Physical Risks |
Flood |
- Employees and partners cannot travel to work and deliver the goods, the temporary business suspend in partner groups
- The flood caused the company to temporarily suspend the business operations
- In the event that the company ceases operations, there may be damages cost incurred to the power plant and fines for customers or partners, etc.
- In the case of dams, there will be a problem of increasing sludge. As a result, the efficiency of generating electricity from hydro power has been reduced and increased the chance of damage to the propeller under the dam
|
65.8 million baht |
41.24 million baht |
- Examine, analyze, and review operating areas of the Group of Companies to determine the area and severity that will be affected by the flood disaster
- Prepare a plan to deal with flooding problems in risk areas. This includes preparing a budget for building a flood barrier and water erosion protection systems in the operating area
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Drought |
- The results of a scientific study based on future climate models indicate that Rayong and Chonburi provinces will be moderately affected by drought due to increased rainfall in the future.
- When the water storage tank has dropped to a shortage level, the company operation will be disrupted due to the lack of water for cooling the power plant
- The company may need to rent machinery equipment for turning seawater into fresh water for cooling purposes
|
73.9 million baht |
26.7 million baht |
- Install a Reverse Osmosis (RO) system to turn the sea water nearby into fresh water for use during water shortage times
- Arrange budget to build additional water tank including a rainwater storage system for use in the drought season
|
Storm and Lightning |
- Case studies from past lightning events of the company, Lightning causes the power transformer to malfunction, causing other damages such as maintenance, damage to the electrical system, and thus interrupting the production process
|
329 million baht |
20.6 million baht |
- Provide a contingency plan to respond after a lightning incident in operating area
- Develop and study the short circuit protection system from lightning incident
- Training employees in the operating area and organizing rehearsal for response plans from power failure incidents
- Follow up and develop the potential of the lightning and power failure countermeasure plan to minimize damage to the supply chain
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Rising global average temperatures |
- As the average surface temperature rises, the lower the efficiency of electricity generation will be
- The cooling efficiency from the water tank is noticeably reduced, causing water usage to increase
- The water in the warehouse evaporation rate will increase. This may cause water shortage problems.
|
N/A |
N/A |
- Continuously monitor machines operations within the operating area
- Look for new areas to invest, increase the proportion of electricity generation that are not in the area at risk of rising surface temperatures
|
Transitional Risks |
Change in consumer behavior |
- Due to the situation and pressures on reducing greenhouse gas emissions from around the world, as a result, consumers are more interested in using renewable energy to avoid greenhouse gas emissions. If the electricity produced by the company still has a large proportion of fossil energy, this will affect the purchasing volume, decreased satisfaction, and may affect the company's revenue
|
21 million baht |
7,761 million baht |
- The company invests in increasing the proportion of electricity from renewable energy through the acquisition of foreign renewable energy companies, resulting in increased renewable energy production capacity
- The company invests in research, development, and innovations to support new businesses in the future such as energy storage systems and energy management system
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Regulations to control domestic greenhouse gas emissions |
- Thailand is likely to enact regulations to control greenhouse gas emissions within the next 3-5 years, which will directly affect companies in the electricity business. Regarding the compensation reserve for the amount of greenhouse gas emissions that exceed the limit
|
732 million baht |
17,944 million baht |
- The company participated in the voluntary reduction of greenhouse gas emissions activities by increasing the efficiency of electricity generation in the operating area which generates carbon credits for future trading. From these actions, the Company expects to generate revenue as high as 6,000 million baht.
- The company has set a long-term goal to increase its renewable energy share through the acquisition of renewable energy power plants overseas, including Taiwan, India, and Vietnam.
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Carbon tax pricing |
- Thailand tends to enact a carbon tax within the next 3-5 years, which will affect the company due to the proportion of electricity generated from fossil energy, and are likely to face fines from the carbon tax
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Stakeholder groups' expectation |
- Major international investors expect the company to have a serious climate change impact management plan. If the company still have a proportion of fossil energy, may cause investors to withdraw their investment from the company
|
1,500 – 2,000 million baht |
3,650 million baht |
- The company participated in the assessment of low-carbon and sustainable business indicators operated by the Greenhouse Gas Management Organization and was selected as one of the 4 companies that received "Excellent" level assessment through outstanding climate change action. This will build trust among stakeholders related to the company
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