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Clean Energy Towards Net Zero

Global Power Synergy Public Company Limited (GPSC) recognizes the risk and potential impacts of climate change. These impacts manifest themselves in different forms of natural disasters, such as storms, floods, rising sea levels, and drought, which have shown increasing severity and frequency. Such disasters may cause business disruptions in the form of water shortage for production or damage to operational machines/facilities. In addition, GPSC prioritizes the use of energy that does not generate carbon dioxide (decarbonization) through renewable energy production, which will help reduce greenhouse gas (GHG) emissions in the country and respond to changing consumer demands.

Currently, the global community places a high level of importance on the issue of climate change induced by greenhouse gases emitted by human activities. In response, the United Nations Framework Convention on Climate Change (UNFCCC) was founded. Based on this framework, various guidelines, requirements, and international cooperation have been developed to continuously reduce greenhouse gas emissions. Additionally, the Sixth Assessment Report (AR6), released by the Intergovernmental Panel on Climate Change (IPCC), states that “setting a goal to achieve net-zero greenhouse gas emissions by 2050 is too late to keep the global average temperature increase under 1.5 degrees Celsius compared to the pre-industrial times by 2100, at which point humans will be unable to reverse the impact of climate change.” The study’s results have prompted various countries to move up their net-zero greenhouse gas emissions targets.

However, in the wake of the UN Climate Change Conference in Glasgow (COP26), which centered on three topics 1) the expansion of greenhouse gas emission reduction targets, 2) adaptation to intensifying climate change, and 3) mobilization of finance, technology, and knowledge by developed countries for developing countries, the Glasgow Climate Pact was formed to support the three topics on the agenda. As a member nation, Thailand has declared its National Determined Contributions (NDCs) to reduce greenhouse gas emissions by 40% by 2030 as well as to achieve carbon neutrality by 2050 and net-zero carbon emissions by 2065, in line with Sustainable Development Goal (SDG) 13: Climate Action.

In 2023, the 28th Conference of the Parties to the United Nations Framework Convention on Climate Change (The UN Climate Change Conference in Dubai, COP28) emphasized the goal of limiting the global surface temperature increase to no more than 1.5 degrees Celsius. Currently, greenhouse gas emissions continue to rise. To achieve this target, global greenhouse gas emissions must be reduced by 43% by 2030 and by 60% by 2035. The main measures to accomplish this include tripling the global use of renewable energy and doubling energy efficiency by 2030.

As a member of the global community, GPSC is committed to providing its full support and collaborating actively with every sector to achieve the challenging goal of reducing greenhouse gas emissions by adopting the following climate change policy and management approach.

Climate Change Management Approach
GRI 3-3

GPSC has established a climate change policy with the expectation that every business unit throughout GPSC Group’s supply chain will adhere to the policy at each step of the project, starting from planning and designing all the way to implementation and completion.

Climate Change Policy
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Climate Change Governance Structure
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GPSC’s Board of Directors, particularly Corporate Governance and Sustainability Committee and Risk Management Committee, is responsible for overseeing various climate-related risks & opportunities and processes including;

  • Risk management policies and climate-related policies
  • Business plans, climate strategy and action plan
  • Climate management objectives and targets
  • Progress on climate-related management against goals and target.
  • Annual budget, capital expenditures, acquisitions and divestitures

Climate-related updates are regularly scheduled in the Board meetings for at least annually, which scheduled on some meeting at quarterly basis for Risk Management Committee and quarterly basis for Corporate Governance and Sustainability Committee.

Climate Change Task Force Structure
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In addition, the Board of Directors has appointed GPSC Climate Change Strategy Committee, directly responsible for managing GPSC Group’s climate change policy. The committee has also established GPSC Group Climate Change Strategy Task Force to carry out climate change projects and GPSC Group Climate Change Strategy Sub-Task Force to support the action plans of the main task force. The roles and responsibilities of these entities are as detailed below.

GPSC Climate Change Strategy Committee

  • Approve policies, targets, scopes, strategic plans, preventive directions, and guidelines for mitigating and handling climate change impact, and control greenhouse gas emissions to keep them in line with international standards (SDG 13) as well as the country’s and GPSC Group’s targets.
  • Provide support, comments, and suggestions about GPSC Group’s climate change operations to ensure alignment with its climate change strategic plan, as well as collect data and prepare relevant reports in accordance with international standards in preparation for auditing by external verifiers.
  • Advance and support knowledge development, awareness building, and exchange of knowledge, experience within the organization, and public relations, as well as foster cooperation with external agencies
  • Monitor and review the outcomes of GPSC Group’s climate change operations.
  • Authorize the Chairman of the Board to appoint, add, and/or reduce task forces as necessary.
  • Invite relevant employees to attend meetings to provide opinions on different agendas as necessary.

GPSC Group Climate Change Strategy Sub-Task Force consists of six sub-task forces, with roles and responsibilities as described below.

1. Sub - Task Force Climate Policy & Strategy

Roles and Responsibilities

  • Monitor, study, and analyze the impacts of physical risks and transition risks in the context of laws, regulations, and requirements related to climate change.
  • Develop strategies, scopes, goals, and methods for climate change strategies, including the creation of prevention plans and mitigation measures to address impacts on the company and the GPSC group.
  • Track, compile, analyze, and filter plans and performance outcomes, as well as indicators. Promote collaboration with all stakeholders within the context of current and emerging business operations, ensuring alignment with the company's and GPSC group's short-term and long-term climate change strategies and plans.

2. Sub - Task Force GHG Account

Roles and Responsibilities

  • Develop formulas and methodologies for calculating greenhouse gas emissions related to the activities of the company and the GPSC group.
  • Compile and prepare accounts of emissions and sources of greenhouse gases for the company and the group in current business activities, and evaluate future emission scenarios based on business plans in comparison to the climate change goals of the company and the GPSC group, including preparing ESG information according to GRI Standards.
  • Maintain and update accounts of emissions and sources of greenhouse gases, continuously evaluating future emission scenarios and preparing relevant ESG data as per GRI Standards.

3. Sub - Task Force Climate Finance & Account

Roles and Responsibilities

  • Assess the impacts of various accounting and financial regulations to evaluate business risks and develop response strategies, including creating model assumptions (if sufficient data is available).
  • Study financial instruments related to greenhouse gas emission reduction, such as Green Bonds, Climate Funds, and Green Loans.
  • Analyze financial measures supporting emission reduction initiatives for the company and the GPSC group.
  • Study accounting standards and financial reporting standards that have an impact, to prepare information in compliance with financial statement issuance requirements.

4. Sub - Task Force Innovation & Technology:

Roles and Responsibilities

  • Study, recommend, and provide support information on climate change innovation and technology both domestically and internationally.
  • Monitor, coordinate, and support information to help formulate policies and strategic plans for reducing greenhouse gas emissions of the company and the GPSC group in collaboration with other Sub-Task Forces.

5. Sub - Task Force REC and Carbon Credit Management

Roles and Responsibilities

  • Monitor, study, and analyze the impacts of trends and developments related to REC Certificate registration and the trading of REC and carbon credits.
  • Prepare information for REC Certificate registration, and the trading of REC and carbon credits.
  • Explore business opportunities and customer demands related to various Green Certificates.
  • Summarize and report performance results.

6. Sub - Task Force PR & Communication

Roles and Responsibilities

  • Support and conduct activities to build knowledge and awareness of climate change within the organization to foster a corporate culture at least once a month.
  • Support, communicate, and publicize the details of projects and performance outcomes of the company group both internally and externally.
  • Analyze the perspectives of investors and analysts related to sustainability to determine appropriate communication strategies.
Climate-related Management Incentive Framework
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GPSC is committed to transitioning into a low-carbon power business, with a target to achieve "net-zero emissions by 2050" by enhancing operational efficiency, expanding renewable energy investments, developing firm low-carbon power technologies, and implementing internal carbon pricing to manage climate risks and seize long-term business opportunities. To achieve these objectives, the Company has implemented the following four-pillar strategy:

Reduce fossil fuel usage

  • This plan seeks to reduce GHG emissions from electricity production and consists of four sub-plans:
    • Adoption of best practices for operational excellence
    • Fossil-fuel plant retrofitting
    • Fuel and energy consumption reduction
    • Internal renewable energy consumption in place of fossil fuels

Grow renewables

  • This plan seeks to increase the production of renewable energy and consists of five sub-plans:
    • Phasing down fossil fuel-based power plants, with priority on coal
    • Investment in renewables through new projects or mergers and acquisitions both domestically and internationally, focusing on solar and wind energy, which are high potential energy sources.
    • Fuel switching from fossil fuels to renewables.
    • Considering green hydrogen (H2) as an alternative source of energy
    • The use of biomass with and without carbon capture, usage and storage (CCUS) technology

Enhance infrastructures

  • This plan seeks to store and eliminate direct GHGs from fossil fuel-based power production and consists of two sub-plans:
    • CCUS integration in existing blue and green hydrogen plants
    • CCUS integration in coal/natural gas plants

Trading & Offset

  • This plan strives to offset excess carbons emitted from production or internal operations and consists of three sub-plans:
    • Carbon sink through nature-based solutions, such as reforestation.
    • Obtaining Energy Attribute Certificates (EACs)
      • Renewable Energy Certificate (REC) trading
      • Carbon credit trading
    • Studying internal carbon pricing to supplement investment decisions in low-carbon technology.

GPSC operates under its climate change strategy to meet changing customer demands and create long-term energy sustainability as well as establish measures for handling risks and impacts of climate change. GPSC also fosters employee awareness and participation in reducing greenhouse gas emissions within GPSC Group through, for instance, training and education on carbon pricing, participation in climate change risk assessments and opportunities, as well as campaigns on internal energy consumption reduction and resource conservation to cultivate a positive organizational culture.

GPSC IFRS S2 Sustainability Disclosure Standard 2025
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The production of energy from renewable energy, be it solar, hydro, wind, and biomass energy, all of which cannot be exhausted and are renewable in nature, has low environmental impacts as it emits significantly less GHGs in comparison to fossil fuel-based energy production.

As such, in order to promote decarbonization, GPSC recognizes the importance of increasing the proportion of renewables-based energy production as a driver of greenhouse gas emission reduction. To this end, GPSC promotes the use of clean energy towards a low-carbon society, in line with the S2: Scale-up Green Energy strategy; the increased development of clean energy projects, including both solar and wind energy; and the integration of renewable energy with energy storage systems. GPSC’s long-term goals are to increase the proportion of renewable energy to more than 50% by the year 2030.

GRI 102-15

In 2022, GPSC conducted a climate change risk and opportunity assessment in order to formulate measures for coping with impacts and for creating new business opportunities, which are integrated into GPSC’s corporate risk management under the operations of the Task Force on Climate-related Financial Disclosures in order to assess two main types of risks: risks from physical changes and risks from other changes. In addition, GPSC reported its risk analysis method utilized to supplement the severity and likelihood assessment through a scenario analysis.

The Climate Change Management and Corporate Sustainability Taskforce has developed a comprehensive risk assessment to encompass all stakeholders in the value chain, namely suppliers (upstream) and customers (downstream), taking into account the following:

  • Scientific evidence identifying physical shifts based on the findings of the Intergovernmental Panel on Climate Change (IPCC)
  • Reports of impacts on the electricity business at the international level
  • Trends in climate change policy formulation at national and international levels
  • Trends and expectations on climate change of investors and stakeholders

GPSC convenes an internal risk identification meeting annually to review, monitor, and consider emerging risks.

GPSC considers both the severity and likelihood of physical impacts based on a climate change model known as the “Representative Concentration Pathway (RCP),” which simulates greenhouse gas emissions events referenced in the IPCC’s fifth assessment report and consists of four scenarios: RCP2.6, RCP4.5, RCP6, and RCP8.5, each showing the different levels of CO2 concentrations affecting radiation on the Earth’s surface. These scenarios are forecast results of the implementation of the climate change policies of various countries from 2000 to 2100.

GPSC has chosen scenarios RCP2.6, RCP4.5, RCP6.0, and RCP8.5 in considering the severity and likelihood of impacts and annually assesses potential climate-induced financial losses through risk review meetings. Furthermore, as scenarios are also required for the risk severity and likelihood assessment, GPSC has chosen Thailand’s Nationally Determined Contributions (NDCs) as a reference case.

GPSC has summarized the results of the physical and transitional risk assessment for the years 2565, 2570 and 2573, with the specification of risk issues, impacts, countermeasures, and adaptation as follows:

Risks with high to very high levels of severity and frequency in 2023:
  • Increased extreme weather events
  • Drought
  • Rising average global temperatures
Risks with high to very high levels of severity and frequency in 2027:
  • Increased extreme weather events
  • Drought
  • Rising average global temperatures
  • Changes in consumer behavior
  • Changes in climate-related regulations
  • Heightened technological competition
Risks with high to very high levels of severity and frequency in 2030:
  • Drought
  • Heightened technological competition
  • Increased extreme weather events
  • Changes in consumer behavior
  • Changes in climate-related regulations
  • Rising average global temperatures
Risk Issues Expected Impacts Countermeasures, Adaptation, and Opportunities for Business Management
Physical Risks
Increased extreme weather events, such as thunderstorms, hailstorms, thunder, and cyclones
  • Such events may damage infrastructures, machinery, and equipment and may result in higher maintenance expenses and disruptions to electricity production, for which GPSC may be penalized and which may adversely impact its revenue.
  • Flying debris in a storm may result in injuries.
  • Transportation between manufacturers, suppliers, and consumers across the supply chain (especially important products or fuels) may be affected by heavy storms or rain as well as from damage to natural gas pipelines.
  • Storm, heavy rainfall and thunder may affect operational continuity and reliability.
  • Supplier's ability to supply critical components might be affected.
  • Implement the emergency response procedure.
  • Study the installation and improvement of lightning protection systems (such as surge protectors).
  • Conduct training on plant crisis plans to ensure crisis preparedness as well as to limit impacts from an emergency and maintain control.
  • Implement proactive crisis management by developing a business continuity management (BCM) system, encompassing key components of the operation.
  • Notify responsible personnel of a natural disaster and review details in order to improve the crisis management system.
  • Study the installation of technology for reducing convective available potential energy (CAPE) in surrounding areas.
  • Maintain high preparedness of Emergency Response Plan
Flood
  • Floods may damage infrastructures, machinery, and equipment and may result in higher maintenance expenses and disruptions to electricity production, for which GPSC may be penalized and which may adversely impact its revenue.
  • Employee injuries or fatalities may affect the company’s efficiency and reputation.
  • Employees and suppliers may be unable to travel to work or deliver goods, potentially resulting in temporary business suspension among suppliers (especially important products or fuels).
  • Floods may force the company to suspend its operations temporarily.
  • In the event of a business disruption, maintenance costs for damage to the plant or fines for customers or suppliers may be incurred.
  • Dams experience an increase in sediment, which reduces hydroelectric power production efficiency and increases the chance of damage to the turbines at the bottom of the dam.
  • Maintenance/ renovation/ replacement costs and insurance expenses may increase.
  • Sediments may affect the efficiency of hydropower plants.
  • Supplier's ability to supply critical components might be affected.
  • Closely monitor the water situation in collaboration with representatives of PTT Group Water Management Committee.
  • Prescribe business continuity management (BCM) to ensure the ability to effectively respond to issues and maintain operational continuity.
  • Maintain high preparedness of Emergency Response Plan
  • Create electricity reserve from PEA/EGAT.
  • Conduct environmental impact assessments (EIA).
  • Manage the situation in accordance with the EIA and other applicable requirements.
  • Review risk areas and flood damage and implement adaptation measures in order to minimize risks, such as raising the ground level.
  • Build flood barriers (temporary/ permanent).
  • Develop and install drainage systems.
Drought
  • Scientific studies based on weather forecasting models indicate that Rayong and Chonburi are likely to experience higher rainfall in the future, thus mitigating the severity of drought impacts to a medium level.
  • Once the level of stored water reduces to the shortage level, the company’s operations may face disruption or suspension. Without sufficient water for the plant cooling system, the company may not be able to deliver power to customers, thus affecting its revenue and confidence in the company.
  • Production costs may rise due to the need to obtain water supply from other sources.
  • The company may need to lease equipment and machinery for converting saltwater into freshwater for cooling purposes.
  • Conflict with surrounding communities may ensue if they experience water shortage and their way of life is affected by the company’s water sourcing and consumption. However, by implementing good water management or providing water reservoirs to help communities cope with drought, the company will experience positive feedback.
  • Water supplier may not be able to provide water.
  • Formulate water management plans in preparation for water risks, such as by entering into agreements to purchase demineralized water from other suppliers.
  • Develop or improve the production system to reduce water use as well as to reuse and recycle water.
  • Install a reverse osmosis (RO) system to convert seawater in areas surrounding the site of operation into freshwater for use during periods of water shortage.
  • Allocate budgets to construct water reservoirs and rainwater collection systems for use in dry seasons as an emergency backup supply, capable of storing sufficient water for three days of operations.
  • Keep track of water levels in surrounding areas.
  • Conduct a wastewater treatment project to obtain water for cooling.
  • Expand water management projects to neighboring areas in collaboration with provincial administrative organizations and other agencies within Map Ta Phut Industrial District.
  • With good water management, the company can capitalize on the opportunity to sell water to customers experiencing water shortage to generate more income.
  • Reduce water consumption
Increasing mean temperatures
  • The increased average surface temperature can reduce electricity production and distribution efficiency and negatively affect confidence in the company.
  • The cooling efficiency of water reservoirs is significantly reduced, causing water use to increase.
  • The increased rate of evaporation in water reservoirs can lead to a water shortage.
  • Solar panel efficiency is reduced.
  • Conduct regular inspection of machinery on the site of operation.
  • Enhance infrastructure and machinery to improve their resistance to higher temperatures.
  • Install water sprayers to reduce temperatures during power production.
  • Adjust plants according to the situation (short-term adaptation).
  • Find new avenues for investment to increase electricity production outside areas facing risks of higher surface temperatures.
Transitional Risks
Changes in stakeholder behaviors and expectations (concerns and negative opinions)
  • Major international investors expect that the company has well-defined plans to cope with the impacts of climate change. These investors may pull out their investment if the company continues to have fossil fuel-based production in its portfolio.
  • Stakeholders are growing more conscious of and concerned with GHG-producing pollutants from the use of fossil fuels, which negatively impact climate change.
  • Some types of renewable energy power plants (such as hydroelectric power plants) require a large area for dam construction and adjustment of the water flow, which may impact the ecosystem and lead to displacement and conflict between communities and the company.
  • Failure to fulfill company's commitments and target will cause reputational damage
  • Negative reputation for carbon intensive business
  • GPSC has participated in the low-carbon and sustainable business evaluation by the Thailand Greenhouse Gas Management Organization and has received a low-carbon and sustainable business award for three consecutive years, thus fostering confidence among stakeholders.
  • Closely monitor the operation of the operating sites to keep track of environmental and social impacts to minimize risks to the corporate image when the company begins operating a new power plant or acquires a fossil fuel-based power plant.
  • Establish GHG emission reduction targets and climate commitments.
  • Stop increasing fossil fuel-based production to balance the portfolio.
  • Increase renewables-based production.
  • Carry out CCS or CCUS projects.
  • Research hydrogen fuel technologies.
  • Support the activities of surrounding communities.
  • Improve or optimize production efficiency to reduce resource consumption and GHG emissions.
Changes in climate-related law and regulations
  • GPSC may be included in an emission trading scheme (ETS) or a cap-and-trade scheme in Thailand and in countries that develop such schemes. The company may lose investment privileges from investment promotion agencies if it fails to comply with relevant laws and regulations.
  • In response to the potential nationwide enforcement of emission trading schemes in the future, the company may need to formulate an approach to reducing power production costs.
  • An emission trading scheme may facilitate and accelerate the company’s energy transition.
  • GPSC may be affected by carbon taxes, which increase operational costs, such as compliance expenses and insurance premiums.
  • GPSC benefits from investment promotion privileges due to investment in alternative low-carbon technologies that help lower the overall emissions of the company’s power plants.
  • Increase in low carbon fuel (e.g. natural gas) price due to high resource competition
  • Monitor Thailand’s electricity production capacity development plans to keep track of changes in domestic carbon pricing as well as domestic emission trading policies.
  • Allocate budgets for the organization’s energy transition in line with Thailand’s new NDCs, such as a plan to expand renewables-based electricity production capacity for 2022-2030.
  • Adopt internal carbon pricing.
  • Establish short-term and long-term GHG emission reduction targets.
  • Increase renewables-based electricity production capacity through domestic investments according to the Alternative Energy Development Plan (AEDP) and through international investments through GRSC, such as investments in AVAADA in India and GRP in Taiwan and Vietnam.
  • Phasing down coal power
  • Improve and develop fossil fuel power plants with advanced technology to optimize energy efficiency and reduce GHG emissions.
  • Discontinue the operation of fossil fuel power plants upon the completion of their lifespan.
  • Apply CCS and CCUS technology and hydrogen fuels.
  • Develop other products and services, such as smart grids, energy storage systems, smart energy solutions, and grid management.
  • Conduct projects that utilize nature-based solutions, such as reforestation projects.
  • Research and prepare for carbon taxes in the future.
Change in low carbon technology
  • CCS and blue hydrogen technologies can help organizations significantly reduce their GHG emissions and support the achievement of net-zero emission targets.
  • Without new energy management services, such as the installation of renewable energy systems and smart grids – micro grids, the company may lose an opportunity to meet the needs of new customers.
  • Given significant changes Thailand’s power distribution system is expected to undergo in the future, the company is looking to adopt blockchain technology to effectively monitor and track the energy sources utilized for electricity generation, as failure to do so may negatively affect customer satisfaction and lead to a competitive disadvantage.
  • Delayed business transformation may lead to failure to capture new demands e.g. renewables, smart grid, microgrid.
  • Delayed adoption of new technologies may cause customers dissatisfaction compared to our competitors
  • Allocate budgets for research and development of new technology that promotes the achievement of the net zero emission target and the creation of new market opportunities.
  • Expand renewables-based power production in support of the net zero emission target.
  • Increase the publicization of the services of Combined Heat and Power Producing Company Limited (CHPP), a subsidiary of GPSC Group and a smart energy solution provider.
  • Conduct public relations and produce environmentally friendly batteries, which are expected to see high growth in the future.
  • Collaborate with universities and partners to test new innovations for further research and development prior to commercial production (open innovation management)
  • Increase the proportion of renewable energy and reduce the proportion of conventional energy (fossil fuel)
Changes in consumer behavior
  • Due to the current situation and global pressure for GHG emission reduction, consumers have grown more interested in utilizing electricity produced from renewable energy in order to avoid contributing to such emissions. If the company continues to rely heavily on fossil fuels and delays decarbonization in power production, this may lead to a decrease in purchasing volume, customer satisfaction, and ultimately impact the company’s revenue. However, the company may create a business opportunity by investing in power production technology that utilizes low GHG-emitting renewable energy.
  • Invest in increasing the proportion of renewables-based electricity production through the acquisition of foreign renewable energy companies, resulting in increased renewable energy production capacity.
  • Invest in innovation research and development to support new businesses in the future, such as energy storage systems and energy management systems.
  • Adjust the business model to meet customer needs with a diverse range of services and products.
  • Conduct feasibility studies on a transition to smart grid systems in Thailand.

GPSC has studied internal carbon pricing (ICP), which assigns a monetary value to greenhouse gas emissions produced by an organization, in order to drive climate change actions in the organization, including preparing for climate change risks and impacts, setting greenhouse gas emissions reduction targets, and using carbon pricing as a basis for making investment decisions and a mechanism for driving long-term low-carbon operations. GPSC has been selected as one of the first six companies to receive technical support from the Thailand Greenhouse Gas Management Organization (Public Organization) and has cooperated with the World Bank in capability development as well as in establishing and applying internal carbon pricing (ICP) mechanisms appropriate to the context and strategies of the organization, while also fostering environmentally friendly investments. At present, GPSC’s guidelines involve the following three activities:

The use of “shadow prices” to assess the risks and impact of carbon pricing on the future earnings of the company

The use of shadow prices as one of the criteria for investment decisions (CAPEX)

The use of carbon pricing as one of the criteria for decision related to operating costs (OPEX)

GPSC has appointed a committee and a task force responsible for conducting internal carbon price projects and investments in GHG emission reduction, with the objective of planning and monitoring the adoption of internal carbon pricing to ensure suitability for the business operations. They are also tasked with assessing the financial situation and green financing guidelines as well as offering opinions on the development of operational guidelines to further strengthen its capabilities and in-depth knowledge of carbon pricing and other financial instruments to maximize effectiveness.

Additionally, GPSC has formulated a 10-year internal carbon pricing adoption plan, beginning in 2020, and developed implementation guidelines suitable for the established timeframe. GPSC seeks to apply three internal carbon pricing mechanisms, namely the price determined by the amount of money an organization spends for reducing greenhouse gas emissions (implicit price), the hypothetical greenhouse gas price (shadow price), and the determination and collection of greenhouse gas emission fees of each business unit in the organization (internal carbon fee/ internal trading system), in order to make tangible contributions and cover all emission scopes, as detailed below.

Short Term Long Term
Objectives
To increase internal expertise and capacity for applying internal carbon pricing.
To reduce the company’s GHG emissions and supplement investment decisions to increase the proportion of renewable energy.
Scope of GHG emissions
Direct greenhouse gas (Scope 1) and indirect greenhouse gas (Scope 2)
Direct greenhouse gas (Scope 1) and indirect greenhouse gas (Scope 2)
Scope of ICP
Investment decisions
Investment decisions
Operation decisions
Types of ICP
Implicit price
Shadow price
Shadow price
Internal carbon fee / internal trading system

GPSC has utilized the shadow price to supplement its decision for new investments that cover Scope 1 and Scope 2 emissions through collaboration with other business groups related to the electricity business. In 2022, the Strategic Investment Management Committee (SIMC) approved the use of internal carbon fees as a component in the calculation of the return on investment of conventional projects. In addition, GPSC has planned to develop tools to expand the data collection of its GHG emissions and marginal abatement cost curves to strengthen its ability to recover from the impacts of climate change and achieve its long-term emission reduction goals.

GPSC Practical ICP Guideline
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GPSC Internal Carbon Pricing 2025
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In 2022, GPSC participated in the Low Carbon and Sustainable Business (LCSB) assessment, conducted by the Greenhouse Gas Management Organization (Public Organization), in which participating business organizations were assessed on their GHG management and reduction efforts in accordance with Thailand’s sustainable development goals. GPSC received an excellence award for the third consecutive year and met low-carbon and sustainable business organization criteria in three categories: 1) low-carbon and sustainable environmental development, 2) low-carbon and sustainable economic development, and 3) low-carbon and sustainable social development.

GPSC also was selected in 2022 as one of the four companies to receive an “excellent” rating for their outstanding climate actions, including GHG emission reduction, life cycle assessments (LCA), carbon footprint product (CFP) development, participation in the Thailand Voluntary Emission Reduction Program Thailand Voluntary Emission Reduction Program: T-VER, supporting sustainable development goals, and the achievement of the zero-waste to landfill target. GPSC’s management of issues impacting the company and stakeholders encompasses all aspects of sustainability as follows:

Energy Mix
Emission Reduction
Contribution to Decarbonization
Innovation
Decentralized
Disruptive Technology
Energy Policy & Regulation
Customer's Ability to Control and Make a Choice
Customer Data and Information Privacy
Natural Disasters
Efficiency of Operations
Workforce Planning
External Transparency to Build Credibility
Internal Communication
Training for Current Employees
Diversity and Equal Opportunity
Labour Rights
Board of Directors
Code of Conduct
Crisis and Risk Management
Personal Safety and Health
Waste
Community Relationship
Community Involvement and Development Project to Improve Livelihood
Manage Supply Risks
Leverage Opportunity with Suppliers and Contractors
Supplier Rights
GPSC Sustainable & Innovation Program 2025
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GPSC Sustainable Revenue 2025
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GPSC has joined and has been selected as a member of the Thailand Carbon Neutral Network (TCNN) committee in collaboration with Climate Neutral Now under UNFCCC to promote cooperation between the government, the private sector, and the local/community sector in order to expand GHG emission reduction. The objective is to foster sustainable growth in a climate-friendly society and achieve net zero greenhouse gas emissions in accordance with the intent of the international community, as evidenced in the targets of the Paris Agreement and Thailand’s climate goals. This cooperation will create demand for carbon credits from the Thailand Voluntary Emission Reduction Program: T-VER project, which will contribute to the expansion of the domestic voluntary carbon market as well as enhance liquidity. GPSC foresees that the participation in this program will bring benefits through the exchange of knowledge between members with regard to studies of feasibility, potential, and preparedness; operational guidelines; and the declaration of its corporate carbon neutral targets, as well as bolster joint benefits in terms of sustainable development thanks to GHG reduction activities and projects, particularly at local and community levels, carried out in cooperation with private businesses in the network, such as joint support for nature-based activities that help absorb carbon dioxide.

GPSC has also joined the Carbon Market Club and the RE100 Thailand Club, marking an important step for the company as an energy business in promoting GHG reduction activities and demonstrating its corporate social responsibility, thus underlining its readiness to transition to a low-carbon society and acheive net zero GHG emissions. Through these memberships, GPSC has engaged in discussions with other member organizations about the trading of carbon credits and international renewable energy certificates (I-RECs), and has stayed up-to-date on the latest updates, registration processes, relevant climate change-related policies, and how to join the United Nations Global Compact (UNGC). GPSC has also pledged to develop sustainable operation policies and further prioritize corporate social responsibility to ensure its operations benefit society. This is in line with the 10 international principles of human rights, labor, the environment, and anti-corruption efforts, particularly Principles 7, 8, and 9, which pertain to the environment, for which GPSC has developed operational plans and directions specifically to drive the net zero GHG emission target in order to truly address the problem of climate change.

Furthermore, GPSC has lent support to the Thailand Business Council for Sustainable Development (TBCSD), founded by the World Business Council for Sustainable Development (WBCSD) to promote sustainability among businesses and provide a platform for private organizations to share knowledge and drive sustainable development in collaboration with the government and other agencies, with emphasis on the development of policies that foster business competitiveness and public awareness of environmental issues, including climate change.

1. Investors

GPSC collaborates with strategic investors to accelerate the expansion of renewable energy and other low-carbon businesses. In partnership with Brookfield and Avaada Group, the Company is investing in solar, wind, hydrogen and energy storage systems while exploring opportunities across the clean energy value chain. These investments support GPSC's transition towards a low-carbon business portfolio and long-term net-zero ambitions.

2. Suppliers

GPSC has established Green Procurement and Sustainable Supplier Management Policies to encourage suppliers to adopt clean energy, improve production efficiency, and strengthen waste management and recycling practices. All suppliers are required to acknowledge and comply with GPSC's sustainability requirements, while annual Supplier Day activities provide knowledge sharing and capacity building on sustainable development and climate change management to support emissions reduction across the supply chain.

3. Customers

GPSC supports customers' decarbonization by expanding renewable energy solutions, including rooftop solar, floating solar and other clean energy services. These solutions help customers reduce Scope 2 greenhouse gas emissions while increasing access to renewable energy and supporting the transition to a low-carbon society.

4. Partners

GPSC collaborates with strategic partners to accelerate the development and deployment of low-carbon technologies and clean energy solutions. Through partnerships with technology providers, research institutions and business partners, the Company advances innovation in renewable energy, energy storage systems, green hydrogen, carbon capture, utilization and storage (CCUS), and other emerging technologies that support the implementation of its net-zero transition plan.

5. Industry Peers and Relevant Associations or Initiatives

GPSC promotes open innovation through collaboration with industry partners to develop energy storage systems, green hydrogen and other low-carbon technologies. The Company also established the Carbon Capture, Utilization and Storage (CCUS) Technology Development Consortium in collaboration with academic institutions, industrial companies and research organizations to accelerate CCUS technology development, promote research and facilitate practical deployment. In addition, GPSC participates in the PTT Group CCS Hub feasibility study to support large-scale carbon capture and storage development in Thailand.

6. Government, Public Sector and Civil Society

Through the CCUS Technology Development Consortium, GPSC collaborates with government agencies, the Thailand Greenhouse Gas Management Organization (TGO), academic institutions and other public organizations to advance climate technology development and support Thailand's low-carbon transition. In addition, GPSC works with PTT Group and local communities through Smart Farming projects, renewable energy applications and reforestation initiatives to promote community resilience, create local employment opportunities and reduce greenhouse gas emissions

Updated as of July 2026

The content above is based on the sustainability reporting standards of the Global Reporting Initiative (GRI Standards) and externally validated and verified for data accuracy at the "Limited Assurance" level.

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