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whistleblowing Procurement

Materiality Assessment

GPSC prioritizes the management of both internal and external material issues and has thus instituted a materiality assessment and prioritization process in compliance with the GRI Standards of the Global Reporting Initiative (GRI) and the International Integrated Reporting Framework. GPSC compiles and assesses issues related to sustainable development through materiality assessment in line with the expectations of all stakeholders. The assessment places emphasis on the context of sustainability and global trends as well as takes into account GPSC’s operational strategies and risk factors both at present and in the future that may impact or create opportunities for GPSC’s business operations.

Step 1

Identification

Step 2

Assessment and Prioritization

Step 3

Validation

Step 4

Review

Process

Relevant issues impacting the sustainability of GPSC and its stakeholders throughout the value chain across economic, social and environmental dimensions are identified through the consideration of impacts (positive and negative); the expectations, interests, and concerns of all eight stakeholder groups (shareholders, investors, government agencies, employees, suppliers, partners, customers, communities, and communities and society); as well as changes in global trends and the industry, past events, risk factors with potential impacts in the future, business opportunities, GRI Standards indicators, and human rights principles. GPSC operates in strict compliance with the law and applies various international guidelines to its operations, with dedicated compliance units and audit systems in place to ensure compliance. In addition, GPSC has put in place whistleblower channels and an effective due diligence process. In 2022, no violation of the law or relevant regulations was reported.

Guidelines
  • PTT Group’s and GPSC’s Sustainable Development Guidelines
  • Sustainable Development Goals (SDGs)
  • International guidelines, such as GRI1, DJSI2, SDGs3, WBCSD4, CDP5, ISO 260006, UNGC7, IIRC8, and others
  • All internal and external stakeholders’ voices
  • Community satisfaction surveys
  • Employee engagement surveys
  • Customer satisfaction surveys
  • Corporate image improvement process
  • Complaint channels
  • Corporate risk assessment
Process

Impacts (positive and negative) on stakeholders are assessed through the consideration of stakeholder opinions and expectations collected through interviews of purposively selected external stakeholders and online surveys for internal stakeholders. The obtained stakeholder data is analyzed into scores for material issues based on criteria of severity and likelihood of impacts on GPSC and stakeholders. Material issues then categorized into two groups using a rating scale based on their severity: 1) key material issues, which are issues with high and very high impact ratings, and 2) fundamental material issues, which are issues given low and medium ratings. The latter are issues that GPSC is legally mandated to manage.

Guidelines
  • External stakeholder interviews
  • Online opinion surveys for internal stakeholders
  • Impact assessment and categorization based on the level of impact
  • Materiality prioritization
Process

A summary of material issues is reported to GPSC. The material topics are tested by experts to ensure that they are in line with global trends and cover all issues in the electricity generation industry as well as to ensure alignment with GRO aspects. The material issues are then proposed to responsible internal units for the subsequent formulation of management strategies and guidelines.

GPSC’s Management Committee (GPSC MC) is responsible for validating and approving the content of the material issues as well as assigning relevant units to prepare management plans for the impacts of such material issues. In addition, GPSC MC is charged with reviewing the reported data to ensure its transparency, accuracy, and compliance with reporting requirements in accordance with GRI Standards indicators to disclose in the Annual Integrated Sustainability Report.

Guidelines
  • Material issue validation by experts
  • Meeting and review of material issues by GPSC’s executives
Process

GPSC consistently reviews and improves its sustainability reporting and conducts validation to ensure that the material issues that need to be managed meet stakeholder expectations. In addition, GPSC has developed the stakeholder participation process by obtaining stakeholder voice and suggestions through various communication channels, such as by participating in sustainability reporting assessment by the Securities and Exchange Commission and the Thaipat Institute. These efforts are essential to the improvement of reporting quality and reflect issues that stakeholders consider vital in a more effective way.

Guidelines
  • Third-party sustainability report validation
  • Receiving complaints and suggestions through various channels
  • Sub-group meetings of sustainability units to review sustainability reporting and sustainability development performance as assigned
  • Quarterly report of the implementation of sustainability plans to GPSC’s executives
Remark:

1 Global Reporting Initiative (GRI) is the organization that initiates international report standards which are used as a prototype for sustainability report preparation.

2 Dow Jones Sustainability Indices (DJSI) are a family of capital indices that assesses the effectiveness of business operations according to sustainable development guidelines of the world’s leading companies and is used as investment criteria by various funds worldwide.

3 Sustainable Development Goals (SDGs) are of a set of sustainable development goals stipulated by the United Nations (UN), comprising 17 main objectives to be achieved and implemented by 2030.

4 World Business Council for Sustainable Development (WBCSD) is the committee of businesspersons for the environment that comprises over 120 leading international companies and was accepted in the Earth Summit in 1992.

5 Carbon Disclosure Project (CDP) is a global institution given the highest level of recognition in terms of environmental management assessment.

6 ISO 26000 is an international standard for social responsibility.

7 UN Global Compact (UNGC) is a United Nations initiative that serves as guidelines for formulating strategies and practices in line with international accepted principles in the areas of human rights, labor, environment, and anti-corruption efforts.

8 International Integrated Reporting Council (IIRC) is a council on integrated reporting, which refers to a report on an operation’s operations in accordance with its business strategies, corporate governance, as well as its performance and outcomes that contribute value to the organization and internal and external stakeholders over the short, medium, and long term.

GPSC’s Materiality Assessment 2022
GRI 3-2
Click to see more detail
Remarks:
Key material issues

Issues viewed as significant by stakeholders in economic (governance), social, and environmental aspects rated to have significant impacts, both positive and negative, (high and very high levels of impacts) based on the criteria of severity and likelihood of impacts on internal and external stakeholders as well as impacts on GPSC’s business operations

  • Positive impacts: Healthy operating results, business growth, quality of life enhancement, promotion of environmental quality, etc.
  • Negative impacts: Business losses or remediation expenses, violation of relevant laws or regulations, degradation in quality of life, environmental degradation, etc.
Fundamental material issues

Issues arising in the normal course of business that need to be managed to ensure compliance with laws, standards, and general practices and are rated to have a low or normal level of impact

GPSC’s Materiality Assessment 2022
Material Issue Impacts
(Positive and negative)		 Occurrence Related
Stakeholder		 Global
reporting
Initiative: GRI		 Alignment with
Sustainable
Development Goals
(SDGs)
Past and
present		 Possible in
the future
Key Material Issue
Clean Energy Towards Net Zero
  • Play a vital role as a power service provider in advancing the country’s clean energy and climate change goals.
  • Attract foreign investors in the energy industry
   Government sector, customers, suppliers
  • Management Approach (3-1, 3-2, 3-3)
  • Energy (302-1, 302-3, 302-4)
  • Emission (305-1, 305-2, 305-3, 305-4, 305-7)
  • Support low-carbon businesses and innovations showing trends of potential growth
 Shareholders, investors, partners, customers
  • Promote consumer access to clean energy sources
   Customers, society and communities
Capturing the Future Sustainability Market
  • Ensure alignment with and accommodate changes in market trends, customer needs, and government policies
   Shareholders, investors, government sector, customers, suppliers
  • Management Approach (3-1, 3-2, 3-3)
  • Foster collaboration for product development initiatives that create value and market opportunities for GPSC and its business partners
   Partners
Being an Innovative Leader
  • Prevent disruption by new players and create operational strengths
 Shareholder, investors, partners, customers, employees
  • Management Approach (3-1, 3-2, 3-3)
  • Enhance operational efficiency
  • Enhance employees’ efficiency and give them time for skill development in accordance with their interest
   Employees
  • Impact the operating results through the development and procurement of innovation that can further enhance GPSC’s products and services in the future
   Shareholder, investors
Employee-focused Organization
  • Employees form a vital force in driving the business towards its established goals.
  • Create differentiation and competitive advantages
   Shareholders, investors, employees
  • Management Approach (3-1, 3-2, 3-3)
  • Collective bargaining agreements (2-30)
  • Training and Education (404-1, 404-2, 404-3)
  • Freedom of association and collective bargaining (407-1)
  • Diversity and Equal Opportunity (405-1, 405-2)

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GPSC Sustainability Strategy and SDGs
Sustainable Management Structure
Sustainability Framework