73,151,539.172 kWh) which includes fossil fuel, hydropower, and renewable energy. (Data from EGAT Fuel Consumption Monthly Report prepared by the System Control and Operation Division) 3. kgCO2/kWh refers to CO2 emissions per kilowatt-hour of electricity generation - including fossil fuel, hydropower, and renewable energy

In 2011, EGAT’s power generation emitted 0.56 and send data by EGAT’s communication system to the kilograms of CO2 per kilowatt hour into the ambient air Department of Industrial Works, the Pollution Control (0.56 kgCO2/kWh). Department and relevant agencies. In 2011, emissions of SO , NO and particulates Emissions of SO2, NOX and Particulates 2 X EGAT continued to enforce strict measures to from EGAT’s power plants were within the standard adopt sound environmental technologies for the control : * of emissions to air of pollutants such as sulfur dioxides regarding emissions from power plants B.E. 2547 (2004). In 2011, aggregate volumes of emissions from EGAT’s power (SO2), nitrogen oxides (NOX) and particulates. New technologies and practices included the installation plants were 24,943, 80,303 and 1,611 tons respectively. of the low NOX burner to reduce nitrogen oxides emissions, the electrostatic precipitator (ESP) to control particulates, and flue gas desulfurization (FGD) to lower the level of sulfur dioxides. Air quality has been continuously monitored. The continuous emission monitoring systems (CEMS) has been installed to collect 42 Electricity Generating Authority of Thailand

Electricity Generation (GWh) kg CO2/kWh

kTon CO2 80,000.00 0.70 70,000.00 0.60 60,000.00 0.50 50,000.00 0.40 40,000.00 0.70 30,000.00 0.30 20,000.00 0.20 10,000.00 0.10 0.00 0.00 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Electricity Generation (GWh) kTon CO2 kg CO2kWh

Air Quality Monitoring at EGAT’s Power Plants in 2011

3 SO2 (ppm) NOx (ppm) Particulates (mg/m ) Volume Standard Volume Standard Volume Standard Mae Moh Thermal Power Units 4-13 Lignite 63 - 222 320 219 - 433 500 3 - 15 180 Pakong Thermal Power Units 1-4 Natural gas/fuel oil <1 320 36 - 158 200 4 - 15 120 Combined Cycle Blocks 1-2 Natural gas - 60 - 450 - 60 Combined Cycle Blocks 3-4 Natural gas <1 60 191 - 204 230 - 60 Combined Cycle Blocks 5 Natural gas <2 20 32 -53 120 2 - 6 60 Krabi Thermal Power Unit 1 Fuel oil 50 - 57 450 116 - 133 180 68 - 89 120 Southern Bangkok Thermal Power Units 4-5 Natural gas/fuel oil 10 - 18 320 84 - 160 180 20 - 31 120 Combined Cycle Block 1 Natural gas <1 60 209 - 246 250 9 - 21 60 Combined Cycle Block 2 Natural gas <1 60 161 - 187 175 3 -5 60 Combined Cycle Block 3 Natural gas <1 20 72 - 89 120 3 - 10 60 Wang Noi Combined Cycle Blocks 1-3 Natural gas <1 60 53 - 159 175 3 - 12 60 Nam Pong Combined Cycle Blocks 1-2 Natural gas 5 - 8 60 215 - 229 250 6 - 17 60 Chana Combined Cycle Block 1 Natural gas <1 60 29 - 36 120 2 - 5 60 Lan Krabue Gas turbines 1-9 Natural gas <1 - 2 60 121 - 239 250 Gas turbines 11 Natural gas - 20 - 120 Surat Thani Gas turbines 1-2 Diesel <1 60 176 - 182 230 24 -32 60 North Bangkok Combined Cycle Block 1 Natural gas <1 20 36 - 37 120 14 - 17 60 Remarks: ppm refers to one per million parts mg/m3 refers to milligram per cubic meter Corporate Social Responsibility Report 2011 43

Noise Prevention and Control physical and biological resources, human use values, to EGAT continued using measures for the control of the values to the quality of life. Mitigation measures in noise level generated from the operations of power plants. focus were the conduct of social impact assessment Silencers were installed on machineries and equipment that (SIA) and health impact assessment (HIA) as well as may produce harmful noises. Monitoring of noise levels the applying of ISO 14001 environmental management were also carried out both within the power plant areas system (EMS) and the occupational health and safety and in nearby communities. In 2011, the results of noise management system standard (TIS 18001) to the power plant level monitoring within power plant areas and community operations during all stages of development. Management areas were in compliance with the standards determined approaches carried out in parallel were the participation by the National Environment Board (NEB) and the Ministry and involvement of all groups of stakeholder in order to of Industry. create better understanding and seek acceptance for project development. This is due to the observances of regulations Water Quality Management and relevant environmental laws are fundamental to the To monitor possible water pollution that may establishment of good governance and corporate social have adverse impacts on the environment and the responsibility. nearby communities, EGAT has implemented measures for water quality management and control according to In 2011, EGAT has undergone the preparation for power plant types. For hydropower plants, the emphasis the construction of two power plants which were granted permission from the Cabinet, namely Chana combined use, requiring that waste water quality must meet the cycle block 2 and Wang Noi combined cycle block determined standard. Implementation of water saving 4. These power plant projects were to be developed campaigns is also endorsed. For thermal power plants, under strict compliance to the permit requirements. At EGAT emphasizes the adoption of water saving measures Chana power plant, a joint committee was established to and the reuse of discharged water. Waste water from all monitor the power plant construction activities and the power plants must be treated before being released and the environmental development for communities in the vicinity. quality of water must meet the standards required by laws. The committee was chaired by the Provincial Governor of Songkhla, with representatives from the government Environmental Management and private sectors and nearby communities participating During the power project development, EGAT as committee members. The committee met twic during continued to put priority on the management of social the year to acknowledge the progress of project. Moreover, and environmental aspects in pursuit of sustainable a working group for the environment was further appointed development. EGAT has also put emphasis on the adoption by this joint committee to participate in the monitoring of management approaches which are in compliance with of the quality of air, noise and water in the surrounding relevant regulations and environmental laws. Among these areas. Two environmental training activities were held for approaches included the environmental impacts + prevention and mitigation measures and the monitoring plant which participated in the environmental network, to activities covering all environmental aspects ranging from the enable young schoolchildren to monitor the water quality 44 Electricity Generating Authority of Thailand

and assessment, and the review of draft reports. The meetings in details included the followings. 1. Three meetings for the study and preparation of an environmental health impact assessment (EHIA) report for Bang Pakong combined cycle power plant block 5 project. 2. Three meetings for the study and preparation of an environmental impact assessment (EIA) report for the North Bangkok combined cycle power plant block 2 project. by themselves. Monitoring activities were also included in 3. One meeting for the study and preparation of a the school science projects with aims at enhancing young }> power plant block 3 project. promoting better understanding of and linkage with the ecosystem in their locals. 4. Two meetings for the study and preparation of an initial environmental examination (IEE) report for the At Wang Noi power plant, EGAT has closely worked construction of a double circuit transmission lines entitled a with a network of schools by organizing two training double circuit 500 kV transmission line at the delivery point sessions for a group of youth in water conservation on the Thai/Laos border (Nan Province)-Nan 2-Mae Moh 3 and young students from schools located around the (for the section passing the forest conservation area) to power plant. Activities included the organizing of a study deliver power from the Hongsa lignite power plant in Laos tour and demonstration of environmental monitoring to EGAT power grid. works as means to enable students to conduct some ::$ EGAT also held many focus group meetings to listen to undertaken were well in response to EGAT’s strategic the public and stakeholder opinions during the year. Meetings themes in becoming an organization with due care to the of the tripartite committee comprising representatives from society, community, and the environment, while embracing the public sector, the civil sector and EGAT, and the good organizational governance in operational practices. environmental inspectors working groups were organized to be used as platforms to communicate to the public as well Stakeholder Participation and Public Hearings as to get public feedbacks to improve EGAT’s operations. EGAT has well recognized the importance of the inclusion of stakeholders’ participation and involvement in Clean Development Mechanism (CDM) Project all stages of operations. During 2011, a total of 9 meetings EGAT has developed clean development mechanism have been organized to open for opinions and suggestions (CDM) projects to reduce greenhouse gas emissions. from the stakeholders regarding EGAT’s four power In 2010, seven out of ten projects received the Letter projects with a focus on the scope of study, the evaluation of Approval (LOA) from Thailand Greenhouse Gas Corporate Social Responsibility Report 2011 45

Management Organization (TGO), Ministry of Natural Chon dams received LOA from TGO, including the crown $%{ standard awards for Thai CDM projects. EGAT’s CDM hydropower projects installed downstream of diversion dams, projects to be further developed include the second phase namely Chao Phraya, Mae Klong, Pasak Jolasid, Khun of 2.5 MW Lam Takhlong wind turbine power project and Dan Prakan Chon, and Khwae Noi, a 1 MW Sirindhorn the small hydropower project to be installed downstream }: of the existing Kiew Khor Ma diversion dam. } ] :^ * * %#"%##$ EGAT has been currently conducting researches on carbon footprint. Campaigns focusing on the In February 2011, EGAT’s irrigation valve-based micro hydro project at Kaeng Krachan and Mae Ngat Somboon under EGAT’s Demand Side Management (DSM) program. In 2011, the implementation of EGAT’s CDM projects was capable of cutting CO2 emissions by 1.5 million tons. Electricity Generation from Clean Energy The promotion of renewable energy development and consumption as well as the development of CDM projects enabled EGAT to generate in 2011 clean electricity of 7,943.36 million kWh in total. The sources of energy consist of solar power, wind energy, hydropower, and geothermal.

EGAT’s gross electricity generation and purchase in 2011 Million kWh Percentage (By type of power plant) Solar power 2.20 0.003 Wind energy 4.64 0.006 Hydropower 7,935.32 10.85 Geothermal energy 1.20 0.002 Fossil-fuel based 65,208.18 89.14 Total 73,151.54 100

89.14% Fossil-fuel based

Hydropower

0.002% Geothermal Energy Geothermal Energy Solar Power 0.006% Wind Energy Fossil-fuel based 0.003% Solar Power Wind Energy

10.85% Hydropower 46 Electricity Generating Authority of Thailand

Solar Power At present EGAT has adopted advanced solar cell EGAT has been a pioneer in solar power development since 2003 by developing and operating the 504 kW building. The amorphous silicon solar cell panels have been Pha Bong solar power plant in the northern Mae :- Hong Son province. Later EGAT developed the 1 quarters since 2007. The building won the ASEAN Energy MW solar power plant with a water weight-based Awards 2009 from ASEAN Center for Energy in the category solar tracking system at Sirindhorn dam in Ubon of new and existing building which adopts best practices Ratchathani province and commissioned to the power grid :$ in 2009. Having a development cost of 209 million baht, panels installed on the building’s wall have a total capacity the Sirindhorn solar power system is equipped with 2,500 of 27.82 kW and are capable of generating an energy output solar cell panels with a combined capacity of 1,014 KW. of 50 kWh daily, or 18,250 kWh annually. This solar power In 2011 Sirindhorn solar power system was operated to system can save 6,000 liters of diesel oil and reduce CO2 produce 2.32 million kWh of clean energy which helped emissions by 13 tons per year. avoid CO emissions by 1,000 tons. 2 !"##: EGAT’s solar power system has been undergone to be included under the project for carbon reduction development on a continual basis. A prototype of 30.24 kW :{: '% Institute with an aim to encourage the business sector plant with water weight-based solar tracking system project were installed on the reservoir of Srinagarind dam. This float-mounted solar power system was connected to the power grid in February 2011, to supply 47,450 kWh of clean electricity annually while replacing 11,806 liters of fuel oil consumption and cutting the CO2 emissions of 27 tons. Srinagarind solar power system prototype will serve as a model for the future installation '% $'% solar power system on the water will help EGAT avoid the high cost of land procurement and site preparation for new power generating sources. Corporate Social Responsibility Report 2011 47

in Thailand to participate in the reduction of greenhouse and Mae Klong. EGAT also completed in December, gases in buildings. 2011 the construction of two 6 MW hydropower plant downstream of Chao Phraya diversion dam. The small-sized Wind Energy Chao Phraya hydropower plant can annually produce 62 Also as a pioneer in wind energy development, million kWh of electricity, while saving 15.1 million liters of EGAT has developed and operated Thailand’s biggest fuel oil and cutting CO2 emissions by 35,624 tons. In 2011, wind turbine power plant project, featuring two 1.25 MW EGAT received approval from the Cabinet for the further tri-blade wind turbines, located in the compound of Lam development of three small-sized hydropower plant projects Takhlong Jolabha Vadhada pumped storage power plant downstream of existing diversion dams, which include Klong in Nakhon Ratchasima province. This wind turbines power Tron, Kiew Khor Ma and Chulabhorn. These projects will system began operation to supply electricity to the Provincial have an aggregate generating capacity of 9.25 MW. Electricity Authority (PEA)’s distribution system in April, 2009. The wind turbine units can produce 4.6 million Geothermal Energy kWh of energy, the amount that can replace 1.10 million EGAT has since 1990 operated a 300 kW geothermal liters of oil consumption and reduce emissions of CO2 power plant located at Fang district of Chiang Mai province by 2,300 tons annually. In 2011, EGAT continued the and supplied energy output from this binary cycle development of the second phase of Lam Takhlong wind demonstrating geothermal plant to PEA’s distribution system. turbine power project consisting of 12 wind turbines with a total capacity of 18 MW. The project is expected to be commissioned to the power system by 2012.

Hydropower Hydropower development has been regarded as one among EGAT’s key policies as means to increase the generating capacity from renewable and alternative energy sources. EGAT has accordingly developed hydropower plant projects installed downstream of existing diversion {: $; completed the construction of 6 small-sized hydropower plants with a combined capacity of 78.7 MW, downstream of the existing diversion dams, namely Pasak Jolasid, Khun Dan Prakan Chon, Chao Phraya, Naresuan, Khwae Noi, 48 Electricity Generating Authority of Thailand

R&D for Society and the Environment !"## EGAT also worked in close collaboration with million baht to the education institutes for the conduct of the National Electronics and Computer Technology Center 12 research and development (R&D) projects. These R&D (NECTEC) under the National Science and Technology schemes had a focus on the prevention and mitigation Development Agency (NSTDA), the Hydro and Agro of environmental impacts from electricity generation, the Informatics Institute (HAII) under the Ministry of Science and development and involvement of communities within the Technology, and the Faculty of Science at Chulalongkorn vicinities of power plants and facilities, and the development University to develop the wind database in Thailand. This of clean energy sources. Major R&D projects implemented ‘Wind Database Development Project’ has been developed during the year included a study on sulfur dioxide with a purpose to utilize the wind information and its dispersion from Mae Moh power plant by using air pollutants database to conduct further researches and to analyze dispersion model, a study on an integrated use of the change of weather atmosphere and its effects from discharged water from the water cooling system, a study on the global warming. NECTEC will provide technology the opinions of communities affected from the transmission skills on high performance computing technology, system network expansion, a study on the compensation and including large storage system and virtualization technology, remedial efforts of EGAT, and a study on the potential of while EGAT and HAII will co-develop a three dimension me- a prototype for community renewable energy consumption. teorological model for daily wind forecast. All organizations participating hope that the project will help the country make more accurate weather forecast while developing knowledge base for disaster prevention. Corporate Social Responsibility Report 2011 49 FAIR OPERATING PRACTICES During 2011, EGAT’s performance regarding the fair operating practices in accordance with the core subjects addressed in the international standard ISO 26000 covered the areas of the anti-corruption, responsible political involvement, fair competition, promoting social responsibility in the value chain, and respect for property rights. Anti-corruption Corruption is the abuse of entrusted power for private gain and can undermine an organization’s effectiveness and ethical reputation. To raise the awareness of our employees about corruption and how to counter it, EGAT has established the Code of Conducts for EGAT Board of Directors, top management and employees to use as guidelines in their work performance and ethical behavior conduct. The anti-corruption section included in this Code of Conducts stipulates that EGAT personnel EGAT’s business operations are crucial for the country’s must perform their duties with honesty and refrain from economic and social development, particularly to our social +:: responsibility towards the government sector. EGAT has indirect corruption intent. EGAT’s Code of Conducts was established close collaborations with the public sector by :' strictly observing the relevant public laws and regulations employees. including the embracing of good organizational management, as well as the placing priority on the adopting of such Responsible political involvement approaches as risk management and internal control EGAT has also trained our employees and to increase the added values to the organization. raised their awareness regarding responsible political * ' involvement and contribution by establishing the guidelines judicial and democratic issues, EGAT’s Code of Conducts for responsible political involvement. As a leading utility clearly indicates that all EGAT employees have the right responsible for electricity generation and transmission, to exercise their political rights guaranteed under the 50 Electricity Generating Authority of Thailand

constitution. For example, they can vote for or become Promoting social responsibility in the value members of a political party but must not directly or chain indirectly hold positions in or work for a political party. EGAT has also encouraged other organizations in particular our business partners to observe the Fair competition principles of good organizational governance within their To promote the practices of fair competition, own organizations as means to promoting the social EGAT’s Code of Conducts set out ethical criteria that all responsibility in the value chain. To ensure the compliance employees must abide to serve their obligations to the to such principles, EGAT has set up a database to government, the general public, EGAT’s customers, trading keep record on subcontractors who violated the good partners, and entrepreneurs in the same business. They governance practices by deserting a contract, committing have to conduct businesses honestly and equitably by customer fraud or violating human rights. EGAT has also giving clear, accurate and complete information to their conducted the regular outsourcing evaluations to prevent trading partners to ensure fair competition. They must any violation of good governance practices, human rights open for the opinions and suggestions of trading partners or other provisions of laws. EGAT has ensured our own and use such recommendations to improve EGAT’s own procurement practices by adopting the following approaches; operating processes. EGAT employees must keep : - EGAT’s bidding and procurement information business relations with different trading partners and have been posted on the advertising boards, the website : of Comptroller General’s Department and in the from them. newspapers to ensure the widespread of news and information among relevant parties. In 2011, EGAT’s gross procurement and work hiring comprised a total of 22,284 million baht or - EGAT’s price deliberation committee was set up 70 percent made at EGAT’s central procurement department to ensure transparent and fair practices under EGAT’s and another 9,441 million baht or 30 percent of procurement procedures as well as in accordance with procurement operated at the regional procurement the public agencies’ procurement rules and regulations. units. EGAT has established procurement policies and procedures for the procuring of goods and services from - Bidding price negotiations were publicly locally-based suppliers following our green procurement announced on EGAT’s website (www.egat.co.th) which policy which has been proclaimed since 2009. EGAT has can be accessed by all relevant parties. also adopted similar policy for the hiring of workers from local communities in the vicinity of EGAT’s operating Respect for property rights locations, to work for EGAT’s construction projects as EGAT has also recognized the importance of well as the tree planning and maintenance works carried respect for property rights by implementing policies out under EGAT’s reforestation project. and practices that promote the respect for property rights, particularly the respect for intellectual properties by refraining from engaging in any activity that might violate property rights and in counterfeit or piracy acts. For example, EGAT has actively prohibited the use of patent-infringement products or illegal software. Corporate Social Responsibility Report 2011 51 CONSUMER ISSUES

During 2011, EGAT has put importance on the Protecting consumers’ health and safety performance of consumer issues which is one among Apart from observing the safety laws and standards the core subjects addressed in the international standard for the protection of health and safety of all electricity ISO 26000. EGAT’s performance on consumer issues end-users, EGAT has provided supports to the conduct of covers the areas of fair marketing, factual and unbiased research and development of innovative technologies for information and fair contractual practices, protection of electricity generation, focusing on such renewable sources consumers’ health and safety, sustainable consumption; of energy as solar, wind, hydropower, and geothermal. consumer data protection and privacy, access to essential EGAT has also conducted the health and environmental services, and education and awareness. assessment with an aim to protect the health of all consumers, such as the emissions of carbon dioxides Fair marketing, factual and unbiased informa- (CO2), sulfur dioxides (SO2), nitrogen oxides (NOx), and tion and fair contractual practices particulates, including the assessment of carbon footprint EGAT has organized Open House sessions for the (CF) throughout the life cycle of electricity generation. general public at least once a year at our headquarters and some regional operation departments to provide Sustainable consumption to all groups of stakeholder complete, accurate, and EGAT has long contributed to the sustainable understandable information related to EGAT’s business consumption of electricity by launching numerous energy operations and performance in a transparent manner. The public can access to EGAT’s information, in particular conservation among consumers nationwide. Since 1933, the power projects which may result in some negative EGAT has been actively involved in a number of demand :$ side management (DSM) programs implemented as our :]$$$^ social contribution activities. EGAT’s major energy and EGAT’s Call Center 02-436-0000. % _: 52 Electricity Generating Authority of Thailand

No 5 programs which was launched to promote the :: % who have no connection to EGAT’s business operations. electrical appliances. Access to essential services %_:>- Thailand’s economic recovery in the previous years grams for several electrical appliances have resulted in had led to an increase in the demand for electricity the cumulative savings of 2,380 MW peak demand and consumption. As the country’s key power utility, EGAT had 14,122 million kWh of energy as well as a reduction of strived to cope with the increasing demand by extending 8.7 million tons of carbon dioxide emissions. Over 170 the life of aged power plants and facilities while speeding % : : the schedules of new project construction. We have also distributed covering totally 15 products. been in pursuit of alternative sources energy, particularly those of the environmental-friendly renewable energy. During 2011, EGAT has continued implementing Meanwhile, the government’s extension of its populist %_:>$$ measures to lower the cost of living by subsidizing Ministry of Energy signed an MOU with key electrical electricity fees for low income earners have caused grave appliance manufacturers to expand the labeling program impacts on EGAT’s revenue as we had to absorb the to cover three more appliances including water heaters, cost of fuel mechanism (Ft) in the electricity tariff rates. electric irons, and exhaust fans. EGAT has also % Education and awareness compact fluorescent lamps (CFLs) to substitute EGAT has also endorsed numerous campaigns incandescent lamps countrywide. From 2008-2011, EGAT to educate and raise consumers’ awareness on energy has replaced the CFLs at the public agency buildings saving such as the replacing of incandescent lamps and temples with a total of 1,010,300 units. %']/_^ %_:>$ Consumer data protection and privacy $ EGAT has recognized the importance of consumer has also instilled the attitude of energy and environmental data protection and privacy by including the issue in conservation into young Thai generation through the green EGAT’s Code of Conducts. EGAT top management and learning room project. A green learning room equipped employees at all levels are expected to protect the with teaching and learning facilities and equipment has organization’s properties by not appropriating any of been established in 426 schools across the country. EGAT’s movable and immovable properties as well as To date, 20 schools achieved Green School standards. technologies, R&D information, inventions and undisclosed Corporate Social Responsibility Report 2011 53 54 Electricity Generating Authority of Thailand

!"##+ COMMUNITY it marked the auspicious occasion of His Majesty King INVOLVEMENT AND Bhumibol’s 7th cycle birthday anniversary. As a tribute to His Majesty the King, the Thai government invited DEVELOPMENT IN 2011 all sectors of the Thai society to take part in numerous projects to show their gratitude for the King’s benevolence to the Thai people. His Majesty the King has laid down a solid foundation for the nation’s development through his many royally-initiated projects together with his New Theory on land and water management and the ~$ society have lived in peace and prosperity under the royal benevolence. EGAT had launched the “planting seedlings to conserve watershed forests to honor our Beloved King” project based on His Majesty the King’s initiative on natural resources and forest conservation and development. 984,000 saplings were planted in watershed areas above the reservoirs of EGAT’s nine dams and power plants. These dams, to which His Majesty graciously bestowed their names, namely Bhumibol, Sirikit, Ubol Ratana, Chulabhorn, Sirindhorn, Srinagarind, Vajiralongkorn, Rajjaprabha, and Lamtakong Jolabha Vadhana power plant. EGAT’s top management and employees as well as the public and private sectors joined forces in making this project highly successful and the number of trees Corporate Social Responsibility Report 2011 55

planted far exceeded its original goal. EGAT also took action plans were implemented in efforts to achieve responsibility in the maintenance works of these young EGAT’s 2011 strategic goals of gaining public support trees for another two years before turning them over for the environmental practices of each power plant and to responsible agencies which include the Royal Forest to build good relationships with the communities. The Department and the Department of National Parks, Wildlife plans were also congruent with the objectives of EGAT’s and Plant Conservation. Through reforestation and CSR Master Plan (2010-2015) in driving EGAT toward “an rehabilitation effort in these watershed areas, EGAT had organization with due care to the society, communities : and the environment while embracing honest, fair and country’s dwindling forests and depleted water resources. sincere practices”.

EGAT also implemented the “840 Fai Thawai Nai EGAT’s primary mission was to generate electricity Luang (the 840 check dams in honor of His Majesty the from our power plants across the country. This mission King)” project which was a collaborative scheme between has placed EGAT in direct contact with communities EGAT and the communities in the watershed areas around close to our operations. Apart from achieving this mission, Bhumibol dam. These check dams were built in compliance EGAT was determined to develop these power plants into with the King’s royal initiative for the conservation of organizations with special care for their communities and watershed areas and water resources which further the environment. Approaches of systematic and sustainable contributed to the effective water management and community supports were implemented to promote the restoration of fertility to the watershed areas. The project well-being of life in the communities so that they can was completed as planned in 2011 and successfully become self-reliant. EGAT aimed to create better public raised the public awareness and community involvement in understanding of our missions in order to secure continuous conserving the country’s forest and watershed resources. support and cooperation from these communities. Involvement in Community Development In the past year, EGAT’s CSR performance in During 2011, EGAT continued placing an emphasis accordance with the strategic roadmap and objectives on the meticulous designing of appropriate social projects achieved success. These CSR actions were implemented and action plans to meet the needs of stakeholders in : communities in the vicinity of EGAT’s power plants and high level of determination and dedication on the part along the transmission line routes. Our primary goal for of EGAT’s employees. Many of these CSR performances these social projects was to mitigate possible impacts : from our electricity generating operations both during the the popular Mae Moh Jit-arsa (volunteer) Club. EGAT has construction and throughout their operating phase. been determined to generate electricity and implement both in-process and after-process CSR projects and In 2011, EGAT had implemented a total of 69 initiatives which contribute to the environmental care and CSR action plans in 20 locations of power plants across the empowerment of local communities living around the the country under the guidelines of EGAT CSR Master power plants. Plan (2011-2015) for the generation command line. These 56 Electricity Generating Authority of Thailand

Education and Culture to enhance good health among Thai people as stated EGAT has also realized that education and culture in the Princess Mother’s motto of “Time is valuable”. are foundations for social and economic development. EGAT’s support had contributed to the continuation of In 2011, EGAT has contributed to the promotion and this sport in Thailand. support of education at all levels while engaging in actions to improve the quality of and access to education EGAT continued providing an annual budget of as well as helping to conserve and protect cultural 5,000,000 baht to the Petanque Association of Thailand, to heritage, especially on which EGAT’s operation activities enable the Thai petanque athletes to achieve impressive have an impact. international records and bring fame to the country by winning gold medals at various world championships for Supporting Thailand Golf Championship many consecutive years. 2011 The Ministry of Energy hosted the “Thailand Supporting Thai Weightlifting Sport Championship 2011” golf tournament to honor His Majesty This was another of EGAT’s sport projects the King, who was a keen and talented sportsman, on which was launched under the Thai government’s “One his 84th birthday anniversary. EGAT together with two Association, One State Enterprise” campaign. EGAT of our subsidiaries, Ratchaburi Electricity Generating signed a memorandum of cooperation with the Thai Holding Public Company and Electricity Generating Public Amateur Weightlifting Association in 2004 to support the /$_$|""""""": Thai weightlifters to compete at international level. In the to the tournament. Many well-known golfers, both Thai and foreigner, participated in the tournament which was support of 7,000,000 baht to sponsor Thai weightlifting broadcasted live via satellite throughout the world to athletes to compete in the “Athens Olympic Games 2004” publicize the 84th birthday anniversary celebrations of in Greece. The team’s outstanding achievement made His Majesty the King. a new record for Thailand’s sporting arenas. Members of Thailand’s women weightlifting team brought fame and pride to the Thai people by winning four gold and Supporting the Petanque Association of silver medals. Thailand The project was a collaborative scheme between From this success EGAT continued contributing EGAT and the Petanque Association of Thailand with to the Thai Amateur Weightlifting Association (TAWA) an aim to provide support to the participation of Thai an annual budget of 5,000,000 baht between 2005 and petanque sportsmen’s in the international competitions. 2008 to prepare athletes for the “Peking Olympic Games Petanque sport was initially introduced to Thailand by the 2008” in China. This time a woman weightlifter won Princess Mother to promote the use of free-time activities a gold medal for Thailand. Corporate Social Responsibility Report 2011 57

EGAT was determined to continue our support of the Thailand’s weightlifting teams for their participation in international competitions. EGAT had also increased our #"""""":: 2009 and 2013. These budgets were to facilitate the preparation of athletes to compete at ASEAN and international venues, especially in the “London Olympic Games 2012”. They also covered the expenses for TAWA’s public relations activities and recruitment of new athletes $ “EGAT Youth World Weightlifting Championship” in 2010 in Chiang Mai Province. Thai athletes’ outstanding ? compete at the ASEAN Weightlifting Championship where they won many medals. EGAT D.I.Y. Camp for the volunteering In 2011, EGAT hosted two EGAT Youth World spirit fostering project Weightlifting Championships. EGAT is proud to have Launched in 2009, this Do It Yourself (D.I.Y.) project become a part of the effort that put these athletes on was now in its third year of implementation to foster the their path to success for the country. volunteering spirit among university students under the theme of “Kid Dee Tham Dee” (Good Thoughts, Good Upgrading the Green Learning Room to Actions). The project was implemented through the existing Green School Project volunteer camp activities organized by students at most This was a continuation of the collaborative project universities. A collaborative network between EGAT, the :\[ \/]\/^ Commission to promote the founding of 426 model educational institutes and students as well as local schools for energy conservation. EGAT’s initial support put communities was established to organize productively an emphasis on the development of learning media and social volunteering camps. a transfer of knowledge on electricity saving to students and teachers. Model schools for energy saving were In 2011, EGAT and OHEC invited students with established and their energy conservation achievements volunteering spirit to enter their projects, which aimed to were shared among their member schools in the network. help poor communities in remote areas, in a contest to Students were encouraged and trained on creative thinking win 20 volunteer camp grants at a budget of 100,000 and communication skills about energy saving. They baht for each grant. 17 educational institutes that passed learned to present energy-saving information in different EGAT’s selection criteria and received grants for their formats of discussion group, talk show, Likay and folk projects in 2011 included Bansomdejchaopraya Rajabhat songs. Students in model green learning schools set good University, Lampang Inter-tech College, Lampang Rajabhat examples and shared their knowledge with other students University, Chiang Rai Rajabhat University, Chulalongkorn so that they could put them into practice. EGAT also }_ participated in a campaign to raise the national awareness Phayab Region at Chiang Mai, Thammasat University, $ Chiang Mai University, Southern College of Technology, Kasetsart University, Prince of Songkla University at Hat Also embracing the motto of “Today’s children Yai, Sripathum University, Sisaket Rajabhat University, are tomorrow’s adults” and recognizing the importance Kasem Bundit University, Huachiew Chalermprakiet of youth as the country’s invaluable human resources, University, Silpakorn University, Saint Louis College and EGAT aimed to raise proper public awareness on energy Phranakhon Rajabhat University. 200 representatives consumption. The green learning rooms’ original focus from 18 educational institutes participated in EGAT’s on energy and environmental conservation had been 2011 D.I.Y. camp activities to forge a spirit of unity expanded to include energy and environmental conservation. before departing to their separate community development A total of 54 schools met EGAT’s standard criteria and volunteering camps. achieved the Green School standards between 2009 and 2011. 58 Electricity Generating Authority of Thailand

An evaluation committee was set up to make “Outstanding Camps” with distinguished operational success in terms of collaboration with relevant sectors and possible sustainable community development outcome that could be further developed. Each selected volunteer camp received a scholarship of 30,000 baht. Over the past three years, EGAT has been proud to become a center for “EGAT saplings” comprising a network of youth who were dedicated to perform volunteering activities for community development. Egat- diy-champ. webpage was set up on such a social media granting of scholarships to needy students at secondary as Facebook to serve as a communication channel for and high school levels. This project was launched in 2004 EGAT saplings to discuss topics of their interest, share and has, to the present day, supported a total of 164 experiences and invite cooperation for new volunteering students. In 2011, a scholarship presentation ceremony activities. EGAT pledged to provide continuing support was held in the Thai-Burmese border district of Wiang }+ Haeng in Chiang Mai province. “EGAT saplings” growing into massive trees of virtues for the well-being of the society at large. Cultural heritage preservation project at Si Thep Historical Park in Phetchabun Supporting Tor Saeng Tor Yod (Experience Province Transfer) Camp with RTG scholarship This was a collaborative project between EGAT grantees in the United Kingdom and the Fine Arts Department, the Ministry of Culture 2011 was the second year of this collaborative with an objective to preserve the Thai cultural heritages }:\/~ under the royal initiative of HRH Princess Maha Chakri Commission (OCSC). The Royal Thai Government Sirindhorn. The restoration project of Si Thep Historical scholarship grantees in the United Kingdom, who returned Park has been carried out by the Fine Arts Department’s home over school breaks, were invited to participate in specialists in historic buildings. The project contributed to an educational camp to improve educational potential the preservation of cultural heritages so that the future $ generations as well as interested persons to learn about grantees shared their educational experiences and Thailand’s history, ethnicity and culture. It also made expertise in science, English and mathematics through : interesting and entertaining activities with secondary $ $[:} 8,800,000 baht to this restoration effort. scholarship grantees could make social contribution and form a Thai-style ‘junior-senior’ network of friendship Wealth and Income Creation and unity with younger students. EGAT’s biological way of life for sustainable In 2011, the Tor Saeng Tor Yod Camp was held development project at Srinagarind dam in Kanchanaburi Province. It was This scheme was conceived under the royal participated by 70 students and a group of observer initiative of Her Majesty the Queen to reduce chemicals teachers. This project provided educational opportunities and toxics use in agricultural sector and to increase to the young school students in remote areas who agriculturists’ income by cutting down the expenses lacked access to tutoring schools in large cities. The for these products. Reduction of chemicals and toxics camp offered a valuable opportunity for these students use also mitigated environmental problems and risks to to absorb and apply what they have learned to their agriculturists’ health. In the long run, this scheme will future educational choices. greatly contribute to the protection of consumers through improvement in the quality and safety of agricultural EGAT’s Adoptive Parents Project products. This is one of the projects organized to promote volunteering spirit among EGAT employees through the Corporate Social Responsibility Report 2011 59

To achieve the project’s goal of converting care centers in deprived areas. EGAT has also supported agriculturists across the nation to this biological way of the construction and maintenance of a large number }\ of communal properties such as Suan Luang Rama IX Commission (OVEC) for the selection of 99 vocational and Public Park, Phutthamonthon Park, and Rama V Garden. agricultural colleges as the model institutes and learning centers for the biological way of life for sustainable EGAT has also been committed to the responsibility development scheme. Model institutes further disseminated of developing basic public utilities that are unavailable in knowledge and encouraged agriculturists to adopt the the communities located close to our regional operation biological way of life. At present, a large number of departments. These utilities are generally constructed at : the same time with the construction of EGAT’s facilities. the scheme and have combined it with local wisdom and EGAT continues to monitor positive as well as negative local technologies to successfully improve their livelihood. development outcomes of these projects after the Local farmers’ groups had shared their biological way of completion of power plants and transmission lines by life knowledge among themselves and disseminated the promoting the establishment of local cooperatives and knowledge to other agricultural communities. providing assistance funds for people affected from our $~ Social Investment improvement on the well-being of life of local people. EGAT’s operations have always been closely related to rural communities and their livelihood from the EGAT’s strong commitment to social investment in construction survey to the construction of power plants 2011 was evident from a number of outstanding projects. and transmission lines as well as the electricity generating activities. It is, therefore, one of EGAT’s policies to Chalerm Prakiat Garden to commemorate “become part of the community wherever we operate”. His Majesty the King’s 84th Birthday This policy is implemented through EGAT’s hiring of Anniversary local people and procuring materials and equipment from A construction project to improve the landscape local suppliers. Such practices generate extra income * among local communities. Moh district in Lampang province, this multi-purposed _% Over the past 30 years, EGAT has supported architectures was designed to showcase His Majesty numerous public construction projects such as transportation $ routes, religious buildings, schools, and primary health garden was built on an area of 84 rais. The construction 60 Electricity Generating Authority of Thailand

$; EGAT’s volunteering spirit via online a 50 rai of public park was developed and scheduled social network project to be completed in 2011. During the second phase, Having recognized the importance of instilling the a garden on an area of 34 rais was constructed which concept of social responsibility within the organization, was expected to be completed for public visiting in 2012. EGAT has formulated action plans to promote volunteering spirit among our employees. EGAT had raised our employees’ Conservation of Irrawaddy dolphins in awareness on the importance of social responsibility roles Bang Pakong River and volunteering spirit for the good of society. In the This conservation project is a collaborative effort past year, EGAT organized various activities to foster our between EGAT and the Department of Fishing and employees’ volunteering spirit through such projects as Coastal Resources, the Ministry of Natural Resources and ' Environment. The project’s main objectives are to support '%: the study and conservation of Irrawaddy dolphins in marche project to build chairs for the intellectually- Bang Pakong River. Public relations campaigns were challenged children and many other projects. organized to raise public awareness on the importance of conservation effort of these valuable and nearly While conducting various volunteering spirit extinct animals among youth and local communities. campaigns it was found that EGAT’s volunteers scattered The conservation of these coastal creatures is important over different locations both at the headquarters and the to the balancing of Thailand’s coastal ecosystem. EGAT regional operation departments with no proper channel : } : to coordinate their volunteer activities. EGAT chose to support of 6,000,000 baht. use social network, the newly popular communication channel on the Internet, as a venue for the sharing of EGAT’s charity booth at the 2011 Red ideas and volunteer activities information among EGAT’s Cross Fair to raise fund for the Thai Red volunteer employees and interested persons. “EGAT Cross Society volunteer” fanpage (www.facebook.com/egatvolunteer) The Thai Red Cross Society, a public organization was launched during the year for all EGAT’s operative under the royal patronage of Her Majesty Queen Sirikit, units to publicize their volunteer activities. The fan page has played important roles in assisting needy people in becomes very popular and has effectively established normal times as well as during the times of disasters. a public image of EGAT as an organization of up-to-date !"## personnel with high commitment to social responsibility booth at the annual Red Cross Fair to raise funds for and strong volunteering spirit. the society through undertaking such activities as lotteries ~; “Facebook EGATvolunteer” communities in the vicinity of EGAT’s power plants. In on March 7, 2011 with 200 members visiting it during addition to raising 6,000,000 baht charity fund for the Thai $: Red Cross Society, EGAT was able to distribute income to more than 1,000. The fan page has realized EGAT’s to rural communities through the sale of their products. goal of becoming a communication channel for EGAT’s volunteers across the country. Corporate Social Responsibility Report 2011 61 TECHNOLOGY AND INNOVATION DEVELOPMENT

EGAT has generated added economic value to the outstanding innovation from the State Enterprise Policy communities and society by providing research grants \]~7\^$ and supports to numerous R&D projects conducted by both EGAT’s in-house researchers and external Since 2002, EGAT has developed the solar tracking research laboratories. EGAT has accordingly engaged in system on a continual basis and could obtain the petty partnerships with the universities and research institutes patent issued under the name of EGAT in 2003. Later, a prototype solar tracking system was installed at San focusing on the R&D initiatives which contribute to the Khamphaeng solar cell power station at Mae On district development of low-cost technologies that are easily of Chiang Mai province, marking the beginning of EGAT’s applicable to replace the imported ones, the development solar power development project. of new and alternative energy sources for electricity generation, the development of innovative technologies The solar weighted tracking system installed at that can help solve the social and environmental issues Sirindhorn dam was designed to use the water weight-based in local communities near EGAT’s power plants and along tracking system. The system has adopted the low-cost the transmission lines routes countrywide. EGAT has technology that is easily applicable, as well as the allocated each year budgets of about 3 percent of the net materials available in the locals, including the saving ""% "": of energy due to the use of water for tracking system. for the conduct of R&D initiatives and activities related The system was designed to follow the direction of the to electricity innovation and development. sun from 9.00 a.m. to 3.00 p.m. as well as equipped with the shock absorber to prevent vibration of solar panel In 2011, EGAT provided research grants to caused by storm or strong wind. This solar weighted the universities and research institutes to conduct 22 tracking system can produce 10-20 percent of electric R&D projects. Some of the outstanding projects % implemented during the year included the followings. power system, depending on the availability of seasonal sunlight. Solar weighted tracking system project EGAT has always recognized the importance of The solar weighted tracking system has yielded alternative energy development, in particular the solar many advantages. The system produces an annual power. EGAT has developed since 2009 the 1 MW solar energy output of 1.7 million kWh, thus replacing 384,000 power plant with a water weight-based solar tracking liters of fuel oil consumption and reducing 851 tons system in the compound of Sirindhorn dam in Ubon of CO2 emissions per year. The development of this Ratchathani province and commissioned it to the power system has well responded to the government’s policy in grid for operation. Sirindhorn solar power plant has the optimization of domestic renewable energy sources. : Moreover, Sirindhorn solar power system has also plant which adopted the solar weighted tracking system served as a learning center for solar cell electricity and has been successfully operated on a commercial generation while becoming a new tourist attraction in the basis. In 2011, the Sirindhorn solar weighted tracking northeastern region. system project won SOE Awards in the category of 62 Electricity Generating Authority of Thailand

EGAT-TRF grants for research and development of waste with wind and water system, the waste heating project for pathogen and odor removal, and the opening of garbage In 2011, EGAT signed a memorandum of bags with machines. The plant is capable of about 30 understanding with the Thailand Research Fund (TRF) for tons of old and new waste recovery per day which a close collaboration in the implementation of the “EGAT- TRF Grants for Research and Development Project”, :$~* with an aim to co-assist in the development of researchers recovery plant can also yield income for communities and research-based knowledge through making research from the sale of waste-related products in the forms of grants, in particular the research and development projects refuse-derived fuel, organic fertilizer and biogas. conducted at the policy level in areas of energy, society, $} Small hydropower research and development EGAT and TRF will provide funding of 20 million baht project each which totals 40 million baht. Additional funding will This R&D project had a focus on the development be provided continuously to cover the three year period and utilization of renewable energy. EGAT has recently of the project to maintain the project’s total annual budget developed a small-sized 55 kW hydropower generating of 40 million baht. EGAT, TRF and research grantees unit with the height of water head of about 5-10 meters will jointly own the intellectual property derived from the and a small-sized 137 kW hydropower generating unit research undertaken under this project, and each of them with approximate 15-20 meters high of water head. These {:$ hydropower generating units have been designed as mobile compact sets for easy transportation and installation. Demonstrative project for solving old municipal % garbage problem by recovery of organic fertilizer replace the imported hydropower generators. At present, and refuse derived fuel these small-sized power generators have been installed for EGAT has provided a research grant to the Faculty trial test at Kaeng Krachan dam in Petchaburi province. of Science, Chulalongkorn University, for the design and development of demonstrative project to solve the old Community participatory waste management municipal garbage problem by recovering the organic project fertilizer and refuse to be used as fuel for electricity EGAT’s community participatory waste management generation. A prototype community waste recovery plant project has been implemented at Bang Kruai Municipality was built at Sri Mahapho Municipality in Prachinburi in Nonthaburi province. The scheme has an aim to study province. This garbage recovery plant features the sorting the social capital in communities and the adoption of participatory approach for waste management to pursue the sustainable development of communities and the environment. The project also has a purpose to enhance the community’s potential in environmental management and to encourage their participation in adopting appropriate means for waste management in their locals. The project has been implemented into three phases and 12 communities }$} the conduct of a survey research, while the second phase focusing on the participatory research in action, and the last phase emphasizing the project evaluation. The project positive attitudes, participation and involvement, and recognition of community problems related to the social and environmental dimensions have been changed. This led to the improvement of household garbage sorting behaviors among community members. Production of hydrogen from organic-rich wastes for electric energy generation This R&D project has been developed for the production of hydrogen from organic-rich waste to be further utilized as fuel for electricity generation in Thailand. The project’s achievement will be used as a model for the commercial production of hydrogen fuel in the near future. Corporate Social Responsibility Report 2011 63 SURVEY ON PUBLIC ATTITUDES TOWARDS EGAT’S OPERATIONS During 2011, EGAT engaged CSN & Associated power supply, while the disadvantages are the pollution, Co., Ltd. to conduct a survey on the public attitudes $ towards EGAT’s operations and performance. A summary provided EGAT the baseline data for consideration for the power project planning and development. Awareness of news and information from EGAT Public acceptance of + EGAT’s operational performance of EGAT’s news and information revealed that the public As for the surveys on public attitudes towards agencies, business partners, customers and opinion leaders have been aware of the news and information 9 aspects disclosed that the public strongly approved released by EGAT better than the general public and EGAT for the performance related to the observance of the community members living close to EGAT’s power environmental regulations and requirements, the contribution $~ improve our communication approaches and open more adopt the principle of cost-effectiveness and accountability communication channels available for the latter, namely respectively. However, the public did not approve EGAT : $ for the aspects regarding the adoption of participatory management, the transparency and fair operating practices, the former which include the public agencies, business the observance of ethical behaviors, and the observance partners, customers and opinion leaders, who received news of the rules of law. The public and the communities living and information from EGAT’s employees and via EGAT’s close to EGAT’s power plants in particular accepted EGAT :$*: at the lowest rate in comparison with the other groups members received news about EGAT from the newspapers, +$ on the television, and from their community leaders. better communication approaches to build trust and : acceptance among the particular groups of stakeholder. will develop more effective means and channels for communication appropriate for the groups of stakeholder EGAT’s Top Social Project in the future. A survey on the popularity of EGAT’s seven social projects also disclosed that, from the most to the least, Availability of renewable energy and over 80% of survey respondents recognized the following development of power generating sources projects, namely the Energy Efficient No.5 Label :: program, the Reforestation Project in Commemoration energy and the development of new power generating of His Majesty the King, the Tree Planting around Our sources disclosed that 23.6% of respondents believed Beloved King’s Residence, and the Green Learning Room program. EGAT’s social scheme which the public are consumption, while 41.6% thought that the existing power least aware of is the Weightlifting Sport Support project. |$ : :$ the implementation of existing social and environmental majority of survey respondents believed that the existing projects highly recognized among groups of respondents. electricity demand in the future. And when asked about the types of new power plants to be developed to cope with the increasing demand, the majority of respondents strongly preferred the utilization of hydropower, solar power, wind energy, natural gas, and biomass energy, respectively. On the contrary, the least number of respondents agreed with the use of nuclear power for electricity generation. The respondents also provided opinions about the pros and cons of having the power plants, mining operations, and facilities located close to community areas. The advantages of living in the vicinity of power plants include the opportunities to be employed and earn more %: 64 Electricity Generating Authority of Thailand

Expectation and Satisfaction of Stakeholders The research was a study of the relations The survey on the expectation and satisfaction between EGAT’s power plants and the surrounding of stakeholders regarding EGAT’s operations and communities based on the conceptual framework of the performance revealed that the general public has an KAP theory (K - Knowledge, A - Attitude and P – Practice), average rating of expectation from EGAT between including the public image, the relationship with 3.3-3.5 and an average rating of satisfaction between the public, the situation of communication, the social !$ %|$""$ responsibility performance and EGAT’s top social project. the public expectation was lower than their satisfaction The program was conducted by using both the quantitative was in the aspect of the participation and involvement and qualitative methods and the findings are in community’s social and environmental development, summarized as follows. the transparency of operation, the quality of electricity :: before those of the organization. The average disparity The survey conducted by using quantitative scale between the expectation and satisfaction among method covered a population of 6,168, comprising 3,128 the general public was at 0.6. people living in the communities within the distance of 5 kilometers from EGAT’s dams and power plants and The communities in the vicinity of EGAT’s 3,040 people in the communities outside such distance. locations of operation has an average rating of The tools adopted to collect data and information expectation from EGAT between 3.3-3.5 (on a 0 to 4 ? scale), and the average rating of satisfaction between attitudes which include EGAT’s public image, the relations 2.6-2.8. with the gap of satisfaction and expectation with the communities, the situation of communication, between 0.6-0.8. the social responsibility performance, and EGAT’s top /~}$ The survey on the opinion leaders and the public factor which was only part of the relations has an in general (15.5%) who previously had contacts with average rating score of 2.25 in a 0 to 4 scale. } contacts with an average rating of satisfaction at 3.2 on Target Group a 0 to 4 scale. The minority of respondents who used to Aspects of Communities Communities Total with EGAT at an average rating of 1.9. Evaluation living within living outside the distance the distance On what the survey respondents which include of 5 km of of 5 km of the business partners, customers, public agencies, power plant power plant opinion leaders, electricity users, and community members, $ Public image 2.46 2.35 2.41 $ Relations 2.30 2.20 2.25 Situation of should “disseminate more news and information about 2.30 2.16 2.23 the operations and performance”. Secondly, EGAT’s communication Social responsibility organizational management system should be conducted 2.34 2.21 2.28 $ performance EGAT’s top management should be a professional who Top social projects 2.40 2.24 2.32 embraces ethical behaviors. The information from the ' managements as well as EGAT’s response to such The research which adopted the qualitative method expectation. was conducted by the interviewing of the population of 116 community leaders consisting of local leaders, Findings from the evaluation program on the area leaders, informal leaders and mass media from the relations between communities and EGAT’s communities in the vicinity of 20 locations of dams and power plants $ In 2011, EGAT also engaged Thammasat gave high scores to EGAT in the public image aspect University to conduct an evaluation program on the which consists of the recognition, satisfaction, acceptance, relations between EGAT and the communities living in and admirations for top social projects. EGAT earned lower the vicinity of the 20 locations of EGAT’s dams and power scores for the following aspects, namely the relationship, plants across the country. The program has an aim to the situation of communication, and the performance of acknowledge the attitudes and acceptance of local people social responsibility. Yet EGAT has to improve the top towards EGAT’s operations by referring to the social CSR schemes as they are not well known among the and environmental activities implementation for the communities. communities around EGAT’s power plants, which was the on-going project in 2008 and 2009. Corporate Social Responsibility Report 2011 65

the B level for the disclosures of standard information and ABOUT THIS REPORT core performance indicators for the next consecutive year. EGAT Corporate Social Responsibility Report 2011 was published in response to the policy of the State working group committee for EGAT’s CSR Report 2011 7\]~7\^ Production was established to take responsibility in the to evaluate the Thai state enterprises on their performance selection of materiality including data and information to regarding good corporate governance (CG) and corporate be disclosed and reported. The committee which reported social responsibility (CSR). SEPO also assigned TRIS to the Assistant Governor-Corporate Social Responsibility Corporation Limited (TRIS) to engage in the design of held meetings between December 2010 and March 2011. evaluation criteria. Among TRIS’s key criteria, the state Regarding the basis for reporting on joint ventures and enterprises of all types and sizes are required to publish subsidiaries, our CSR report 2011 also presented the CSR annually their corporate social responsibility reports to : : : impacts on their stakeholders, board of directors, top Holding PCL (RATCH), EGAT International Co. Ltd. (EGAT executive and management, employees, communities, Inter), Electricity Generating PCL (EGCO), District Cooling customers, as well as the public in general. System and Power Plant Co. Ltd. (DCAP), and EGAT Our CSR report this year was prepared to cover the Diamond Service Co. Ltd. contents of reporting cycle from January 1 to December EGAT’s CSR report 2011 also provided information 31, 2011. The report was published separately from EGAT required to be disclosed and reported by TRIS Corporation Annual Report 2011 with an aim to present our social Limited (TRIS). Disclosures on GRI-G3 indicators and electric and environmental performance and achievements to ensure all stakeholders that EGAT has actively continued GRI content index, which is the table identifying the location our commitments on social responsibility towards of standard disclosures and performance indicators. The sustainable development goals. Moreover, 2011 was report was produced in Thai and English languages and can : be downloaded from EGAT website. For more information topics following the core subjects and issues of social about this report, please contact the address below: responsibility as outlined in the relevant International Standard ISO 26000 titled ‘Guidance on Social Responsibility’. Social Affairs Division Electricity Generating Authority of Thailand In preparing this report, EGAT continued to apply Bang Kruai, Nonthaburi 11130, Thailand the guidelines in GRI’s Sustainability Reporting Guidelines Telephone: +66 (0) 2436 4610, +66 (0) 2436 4612 and Electric Utility Sector Supplement, for the standard Facsimile: +66 (0) 2436 4695 Website: www.egat.co.th disclosure and performance indicators. EGAT expected to extend the reporting boundary of our CSR report to meet List of indicators formulated by TRIS Corporation Limited Indicator in Detail Page

- CO2>::}$ ! - Percentage of electricity generated from clean energy sources, namely solar, wind, hydropower, geothermal, and fossil fuel based, comparing to gross electricity generation and purchase in 2011. 45

- Emissions of Nox and Sox (ppm and Kg) from individual power plant and all power plants and in comparison with total electricity generation and purchase. (g/kWh) 41-42 - Emissions of particulates (mg/m3 and Kg) from individual power plant and all power plants in comparison with total electricity generation and purchase. (g/kWh) 41-42

- CO2 emissions volume (ton and kgCO2/kWh) in comparison with total electricity generation and purchase. 42 - Areas of reforestation implemented and accumulative volume of CO2 absorption by the number of trees reforested. (ton) 54 - Budgets and expenses for social and environment responsibility implementation. - - Budget for R&D projects and initiatives. 48 - Social and environmental aspects management during power plant construction projects including prevention and mitigation measures. 43-44 66 Electricity Generating Authority of Thailand

GRI Content Index EGAT has self-evaluated our disclosures on information and core indicators in Corporate Social Responsibility Report 2011 at the B level. Our reference is made to the Sustainability Reporting Guidelines & Electric Utility Sector Supplement (GRI RG & EUSS).

AR CSRR Re +9 Partial Full 2011 2011 marks Page 1.1 Statement from the most senior decision-maker of the organization. 14 4-5 1.2 Description of key impacts, risks, and opportunities. 37-39 10-11 194-195 ;<+ 2.1 Name of the organization. - 6 2.2 Primary brands, products, and/or services. - 6 2.3 Operational structure of the organization, including main divisions, - 7 operating companies, subsidiaries, and joint ventures. 2.4 Location of organization’s headquarters. - 6 2.5 Number of countries where the organization operates, and names of } - - N/A the sustainability issues covered in the report. 2.6 Nature of ownership and legal form. - 6 2.7 Markets served (including geographic breakdown, sectors served, :^$ - 6 2.8 Scale of the reporting organization, including number of employees; net sales (for private sector organizations) or net revenues (for public sector organizations); total capitalization broken down in terms 13-26 7 of debt and equity (for private sector organizations); and quantity of products or services provided. !$ ~{ - 7 structure, or ownership 2.10 Awards received in the reporting period. 76 75-78 =$# ;<+9 EU1 Installed capacity, broken down by primary energy source 20 6 and by regulatory regime. EU2 Net energy output broken down by primary energy source 20, 7 and by regulatory regime. 115 EU3 Number of residential, industrial, institutional and commercial - 6-4 customer accounts. EU4 Length of above and underground transmission and distribution lines 23 6 by regulatory regime. EU5 Allocation of CO e emissions allowance or equivalent, broken down 2 - - N/A by carbon trading framework. Report Parameters "#+ |$# ]$$^$ - 65 3.2 Date of most recent previous report. - 65 3.3 Reporting cycle. - 65 3.4 Contact point for questions regarding the report or its contents. - 65 |$ 7 prioritizing topics within the report; and identifying stakeholders - 65 the organization expects to use the report. 3.6 Boundary of the report. - 65 |$ ~:$ - 65

!"## /~!"##/~:!"## >>: Corporate Social Responsibility Report 2011 67

AR CSRR Re +9 Partial Full 2011 2011 marks Page 3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, 65 comparability from period to period and/or between organizations. 3.9 Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to 65 the compilation of the Indicators and other information in the report. 3.10 Explanation of the effect of any re-statements of information provided 65 in earlier reports, and the reasons for such re-statement. |$## ~: 65 or measurement methods applied in the report. 3.12 Table identifying the location of the Standard Disclosures in the report. 67-74 3.13 Policy and current practice with regard to seeking external assurance for - - N/A the report. Governance, Commitments, and Engagement Governance 4.1 Governance structure of the organization, including committees under ::+ 40-41 18 setting strategy or organizational oversight. 4.2 Indicate whether the Chair of the highest governance body is also 42 19 $ 4.3 For organizations that have a unitary board structure, state the number of members of the highest governance body that are independent and/or 43-44 19 non-executive members. 4.4 Mechanisms for shareholders and employees to provide recommendations - 19 or direction to the highest governance body. 4.5 Linkage between compensation for members of the highest governance body, senior managers, and executives, and the organization’s performance 49 19-20 (including social and environmental performance). $ 7:' 42, 82 20 of interest are avoided. $ 7?: of the highest governance body for guiding the organization’s strategy 77 21 on economic, environmental, and social topics. 4.8 Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance 79-81 21-22 and the status of their implementation. 4.9 Procedures of the highest governance body for overseeing the organization’s performance, including relevant risks and opportunities, and adherence or 78-79 22 compliance with internationally agreed standards, codes of conduct, and principles. 4.10 Processes for evaluating the highest governance body’s own performance, 48 22 particularly with respect to economic, environmental, and social performance. 4.11 Explanation of whether and how the precautionary approach of principle - - N/A is addressed by the organization. 4.12 Externally developed economic, environmental, and social charters, principles, - 22-23 or other initiatives to which the organization subscribes or endorses. 4.13 Memberships in associations and/or national/international advocacy - 22-23 organizations in which the organization: : 7} 7::: :$

!"## /~!"##/~:!"## >>: 68 Electricity Generating Authority of Thailand

AR CSRR Re +9 Partial Full 2011 2011 marks Page 4.14 List of stakeholder groups engaged by the organization. - 23 $# [+$ 79 23 4.16 Approaches to stakeholder engagement, including frequency of engagement - 23 by type and by stakeholder group. 4.17 Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics - 24 and concerns, including through its reporting. Economic Performance Management Approach Core EC1 Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community 13 7 investments, retained earnings, and payments to capital providers and governments. EC2 Financial implications and other risks and opportunities for the organization’s 101 44-45 activities due to climate change. /| /{::$ 138-139, 28-29 155,178 / ~$ % % > Add EC5 Range of ratios of standard entry level wage compared to local minimum - 29 $ Core EC6 Policy, practices, and proportion of spending on locally-based suppliers - 50 $ EC7 Procedures for local hiring and proportion of senior management hired from - 50 $ EC8 Development and impact of infrastructure investments and services provided ::%+: % % > engagement. / : - - N/A including the extent of impacts. =$# Economic Disclosures on Management Approach Availability EU6 Management approach to ensure short and long-term electricity and availability and reliability. 86-94 9 Reliability Demand- EU7 Demand-side management programs including residential, commercial, Side institutional and industrial programs. 102 52 Manage- ment Research EU8 Research and development activity and expenditure aimed at providing and reliable electricity and promoting sustainable development. 94-96 48, Develop- 60-61 ment Plant EU9 Provisions for decommissioning of nuclear power sites. Decom- - - N/A missioning =$# Economic Performance Indicators Availability EU10 Planned capacity against projected electricity demand over the long term, and broken down by energy source and regulatory regime. - - N/A Reliability

!"## /~!"##/~:!"## >>: Corporate Social Responsibility Report 2011 69

AR CSRR Re +9 Partial Full 2011 2011 marks Page ~ ## : - - N/A $ System EU12 Transmission and distribution losses as a percentage of total energy. - - N/A Environmental Performance Management Approach Core EN1 Materials used by weight or volume. - - EN2 Percentage of materials used that are recycled input materials. - - EN3 Direct energy consumption by primary energy source. - - EN4 Indirect energy consumption by primary energy source. - - > $ - 51-52 > %:: - - services, and reductions in energy requirements as a result of these initiatives. EN7 Initiatives to reduce indirect energy consumption and reductions achieved. - - Core EN8 Total water withdrawal by source. - - > :$ % % EN10 Percentage and total volume of water recycled and reused. - - Core EN11 Location and size of land owned, leased, managed in, or adjacent to, - - protected areas and areas of high biodiversity value outside protected areas. >#! ; biodiversity in protected areas, and areas of high biodiversity value outside - - protected areas. Add EN13 Habitats protected or restored. - - EN14 Strategies, current actions, and future plans for managing impacts on biodiversity. - - EN15 Number of IUCN Red List species and national conservation list species - - with habitats in areas affected by operations, by level of extinction risk. Core EN16 Total direct and indirect greenhouse gas emissions by weight. - 41-42 EN17 Other relevant indirect greenhouse gas emissions by weight. - 41-42 Add EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved. - 44-45 Core EN19 Emissions of ozone-depleting substances by weight. - - EN20 NOx, SOx:$ - 41-42 EN21 Total water discharge by quality and destination. - - EN22 Total weight of waste by type and disposal method. - - >!| :$ % % Add EN24 Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention Annex I, II, III, and VIII, - - and percentage of transported waste shipped internationally. EN25 Identity, size, protected status, and biodiversity value of water bodies ::{ % % discharges of water and runoff. Core EN26 Initiatives to mitigate environmental impacts of products and services, - - and extent of impact mitigation. EN27 Percentage of products sold and their packaging materials that - - are reclaimed by category. >! *:% - - for non-compliance with environmental laws and regulations. >! ~ and materials used for the organization’s operations, and transporting - - members of the workforce. EN30 Total environmental protection expenditures and investments by type. - -

!"## /~!"##/~:!"## >>: 70 Electricity Generating Authority of Thailand

AR CSRR Re +9 Partial Full 2011 2011 marks Page Social Section =$# Labor Practices and Decent Work Disclosures on Management Approach Employ- EU14 Programs and processes to ensure the availability of a skilled workforce. - 31 ment EU15 Percentage of employees eligible to retire in the next 5 and 10 years - 11 broken down by job category and by region. EU16 Policies and requirements regarding health and safety of employees - 32 and employees of contractors and subcontractors. Social Performance Indicators Labor Practices and Decent Work Performance Indicators Aspect: Employment Core LA1 Total workforce by employment type, employment contract, and region. - 27-28 Commentary on LA1 Report on total contractor workforce (contractor, subcontractor, independent contractor) by employment type, employment contract and region. LA2 Total number and rate of employee turnover by age group, gender, and region. 28 Commentary on LA2 For the employees leaving employment during the reporting period, provide the average length of tenure of employees leaving broken down by gender and age group. EU17 Days worked by contractor and subcontractor employees involved - - in construction, operation and maintenance activities. EU18 Percentage of contractor and subcontractor employees that have - - undergone relevant health and safety training. _| [% - - or part-time employees, by major operations. Aspect: Labor Management/Relations Core LA4 Percentage of employees covered by collective bargaining agreements. - 32 Commentary on LA4 Report on percentage of contractor employees (contractor, subcontractor and independent contractor) working for the reporting organization covered by collective bargaining agreements by country or regulatory regime. LA5 Minimum notice period(s) regarding operational changes, including whether - - $ Aspect: Occupational Health and Safety Add LA6 Percentage of total workforce represented in formal joint management-worker health and safety committees that help monitor and advise on occupational 32 health and safety programs. Core LA7 Rates of injury, occupational diseases, lost days, and absenteeism, - 33-34 and number of work-related fatalities by region. Commentary on LA7 Report on health and safety performance of contractors and subcontractors working onsite or on behalf of the reporting organization off site. LA8 Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their families, or community members - 32 regarding serious diseases. Add LA9 Health and safety topics covered in formal agreements with trade unions. - - Aspect: Training and Education Core LA10 Average hours of training per year per employee by employee category. - 31-32

!"## /~!"##/~:!"## >>: Corporate Social Responsibility Report 2011 71

AR CSRR Re +9 Partial Full 2011 2011 marks Page Add LA11 Programs for skills management and lifelong learning that support the continued 97-99 31-32 employability of employees and assist them in managing career endings. LA12 Percentage of employees receiving regular performance and career - - development reviews. Aspect: Diversity and Equal Opportunity Core LA13 Composition of governance bodies and breakdown of employees per category according to gender, age group, minority group membership, - 19,25 and other indicators of diversity. LA14 Ratio of basic salary of men to women by employee category. - 29 Human Rights Performance Indicators Aspect: Investment and Procurement Practices / # 7: - - include human rights clauses or that have undergone human rights screening. ! 7 - - screening on human rights and actions taken. Add HR3 Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including - - the percentage of employees trained. Aspect: Non-discrimination Core HR4 Total number of incidents of discrimination and actions taken. - 25 Aspect: Freedom of Association and Collective Bargaining \ ::++ support these rights. EU Commentary on HR5 Report on management mechanisms to address the right to organize, right to bargain and right to strike or instances of lock out given the context of the industry’s need to ensure continuous provision of essential services. Where the right to strike does exist or is limited, report on - 25 remedial measures such as binding arbitration. Where freedom of association or expression are limited or prevented by regulatory regime, report on mechanisms and processes that exist for getting employee input on conditions of employment. Aspect: Child Labor \+: - 25 and measures taken to contribute to the elimination of child labor. Aspect: Forced and Compulsory Labor \+ compulsory labor, and measures to contribute to the elimination of forced - 25 or compulsory labor. Aspect: Security Practices Add HR8 Percentage of security personnel trained in the organization’s policies or - - procedures concerning aspects of human rights that are relevant to operations. Aspect: Indigenous Rights HR9 Total number of incidents of violations involving rights of indigenous people - - and actions taken. =# Society Disclosures on Management Approach Aspect: Community EU19 Stakeholder participation in the decision making process related to energy - 23-24 planning and infrastructure development.

!"## /~!"##/~:!"## >>: 72 Electricity Generating Authority of Thailand

AR CSRR Re +9 Partial Full 2011 2011 marks Page EU20 Approach to managing the impacts of displacement. - - Disaster/ EU21 Contingency planning measures, disaster/emergency management plan Emergency and training programs, and recovery/restoration plans. 15, 103, 12-15 Planning and 195 Response Society Performance Indicators Aspect: Community Core SO1 Nature, scope, and effectiveness of any programs and practices that assess and manage the impacts of operations on communities, including 103 55 entering, operating, and exiting. Commentary on SO1 Nature, scope, and effectiveness of any programs and practices that assess and manage the impacts of operations on communities, including entering, operating, and exiting. Include discussions of programs related to: involved, prior, during and after the event and the provision for intervener funding for the local population. '+: (including changes to local social structures and culture); /%: (e.g. access to land, natural resources, and heritage); ]$$^ (e.g. education, utilities, healthcare); and /?$ EU22 Number of people physically or economically displaced and compensation, - - broken down by type of project. Access EU23 Programs, including those in partnership with government, to improve or 79-85 52 maintain access to electricity and customer support services. Provision of EU24 Practices to address language, cultural, low literacy and disability related 83-85 52 Information barriers to accessing and safety using electricity and customer support services. Aspect: Corruption SO2 Percentage and total number of business units analyzed for risks related - 29, 49 to corruption. SO3 Percentage of employees trained in organization’s anti-corruption policies - - and procedures. SO4 Actions taken in response to incidents of corruption. - 29 Aspect: Public Policy SO5 Public policy positions and participation in public policy development - - and lobbying. ~\ %+: - - politicians, and related institutions by country. Aspect: Anti-competitive Behavior SO7 Total number of legal actions for anti-competitive behavior, anti-trust, - 50 and monopoly practices and their outcomes. Aspect: Compliance / ~\ *:% - - sanctions for non-compliance with laws and regulations.

!"## /~!"##/~:!"## >>: Corporate Social Responsibility Report 2011 73

AR CSRR Re +9 Partial Full 2011 2011 marks Page Product Responsibility Performance Indicators Aspect: Customer Health and Safety Core PR1 Life cycle stages in which health and safety impacts of products and - 51 products and services categories subject to such procedures. EU Commentary on PR1 Indicator Protocol: For electric utilities the following categories should also be addressed: 7 ;: State the processes for assessing community health risks including monitoring, prevention measures an, if applicable, long term health-related studies. Identify community health risks that are assessed such as: /]^]+^ ]^::: and employees in the areas in which the reporting organization operates. Add PR2 Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products and services during - - their life cycle, by type of outcomes. EU25 Number of injuries and fatalities to the public involving company assets, - 35 including legal judgments, settlements and pending legal cases of diseases. Aspect: Access Core EU26 Percentage of population unserved in licensed distribution or service areas. - - EU27 Number of residential disconnections for non-payment, broken down by - - duration of disconnection and by regulatory regime. EU28 Power outage frequency. - - EU29 Average power outage duration. - - EU30 Average plant availability factor by energy source and by regulatory regime. 23 - Aspect: Product and Service Labeling Core PR3 Type of product and service information required by procedures, and percentage - - :}?$ Add PR4 Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling, by type - - of outcomes. PR5 Practices related to customer satisfaction, including results of surveys - 63-64 measuring customer satisfaction. Aspect: Marketing Communications Core PR6 Programs for adherence to laws, standards, and voluntary codes related to 81 52 marketing communications, including advertising, promotion, and sponsorship. Add PR7 Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, - - promotion, and sponsorship by type of outcomes. Aspect: Customer Privacy PR8 Total number of substantiated complaints regarding breaches of customer 81 52 privacy and losses of customer data. Aspect: Compliance / 7 *% - - and regulations concerning the provision and use of products and services.

!"## /~!"##/~:!"## >>: 7474 Electricity GeneratingGenerating Authority of Thailand Corporate Social Responsibility Report 2011 75 AWARDS OF GREAT PRIDE IN 2011 EGAT has long recognized the importance of developed by the Department of Industrial Works, and the social responsibility conduct with accountability and the CSR-DPIM for mining management established by the integrity. We at EGAT have conducted our business Department of Primary Industries and Mines (DPIM). In operations in accordance with the principles of good 2011, EGAT also recognized the implementation of social organizational governance in pursuit of our goals in responsibility and behavior as outlined in the relevant contributing to the well-being of life in society and international standard ISO 26000 titled Guidance on Social communities, as well as the Thai economy. Responsibility. {!"##' as in the statement “Power for Thai Happiness”, which EGAT’s strong determination in the development of our has been our philosophy in business operations for over operation practices as stated in our vision, “To become 41 years, EGAT has strived to develop the operation a world-class organization in electricity business”. These awards have brought great pride to EGAT practices by placing greater emphasis upon the adopting employees at all levels while driving us to step forward of social responsibility principles in our core business in performing our duties in pursuit of the security processes or CSR In process. EGAT has also integrated the of power supply system for the Thai happiness in years international standard systems into our operation practices, to come. namely the quality management standard systems ISO 9000, the environmental management systems ISO 14001, In 2011, EGAT’s awards of great pride included which includes the CSR-DIW industrial standard systems the following: Award NameDetail Presenter Outstanding State-owned In 2011, EGAT won two SOE Awards 2010 in the category ~7\ Enterprise (SOE) Awards 2010 of outstanding organizational management and outstanding (SEPO), Ministry of Finance innovation for the solar weighted tracking system installed at Sirindhorn solar power plant in the compound of Sirindhorn dam.

EGAT has won the SOE awards in the category of { starting in 2005, 2006, 2007, 2010, including the honorary organizational management award in 2008. EGAT also in 2011 for the development of solar weighted tracking system installed at Sirindhorn dam in Ubon Ratchathani province. This solar cell power system with a water weight-based solar tracking is equipped with 2,500 solar cell panels with a combined generating capacity of 1,014 kW. EGAT’s Sirindhorn solar power plant is Thailand’s + kind which has been operated on a commercial basis.

The SOE Awards 2010 presentation ceremony was organized :~7\]~7\^ theme of “Beyond Expectation, Beyond Imagination”. The awards contest has been held annually to publicize the performance of outstanding state enterprises to pursue the standards and benchmarks for the development of Thai state enterprises while creating incentives to enhance $ 76 Electricity Generating Authority of Thailand

Award NameDetail Presenter 7?/ EGAT’s Mae Moh power plant and the Southern Region The Department of Industrial Recognition for Social ]~^? Works, Ministry of Industry, Responsibility Practices of recognition for their CSR in business operation practices. and the Management System EGAT two departments were among 96 industrial /]*~/^ CSR-DIW Awards 2010 enterprises from the overall 111 enterprises passing the !"#"$

**? CSR-DIW Awards 2010 for our continual practices ?*~/ inspection. EGAT’s Southern Region power plant (Surat ^$ from the communities which involved with EGAT in power plant development and operation were also invited by MASCI to attend the award presenting ceremony, and Mr. Sumeth Yenmark, chairman of Khao Hua Kwai Tambon Authority Organization accepted the award on behalf of both parties.

The Department of Industrial Works, in close collabora- *~/ (MASCI), have organized the CSR-DIW (Corporate Social Responsibility, Department of Industrial Works) award presenting ceremony to promote the practices of CSR among industrial sector enterprises with an aim to encourage them to apply the ISO standard to integrate the socially responsibility behavior into the organizations.

7?/ In 2011, EGAT’s power plants and departments of 11 The Department of Industrial Recognition for Social ? Works, Ministry of Industry, Responsibility Practices of their social responsibility practices and behaviors which and the Management System were divided into the CSR-DIW awards 2011 and the /]*~/^ CSR-DIW Awards 2011 CSR-DIW continuous awards 2011.

CSR-DIW Continuous EGAT power plants which won the CSR-DIW Awards Awards 2011 2011 consisted of 9 dams and power plants, namely Nam Pung, Bhumibol, Rajjaprabha, Sirikit, Sirindhorn, Chulabhorn, Srinagarind, Ubol Ratana, and Lam Takhlong Jolabha Vadhana hydropower plant. EGAT power plants receiving the CSR-DIW Continuous Awards 2011 included Mae Moh and Surat Thani power plants.

!"## inspections criteria regarding the practices of social responsibility conducted by DIW expert committee were 117 locations out of the total 133 locations applying to receive the awards. Corporate Social Responsibility Report 2011 77

Award NameDetail Presenter Star Awards for Mining and EGAT’s Mae Moh Mine has won two star awards in The Pollution Control Department, Quarry Plants 2010 recognition of our outstanding environmental management Ministry of Natural Resources and in the category of an excellent grinding mill award and Environment an excellent mining award for four consecutive years.

EGAT’s Mae Moh Mine entered the star awards for mining and quarry plant contest in the category of grinding mill and mining in 2007 and won the outstanding grinding mill $ excellent grinding mill award in 2008 and two excellent awards in both categories in 2009 and 2010.

The Star Awards for Mining and Quarry Plants has been developed by the Pollution Control Department (PCD) to provide incentives for Thai entrepreneurs in grinding mills and mining industry to recognize the environmental impacts from their operations which affect the well-being of communities and the environment while promoting them to observe and practice the environmental impacts mitigation measures required by laws.

Thailand Quality Prize 2011 In 2011, EGAT’s quality control (QC) groups under the Technology Promotion Association transmission system command line won prizes from the (Thailand-Japan) Thailand Quality Prize 2011 contest. The prizes which were divided into categories included the following; 1. The Young’s Express Group receiving the Diamond Award Service QCC Prize, 2. The Prueksa Ngarm Group winning the Golden Award Service QCC Prize, 3. The Hed Kradang, Rak Muang Tak and Ruam Palang Pattana FDG Groups winning the Golden Award Manufacturing QCC Prizes, 4. The DSM Center and Ruam Khor Songkwae Groups receiving the Golden Award Task Achiev- ing QCC Prizes, and 5. The QCC Promoter Award. EGAT Deputy Governor- Transmission System, Thana Putarungsri, received the award on behalf of EGAT top management for his contribution to the successful implementation of QCC activities within the organization.

7?/ In 2011, 17 locations of EGAT dams, power plants, and Occupational Safety and Health Recognition regional operation departments, were awarded plaques Bureau, Department of Labour For Zero Accident Campaign 2011 +@ Protection and Welfare, Ministry of Accident Campaign 2011. The awards included Labour and Social Welfare 1. A Zero Accident Award 2011 (Gold Level) for organizations which operate for more than 10 + injury and lost time accident. EGAT’s Chulabhorn dam won this award. 78 Electricity Generating Authority of Thailand

Award NameDetail Presenter 2. A Zero Accident Award 2011 (Silver Level) for organizations which operate for 3-9 million work hours without lost time accident and injury. EGAT’s dams which won this award level included Vajiralongkorn , Bhumibol and Ubol Ratana. 3. A Zero Accident Award 2011 (Bronze Level) for organizations which operate for 1-2.9 million work hours without lost time accident and injury. EGAT’s dams and power plants receiving these awards were Tha Thung Na dam, Lan Krabue power plant, Nam Pong power plant, Wang Noi power plant, Surat Thani power plant, Bang Pakong power /*[\> Region Operation Department. 4. A Zero Accident Award 2011 (Honorary Level) for {? {+ years. EGAT’s dams and power plants receiving the award were namely Lam Takhlong Jolabha Vadhana power plant, Nam Pung dam, and three high voltage substations including Nakhon Ratchasima, Sakon Nakhon and Ubol Ratchathani.

Crown Standard Award for In 2011, EGAT received the crown standard award for Thailand Greenhouse Gas Thai CDM Projects Thai CDM (Clean Development Mechanism) projects from Management Organization (TGO) Thailand Greenhouse Gas Management Organization (TGO) for the development of irrigation valve based micro hydro projects installed at Mae Ngat Somboon Chon dam in Chiang Mai province and at Kaeng Krachan dam in Petchaburi province.

EGAT’s irrigation valve based micro hydro projects were recognized by TGO for their outstanding performance in environmental conservation, including in the promotion of community involvement and development. The projects have been carried out in response to the principles of sustainable development, in particular being the schemes which do not generate impacts upon the environment. They also help reduce the greenhouse gases, strengthen the security of power supply in the areas, and enhance the economic well-being for local people by generating income from tourism.

“Rakhang Thong” EGAT’s Director of Sirikit dam and power plant Somkid Broadcaster and Journalist’s (Person of the Year) Khaengraeng received the “Rakhang Thong” or Person Assembly of Thailand and Award 2011 of the Year Award 2011 in the category of outstanding the Government Public Relations organizational developer as a civil servant and state Department enterprise employee. The award contest has been organized for four years in order to grant these prestigious awards to outstanding civil servants and state enterprise employees in recognition of their contributions to the well-being of society. Corporate Social Responsibility Report 2011 79 CSR PERFORMANCE OF EGAT’S SUBSIDIARIES AND AFFILIATES

;!"##% Electricity Generating Public Company Limited (EGCO) EGCO was established as an associated company by EGAT in accordance with the government’s privatization policy to relieve the public sector burden and promote the private sector participation :$\/\ which sell electricity to EGAT and individual customers under long-term PPAs. Ratchaburi Electricity Generating Holding Public Company Limited (RATCH) RATCH was established as a holding company to invest in subsidiaries and joint ventures. As a holding company, RATCH derives its main income from dividends received from its invested companies. EGAT International Company Limited (EGATi) EGATi is EGAT’s subsidiary company established to directly invest or set up subsidiaries to invest in power development projects in neighboring countries in order to acquire and supply energy to Thailand. District Cooling System and Power Plant Company Limited (DCAP) DCAP is a joint venture business co-founded by EGAT, PTT Public Company Limited and the Metropolitan Electricity Authority (MEA). DCAP’s objective is to generate and sell electricity and cooling water to Suvarnabhumi International Airport. EGAT Diamond Service Company Limited (EDS) EDS is a joint venture business co-founded by EGAT, Mitsubishi Heavy Industries (MHI), Mitsubishi Corporation (MC) and Ratchaburi Electricity Generating Holding Plc. (RATCH). The company’s objective is to provide refurbishment work for the Hot Gas Path Parts of Gas Turbine in 18 countries of service areas.

: Electricity Generating Public Company Limited always recognized the importance of CSR implementation (EGCO) and organized numerous social and environmental activities The Electricity Generating Public Company Limited : /~ or EGCO Group has established a policy to enhance its goals. During 2011, EGAT International Company Limited business growth in parallel with the commitment on the or EGATi, in which EGAT holds 99.99 percent stake, environmental care and development. At present, EGCO’s organized the public hearings to listen to comments social and environmental schemes have been implemented and suggestions from the stakeholders affected by the under the following concepts. projects invested by EGATi. The company also joined force with the Thai people nationwide to provide relief Paths for Preservation of the “Watershed Forest” and assistance to the affected people during Thailand’s Under this concept, EGCO Group has provided '$* support for the watershed forest conservation by founding EGAT’s other two public companies, the Electricity and supporting the Thai Forest Conservation Foundation Generating Public Company Limited or EGCO and Ratchaburi (TFCF) for the implementation of sustainable watershed Electricity Generating Holding Public Company Limited or forests conservation countrywide. EGCO also initiated RATCH, continued their commitments as stated in their “A Watershed Forest, A Source of Energy for Life” project, corporate social responsibility and environmental policies in conjunction with the Department of Alternative by implementing a wide range of activities to promote, ;];;^* among the public in general, the social awareness on Energy, with an aim to promote the development of mini environmental conservation and community development. hydropower plant projects at the community level. 80 Electricity Generating Authority of Thailand

Paths for Promotion of Learning and Building - RATCH has also developed projects to be a Public Consciousness in “Youths” implemented under a concept to reduce carbon dioxide /\ emissions to mitigate the impact of global warming. organizes learning activities in schools while providing real-life RATCH’s reforestation scheme under this concept is the experiences for children at elementary and secondary planting of teak trees project to honor His Majesty the schools including students at high school levels. EGCO’s King. Teak trees of 99,784 have been cultivated following CSR projects launched under this concept include the by the maintenance work for another six years to ensure - EGCO forest youth camp project, their growth as these trees will serve as good sources % :: of carbon dioxide absorption. Moreover, RATCH has living project, also developed the “Spirulina Algae for a Green World” - Green learning project, and the program for the cultivation of Spirulina algae for global - EGCO green blood project. warming reduction. This research was conducted at Ratchaburi power plant, using the emitted carbon dioxide Paths for Promotion and Development of to grow Spirulina algae. It was found that algae cultivated Community’s “Quality of Life” in a 1-rai area can absorb approximately 9.59 tons of EGCO Group always recognizes the quality of carbon dioxide. life of communities in the vicinities of its Headquarters and power plants. Numerous social and environmental EGAT International Company Limited (EGATi) programs have been developed ranging from educa- EGATi organized an exhibition to disclose information, occupation, health and safety, to the environmental tion on the development of Hajji dam project across the safeguarding. EGCO’s projects implemented with aims at Salween River in Myanmar. A public hearing was also taking care of the community environment and improving held at Sop Moei district of Mae Hong Son province the well-being of life include the to listen to comments and suggestions from project - Breeding of blue swimming crab project, stakeholders including the people affected by project. - New home for undersea livings project (using During January and August 2011, EGATi and EGAT ^ participated in organizing activities to provide relief for - Health market project, - Vocational students helping people project, and the ''$ - Local wisdom learning centre by Roi Et Green District Cooling System and Power Plant project. Company Limited (DCAP) Ratchaburi Electricity Generating Holding Public DCAP organized activities to enhance the well-being Company (RATCH) of communities living around the power plant which During 2011, RATCH has implemented many social included the Children Day, the Family Day and the religious and environmental projects. The company’s outstanding $;' environmental projects were as follows: donated building materials to the affected people. Power plant visiting programmes were provided for community - RATCH, in collaboration with the Royal Forest members and young students. During June to September Department, Ministry of Natural Resources and Environment, 2011, DCAP organized the public hearings to open for has since 2008 implemented the “Love the Forest and the suggestions relating to health impact assessment (HIA) Community Project”. This 5-year natural resources conser- from the satkeholders and the public in general. vation project (2008-2013) has a focus on the development of community forests in order to prompt actions and EGAT Diamond Service Company Limited promote the appropriate community forest management (EDS) : In April 2011, the company began the commercial well-being of communities following the philosophy of operation of its repairing facility for the hot gas path $} parts of gas turbine generators. During October-December public awareness upon the importance of forest conserva- 2011, EDS’s operating facilities were severely affected tion among communities and the Thai society at large. In :' 2011, RATCH also implemented the 84 Community Forests under implemented. Nevertheless, EDS has still put prime Reforest for the King Project, held in honor of His Majesty importance to its social responsibility efforts by preparing the King on His 84th birthday on December 5, 2011. the CSR plans in place for future implementation. EGAT expects to publish a report which can serve as a tiny force to move the Thai society one. Our report was produced from the best quality green paper mixed with deinked pulp and with the use of chemical-free soy ink in the printing process. We select the use of license-free Thai national font for our Thai version report. We also distribute an electronic version of the printed report to reduce the use of paper. EGAT Power for Thai Happiness

Bang Kruai, Nonthaburi 11130, Thailand Tel. +66 (0) 2436 4600 Fax. +66 (0) 2436 4695