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SUSTAINABLE DEVELOPMENT REPORT 2011

“SUSTAINABLE GROWTH OF BROADER VISION”

SUSTAINABLE DEVELOPMENT REPORT


Contents • •

Message from the Executive Social Responsibility Strategy for Sustainability - East Water and Social Responsibility - The Study of social responsibility context - Quality System Development and Social Responsibility - Integration of Social Responsibility • Business Operation of East Water • Vision, Mission, and CSR Policy • Management Structure • Awards In 2011 • Good Corporate Governance - Corporate Governance Policy - The Rights of Shareholders and Stakeholders - Leadership and Vision - The Shareholders’ Meeting - Conflict of Interest - Business Ethics - Power check and balance of Non-Executive Directors - Centralization and Decentralization of Power - Remunerations of Directors and Executives - The Board of Directors Meetings - The Committees - The Audit Committee - The Management Committee - The Corporate Governance and Nomination Committee - The Risk Management Committee - Regulation Enforcement and Operating Results Assessment and Remuneration Committee • Risk Factors - Risk from demand - supply management - Risk from raw water cost - Risk from operation - Risk from community conflict - Risk from policy of the government and related government agencies • The connecting with stakeholders - Sustainable water management - Environmental conservation - Community Society Development - Human Resource Development including health, safety and security of employees - The responsibility of the quality assurance of products and related equipment • Operation results of sustainable development of East Water in Year 2011 • Appendix : Global Reporting Initiative Guideline (GRI) - G 3.1

04 05 06 06 07 07 08 10 11 12 14 14 15 15 16 16 17 17 17 17 18 18 18 19 19 19 19 20 21 21 22 22 22 24 25 28 34 36 41 45 52


Message from the Executive

Mr.Praphant Asava-aree President & CEO

Thailand’s flood crisis in 2011 was the most severe natural calamity occurred in 50 years which had an impact on the economy, society, and living of the Thai people as a whole. Eastern Water Resources Development and Management Pcl. or EASTW joined with the government sector to urgently help solve the problem occurred in the flood affected areas by pumping out the water from the areas and preparing for long-term restoration for the flood affected. The main objective is to resolve and lessen trouble of the people as soon as possible by implementing the Company’s skills, knowledge, and experience of more than 19 years of water resources management, leading to economic expansion which has been being in line with social and environmental responsibility, since the first day operation. With such a calamity, East Water has realized the role and the importance of water management and necessity of corporate skill and ability development relating to water management technology particularly the business operation such as the implementation of Supervisory Control And Data Acquisition (SCADA) for providing water pumping service and satisfaction to the consumers, including

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decreasing risk in the long run with sustainability to the customers, communities, and society. East Water has a business operation strategy which places an emphasis upon 4 areas, covering development of business, management, learning and corporate development, information technology, and most important of all, the stakeholders. The 4 strategies focus on the importance of operation which serves the business demand as well as creating good quality of life for communities within normal situation or in time of emergency. The most important thing is to introduce understanding and cooperation of stakeholders in order to understand business operation which serves the sustainable development for business and society. In this year, East Water will clearly focus on social responsibility which is in accordance with short-term and long-term operation strategy, covering 4 areas. The Company aims to receive approval and cooperation from personnel, staff, customers, communities, society, and other corporations and to serve the need of all stakeholders with sustainability.


Social Responsibility Strategy for Sustainability

East Water and Social Responsibility Social Responsibility has been the core of the Company’s business operation. East Water understands the importance of water resource which is the importance essence for all livings and the people within the society. It is also the important element in production process and products and services development. Thus, social responsibility of East Water is “the water management to serve business demand without reducing quality of life of the people in the community and society as a whole” by creating wide range of activies to up lift me quality of life in community and society as well as being member of CSR club, under the association of listed company, to help developing society and community nationwides.This leads to the development of the country’s economy and better living of the society with sustainability through the business operation of East Water. Therefore, to achieve sustainable business operation, East Water has established an Integrated Corporate Responsibility Strategy. The master plan to focus on 3 areas consists of economy, society, and environment, under the 4-year period (2011 – 2014)

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Strategy of Integrated CSR Study of external and interal context

East Water CSR to SD

Determination of development plan

Application of CSR to administration and management

Communication, Evaluation and Report

2011

2012

2013

2014

The Study of social responsibility CONTEXT The initial operation was performed in 2011 which was the period for preparation when all documents sorted and followed the Global Reporting Initiatives (G 3.1) as to provide Sustainability Development Report or SD Report as well as to select a working group to prepare sustainability report. The working group would be the first to learn and understand the plan and the group would inform all of staff in every department.

Meanwhile, the brainstorming was established to initiate the CSR project guideline operation and strategy of corporate development for sustainability. In addition, the direction of corporate social responsibility guideline for operation was set up through studying principles, guidelines, and standards, including economic, social and environmental context which are important to the Company’s operation. As for the corporate internal processes, East Water has a policy for projects and activities relating to social responsibility of which we see the opportunity to connect processes and activities to the three areas of sustainability.

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Quality System Development and Social Responsibility East Water’s working group of national quality award is responsible for quality system improvement to develop services quality to serve stakeholders which leads to the utmost satisfaction and to achievement of business operation. Thus, in 2012, the Company has a plan to combine the working group of national quality award with the working group of sustainability report to connect all of activities within the business operation processes and the CSR in-process, leading to suitable controlling process following the international standard.

Integration

of Social Responsibility Following the CSR in-Process or to include the social responsibility into core business process, starting from the establishment of policy, strategy, procurement of raw material, hiring, production process, marketing, and social responsibility toward customers, consumers, environment, and communities surrounding water Year

sources of East Water are the activities occurred within normal business operation. As a result, East Water’s development of business operation process can analyze and assess the result which creates value to all stakeholders, including create continuous quality system development cycle with social responsibility.

Operation

Goal

2011

Study of CSR Context

2012

Development of quality and CSR

- There is a scope of CSR affairs, that can specify the quality development and social responsibility at core - There are operational method and plan for short and long terms operation

Integration of CSR

- All departments in oraganization are integrated with the concept of social reponsibility

2013 - 2014

- Regulation CSR for organization’s development - Appointing team and its duty - Having direction of organizational CSR

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Business Operation of East Water

WATER SOLUTION FOR ALL

East Water or Eastern Water Resources Development and Management PLC is responsible for management of raw water through the most modern and complete Water Grid in Thailand with the total length of more than 340 km connecting important water sources in the Eastern part of Thailand with 4 Water Grid system networks within Rayong, Chonburi, and Chachoengsao Provinces. The four water grids consist of the Nong Plalai-Dokkrai-Map Ta Phut-Sattahip water grid, the Nong Kho-Laem Chabang-Pattaya-Bang Phra water grid, the Nong Plalai-Nong Kho water grid, and the water grid system in Chachoengsao, with the total pumping capacity of 500 million cubic meters per year. The water grid networks can serve the consumption demand of the people and supply raw water to industrial sectors within the main industrial estates in the Eastern part of Thailand. Presently, East Water’ s headquarters is located in Bangkok, Thailand and the opertational center is located at Map Ta Phut, Rayong.

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East Water’s business operation has an important role in long-term water resources management within the Eastern part of Thailand which is the main economic zone of the country. The Company helps the government save investment budget and management of water management of more than Baht 7,000 million, as well as provides returns to the government for Thailand’s further development


Khlong Khuean Bang Khla Mueang

CHACHOENGSAO

Bangpagong River

Ban Pho

Bang Sao Thong

The process of water distribution Head Tank

Factory

Pumping station

Pan Tong

Industrial Estate

Panat Nikom

Mueang

Consumption

Ban Bueng

Reservoir Bang Phra

Ko Sichang

CHON BURI

Reservoir Nong Kho

Nong Yai

Siracha Reservoir Khlong Yai

Reservoir Pra Sae

Reservoir Nong Pra Lai

Bang Lamung

Reservoir Dok Krai

Pluak Daeng

Wang Chan

Ban Khai

RAYONG Sattahip

Ban Chang Mueang

Raw Water Pipe Line (EW) Existing Pipe Network Constructing Pipe Network

Raw Water Pipe Line (RID) Pump Station Head Tank Emergency Pond

Main Water Resource Reserve Water Resource Regulating Well/Recieving Well

Existing Pipe Network Constructing Pipe Network


Vision, Mission, and CSR Policy

STAKEHOLDERS

CORPORATE WATER LEARNING REUSE DEVELOPMENT develop and manage

SYSTEM DEVELOP water MANAGE system FINANCE and INVESTMENT AND

develop and manage

water solution for all

WATER STAKEHOLDERS REUSE SYSTEM

water reuse system WATER REUSE SYSTEM management WATER MANAGEMENT water solution for all management

DEVELOP AND MANAGE

DEVELOP AND MANAGE WATER SOLUTION FOR ALL

WATER

water solution for all SOLUTION

stakeholders

SOLUTION FOR ALL

WATER management management WATER REUSE SYSTEM SYSTEM

reuse system WATER water raw water pipeline network SOLUTION management FOR ALL develop and

FOR ALL

manage RAW water PIPRLINE network

raw water pipeline network management water management Water Solution for all source STAKEHOLDERS water solution for all supply WATER SYSTEM

STAKEHOLDERS water solution for all

corporate learning

WATER development SYSTEM

finance and investment

Water Solution for all

Water Solution for all

Vision

Mission

To be the leader of water management with value for advanced 1. To expand investment in tap water system and waste water economic development and longevity of society or system for sustainable growth of the Company; “Water solution for all”. 2. To maintain continual growth of raw water business 3. To maintain the good corporate governance and responsibility toward society and environment 4. To encourage leadership and water technology knowledge center

Corporate value – IAC I : Integrity C : Customer Service Orientation

A : Achievement Orientation T : Teamwork and Leadership

Business Operaiton East Water’s business operation has followed the good corporate governance by placing an importance upon all stakeholders with equality and business operation with “transparency, honesty, and responsibility with competitiveness” which are in accordance with guidelines of the Stock Exchange of Thailand. As a result, this leads to stability of the Company’s revenue and responsibility toward the community and environment. With the Company’s establishment of CSR Policy, in every year, the Company’s net profit of no exceeding than 5% will be devoted to activities for development of quality of life and environment of communities within and outside service areas of East Water.

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In 2011, East Water allocated 28.85 million baht for operation CSR affairs. In addition, the Company also focuses on providing knowledge and helps develop “water resources” of communities with the Company’s water experience and skill. It is the “Power of creative sharing”, following the initiative of our senior executives.


Management Organization Structure Structure

Board of Directors

Eastern Water Resources Development and Management Plc.

Audit Committee

Management and Investment Committee

Risk Management Committee

Corporate Governance and Nomination Committee

Regulation Enforcement and Operating Result Assessment and Renumeration Committee

President & CEO President & CEO office and Corporate Secretary

Audit Department

Executive Vice President , Operations

Project Planning Department

Operation and Customer Services Department

Executive Vice President , Finance and Accounting

Corporate Communications Department

Business Development Department

Human Resources Department

Corporate Affairs Department

Finance and Accounting Department

Information Technology Department

EASTERN WATER RESOURCES AND Eastern Water DEVELOPMENT Resources Development and MANAGEMENT Management PLC. | PLC. 27|

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Awards

August 2011

The Company received an evaluation rated “Very Good” from the Annual General Meeting Quality Evaluation 2010 from Thai Investors Association.

December 2011

The Company received an evaluation rated “Excellent” from the Annual General Meeting Quality Evaluation 2011 from Thai Institute of Directors (IOD).

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“Building a sustainable future”


Good Corporate Governance

Mrs. Namphon Rassadanukul Senior Vice President, President & CEO Office and Corporate Secretary

Equity toward High Integrity The Board of Directors continuously places an importance on business operation under the Good Corporate Governance by focusing on creating the utmost benefit to the shareholders with the realization of the stakeholders, including placing an importance upon social responsibility, society, communities, and environment.

The Company’s Board of Directors has continuously realized the importance of business operation under the Good Corporate Governance principles of which focus on providing the utmost benefit to the shareholders, stakeholders, including placing an emphasis upon responsibility toward society, community, and the environment. Last year, the Company focused on applying the Stock Exchange of Thailand’s Good Corporate Governance principles and guidelines on business operation for listed companies 2006 as corporate operation guidelines and to enhance the Good Corporate Governance principles of the group of Companies by practicing the most out of them. Also, the Company had organized activities to promote the Good Corporate Governance principles among the group of companies, which led to the Company’s personnel from every level to work with “transparency, honesty, responsibility, and competitiveness.”

Corporate Governance Policy The Company’s Board of Directors has stipulated the Company’s Vision, Mission, and the written Good Corporate Governance Policy since August 1, 2003. The Corporate Governance Committee is assigned to propose the policy to the Company’s Board of Directors to consider and revise the policy for the purpose of continuous development and keeping it up-to-date with the present situation. In addition, the Company has placed the Good Corporate Governance principles into the curriculum of the orientation of new staff of group of companies as to create awareness of business ethic practice, as one of the subjects in the principles of the Good Corporate Governance. On the orientation day, the new staff of the group of companies has to sign upon receiving the business ethic document for future practice. Moreover, the Company’s Directors have to sign upon receiving the manual of the Directors on the orientation day of the new Directors.

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The Rights of Shareholders and Stakeholders The Company has realized the rights of all shareholders by focusing on basic rights of the shareholders as stipulated by laws and regulations, and by treating the shareholders with equality such as the stipulation of policy and guidelines of the Good Corporate Governance, on time disclosure with actuality and transparency, etc. The stakeholders consist of shareholders, clients, partners, society, and environment. The Company’s business philosophy emphasizes on responsibility and equality treatment with creditability. Channels are established for notification of clue or complaint on any act against law or morality, inaccurate financial reports, or defective internal control system which will help efficiently protect informant who cooperates with the Company in taking care of the Company’s benefit. All complaints can be submitted to the Audit Committee through the following channels: E-mail: The Audit Committee AC_EW@eastwater.com Postal Service : The Audit Committee Eastern Water Resources Management and Development Public Company Limited East Water Building, Floor 25, 1 Vipavadeerangsit Soi 5, Vipavadeerangsit Road, Jomphol, Chatuchak, Bangkok 10900 The policy is disclosed in the Annual Report (56-2) and the complaints shall be notified via the channels on the Company’s website: www.eastwater.com

Leadership and Vision The Company’s Board of Directors plays an important role in defining of vision, policy, and strategy of the Company by setting the Corporate Plan every three years for the business. Also, the management shall analyze a 10-year long-term business plan due to the quick ever changing factors such as geography, economy, and technology. The performance in each year of the Company’s management teams, each team proposes strategy and activities to the Board of Executives and the Board of Directors, respectively, for further consideration, comments, and approval of the operating plan and annual budget. Apart from this, the management team will provide quarterly report of the progress of the annual operating plan and important problems to the Audit Committee’s meeting and to the Board of Directors for further acknowledgement. In addition, the management team will propose to the Board of Directors to consider approving important investment project procurement worth more than Baht 200 million. The Company’s Board of Directors has closely followed the performance of the Management team by requesting for the report of the targeted operating results in comparison with the operating results of the Company. This is one of the Board of Directors’ meeting agendas RE: the report of quarterly financial status of the Company. In addition, the Board of Directors has realized the compliance of laws and regulations by requesting the management team to report any change of laws and regulations prescribed by the Securities and Exchange Commission (SEC) and the Stock Exchange of Thailand (SET).

The Company has realized the rights of all shareholders by focusing on basic rights of the shareholders as stipulated by laws and regulations, and by treating the shareholders with equality Mrs. Thidarut Kraiprasit Senior Vice President, Internal Audit Department

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The Shareholders’ Meeting

Conflict of Interest

EAST Water holds the Shareholders’ Annual General Meeting in every year. The AGM 2010 was held on Thursday 24th March 2011 at 13.30 hrs, Jupiter Room, Floor 2, the Miracle Grand Convention, Vibhavadi Rangsit Road, Laksi, Don Muang, Bangkok. For the meeting held in 2011, the Thai Investors Association had organized the Annual General Meeting Quality Evaluation 2010 of which the Company was rated “Excellent”.

The Company’s Board of Directors has established the policy concerning conflict of interest in the Good Corporate Governance principles and the manual of the Board of Directors. Dutifully, all levels of personnel shall avoid any conflict of interest which may affect the group of companies’ benefit or which may create conflict at work. In the case when the practicing toward the Company’s contractors and trading partners stipulates that the report of the conflict of interest with connected persons following the SEC’s principles shall be done as information, the management shall be really careful with the report approval process which may cause possible conflict of interest of the connected transaction of the Company and its affiliated companies, including the Company and all stakeholders. The process shall be considered with accuracy and clarity by following general pricing structure and trading condition as applied to other trading partners of the Company. The connected transaction will be disclosed in the Annual Report and the 56-1 Form.

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Business Ethics To express the business operating determination under the Good Corporate Governance principles, the Board of Directors has stipulated the notification of “the Good Corporate Governance of the Group of Companies”, “the Board of Directors Manual”, and the Code of Business Ethics which was effectively announced on August 17, 2006. All of which have been constantly improved to be updated and appropriate with any changing principles in order to be standards for practicing following the Good Corporate Governance principles. All the directors of the Company are to sign in acceptance of the Manual. For the staff of the group of companies, the Company has continuously organized several projects to promote knowledge and understanding of the Good Corporate Governance.

Power check and balance of Non-Executive Directors There were 11 members of the Board of Directors, as ended December 31, 2011

Executive Director Non-Executive Directors Independent Directors

Centralization and Decentralization of Power

Remunerations of Directors and Executives

The Board of Directors places an importance upon transparency of business operation, decision making decentralization, and clear separation power of screening and consideration of approval. Chairman of the Board shall not be the same person as President & CEO. Members of the Audit Committee shall be Independent Directors with no authority to sign approval legal binding to the Company and no conflict of interest of finance and management of the Company and its affiliated companies.

Remunerations of the Board of Directors and Executives are in accordance with the principles and policies which were stipulated by the Board of Directors. The Remuneration Committee shall consider the remuneration following the period in the position based on the net profit, dividend payment, and operating results of the Company’s Board of Directors. However, the monthly remuneration shall be reduced in accordance with the economic situation which shall be annually reconsidered. The appropriate remuneration shall be proposed to the Board of Directors and shareholders.

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The Board of Directors Meetings The Board of Directors’ monthly meetings are normally scheduled to be set on the fourth week of the month which are planned in advance for the whole year to facilitate the Directors’ time for every meeting. The President &CEO, serving as the Secretary to the Board of Directors, shall coordinately include the scopes, importance orders, and subjects as meeting agendas. The important matters will be included in meeting agendas for consideration and other subjects will be ordered in certain agendas following its importance and urgency. The letter of meeting invitation with meeting agendas and relevant documents will be sent in advance to the Board of Directors to review the information before attending every meeting.

The Committees The Board of Directors has appointed the Sub-Committees which consist of members with appropriate expertise to review and examine the works assigned to them to initially ensure their accuracy and clarity following the Company’s missions and policy prior to proposing them to the Board of Directors for approval, or ratification, or further providing additional recommendations, depending upon the case. Three are 5 Sub-Committees. The Audit Committee is responsible for ensuring the accuracy and credibility of the Company’s financial statement following the generally accepted international accounting procedures prior to proposing to the Board of Directors. The Committee’s management procedures shall perform with effectiveness, independency, and focus on transparency and clear guidelines between the Board, the Internal Audit Department, the Management, and the External Auditor in order to revise and provide recommendation in terms of efficiency and effectiveness assessment of the Company’s internal control system and the compliance with the law and regulations. Also, the consideration of connected transaction or conflict of interest transaction shall be performed with lawful and reasonable implementation and shall maintain the utmost benefit of the Company. The disclosure of information shall be included into the Auditing Report in the Company’s Annual Report. In addition, the Committee is initially responsible for appointment and remuneration of the external auditors to further proposing to the Board of Directors and the shareholders.

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The Management and Investment Committee is assigned by the Board of Directors to be responsible for ensuring the efficiency and strength of the Company’s operation following the policy of the Board. The Committee is to consider revision business plan, operating plans and annual budgets, and other matters, particularly, concerning procurement of investment project which is over the assigned authorization before proposing to the Board. In addition, the Management and Investment Committee is responsible for determination of procedures and principles for investment of projects and supporting management of the management in order to achieve the Company’s objectives and targets. Corporate Governance and Nomination Committee Corporate Governance Corporate Governance is responsible for supporting the operation of the Board of Directors with accuracy, transparency, and benefit maintaining of the Company’s shareholders and stakeholders by screening the manual of the Board of Directors, Business Ethics, Staff Ethics, and ensuring the practical result of development and best practices of the Good Corporate Governance principles. Moreover, the Committee is to ensure that the Company follows important practice guidelines of the effective corporate governance procedures which are suitable and in accordance with notifications of the Stock Exchange of Thailand. The assessment shall be performed periodically in accordance with the policy.


Nomination The Committee is appointed by the Board of Directors to select and nominate suitable persons to be members of the Board of Directors of the Company and its affiliated companies, representative directors of the Company, the Sub-Committees of the Company, and President & CEO, including to opine the management structure of the Board of Directors and the Sub-Committees. The Risk Management Committee The Risk Management Committee’s major role is to oversee and review the risk management policy and plan, standard practices, and strategies and risk assessment, including providing suggestion to the management to ensure the appropriate implementation of the risk management policy following the objectives by proposing to the Board of Directors in every 6 months.

Remuneration The Committee’s main responsibility is to provide suggestion of remuneration policy and all of other benefits in any forms of all level of personnel to the Board of Directors. In addition, the Committee is to provide suggestion to the Board of Directors concerning annual remuneration of the Board of Directors of the Company and its affiliated companies, and President & CEO based on their roles, responsibility, assignments, and the shareholders’ equity.

Regulation Enforcement and Operating Results Assessment and Remuneration Committee The Regulation Enforcement and Operating Results Assessment The Regulation Enforcement and Operating Results Assessment Committee, appointed by the Board of Directors, is responsible for annual regulations enforcement and Corporate KPIs revision following the Company’s business operation policy, including quarterly assessment of the Company’s performance and providing suggestion to the management in terms of operation and report the results to the Board of Directors.

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Risk Factors

Determination to be successful corporate

Eastern Water Resources Development and Management PCL. has realized the risk factors which may arise and affect the Company’s business operation. The Company then considered and determined the guideline to manage possible risks. Previously, the Company analyzed on the important risk factors which may affect the management of water resources and performed the review and adjustment of organizational structure and risk management procedure in various aspects, continuously in order to enhance risk management system to be equivalent to international standards and to be ready for the risk management under COSO guideline.

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Risk Management Committee plays an important role in determining policies, reviewing the sufficiency of policies and supervising important corporate risks. The aim of the risk management is to manage various risks to be under the determined scope, to operate the business with appropriate returns and to monitor the work performance in accordance with risk management plans, including consideration toward risk management operating results quarterly to continuously control the risks. In 2011, there were significant implication on risks, as summarized below:


1. Risk from demand-supply management The Company was affected from the risk from demand – supply management due to 2 risk factors as follows: 1.1 Sensibility of demand forecast which is difficult to be predicted arising out of global economic fluctuation, especially European debt and domestic flood crisis which has caused the reduction of production capacity and consumers’ water usage volume. In this regard, the Company has enforced a measure to handle with such crisis by closely focusing on CRM activities and improving the efficiency of water distribution system to support consumers’ needs in various forms at prompt. 1.2 Climate fluctuation and drought Uncertainty and difficulty on forecasting of rainy season and drought have significantly affected the customers’ water usage, especially those who own raw water resources. The Company developed measures on contract management, clear determination of minimum guarantee for customers and regular meeting with customers to inquire about their production plans or upcoming projects which enable the Company to participate in planning and reviewing of usage volume with the customers quarterly.

2. Risk from adjustment of raw water cost The Company’s raw water cost was affected by 3 risk factors as follows: 2.1 Adjustment of the Provincial Electricity Authority’s Ft which is the main factor driving the increase of sale operating cost. In this regard, the Company has put in place the energy saving plan and implemented the plan consistently. In addition, the Company has prepared the water pumping plan monthly to monitor its work performance closely. 2.2 Turning water to reserve as raw water for drought period To get ready for the drought period during February – May of each year, the Company needs to turn water from the water resources far away from usual ones for storage. Such water turning directly affects electricity cost. In this regard, the Company had put in place annual drought surveillance and prevention plan to reduce the risk from climate fluctuation and launched War Room activity to closely discuss with customers and report water situation. 2.3 Raw water quality and pollution around water resources With environment and pollution in Eastern area, water quality in the water resources may be affected. The effect also increases due to the dense communities living around main reservoirs, soil pollution and air pollution from industries. As the result, from the beginning of the Company’s business until 2011, the Company has cooperated with communities in monitoring and protecting the environment around the upstream of raw water resources.

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3. Risk from business operation

4. Risk from conflicts with community

Risk from internal operation was affected by 2 risk factors as follows: The usage of water resources may affect the Company’s image. The Company had allocated budget for quality of life and 3.1 Risk from electrical disruption environmental development by creating relationship with the in the areas as well as providing accurate understanding The Company operates to distribute water to customers 24 hours a communities and consistently local communities’ development project day. Reserved water resource is then a necessary thing in an encouragement toproviding reduce conflicts and increase good attitude emergency period such as when light goes off or a repair or pipeline toward the Company. The activities consisted of canal digging, joint is needed. Due to the existence of the Company’s agreement drinking water mobile service, young leader camp for conservation with the Provincial Electricity Authority concerning the halt of of water resources and environment with scholarship, mangrove electricity distribution, the water reserve from the reserved ponds is forestation for environmental conservation, as well as supporting necessary to continuously distribute raw water to its customers activities for quality of life and environmental for when there is an emergency. At present, the Company’s water communities such as temples, schools, governmentdevelopment agencies, and resources reserves for the emergency has a capacity of 116,300 public charities. cubic meters which provides the reserved water of approximately 6.30 hours. However, the Company has an operational plan for any emergency to provide continuous water distribution. Moreover, the Company has a plan to increase its reserved water volume with the construction of an additional reserved pond with the capacity of 220,000 cubic meters in Map Kha area which will provide the reserved water of 24 hours, as many emergency arises.

5. Risk from policy of the government and related government agencies

3.2 Risk from damages to water pipeline system There were possible problems of corrosion or other constructions of infrastructure along the pipeline area which might affect the Company’s water pipeline system to break or leak. However, the Company had set up preventive maintenance plan and continuous examination and maintenance of water pipeline system as planned. In addition, the Company had risk insurance with the insurance company which would be responsible for any damages with the pipeline system caused by any incidents, covering every pipeline as well as the Company’s asset insurance and third party insurance, including damages from the operation halt, to help the Company to continuously distribute water with efficiency.

Mr. Jaroensuk Worapansopak Executive Vice President, Operation

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The instability of the policy of the government agencies relating to the Company’s operation may affect the Company such as the delay of certificate issuance from related government agencies, clarity of water pipeline leasing fee of Nong Pla Lai – Nong Kho. However, the Company still received good cooperation from the related government agencies. Moreover, the establishment and business operation of the Company followed the cabinet’s resolution to promote the industrial investment and tourism in the area of the Southern Seaboard. In addition to the main corporate risks supervised by Risk Management Committee, the Company has provided a risk management handbook and risk operational plan to its work divisions for their adherence in keeping the risks to be at an acceptable level. The risks are reviewed quarterly by taking into account all events which may arise, not only the risks that are capable to cause damages but other surrounded factors which identify the likelihoods of the risks of the Company under various circumstances which may change from time to time.

In addition to the main corporate risks supervised by Risk Management Committee, the Company has provided a risk management handbook and risk operational plan to its work divisions for their adherence in keeping the risks to be at an acceptable level. The risks are reviewed quarterly by taking into account all events which may arise, not only the risks that are capable to cause damages but other surrounded factors which identify the likelihoods of the risks of the Company under various circumstances which may change from time to time.


The connecting with stakeholders

power of creative sharing

Report Boundary – It is the first year that Eastern Water Resources Development and Management PLC. has provided sustainable development report to communicate operating scope of creativity, operating process, and operating results which have a result on economy, society, and environment of East Water. From January

1 – December 31, 2011, the Company followed the international standard of Global Reporting Initiative: GRI, Third Generation (G3) to prepare the report. After the assessment of the context in comparison with the sustainable development report of GRI, the result of the Company’s report is equivalent to C level.

The connecting with stakeholders In order to make East Water’s social responsibility operation serve the demand or expectation of all stakeholders, East Water has studied the need and expectation of all stakeholders to offer and fulfill the need of stakeholders.

Stakeholders Shareholders

Communities in operating areas Customers Trading Partners Employees

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East Water’s consideration of stakeholders is based on law and legally responsibility scope due to the impact of the business operation. The stakeholders are categorized into 5 groups: Shareholders, Communities within the operating areas, Customers, Staff, and Trading partners. East Water has studied an opinion of the stakeholders groups whose need and expectation are different as illustrated in the table below. The study is a guideline to prepare sustainable development report.

Social Responsibility - Sustainable economy and business operation - Access to water resources - Taking part in management and decision making - Community Development - Water volume and quality - Economically water consumption - Transparency and fairness in business operation - Fair employment - Skill and knowledge development - Good benefit and quality of life - Safety working environment

Response - Good Corporate Governance - Business Development - Integration of social responsibility for sustainable business development - Water sources management - Connecting stakeholders - Environmental management - Community Development - Compliance with the Governance - Water quality management - Responsibility toward consumers - Compliance with the Governance - Business operation with fairness - Compliance with the Governance - Fair treatment toward staff with the realization of the human rights


Water resonrce is necessity of living and benefit to inanstry. Therefore, water management is very significant Mr. Namsak Wannavisute Executive Vice President, Finance and Accounting

Sustainable water management

• Water Loss Contrel Project

One of the important processes of water pumping system of East Water is the realization of water loss volume. The water loss control project aims to develop the potentiality of water supply controlling management system and to control water loss is the natural resource which is no less important within efficiency, following the Corporate Plan which leads to than other resources. It is because water is an important component continuously reduce water loss. of the ecosystem, a necessity of the livings, and beneficial to the industry. However, there is only 3% of water which can be used. In addition, the demand of water is increasingly growing up and However, in order to increase stability and sustainability of water the water consumption lacks of its value awareness. Thus, the management in 2011, East Water had renewed its aim to reduce water source may be limited and insufficient to human being in water loss by controlling the water loss standard at 3.5%. Also, the the future. Thus the sustainable water management is very essential. calculation had been improved from the calculation of water loss volume within the water grids without specifying time and place With East Water’s production and services structure based on as well as water loss from the leakage or dredging to new calculation water, it places an importance upon investment to create, procure, of Non-Revenue Water which is calculated from volume of supply and provide effective water resources management to serve the water deducted by billed water volume to the customers and consumption, and to employ modern technology and invent process water reserve which are measurable. The Non-Revenue Water which helps promote worthy and sustainable water resources volume in each year from 2009 – 2011 is shown in the table utilization from upstream to the end users. It starts from establishing below: management policy based on sustainable development, strategic planning with realization of all stakeholders’ demand, tracking Water loss control project has applied the IT to help with the operating results, and revising strategic plan. As a result, it responses improvement and development in cooperation with the development to the Company’s vision “Water Solution for ALL”. Also, the risk of SCADA and DMA systems which gather water usage information management process is implemented to seek opportunity and whether water volume or water pressure along the water grids impact which may occur to the stability of the business. This is to with accuracy. The systems also help examine and track the water prevent any affect on corporate goals operation. grids with unusual flow. Thus, the cause is detected and solved in Apart from this, under the production process, East Water has developed time. This provides the utmost satisfaction to the customers. water management system through large water grids network in the Non-Revenue Water eastern part to cover areas in Rayong, Cholburi, and Chachoengsao in order to sufficiently serve the present demand and the future expansion. The process reflects the determination of efficiency and 4.52% 1.72% 3.4% sustainable water resources management, particularly, with the fluctuation of the weather and water pollution. In 2011, East Water had established projects to support sustainable water management as follows:

“Water”

2509

2510

2511

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• Water Supply Resources Provision Project Apart from water quality and appropriate water pressure, another important thing to serve the customer satisfaction is to provide water supply resources to serve the need of the customers. Due to the water shortage in 2005, the government assigned the Company and related organizations to jointly provide short-term, middle-term, and long-term solution to the problem to maintain sufficient water in the long run. As a result of efficient cooperation of related organizations, the crisis in 2005 was overcome and the confidence was quickly regained. In addition, in order to protect any possible drought in the future, the Company has established the drought protection system which consists of watching system and drought solution measurement, water supply resources provision, reverse water pumping system, small reservoir, and demand side management. East Water has provided the water supply resources for water distribution to the Company’s service areas which is sufficient for the drought season. The water supply resources of the Company are as follows:

Raw Water Supply

Location

Chachoengsao Raw Klong Kuean, Klong Kuean, Water Supply Chachoengsao Sam Nak Bok Raw Sam Nak Bok, Muang, Cholburi Water Supply

Capacity

(Million Cubic Meter)

2.0 7.4

In addition, to increase stability of water resources, the Company has a plan to develop many projects of water resources and water supply resources to be primary water sources and secondary water sources in the future. It is expected that within Rayong province and Bowin-Pluak Daeng areas, the water of 25 million cubic meters are required as an additional of the water volume of 276 million cubic meters allocated by the Royal Irrigation Department. The details are shown in the table below, including the potentiality increase project in order to serve the water volume sufficiently utilized within the next 10 years (2021), of which the projects are under studies such as

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• The potentiality increase project of Laem Chabang Water supply system (the construction of water pumping system of Bang Phra reservoir) • Water supply expansion to Cholburi project • Reserved water supply project in Rayong Water supply volume (million cubic meters)

276

Water volume used in the future (2021) Rayong Bowin-Pluak Total Daeng 262

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301

Additional water supply * (million cubic meters) 25

East Water has developed the Value Chain in doing business. The Quality Value Chain is the management process within the organization so that all processes are closely linked and integrated in order to enhance sustainable water management.

• Water situation assessment meeting with government agencies to find direction for sustainable water management Every two months, East Water joined Water War room with the Water institute for sustainability of the Federal of Thai Industries, the Water Irrigation Department, and customers to assess the water situation of Rayong, Cholbu and Chachoengsao provinces to ensure water sufficiency for every sectors as well as to mutually stipulate raw water quality standard for consumption and industry with daily water quality control and monthly raw water analysis of the water resources. This can be performed based on important water quality index, namely, conductivity, turbidity, and chloride, which are accepted as agreed with the customers in SLA (Service Level Agreement).

• Technology The SCADA system or the Supervisory Control and Data Acquisition system which provides water pressure and volume within the pipeline as well as the water capacity of the water resources. The information is directly transferred to the central operation center which works 24 hours. The Company can keep track and quickly solve the problem with the technology. This helps reduce


water utilization which has no benefit to the customers and the Company such as water from broken or leaked pipes, or water drainage for maintenance in every 3 months (to drain the dregs in the pipe), including water drainage to ease problems with raw water quality.

• ISO 9001: 2008 and ISO 14001: 2004

East Water has applied the Quality Management System of ISO 9001: 2008 which is internationally accepted with the Company’s business operation to reflect its systematic management with process, continuous development, leadership, decision making made on truth, customer oriented, personnel cooperation, and The monitoring system either from other agencies or internal relationship with mutual benefit with customers. department, and other standards approvals are the guarantees of the Company’s good performance such as the quality certification The ISO14001:2004 is the standard for environmental management of standard system of ISO 9001 : 2008 and ISO 14001 : 2008, the system which is widely accepted. East water has to follows the Corporate Governance system of the Stock Exchange of Thailand, etc. three important basis, namely, pollution protection, compliance with law, continuous development to drive capability of environmental conservation as a whole

Laws/rules/ regulations

Legal processes

KPIs

The Enhancement and Conservation of National Environment Quality Act B.E. 2535 The Fuel Control Act B.E. 2542

To set up waste water management in the building to acquire the legal standard value

The BOD, SS, TDS, and TKN received the disposal standard

To safely store and move fuel for the safety of community and environment

Fuel storage station is checked in every 5 years.

The Labour Protect Act

To set up work environment suitable for staff and their quality of life

Noise in workplace is no louder than 90 decibels and temperature in work place is no higher than 25.5 Celsius, as well as fringe benefits are satisfied for the staff

The Waste and Disposal Act B.E. 2535

To legally dispose the waste

The disposal and hazardous are properly destroyed as stipulated by law

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Environmental conservation Environment is an important factor which is to be considered with the activities from the government and private sectors, and the people. East water, a company in the private sector, sees the importance of environmental conservation and management in line with transparent business operation and taking care of community, particularly the communities within the Company’s operating areas. However, to efficiently perform environmental conservation and management, the Company, as an expertise in Eastern water resources management and development, has stipulated the scope and definition of environmental conservation as follows:

with international standard, East Water has established environmental management system which is a guideline for business operation. The environmental management system, ISO14001, is the internationally accepted which requires corporate structure and responsibility which are necessary for management to achieve environmental goal of the Company. In addition, the ISO14001 shall receive continuous support from senior executives and concretely and systematically implemented at every level of the Company. East Water has followed the scope and regulations of the ISO 14001 and received the certification of environmental management system, ISO 14001: 2004 within the scope of Administration of Water Distribution and Agreements.

2. Quality of life and environmental development policy as one of the main corporate policies

With the aforementioned scope, East Water is able to perform environmental conservation and management with complete efficiency and effectiveness. Nonetheless, East Water is the Company which performs its business operation concerning water resources management. Water is the basic natural resource which is important to the living, society, and the country’s economy. Thus, the Company’s strategic planning closely realizes the country’s development direction and rain volume tendency, as well as natural water sources situation. The followings are measures to promote and perform environmental conservation:

East Water has realized the importance of the responsibility toward community and society. The Company has established the policy of quality of life and environmental development as one of the main policies of the Company by allocating 5% of the net profit to return to the society, following corporate vision “Water Solution for All. Throughout 19 years of operation, East Water has accumulated its skill and developed its potentiality. All of executives and staff are determined and intended to implement the skill for the benefit of the community. Thus, the quality of life and environmental development project is performed through Corporate Social Responsibility activities under the responsibility activity relations unit and CSR of Corporate Communications 1.“Care for society and environment” is one of the ofDepartment. East Water has organized activities relating to corporate missions and focusing on water as well as providing opportunity for the East Water’s missions aim to perform business with direction. One community to give suggestion. of the objectives of the missions includes the Good Corporate Governance and responsibility toward society and environment. The mission reflects the Company’s determination and intention The quality of life and environmental development policy of East to conserve the environment. Moreover, to concretely perform Water has performed through several activities covering quality of

East Water realizes the environmental management in production process and takes care of any other resources relating to Company’s operation in operational area Mr. Potjana Bunsiri Vice President, Operation Department

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life and environmental development. Those activities are differed depending on the participants. The activities for the quality of life and environmental development focus on children and youth, including the whole community. The activities held by East Water consist of Youth Camp/ Waste Water Management System in School/ 3Rs Innovation, Biodiversity meeting, forestation, helping marine life, monitoring of upstream water source project, and electricity cost reduction 115 KV project to reduce the energy cost and decrease the community’s power usage on peak. Those activities show the Company’s realization of importance of quality of life and environmental development.

3.1 East Water Young Leader Project 2011 East Water Young Leader Camp is held and aims to build better understanding and realization toward water conservation which is limited to local community. This project also provide knowledge about water and encourage community to employ water with the full utility East Water Young Leader Camp has hold since 2008. To built the strong network of water conservation, it focuses on young people in operational areal and educate them to be young leader of water conservation and expect them to spread their knowledge to their family and community. This project aims to have 300 participants each year. Presently, there are 1,200 attendants from 320 schools in Rayong, Chonburi and Chachoengsao. In 2011, it is 17th - 20th Camp, hold in August and September. There is 279 students from 39 schools who recently attended in this activity. In addition, this project also grants the scholarship to support education and aims to encourage students and schools to integrate their knowledge to create and develop their water management at school.

3. Strategic objectives of stakeholders which consist of Good Corporate Governance, Community and environmental development and promotion. Activities for quality of life development do not only reflect the determination and realization of quality of life and environmental development of the Company, they also reflect the intention toward the Good Corporate Governance, the promotion/ development of community and environment such as encouragement of water resources and environmental conservation, cooperation with community and government agencies within operating areas, corporate image awareness, and water resources conservation. East Water has realized that community is also another important stakeholder. The followings are the activities to promote the community and environmental development:

East Water Youth Camp project is one of the projects which East Water follows the strategic objectives in terms of stakeholders, namely, the Good Corporate Governance and the encouragement/ development of community and environment such as the encouragement of environmental and water conservation, cooperation with communities and government agencies within the operating areas, creating awareness of corporate image, and water resources conservation through waste water management system in school – the project promote cooperation of the communities through schools within operating areas.

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3.2 Waste water management system in school’s canteen project Therefore, East Water has integrated the activity from East Water Young Leader Camp and established the waste water management system in school’s canteen project to express its care toward environment of communities. Also, the Company has taken part in helping solve water pollution and create good relationship with communalities and schools. The project is the cooperation between the Company, Chachoengsao’s environmental conservation club, and Natural Resources and Environment Office, Chachoengsao Province which is experienced in household waste water management and initiates the project to build and install grease tank in schools’ canteens in Chahoengsao province. At present, there are 93 schools participating in waste water management project. The project’s objective focuses on initial waste water management of schools which joined the youth camp in Chachoengsao and Cholburi provinces and water pollution problem easing. The project is an on-going project from the youth camp activity in 2011 which has the scope in Cholbuti and Rayong provinces, and expands to cover Rayong province. Thus, the project will be operated together with the youth camp project.

3.3 3Rs Innovation Award Apart from the project which focuses on operating areas, East Water also has a project which promotes extensive conservation of environment and create good corporate image through the 3Rs Innovation Award. The project provides an opportunity to youth across Thailand to show their innovation of water management under the theme of 3R to use less water and reduce excess use of water, including recycling water (Reduce, Reuse, and Recycle) to the actual practice with benefit and to see the potentiality of the youth. The project was held by the Company in cooperation with the Ministry of Natural Resources and Environment to encourage students in high school, vocational schools, and university to show their innovative ability and skill with scientific and technological creativity of water management for benefit of community and industry. The result can be extended to be the model of 3Rs innovation for actual practice of communities or industry. Thailand Institute of Scientific and Technological Research, Waste Water Management Authority, Industrial Estate Authority of Thailand, and National Science and Technology Development Agency jointly became the judges. The objective of the project is to provide an opportunity to inventors from students within university and vocational schools as well as to promote new innovation which is beneficial to Thailand. The invention received the 3R innovative award will be the model of the communities within the operating areas along with the raw water pipeline. Also, the new innovation will be part of business development of the Company. In this year, there are 39 teams from 19 universities across the country joining the competition. The 10 teams who passed through the selection round are as follows:

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No.

Team

Invention

1 2

Nam Ubol KKC.rmuti

Water management for car care business 3R Automatic watering system in Rajamangala University of Technology Isan Khonkaen campus Recycling water from toilette flush tank and sink Cesspool for water conservation

3

K.RAMP_WATER

4

Tuek La-or Kul Sarool

5

Noom Na Khao Sao NA Klue

Flood management from Rock Salt field

6

KMUTT.E

Vegetable and fruit washing machine with Ozone (Ozy3R)

7

Bio-Agro PSU

3-Section for Biogas and Water Reuse

8

Electro-Fighting

Rubber Separator by EC

9

Technique Sichon 1

10

PURE DROP

Ice melting process for fish processing industry Distill water tank with solar power and rain storage tank

School/ University/ Vocational school Ubonratchathani Technical College Rajamankala University of Technology Isan Khonkaen Campus King Mongkut’s University of Technology Buriram Rajabhat University – The Faculty of Science Khonkaen University – The Faculty of Engineering – Department of Environmental Engineering King Mongkut’s University of Technology Thonburi – The Faculty of Engineering – Department of Environmental Engineering Prince of Songkla University-The Faculty of Agro-Industry King Mongkut’s University of Technology Ladkrabang- The Faculty of Science SIchon Technical College Naresuan University – The Faculty of Engineering – Department of Mechanical Engineering (former contestant)

3.4 Biodiversity It is the environmental factor which is widely interested among international academics and organization. In terms of the organization, the biodiversity is requested by the government sector or relating organizations to be practical guideline for sustainable business. East Water has taken part and brought the idea to its CSR activities. The definition of Biodiversity can be generally summarized as “all kinds of livings and breeds in

the ecosystem where they live which are many different places in the world or there many different species, genetic, and ecosystem in this world”. The definition means the importance of the livings in the ecosystem to remain their biodiversity of species, genetic, and ecosystem. The 3 parts help the natural balance and completeness with sustainability.

East Water employs the Good Corporate Strategy by fostering community development and environment and placing it to operational plan. Mr. Sombat Yusamart Vice President, Finance and Accounting Department

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Despite we are new to the biodiversity; our corporate communications department has taken part in many meetings to adapt the ideas with our CSR activities by focusing on the biodiversity. On November 3, Miss Kanyanart Weerapun, Director of Corporate Communications Department joined the Asian Forum on Biodiversity, Dusit THani Hotel, A. Hua Hin, Prajuabkirikhan province and presented Biodiversity and Corporate Social Responsibility(CSR):The Perspectives from East Water. The joining with the meeting reflects the Company’s determination to place an emphasis upon biodiversity. However, the concrete presentation of biodiversity has to receive cooperation from many relating parties. THe brainstorming and information from many departments are beneficial for the CSR activities to focus on the biodiversity.

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3.5 Forestation

3.6 Canal Dredging

East Water sees the importance of environmental conservation. The Company, in cooperation with communities, and government agencies, organized “Forestation of the forest in general and mangrove forest” project. In 2011, East Water performed 14 forestation activities, covering Rayong, Cholburi, and Chachoengsao as they are East Water operating areas. Throughout the year, 29,762 trees were planted. The activity was to bring back freshness to the forest and helped environmental conservation.

East Water is determined to supply water to the people and industrial sector for better living. However, East Water has realized the importance of communities and environment within the operating areas of the Company, the Company has cooperated with the government agencies to create good relationship with the communalities to provide benefit to the communities through the project called “Canal Dredging” for the areas in Rayong, Cholburi, and Chachoengsao.

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3.7 Aquatic animals release The project is came from the Company’s realization of environmental conservation as well as creating of biodiversity around the reservoir and water resources. Moreover, it is the nursing aquatic animals as communalities’ food. In 2011, East Water had performed the release 9 times with the amount of 5,668,982 breeds, consisting of fish and shrimp. The project aims to create balance and biodiversity as well as sustainable environmental conservation.

3.8 Monitoring upstream water quality of the reservoir project With its care for environmental conservation, East Water, in cooperation with communities’ leaders and education institutes, organized monitoring upstream water quality of the reservoir project. The project aims to create water awareness among youth and communities located near the water sources and to sustainably conserve the water sources. East Water started to invite the director of Laem Pak Bia to analyze water quality and provide suggestion on April 28, 2011. Then, East Water provided financial support and joined the meeting and water quality assessment, including providing water information of the Company’s some areas which are beneficial to the project. This helps the communities to understand the Company’s care for environment and to create good relationship with the communities, leading to environmental conservation.

3.9 Electricity cost reduction 115 KV project to reduce the energy cost and decrease the community’s power usage on peak East Water has realized the concern of communities and environment over business operation. Thus, the electricity cost reduction 115 KV project to reduce the energy cost and decrease the community’s power usage on peak and supplying reserve power to pumping system, and planning water pumping during the period of off-peak and on-peak are established to manage and reduce electricity usage at the same time with communities. The project is the strong preparation of the Company to ease environmental concerns of the public. East Water changed its transformers from 22 KV to 115 KV which will not disturb the power pressure of the communities in the evening. Also, the change helps reduce the outage occurred with the communalities and save the energy from electrical appliances which consume less energy. With the aforementioned projects, they prove the Company’s realization of environmental conservation which is in line with business operation. The environmental management comes from the Company’s internal production process as well as care for resources relating to business operation (Rayong, Chachonegsao, and Cholburi)

East Water, as a business unit, parts an emphasis on environment management and conservation, along with transparency in business operation and care to community, particularly in operational area. Mrs. Wirawan Tharanont Vice President, Corporate Affairs Department

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Community and Society Development

Company had gathered the information on problem and needs of the communities and developed CSR project to support quality of life of various communities. There were 3 main projects according to the target groups of housewife or husband, the disables, and East Water has realized the community and society development other people, the policy, understanding, accessing, and development. by stipulating missions which place an emphasis upon responsibility toward community, society, and environment. Moving province project/ Provincial Administration East Water’s scope of community and society development Organization to meet the people is as follows: In 2009, the Company needed to access the community, the Company had joined activity of moving province of government Community and society development through corporate agencies in Rayong, Cholburi, and Chachoengsao which was knowledge and expertise to develop the essence of the organized in every month. The project aimed to meet the people living which mainly follows the need of the community living in the areas. The Company had taken part in providing and society in order to create stability of resources games booth and to promote the Company. This created understanding utilization between the Company and the community, and good relationship with the community as well as to create and sustainability of living together. understanding of the Compnay’s business operation East Water has strategic planning in terms of the Good Corporate Governance which leads to the encouragement/ development of community and environment and annual operating plan. Thus, the satisfaction of community is survey in every year. The result from the survey is included in the community development project and the Company will select the community to receive the support. The selection of the community is based on necessity and urgency of help. It is found that there are 3 groups of community which the Company needs to understand and support: communities surrounding the Company’s futures projects, communities along the pipeline, and communities surrounding the reservoir. The CSR project is based on two principles: 1. To access and serve the need of the community, and 2. To focus on water resources and environmental development. Thus, there are two main projects, namely, creating community relationship project and water resources and environmental development project.

Meeting with community network project “Reduce expenses, Increase Income, Follow Economic Sufficiency by humbly inducing the Royal initiation of “Sufficient Economy” with the present economic situation for better quality of life of the people. This aims to provide better quality of life to the people by reducing expenses, increasing income, and fully utilize consumer goods. The project was initiated in 2010 with the main focus to provide training to the community and extend to local products. In 2011, there were 20 communities received the training with 1,778 participants. There were 2 communities with an expansion to local product groups.

The disabled comfort project

In 2010, the Company saw that the disabled in Chachoengsao, the operating area of the Company, needed will power for living Throughout 20 years of business operation, the Company has access in the society due to their difficulties, particularly who had just to communities surrounding raw water pipeline to express its care been the disabled who could not accept their condition and adjust of the living and quality of life of the communities. In 2009, the themselves, leading to despair and hopelessness, thinking they

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Water realizes in social and community development therefore our mission has focused on the responsibility to community, social and environment. Ms. Kanyanart Viraphandu Vice President, Corporate Communication Department

were the burden of others. In addition, some of the disabled lacked of knowledge and understanding of the social security or any benefit, particularly, the right to the nursing and recovery for the disabled. Despite the government’s regulation on taking care of the disabled, it is not a guarantee of a better quality of life to the disabled due to an increasing number of the disabled and the limitation of the budget. With the aforementioned causes, in order to help with the disabled with less opportunity in the society, the Company, in cooperation with Council of Disabled People of Chachoengsao has set up a project which aims to provide comfort to the disabled to express the Company’s care and help. There are 2 activities, namely, friends visit friends activity and excursion activity. The activities aim to provide motivation to the disabled to live in the society, provide information and legal benefit. The excursion aims to take the disabled to visit work places concerning setting up a group for profession. In 2011, the Company visited 20 disabled from 5 districts.

system to be used effectively. In addition East Water has continued providing the accounting management training in order to improve revenue – expense management in community’s water supply system. In year 2011, East Water has developed and integrated activities, by training community leaders about the Water Supply System with a focus on knowledge sharing within the community by starting in Rayong Province, Amphoe Maenam Khu, Tambon Nonglahan.

Our activities reflect to the carefulness and awareness in social and community responsibility in the view of development process. East Water also focuses heavily on social responsibility and tries to learn together with the community in order to understand the needs and help that community by sharing the expertise of water which is the important assets to the environment. The sustainable sharing basis is focused on teaching how to fish than give the fish so that to the community can stand on their own. This is as “Power of creative sharing”. Also we have shared the benefit knowledge to those who are responsible to social programs and persuade other agencies to participate with us to create and expand our network. This is The Village Water Supply considered to be the creative giving by using the East Water’s East Water aims to use its knowledge and capabilities in water expertise; this will drive a sustainable growth in economic and management to benefit the social and community. Since year 2008, environment as shown in this report. East Water has started the Village Water System in 3 provinces, including Rayong, Chonburi and Chachoengsao and continues to East Water realizes in social and community development therefore present. East Water has provided knowledge management, particularly our mission has focused on the responsibility to community, social water supply system for repairing the community’s water supply and environment.

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Human Resource Development including health, safety and security of employees The development in human resource is the starting point to build up the sustainable growth of the organization. Therefore, East Water considers the concept of work satisfactions and employees’ expectations to create the strategic plan in organizational development and information technology through Human Resource Department and other departments. There is the operation plan and key indicator identified that each function unit has to develop required knowledge and capability for each staff in order to get the job accomplished. The information to evaluate the staffs’ performance or Competency Gap has been evaluated together with supervisor and also staffs can indicate the interesting job or the skills that they would like to develop in the staff training plan. Company has focused in developing three areas; Company’s business knowledge, Financial Knowledge for people who is not in finance function and communication knowledge. In term of Company’s business knowledge, it is focused on the water pipeline network system and the high efficiency water loss control management which is the company’s competency to promote the sustainable knowledge as well as encourage the Company to fulfill the mission of being the knowledge center of water technology in the region. East Water believes that employees are a major force in driving the organization to create the excellence in business in order to have the good business operation. East Water has focused on the development in employees’ competency according to the Company’s value which promotes to be the well-being and competency employees. We have treated all employees equally and open to receive the suggestion through CEO’s mailbox or focusing on encourage staffs to work ethically and provide the proper work environment to promote the quality of life since starting until leaving the Company. There is a human resource management system which composed of recruitment, manpower plan, evaluation, career path management, staff development through training and development plan including compensation and remuneration policy that are comparable with others in the same business. The structure of Human Resource Department aims to manage effectively (Result Orientation) maintain and develop employees with transparent and fairness as followings:

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• Human Resource Management (HRM) is responsible for policy, strategy and systems related to human resource management to recruit the qualified staffs, Manpower Plan, Salary Structure, Compensation and Remuneration Policy which can compete with the other public utility service group under the appropriate personal expenses and build morale to employees. There is also a clear and transparent Performance Management. The company has adopted guidelines for compensation plan determined by the Key Performance Indicators (KPIs) and Competency evaluation in order to motivate employees to realize the important of achievement of company’s goal. The current key success indicators have 3 correspondence levels; Corporate KPIs, Department KPIs and Individual KPIs. • Human Resources Development (HRD) is responsible for strategy and system related to employees’ development in comply with target and organization strategic plan by both internal and external training including overseas training in order to build up the skills and competency corresponding to their jobs and prepare for their career path in the organization. In addition to training, the company also focuses on the individual development by targeting on providing the complete Individual Development Plan “IDP”. The IDP is aims that all employees are aware on their self-development. The IDP covers various development methods such as coaching, practicing, providing the continuous education including training.


The other continuous development program is the recruitment of high potential staffs called “Talent Management” in order to promote professionalism and prepare for change or transfer to new units. The Career Path Management and Succession Plan are the plan for executive succession management or core group which is important in the organization. The Thailand Quality Award “TQA” framework is guideline in develop employees by monitoring the training and develop to gain the following results;

• Employee Relations is responsible for employee activities, internal communication by focusing on building the good relationship in organization and including the information distribution to employees effectively in order to build employees pride in success in organization and also emphasize on corporate’s culture; Teamwork, Communication and Coaching. We aims to make employees work happily, enjoy working, employee satisfaction and employee engagement in organization by creating the work atmosphere to support this goal. We believe that if employees work happily, being satisfied with the relationship, the organization will get the excellence business result as well. East Water has implemented a staffing plan that is consistent with the business operation under fluctuations in the economic by giving priority to in line with the strategy and both short and long-term investment plan. The plan is divided into three groups to develop the appropriate level of competency; Operator group and Management Group will be evaluated and the career path planned by Executive. The Executive Group will be evaluated and the career path planned by Executive Director.

Employee’s skill development East Water has the annual evaluation which composed of 2 parts; performance based on the Individual KPIs and behavior based on the corporate’s value and job’s performance called Core Competency & Functional Competency. The supervisor will monitor and evaluate the performance and also uses the 2-Way communication with subordinate to evaluate the performance in order to improve and develop in next step. The evaluation result will be used in human resource management such as promotion, fairness in wages and salary adjustment and employee development, and etc. East Water has continued development employees’ skill in every level. All employees will be evaluated their performance twice a year and the supervisor will prepare the employee’s development plan and monitor and control the development to be in plan such as OJT practice and job assignment, etc. East Water has provided the program to support the Core Competency and assigned employees to attend the interesting course in famous institution. In year 2010, there are employees attended many training program in average 77.7 hour/person which can be divided in to group level as followings: - Operator Level took average 58 hour/person such as The 7 Habits of Highly Effective People, English Presentation Skill and

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Equally within Organization

Functional Competency course, and etc. - Management Level took average 129 hour/person such as Longterm strategy, Presentation Skill and Leader Course; Executive Development Program “EDP”, Auditing Knowledge, Safety – As said, East Water has policy and treats all employees equally and anti-discrimination in an appointment, transfer, career Executive level, Superior Skill and TQA, and etc. development, wages and salary, remuneration and punishment - Executive Level took average 121.8 hour/person such as Executive regardless of differences in gender, religion, race, and political Coaching Program, Senior Executive Program “SEP” of Educational thought. We respect in human and labor rights in compliance with Labor Laws including other related laws strictly. There is no Institutions, and etc. employment of child labor and Forced Labor or hinder the integration Since year 2007, in addition to the course relating to management of employees. We support the employee activities through various skill and job responsibilities, East Water encourages employees to committees such as Welfare Committee, Energy Conservation participate in meditation practices in various meditation centers. Committee and Health and Safety Committee and so on. This is an important way of spiritual development to wish that employees can live happily. The company believes that if employees East Water encourages in comply with various related laws. For are happy, it will lead to the effectiveness in work as well. So Welfare Committee, the company conducts the election by using employees can practice the meditation by selecting the meditation the election method same as National election in order to train center by their own and this can be counted as a training course employee to learn and understand the democratic process in the not leave. Now there is the continuous increasing rate of employees organization. Using Election process for Welfare Committee in compliance with Labor Law and the Welfare Committee will meet participate in meditation practice. quarterly as required by laws. The company and employees will consult and solve problems together. Employees can express their opinion and always get the information of organization through many channels such as Employee Meeting, Committees meeting, internal seminar, communication via email, internet, the internal voice line and journal, and etc. and sending the meeting resolution East Water has continue surveyed the Employee Engagement every year and the 2011 Survey Results was 3.65 and Employee Satisfaction to every employees via email. was 3.80 which remains relatively high. The assessment factor has been rated in the highest Employee Engagement was the selfesteem and recognition of people in the organization. The highest rated in the Employee Satisfaction was to have a relationship with colleagues.

Employee Engagement

The required improvement was the development plan on human resource and advancement on job opportunity which must be done urgently.

38

| SUSTAINABLE DEVELOPMENT REPORT 2011


Annual Compensations

• • • •

the grants for helping housing interest loan the grants for helping vehicle interest loan the funeral expenses allowance in case of employee’s death compensation preference and etc.

The East Water Committee has considered the increase in salaries and bonuses paid to employees by considering the results of the Company (Corporate KPIs) and yearly performance of the company (EBITDA) to build up employee morale. It’s because the operation East Water has set up the Provident Fund which employee has result is an overall staff performance to achieve the company’s right to choose his investment policy and the cumulative rate goals under the principles of good corporate governance. between 5-7 percent. If employee has service year equal to 5 years up, they can choose the 10 percent cumulative rate of their salary. The company will contribute 8 percent and 10 percent of his salary in case of employee who has service year equal to 5 years up.

Employee remunerations and employees benefits

East Water is also exploring the relative benefits to the business In addition to pay the fairness wages and bonus, the company on an annual basis to provide updated information to be consistent provides the remunerations to employees into 2 types as the with economic circumstances and competitive market rate. In addition to the above benefits, there is the giving the memorial followings; award to realize that people are valuable for the organization and Type 1 flexible remuneration which divides into 13 items therefore to retain employees with a long-term commitment to the organization. employees can reimburse not over than Baht 80,000 per year per Moreover, during the floods crisis in the late 2011, East Water has person. allocated funds to help alleviate the suffering primarily for employees, such as supplying for drinking water, shelter rental, sandbags, and Type 2 standard renumerations which divides into etc., as well as grants money for helping employees after flooding • Annual Health Check-Up in the amount of 30,000 baht each. • Health Insurance including to employees family/ Group Insurance

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Compensation Management During the past three years, the Company formulated the employee’s performance management system to reflect their performance by making Ker Performance Indicators (KPIs) and Competency to be clearer and in line with the company direction in order to reward to high performance employee. Regarding this issue, the Company deploys performance management and communicates to all employees to in line with the important principle that “High performance leads to high rewards” and the Company will communicate clearly to low performance employee that the potential improvement is expected.

Compensation comparing to market rate During the past couple years, East Water have been continuously studied the compansation scheme comparing to other companies in the same business sector including Consumer Price Index (CPI) to be the basis for calculating the wages and compensation of employees which is comparable to market rate properly. According to the research on 2010 comparing to market rate, it was founded that the compensation in term of salary is lower than the average of the group of 10 companies. Moreover, the total remunerations including other compensation and benefit i.e., standard remunerations, flexible remunerations and other benefits; is higher than the average figure from the sample group. However the Company still emphasize on employee compensation so that the Company continuously monitor and survey the compensation in the same business sector.

Concerning the promotion of occupational health and safety, East Water provides proper working environment for quality life of employees by means of max. 25.5 Celsius for temperature control and 90 Decibel for sound control together with the checking of Indoor Air Quality, monitoring of Legionella, checking the safety environment to define risk spot and accident prevention including health check-up by occupational health specialist to monitor work-related diseases which is the well preparation of environment from East Water and leading to hearing conservative project in 2011. By doing such project, the Human Resource Department and Corporate Affairs Departmenttogether with Safety Officer define preventive scheme applied for the sound level over 85 decibel (the law regulates for 90 decibel) to set up the sound monitoring, training and encourages the employees using preventive equipment including set up the Committee for Safety, Health, Environment and 5S. The activities for working environment improvement is explaned below. Indoor Air Quality 2553-2554

Control Value

Formaldehyde 3 Carbon Monoxide 9 Carbon Dioxide 1000 Respiration Dust 150 Temperature ( 0 C ) 22.5-25.5 Noice (Decibel: dBA) 90.0

2009

2010

2011

0.21 0.15 450 < 100 24.8 -

0.29 0.22 0.7 0.1 455 514 < 100 < 100 25.2 24.4 85.7 87.3

In the same time, East Water also focuses on employee’s work secure so that the Company set up the benefit committee to define and monitor the employee’s benefit to equally match with fairness by conducting the meeting every 3 months.

The development in human resource is the starting point to build up the sustainable growth of the organization therefore East Water considers the concept of work satisfactions and employees’ expectations to create the strategic plan in organizational development and information technology through Human Resource Department and other departments. Ms. Duangkaew Ungsrithong Vice President, Human Resources Department

40

| SUSTAINABLE DEVELOPMENT REPORT 2011


The responsibility of the quality assurance of products and related equipment.

Factory 7.11%

Private Industries 28.46%

East Water has continued improving to ensure the quality of product and equipment which related to business operation in order to build trust on quality of product with customers. In year 2011, East Water has checked the quality of raw water which is the main product of East Water as followings:

â&#x20AC;˘ Daily and Monthly information about water quality Consumption 31.65% East Water has provided the information about daily and monthly of raw water quality to customers. In order to be convenient and fast for getting the information of raw water quality, the customer can check via website: www.eastwater.com. Together with the State Industries 32.78% daily information of raw water quality, we also provide 5 important quality indexes; Turbidity, PH, Conductivity, DO and Temperature. In the monthly information of raw water quality, we will provide the important quality of 45 parameters which showed in the table The graph shows the 4 types of water consumer. on page 42.

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Parameter

Item

1.

pH

24.

DO(mg/l)

2.

Turbidity(NTU)

25.

BOD5(mg/l)

3.

Conductivity(micro mhos/cm)

26.

Faecal Coliform(MPN/100 ml)

4.

Colour(pt-Co Unit)

27.

Phenol(mg/l)

5.

Total Solids(mg/l)

28.

Nickel(ppm as Ni)

6.

Total Suspended Solids(mg/l)

29.

Total Mercury(ppm as Hg)

7.

Total Dissolved Solids(mg/l)

30.

Cadmium(ppm as Cd)

8.

Total Alkalinity(ppm as CaCO3)

31.

Chromium(ppm as Cr+6)

9.

Total Hardness(ppm as CaCO3)

32.

Lead(ppm as Pb)

10.

Carbonate Hardness(ppm as CaCO3)

33.

Arsenic(ppm as As)

11.

Calcium(ppm as CaCO3)

34.

Cyanide(ppm as CN)

12.

Magnesium(ppm as CaCO3)

35.

DDD&DDT(ppb)

13.

Chloride(ppm as Cl-)

36.

BHC(ppb)

14.

Total Iron(ppm as Fe)

37.

Dieldrin(ppb)

15.

Manganese(ppm as Mn2+)

38.

Aldrin(ppb)

16.

Copper(ppm as Cu)

39.

Heptachlor(ppb)

17.

Zinc (mg/l as Zn)

40.

Endrin(ppb)

18.

Sulphate(ppm as SO4)

41.

COD (mg/l)

19.

Phosphate(ppm as Po4)

42.

Total Organic Carbon,TOC(mg/l)

20.

Nitrate Nitrogen(ppm as No3-N)

43.

Detergent(ABS)

21.

Ammonia Nitrogen(ppm as NH3-N)

44.

Oil & Grease

22.

Fluoride(ppm as F)

45.

Total Phosphorus

23.

Silica(ppm as SiO2)

Item

42

| SUSTAINABLE DEVELOPMENT REPORT 2011

Parameter


• Service Level Agreement “SLA” SLA is the negotiation agreement between user and service provider in term of Minimum Level of Service to ensure that the provided service has been offered by users and users accepted those services. East Water has improved the services by preparing the SLA for all customers to analyze customers’ needs and identify the better way to respond to customer’s expectation. Nowadays, customers expect the different specification of raw water depending on the various business objectives such as the reliability of service for raw water, a consistent of water pressure and quality of raw water. This can classify customer expectations and business processes into 4 different groups as follows below. 1. Industrial Estate Customers which demand the raw water and deliver raw water to internal customer. This customer is mainly focused on stability of supply in term of quantity and pressure. The demand of water is relative high and continuous such as Maptaphut Industrial Estate, Eastern Industrial Estate, Asia Industrial Estate, RIL Industrial Estate 1996.

2. Industrial Estate Customers which demand the raw water and deliver water supply to internal customer. This customer is focused on quantity including the standard quality of raw water in order to produce water supply such as Provincial Waterworks Authority, Laem Chabang Industrial Estate, Eastern Seaboard Industrial Estate, Sahapatpiboon Industrial Park and etc. 3. General Factories which demand raw water for their Business purpose has mainly focused on the water quality because they need to improve water quality in order to meet the specific needs of each production process such as Rayong Power Plant, Independent Power (Thailand) Company Limited, Thai National Power Company Limited, Sahacogen (Chonburi) Public Company Limited, Toyota Motor (Baan Pho). 4. Community which mainly focused on quantity. The required quantity is relatively high comparing to other type. They use for community service/public and not effect to the fluctuation of quality and pressure of water such as Her Majesty Queen Sirikit, Tessabanmabkha, Rayong Central Prison. The basis of pumping raw water to meet each type of customers’ expectation is as following:

Description

Compression (Bar)

Quality Turbidity (NTU) Conductivity (µs/cm) Chloride (ppm)

1. Industrial Estate Customers which demand the raw water and deliver raw water to internal customer.

2.0

50

250

50

2. Industrial Estate Customers which demand the raw water and deliver water supply to internal customer.

1.5

50

1,000

250

3. General Factories which demand raw water for their Business purpose

2.0

50

250-500

50-125

4. Community which mainly focused on quantity.

1.5

200

1,000

250

Remark: The raw water pumping system is controlled by each individual water users

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The SLA information is surveyed the customers’ expectation, the quantity of raw water, water pressure and quality of raw water and will be combined with the pumping water system (SCADA) which improves the controlling of pumping water and monitoring the status of available water for each customer type with precision and responding to changes in the quality of service (Feedback Control) including the status of pumping water resulted into the dissatisfaction because we do not meet the customers’ expectation. If there is the change in basis of services from SLA, the company will notify the users in advance in order to prepare next system. • CSI (Customer Services Improvement) CSI (Customer Services Improvement) is the process of building trust and satisfaction in using our raw water service and promotes the vision “To be a leader in valued water management for sustainable growth of economy and social under the concept of Water Solution for All”. In order to achieve the objective, there is a process namely Customer Service Improvement Quality Cycle. According to the Model, it consists of a process with sequential steps. Start by listening to the problems of customers, such as Voice of Customers, which has a customer satisfaction survey, two times a year. Next is the Customer Need process that is a collection of customers’ problems to improve and develop water pumping system. The main problem is contaminated water, pressure dropping and the quantity shortage therefore the solution is to stable pumping system in order to keep the water distribution constantly, the readiness of equipment and productivity results from water system consists of quality of raw water, quality of information in terns of validity, consistency and fast as well as the controlling and monitoring on the changing in quality of water including service provided. This service consists of fast in problem solving, monitor customer’s station and calibration service which consists of information service such as water quality, water situation and water quantity. After that we prepare a report and analyze pumping water system and improve process as follows; 1. Sequencing the priorities of the machinery and equipment such as A B and C which is the definition

of pumping equipment at low, medium and high priority, 2. Important of communication system and calibration, 3. Important of machinery, and 4. Customer service. Next step is Target which consists of using Zero Breakdown. There is a non-stop water distribution in main line unless there is the repair or maintenance of max. 8 hours at a time which the level-A machine has no breakdown, SCADA equipment is ready to use 90 percent, main water meters can defect not over than 24 hour per user including Effective Quality Control. And the last step is “Plan” that means plan for manage and service to determine the direction, responsibility in order to achieve the objective of each year plan. ก�ำหนดระดับความส�ำคัญเครื่องจักร์อุปกรณ์ในโครงข่ายท่อส่งน�้ำ สถานี

เครื่องจักร์ อุปกรณ์

ชิ้นส่วน

All above can be determined that East Water pays attention to the quality of product before distribution from upstream to the downstream customers. We use the complaints to improve processes regularly in order to make customers confidence in our raw water as well as reduce the concerns of customers as much as possible.

East Water has continued improving to ensure the quality of product and equipment which related to business operation in order to build trust on quality of product with customers. Mr. Cherdchai Pitiwacharakul Vice President, Operation and Customer Service Department

44

| SUSTAINABLE DEVELOPMENT REPORT 2011


Operation results of sustainable development of East Water in Year 2011 “EAST WATER, CREATING BENEFITS FOR LIFE, BUSINEES AND COMMUNITY”

Statements of the year 2011 Million bath

3,000.00 2,500.00 2,000.00 1,500.00 1,000.00 500.00 0.00

2,746.95

Revenues

1,911.83

1,525.23

Expenses

Profit (Ebitda)

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Comparison Table of Complaints Number of Complant (s) 2011 Number of Complant (s) 2012

Time 4 3 2 1

November

Semptember

July

May

March

Janvary

0

Average raw water quality on 2011

46

Reservoir

pH

Dokkrai Nong Plalai Klang Yai Pra Sae Rayong river Chachoengsao Suan Son Bangpakong Nong Kho Bang Phra Sam Nak Bok

7.46 7.76 7.85 7.77 6.96 7.37 7.13 7.37 7.81 8.17 8.03

| SUSTAINABLE DEVELOPMENT REPORT 2011

DO (mg/L) 5.38 6.53 6.96 6.34 4.57 5.30 3.85 4.79 6.48 7.47 6.40

Turbidity (NTU) 9.36 10.02 27.51 3.77 93.03 37.46 40.87 76.64 13.34 9.38 10.21

Chloride (mg/L) 17.40 18.80 8.60 7.50 26.60 1065.20 60.40 4905.60 10.60 16.60 34.50

BOD (mg/L) 2.00 1.65 2.23 1.71 1.67 1.82 2.08 1.80 2.31 1.95 1.49


Number of Employees (Gender and Location) Number of Employees (31 December 2011) Total Employees

149

Number of Employees (Type of employment) Employee 148 Employee (contract) 1 Total 149 Number of Employees (Location) Bangkok Office 103 Operational Office 46 Total 149 Number of Employees (Gender) Female 74 Male 75 Total 149

Averase Competency Base Training Hours per officer 48.8

55.9

77.7 hr. : person

2554

2553

2552

Competency Base Training Hours on 2011 Executive

121.8

Manager

129.0 Staff 58.0 hr. : person

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Turning Over Rate in 2011 Turning Over Rate in 2011 = 32 Number of turning over (gender) Male Female

Person 5 27

% 15.625 84.375

Number of turning over (location) Bangkok Office Operational Office

Person 31 1

% 15.625 84.375

Number of turning over (age) 20 - 30 (year) 30 - 40 (year) 40 - 60 (year)

Person 7 22 3

% 96.875 3.125 9.37

Pumped Water in 2011

277

280 260

252

240

228

Quality of water mil. cm3

220 200 180

159

160

137

140

115

120 100

91

80

69

60 40 20 -

45 24

8 13

24

Jan

Feb SNB

48

1 16

4

3 24

32

36

48

Mar Apr SIAM Pond A-B

| SUSTAINABLE DEVELOPMENT REPORT 2011

5 6

6 7

48

7 9

181 9 10

May NNK

72

Jun BPK

14 10

90 83

77 72

64

151

56

40 61

204 11 10

15 11

83

July RY

16 13

95

107

121

Aug Sep Oct NK BP DK NL

135

Nov Dec Actual 2554


Overall Company’s Performance 5 points Stakeholders Area less Company’s employee Group of trading partner and AVL Investor and analyst 2011 2010 2009

Community and state agency

3.32 3.36

3.63, 72.6% (+1.6%)

3.55

3.74, 74.8% (+13.8%)

3.05

3.51, 70.2% (-0.1%)

3.56

3.96

3.96

3.34

Raw water customer

Meaning 1.00-1.50 = 1.51-2.50 = 2.51-3.50 = 3.51-4.50 = 4.51-5.00 =

3.45, 69.0% (+2.8%)

3.31

3.5 2.33

3.68, 73.6% (-5.6%) 3.71, 74.2% (-2.4%)

3.83

3.70

Rate of Satisfaction toward Company’s performance is increased from 2011 (+1.6%) Satisfaction of community and raw water customer is increased, while trading partner and AVL, Investor and analyst as well as Company’s employee is decreased from previous year.

3.70, 74.0% (+2.0%)

3.60

Not satisfied Less satisfied Fairly satisfied satisfied Very satisfied

Rate of Satisfaction of Company’s Performance 5 points Stakeholders Rent Company’s employee Group of trading partner and AVL Investor and analyst 2011 2010 2009

Community and state agency Raw water customer

3.71

3.54 3.36 3.91

3.64, 73.4% (+11.2%)

3.11

4.18 3.99

3.81

3.79

385, 77.0% (+2.2%)

3.74

3.58

2.77

3.76, 75.2% (+1.0%)

3.85, 77.0% (-6.6%) 3.83, 76.6% (-3.2%)

3.61, 72.2% (+4.6%)

3.38 3.84

Rate of Satisfaction toward Company’s performance is increased from 2011 (+1.0%) Satisfaction of community and raw water customer is increased, while trading partner and AVL, Investor and analyst as well as Company’s employee is decreased from previous year.

372, 74.4% (-2.4%)

Meaning 1.00-1.50 = Not satisfied 1.51-2.50 = Less satisfied 2.51-3.50 = Fairly satisfied 3.51-4.50 = satisfied 4.51-5.00 = Very satisfied

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50

Mar

Apr 6,751,288 5,739,197 17,206 440,573

6,489,634 5,315,958 17,262 469,446 6,650,370 5,213,652 17,934 449,565

Aug 5,750,709 6,085,181 17,262 491,147

Sem 3,762,359 6,903,766 17,262 450,272

Oct 4,117,075 6,576,796 16,724 494,840

Nov 4,620,550 6,777,485 16,724 485,257

Dec 70,099,420 70,532,732 207,325 5,535,709

Total

| SUSTAINABLE DEVELOPMENT REPORT 2011

In Total (baht)

Total (baht)

428,366

487,714 499,341

384,740

475,190

467,947

294,159

34,482 0

210,220 19,166 30,291 0

329,795

34,650 53,878

191,822 19,210 30,235 0

34,639 53,367

988,134 19,231 221,295 0

93,863 50,474

114,222 18,963 617,449 0

324,181 1,316,666 894,970

34,317 50,515

187,616 19,137 32,595 0

392,768

183,647 46,453

113,137 18,907 30,624 0

24,120,033 22,577,042 25,630,838 23,745,146 25,148,310 24,349,717 23,220,018 25,556,777 22,487,297 22,257,193 23,428,711 26,341,978

122,975 50,806

236,623 56,297

255,234 49,594

241,842 52,194

231,071 47,993

9,929 51,954

203,325 19,989 31,271 0

0 37,934 52,770 0

42,233 45,224 108,440 228

209,284 37,959 149,525 9,296

143,125 20,074 31,595 0

6,783,410 6,789,877 7,674,454 7,287,233 7,863,459 7,485,332 7,047,608 8,664,054 7,112,364 7,440,330 8,260,171 9,779,061

Total (baht)

1 2 3 4

141,387 19,905 33,222 0

92,187,353

0 0 0 0 0 0 0 0 0 0 0 0 598,025 573,745 1,291,469 1,070,716 1,390,123 1,325,878 1,286,687 973,033 76,780 479,373 680,310 1,016,716 0 0 0 0 0 0 0 142,977 1,030,793 614,474 98,612 334,629 6,185,386 6,216,132 6,382,984 6,216,517 6,473,336 6,159,454 5,760,921 7,548,044 6,004,791 6,346,484 7,481,248 8,427,716

Chonburi Bang Pra Kong Nam Pae Bang-Phra Nong-Kor Nong Kor By-Pass

1

Chachoengsao Chachoengsao Sam Rong Suan Son Tha Kai Siam Water Co., Ltd. Sam Nak Bok Bang Pra Kong to Bang-Phra

0 10,762,856 2,221,485 79,203,012

4,427,986 4,478,090 4,521,814 3,644,603 3,215,817 3,487,756 3,585,952 4,231,407 2,706,453 2,366,537 3,068,137 4,270,134

Pluak-Daeng NL1 + BP

1 2 3 4 5 6 7 8

123,207,697

10,613,372 10,694,222 10,904,798 9,861,120 9,689,152 9,647,209 9,346,874 11,779,451 8,711,244 8,713,021 10,549,384 12,697,850

288,863,060

6,295,837

2,544,504 295,699 1,369,313 9,524 0 1,513,272 563,525 0

44,004,684

2,970,322 29,625,594 90,611,780

12,440,690 10,833,884 13,049,831 12,313,969 13,581,320 12,948,264 12,292,298 12,331,521 12,344,299 11,133,660 11,205,434 11,900,016 146,375,185

6,668,805 6,403,995 18,165 490,356

May

0.839 0.812 0.813 0.778 0.760 253,798 498,224 391,638 341,667 172,656 314,302 410,256 302,599 0 119,832 157,778 7,573 2,315,687 2,407,241 2,482,136 2,247,493 2,414,477 2,367,927 2,230,553 2,912,191 2,210,469 2,180,515 2,636,830 3,220,075 8,043,887 7,788,757 8,031,023 7,271,961 7,102,020 6,964,980 6,706,065 8,564,661 6,500,774 6,412,674 7,754,777 9,470,202

1 2 3

Feb

6,552,652 5,813,090 6,739,081 6,183,807 5,430,765 4,575,446 5,845,318 5,665,174 17,563 16,230 17,830 17,163 439,710 429,118 447,602 447,825

Jan

Month Jun July

Pluak-Daeng/Chonburi (in total) Nong Pla Lai 2 Nong Pla Lai 1 Air Presure Station Total (baht)

Pump Station Rayong Dok-Krai Nong Pla Lai 2 Rayong Rive Map Ta Phut Total (baht)

Pump Station

1 2 3 4

No.

Electricity Cost


Report Boundary This sustainable development report has been prepared for the first year in order to show the operation practice and the operation results which effects of the economy, social and environment in accordance with the Global Reporting Initiative Guideline (GRI) - G3.1. The scope of the report covers the operation results of all areas in between 1 January to 31 December 2011. This report is not including business partners and suppliers. Steps to prepare a report, East Water have established main contents from a review of all stakeholders within the organization including the feedback from stakeholders outside the organization by collecting information, reviewing and prioritized by working with outside experts to ensure that this report is complete and transparent as much as possible. From assessment of the completeness of the contents followed the guidelines of the GRI sustainability reporting, the report is considered the equivalent of C level.

Contact of Question If you have any doubts or questions concerning this report in term of preparation and content please contact the Ms. Indranee Bhaholpolbhayuhasena, Public Relations Manager-Corporate Communications. Eastern Water Resources Development and Management Eastwater Building, Floor 23-26, 1 Vipavadeerangsit Soi 5, Vipavadeerangsit Road, Jomphol, Jatujak, Bangkok 10900 Tel : 02-272-1600 Fax : 02-272-1601 E-mail: pr@eastwater.com.

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Appendix Global Reporting Initiative Guideline (GRI)- G 3.1 Item 1.1 1.2 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9

3.10 3.11 3.12 3.13 4.1 4.2 4.3

52

Indicator CEO Statement Key Impacts Name of the organization Primary brands, products and services Operational structure Headquarter location Countries of operation Nature of ownership and legal form Market served Scale of the reporting organization Significant changes during the reporting period regarding size,structure or ownership Awards received in the reporting period Reporting period Date of most recent previous report Reporting cycle Contact for questions Process for defining report content Boundary of the report Limitation on the scope or boundary of the report Basis for reporting on joint ventures,subsidiaries,leased facilities,outsourced operations, and other entities that could affect comparability Data measurement techniques and the bases of calculations,including assumptions and techniques underlying estimations applied to the compilation of the Indicators and other information in the report. Explain any decisions not to apply or to substantially diverge from the GRI Indicator Protocols Explanation of the effect of any restatements of information provided in earliers reports Significant changes from previous reporting periods in the scope, boundary or measurement methods applied in the report GRI content index Policy and current practice practice with regard to seeking external assurance for the report. Governance Structure Whether the chair of the board of directors is also an executive officer Percentage of the board of directors that are independent or non-executive directors

| SUSTAINABLE DEVELOPMENT REPORT 2011

Page 4 5-7 8 8 9-11 8 8 8 8 8 N/R 12 50 N/R 50 50 24 50 50 50 50

N/R N/R 51 N/R 11 17 17


Item 4.4 4.5 4.6 4.7

4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 4.16 4.17

Indicator Mechanisms for shareholders and employees to provide recommendations or direction to the board of directors Linkage between compensation for members of the highest governance body, senior managers and executives (including departure arrangements) and the organization’s performance (including social and environment alperfomance) Processes in place for the highest governance body to ensure conflicts of interest are avoided Process for determining the qualifications and expertise of the members of the highest governance body for guiding the organization’s strategy on economic, environmental and social topics Internally developed statements of mission or values, codes of conduct and princples relevant to economic, environmental and social performance and the status of their implementation Procedures of the highest governance body or for overseeing the organization’s identification and management of economic,environment and social performance,including relevant risks and opportunities,and adherence or compliance with internationally agreed standards,codes of conduct and principles Processes for evaluating the highest governance body’s own performance,particularly with respect to economic,environmental and social performance Precautionary approach Agreements,principles or external initiatives on economic,environmental and social aspects Memberships in associations and national/international advocacy organization List of stakeholder groups engaged by the organization The basic of identifying and selecting stakeholders with whom to engage Approaches to stakeholder engagement Key topics and concerns that have been raised through stakeholder engagement Management Approach Disclosures C - Not Required B - Management Approach Disclosures for each Indicator Category A - Same as requirement for Level B

DMA EC

Provide a concise disclosure on the Management Approach items outlined below with reference to the following Economic Aspects: • Economic Performance; • Market Presence; and • Indirect Economic Impacts.

EC 1 (Core)

Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments

Page 15 N/A 16 19 10 N/A

20-23 5 5 24 24 24 24

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Item EC 2 (Core) EC 3 (Core) EC 4 (Core) EC 5 (ADD) EC 6 (Core) EC 7 (Core) EC 8 (Core) DMA EN EN 1 (Core) EN 2 (Core) EN 3 (Core) EN 4 (Core) EN 5 (ADD) EN 6 (ADD) EN 7 (ADD) EN 8 (Core) EN 9 (ADD) EN 10 (ADD) EN 11 (Core) EN 12 (Core)

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Indicator

Page

Financial implications and other risks and opportunities for the organizationâ&#x20AC;&#x2122;s activities due to climate change. Coverage of the organizationâ&#x20AC;&#x2122;s defined benefit plan obligations. Significant financial assistance received from government.

N/A

Range of ratios of standard entry level wage compared to local minimum wage at significant locations of operation Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation. Procedures for local hiring and proportion of senior management hired from the local community at locations of significant operation. Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, inkind, or pro bono engagement. Provide a concise disclosure on the Management Approach items outlined below with reference to the following Environmental Aspects : Materials, Energy, Water, Emission, Effulents and waste, Products and services, Compliance, Transport and Overall. Materials used by weight or volume.

40

Percentage of materials used that are recycled input materials. Direct energy consumption by primary energy source

40 N/A

N/A N/A 10,34

49 N/A 50

Indirect energy consumption by primary source.

N/A

Energy saved due to conservation and efficiency improvements. Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives. Initiatives to reduce indirect energy consumption and reductions achieved. Total water withdrawal by source.

N/A

Water sources significantly affected by withdrawal of water.

34

Percentage and total volume of water recycled and reused.

N/A N/A

Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas. Description of significant impacts of activities,products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas

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N/A N/A 49

N/A


Item EN 13 (ADD) EN 14 (ADD) EN 15 (ADD) EN 16 (Core) EN 17 (Core) EN 18 (ADD) EN 19 (core) EN 20 (Core) EN 21 (Core) EN 22 (Core) EN 23 (Core) EN 24 (ADD) EN 25 (ADD) EN 26 (Core) EN 27 (Core) EN 28 (Core) EN 29 (ADD) EN 30 (ADD) DMA HR HR 1 (Core)

Indicator

Page

Habitats protected or restored

N/A

Strategies, current actions, and future plans for managing impacts on biodiversity Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risk. Total direct and indirect greenhouse gas emissions by weight. Other relevant indirect greenhouse gas emissions by weight

N/A

Initiatives to reduce greenhouse gas emissions and reductions achieved. Emissions of ozone-depleting substances by weight.

N/A

NO, SO, and other significant air emissions by type and weight. Total water discharge by quality and destination

N/A

Total weight of waste by type and disposal method.

N/A

Total number and volume of significant spills.

N/A

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. Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the reporting organizationâ&#x20AC;&#x2122;s discharges of water and runoff. Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation. Percentage of products sold and their packaging materials that are reclaimed by category. Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations Significant environmental impacts of transporting products and other goods and materials used for the organizationâ&#x20AC;&#x2122;s operations, and transporting members of the workforce Total environmental protection expenditures and investments by type. Provide a concise disclosure on the following Management Approach items with reference to the Human Rights Aspects Concerning Multinational Enterprises and Social Policy, Non-discrimination, Freedom of association and collective bargaining, Child labor, Forced and compulsory labor, Security practices Percentage and total number of significant investment agreements that include human rights clauses or that have undergone human rights screening.

N/A

N/A N/A N/A N/A N/A

N/A N/A N/A N/A N/A N/A 38

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Item HR 2 (Core) HR 3 (ADD) HR 4 (Core) HR 5 (Core) HR 6 (Core) HR 7 (Core) HR 8 (ADD) HR 9 (ADD) HR 10 (Core) HR 11 (Core) DMA LA

LA 1 (core) LA 2 (Core) LA 3 (ADD) LA 4 (Core) LA 5 (Core) LA 6 (ADD) LA 7 (Core)

56

Indicator Percentage of significant suppliers and contractors that have undergone screening on human rights and actions taken 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. Total number of incidents of discrimination and actions taken. Operations identified in which the right to exercise freedom of association and collective bargaining may be at significant risk, and actions taken to support these rights. Operations identified as having significant risk for incidents of child labor, and measures taken to contribute to the elimination of child labor Operations identified as having significant risk for incidents of forced or compulsory labor, and measures taken to contribute to the elimination of forced or compulsory labor. Percentage of security personnel trained in the organization’s policies or procedures concerning aspects of human rights that are relevant to operations Total number of incidents of violations involving rights of indigenous people and actions taken Percentage and total number of operations that have been subject to human rights reviews and/or impact assessments Number of grievances related to human rights filed, addressed and resolved through formal grievance mechanisms. Provide a concise disclosure on the following Management Approach items with reference to should be the primary reference points. • Employment; • Labor/ Management Relations; • Occupational Health and Safety; • Training and Education; and • Diversity and Equal Opportunity. Total workforce by employment type, employment contract, and region Total number and rate of employee turnover by age group, gender, and region Benefits provided to full-time employees that are not provided to temporary or parttime employees, by significant locations of operation. Percentage of employees covered by collective bargaining agreements Minimum notice period(s) regarding operational changes, including whether it is specified in collective agreements Percentage of total workforce represented in formal joint management–worker health and safety committees that help monitor and advise on occupational health and safety programs. Rates of injury, occupational diseases, lost days, and absenteeism, and number of workrelated fatalities by region.

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Item LA 8 (Core) LA 9 (ADD) LA 10 (Core) LA 11 (ADD) LA 12 (ADD) LA 13 (Core) LA 14 (Core) LA 15 (Core) PR 1 (Core) PR 2 (ADD) PR 3 (Core) DMA PR

PR 1 (Core) PR 2 (ADD) PR 3 (Core) PR 4 (ADD)

Indicator Education, training, counseling, prevention,and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases. Health and safety topics covered in formal agreements with trade unions. Average hours of training per year per employee by employee category. Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings. Percentage of employees receiving regular performance and career development reviews, by gender Composition of governance bodies and breakdown of employees per category according to gender, age group, minority group membership, and other indicators of diversity) Ratio of basic salary and remuneration of women to men by employee category, by significant locations of operation. Return to work and retention rates after parental leave, by gender. Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products and services, by type of outcomes Type of product and service information required by procedures, and percentage of significant products and services subject to such information requirements. Provide a concise disclosure on the following Management Approach items with reference to the Product Responsibility Aspects: • Customer Health and Safety; • Product and Service Labeling; • Marketing Communications; • Customer Privacy; and • Compliance. Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products and services, by type of outcomes Type of product and service information required by procedures, and percentage of significant products and services subject to such information requirements. Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling, by type of outcomes

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Item PR 5 (ADD) PR 6 (Core) PR 7 (ADD) PR 8 (ADD) PR 9 (Core) DMA SO SO 1 (Core) SO 2 (Core) SO 3 (Core) SO 4 (Core) SO 5 (Core) SO 6 (ADD) SO 7 (ADD) SO 8 (Core)

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Indicator

Page

Practices related to customer satisfaction, including results of surveys measuring customer satisfaction. Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship. Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship, by type of outcomes Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data. Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services Provide a concise disclosure on the following Management Approach items with reference to the Society Aspects:Community, Corruption, Public policy, AntiCompetitive behaviour, Compliance Percentage of operations with implemented local community engagement, impact assessments, and development programs. Percentage and total number of business units analyzed for risks related to corruption Percentage of employees trained in organizationâ&#x20AC;&#x2122;s anticorruption policies and procedures Actions taken in response to incidents of corruption.

49-50

Public policy positions and participation in public policy development and lobbying. Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country. Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes. Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations.

N/A

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N/A N/A N/A N/A 24,34 17 N/A N/A N/A N/A N/A N/A


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| Annual Report 2011


Eastern Water Resources Development and Management PLC. Eastwater Building, Floor 23-26, 1 Vipavadeerangsit Soi 5, Vipavadeerangsit Road, Jomphol, Jatujak, Bangkok 10900 Tel : 02-272-1600 Fax : 02-272-1601 www.eastwater.com

EASTW: SUSTAINABLE DEVELOPMENT REPORT 2011 EN  

SUSTAINABLE DEVELOPMENT REPORT 2011 EN