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RATCHABURI ELECTRICITY GENERATING HOLDING PCL.

Contents

04

30

About RATCH

Environmental-Friendly Business Operations UÊ ˜ÛˆÀœ˜“i˜Ì>ÊÊÊ>˜>}i“i˜Ì UÊ i˜iÀ>̈˜}ÊÊÊ*ÀœViÃÃÊÊ“«>VÌÊÊÊ>˜>}i“i˜Ì

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Message from CEO

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RATCH Values and Ethics

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48

Socially-Responsible Activities UÊ ,ˆÃŽÊÊÊ>˜`ÊÊÊ,ˆÃŽÊÊÊ>˜>}i“i˜Ì

14

UÊ -œVˆ>ÊÊÊ>˜>}i“i˜ÌÊÊÊ-ÌÀ>Ìi}ˆiÃ

Sustainable Development

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84

CSR Innovation and Innovation Promotion

86

Social Responsibility Reporting

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Business Sustainable Development UÊ ,ˆÃŽÊÊÊ>˜>}i“i˜Ì UÊ ÕȘiÃÃÊÊÊ>˜>}i“i˜ÌÊÊÊÀ>“iܜÀŽ UÊ ÕȘiÃÃÊÊÊ*iÀvœÀ“>˜ViÊÊÊ,iviV̈˜}Ê Ê ÕȘiÃÃÊÊÊ-ÕÃÌ>ˆ˜>LˆˆÌÞ

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Social & Environment Responsibility Report 2012

2

RATCHABURI ELECTRICITY GENERATING HOLDING PCL.

3


Social & Environment Responsibility Report 2012

About RATCH

4

Ratchaburi Electricity Generating Holding PCL is a leading private power producer of Thailand, with 14% of the country’s installed capacity. The Company was established on 7 March 2000 with a registered capital of Bt 14,500 million. The Company is listed on the Stock Exchange of Thailand.

Vision

2.

“To be the leading independent power producer in the region trusted by the public”.

Mission “To invest, develop, and operate electricity generation and

3. 4. 5.

Strengthen positive relationships with suppliers, business partners, and networks based on mutual benefits

7.

following priorities;

Consistently maintain relationships with communities near the Company’s power plants and other premises

8.

Strengthen competitive capability and promote employees’ quality of work environment

1.2 To increase overseas production capacity in support of corporate expansion

Ensure financial structure accommodative to sustainable business expansion

6.

1.1 To meet domestic demand

Create attractive returns for shareholders with commitment to the benefits of the society as a whole

Policies Expand electricity generation and distribution with the

Enter into related businesses for new opportunities and increasing returns

related businesses”

1.

Expand renewable and alternative energy, to become a leader in renewable energy

9.

Uphold occupational health & safety standards

10. Adhere to good corporate governance


RATCHABURI ELECTRICITY GENERATING HOLDING PCL.

The Company is committed to be a responsible business organization, and play a key role in fostering long-term national energy security, through the power generation to benefit the economy, society and environment for sustainable business

Total installed capacity as of 31 January 2013

expansion. RATCH is a holding company, engaging in principal investment business, in the core company, subsidiaries and affiliates operating 3 main businesses – electricity generation, renewable energy and related businesses in Thailand and overseas. At

8.1%

present, the Company’s installed capacity, commercially commencing and under development, totals 6,303 MW: 4,587 MW in Thailand and 1,716 MW overseas (Lao PDR and Australia).

Electricity Generation

19.1%

The Company emphasizes on the diversification of fuels:

5

natural gas, coal and hydropower for generating stability which plays a significant role in promoting the country’s infrastructure stability. The Company targets to expand the capacity to 7,800 MW in 2016. With regards to fuel choices, the Company takes into consideration the impacts on the environment and global

72.8%

warming in particular. To date, the Company operates 8 gasfired power plants with a combined capacity of 4,933.32 MW: 5 of which, with 4,477.8 MW, are located in Thailand and the remaining three 3 plants with 455.52 MW in Australia. Also, there are 2 very small power plants in Sukhothai, which generate 6.25 MW from associated gas, a by-product from crude oil production.

Combined capacity:

6,303

MW

Domestic capacity

4,586.5

MW

Capacity in Lao PDR

1,206.5

MW

Capacity in Australia

510

MW


Social & Environment Responsibility Report 2012

The Company also puts emphasis on hydropower, which requires low investment and emits zero CO 2 in the generating process which benefits society and environment. The Company currently runs operates and develops 4 hydropower projects, and another 455.3 MW by investing lao securities market through EDL-Gen.

Divensification of fuel used in power generation Natural gas 4,933.32 MW Coal 751.2 MW Hydropower 455.3 MW

Among the fossil fuels resources for energyin power

Renewable energy 156.45 MW Associated Gas 6.25 MW

2.50%

generation, coal is offered the most attractive solution to the

0.09%

increasing fuel cost. Thanks to its vast reserves and affordable

7.22%

price, which will reduce the adverse environmental impacts and to maintain sustainable development which will lower

11.92%

electricity cost and greater electricity stability will be resulted, in direct benefits to the economy and society. On environmental impacts, today’s technology has shown greater efficiency in

6

reducing pollution associated with coal combustion. For instance, the Flue Gas Desulfurization (FGD) system is capable of removing upto 97% of sulfur dioxide from the exhaust, helping minimize environmental impacts.

78.27% Commercially-commenced projects Project

Location

Type

Fuel

Project capacity (megawatt)

Investment Capacity by ratio (%) investment ratio (megawatt)

Ratchaburi

Ratchaburi, Thailand

IPP

natural gas

3,645.00

100

3,645.00

Tri Energy

Ratchaburi, Thailand

IPP

natural gas

700.00

50

350.00

Ratchaburi Power

Ratchaburi, Thailand

IPP

natural gas

1,400.00

25

350.00

Pratu Thao and its expansion phase

Sukhothai, Thailand

VSPP

associated gas

2.65

100

2.65

Sao Thian A

Sukhothai, Thailand

VSPP

associated gas

3.60

100

3.60

Townsville

Queensland, Australia

IPP

natural gas

234.00

80

187.20

Kemerton

Western Australia, Australia

IPP

natural gas

300.00

80

240.00

BP Kwinana

Western Australia, Australia

IPP

natural gas

118.00

24

28.32

Nam Ngum 2

Vientiane, Lao PDR

IPP

hydro

615.00

25

153.75

EDL-Gen

Lao PDR

IPP/SPP

hydro

881.00

10.108

89.05

Note: IPP = Independent Power Producer SPP = Small Power Producer VSPP = Very Small Power Producer


RATCHABURI ELECTRICITY GENERATING HOLDING PCL.

Projects under development/construction

Project

Ratchaburi World

Location

Type

Fuel

Project capacity (megawatt)

Investment ratio (%)

Capacity by investment ratio (megawatt)

Ratchaburi, Thailand

SPP COGEN

natural gas

210.00

40

84.00

Navanakorn Electricity

Pathum Thani,

SPP COGEN

natural gas

122.00

40

48.80

Generating

Thailand

Xe-Pian and

Champasak and Attapue,

IPP

hydro

410.00

25

102.50

Xe-Namnoy

Lao PDR IPP

hydro

440.00

25

110.00

IPP

lignite

1,878.00

40

751.20

Cogeneration

Nam Ngum 3

Vientiane, Lao PDR

Hongsa Power

Xayaburi,

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Lao PDR

Renewable energy The Company sets sights on investing in renewable energy in

Renewable energy investment ratio

Thailand and overseas, to lessen dependence on fossil fuel in electricity generation, in-process CO 2 to mitigate global

2.53%

warming impacts. This is a concert effort which will benefit the environment and respond to the government’s policy to join global community in promoting renewable energy. The

15.33%

Company’s focus is on solar, wind and biomass, which seem to be the most promising

resources in the country. The

Company’s plan is to generate 200 MW from renewable energy in 2016. At present, the Company has been involved in 18 projects with combined capacity of 156.45 MW: 15 projects in Thailand and 3 in Australia.

82.14%

Solar power

23.98

Wind power

128.51

Megawatt

3.96

Megawatt

Biomass

Megawatt


Social & Environment Responsibility Report 2012

Commercially-commenced projects Project

Location

Type

Project

Investment

Capacity by

capacity

ratio (%)

investment ratio (megawatt)

(megawatt)

Solar Farms:

Nakhon Ratchasima

Solar Power Co.,Ltd.

Thailand

VSPP

18.00

40

7.20

VSPP

34.25

49

16.78

SPP

103.50

20

20.70

SPP

103.50

20

20.70

SPP

34.50

80

27.60

SPP

21.00

80

16.80

SPP

12.00

80

9.60

1) Solar Power (Korat 3) 2) Solar Power (Korat 4) 3) Solar Power (Korat 7) Solarta Co.,Ltd. 1)Sai Sena

Ayutthaya Thailand

2) Sai Yoi

Nakhon Pathom Thailand

3) Sai Prapa

Nakhon Pathom Thailand

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4) Sai Thong

Nakhon Pathom Thailand

5) Sai Yai

Nakhon Pathom Thailand

6) Sai Tatong

Suphan Buri Thailand

7) Sai Saphan

Suphan Buri Thailand

Huay Bong 2 Wind Farm

Nakhon Ratchasima Thailand

Huay Bong 3 Wind Farm

Nakhon Ratchasima Thailand

Starfish Hill Wind Farm

South Australia Australia

Toora Wind Farm

Victoria Australia

Windy Hill Wind Farm

Queensland Australia

Projects under development/construction Project

Location

Type

Project

Investment

Capacity by

capacity

ratio (%)

investment ratio (megawatt)

(megawatt)

Khao Kor Wind Farm

Petchaboon

SPP

60.00

55.18

33.11

VSPP

9.90

40

3.96

Thailand Biomass Power Station

Songkhla Thailand


RATCHABURI ELECTRICITY GENERATING HOLDING PCL.

Generation-related business The Company maps out the plan to invest in electricity generation and maintenance system, coal mines, and gas turbine equipment maintenance businesses. To date, the Company has invested in 5 companies worth a total of Bt 133.5 million.

Investment in Thailand Item

Company

Registered capital

Country

(million baht)

Investment

Nature of Business/operation ratio

ratio (%)

1

RATCH O&M Co.,Ltd.

10

Thailand

99.99

Operate and maintain small power plants

2

Sukhothai Energy Co.,Ltd.

80

Thailand

51

Enhance gas quality

3

Chubu Ratchaburi Electric

Thailand

50

Operate Ratchaburi Power Plant in Ratchaburi

623

Thailand

10

Gas turbine equipment maintenance

1

Thailand

40

Supply biomass fuel to Songkhla Biomass

Services Co.,Ltd. 4

Egat Diamond Service Co.,Ltd.

5

Songkhla Biofuel Co.,Ltd.

power plant

Investment in Lao PDR Item

Company

Registered capital

Country

(US$) 1

RATCH-Lao Services

2,500,000

Investment

Lao PDR

99.99

Co.,Ltd. 2

Phu Fai Mining Co.,Ltd.

Nature of Business/operation ratio

ratio (%) Operate Nam Ngum 2 Power Plant and hold 5.081% stake in EDL-Gen

50,000

Lao PDR

37.5

Mining service under concession for Hongsa Power Plant

3

Lao PDR

10.108

RATCH-Lao Services Co.,Ltd and RH

EDL-Generation Public

Bt 2,098.52 million

Company

investment through

International (Singapore) Corporation are the

LAO PDR’s

shareholders of EDL-Gen

securities market

The Company’s strategies also include investment in the securities market, focusing on electricity generating companies, to stabilize the Company’s revenue and cash flow and indirectly increase the Company’s capacity. This strategy was introduced in 2011, starting with the purchase of initial public offering (IPO) shares of EDL-Generation PCL. The Company now holds 10.108% stake in EDL-Gen, allowing it to increase electricity generation capacity by 89.05 MW through the holding.

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Social & Environment Responsibility Report 2012

MESSAGE FROM CEO

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Ratchaburi Electricity Generating Holding PCL is committed to reliable electricity generating in support of the country’s economic and social development, with emphasis on social and ecologically-concerned environmental-friendly generating practices.

Ratchaburi Electricity Generating Holding PCL is committed

Guiding the Company’s activities on social and environmental

to reliable electricity generating in support of the country’s

responsibility is a sustainable development approach, with

economic and social development, with emphasis on social

focus steering towards a well balance of the economy, social

and ecologically-concerned environmental-friendly generating

and environmental balance as much as possible to the fullest

practices. For over a decade, the Company has served the

to achieve sustainable growth. In the past year, the activities

the country’s power electricity demand in full capability

are focused on 4 main areas:

through the installed capacity which accounts for 14% of the

1) Tackle carbon emission waste from power generation, to

country’s. In the past year, the Company’s power plants

reduce the impacts of global warming. This has been

generated 19,461 million kilowatt hours, allowing continued

undertaken under 3 main guidelines to reduce CO 2;

economic development and convenience to general public and

- Gas-fired and hydro power plants are the first investment

the entire society. The Company has closely monitored the

priority, thanks to the nature of the “clean energy”. We

environment quality management throughout the generating-

generate 4,940 MW from natural gas or 78.4% of total

process and emphasized collaborations with communities near

capacity, and 455 MW from hydropower or 7.2%.

our premises, guided by the commitment towards equitable

- Increase a proportion of renewable energy portion. In the

responsibility for all stakeholders and consistent returns to

past 3 years, the Company has taken part in 11 solar

shareholders.

power projects, 6 wind power projects, and 1 biomass


RATCHABURI ELECTRICITY GENERATING HOLDING PCL.

power project, with a combined capacity of 156.5 MW.

quality, treated water, heat and noise and biodiversity as

The 11 domestic solar farms and 2 wind farms, as well

well as waste disposal. All power plants have also adopted

as 3 wind farms in Australia have commenced operations,

world-class environment management practices. In the past

and are able to reducinge CO 2 by 179,000 tones per

year, the Company made it a policy to reduce energy and

annum. The Huay Bong 2 and 3 wind farms in Dan

water usage. Ratchaburi Power Plant accordingly carried

Khunthod District in Nakhon Ratchasima province are the

out a project to release lower volume of treated water to

largest wind farms in Southeast Asia with a combined

public water channels, which reduced the water released by

capacity of 207 MW. Our mission is to increase the

over 50% and cut down energy required for the pumping of

renewable energy capacity to 200 MW in 2016.

raw water. An energy conservation campaign was launched,

- Capture CO 2 waste by applying the Carbon Capture Storage approach. A research project is underway, to

whereby equipment was improved and installed to reduce energy consumption.

feed spirulina with CO 2 waste. The research shows, in

4) Good governance: the Company’s mission is guided by our

favorable condition, spirulina’s capacity to contain CO 2

economic, social and environmental responsibility. Aside

is 9 times higher than those from trees’. The Company

from full respect and compliance to laws, we adhere to

has also collaborated with public and private agencies in

business ethics in all activities involving stakeholders which

utilizing CO 2 waste in growing algae for biodiesel

encompass anti-corruption, human rights, and fair

production. The project is expected to be kicked off within

competition.

this year. 2) Build up community trust: our operations create jobs and

Though Thailand’s entry to the Asean Economic Community in

help grow the rural economy. In the past year, Ratchaburi

2015 offers higher investment opportunities, it represents a

Power Plant, our primary asset, paid Bt 1,800 million in

challenge. Business strategies must be adjusted according to

local taxes and contributed Bt 156 million to the Power

the changing environment to preserve sustainable growth. The

Development Fund which was used to fund economic and

Company is convinced that doing business responsibly under

social development projects of the communities around the

sustainable development guidelines, aimed towards the balance

power plant and in Ratchaburi province for continuous

of 3 growth pillars – economy, society and environment, and

growth. The Company has also taken part in lifting up the

together with the full supports from all stakeholders' engagement

quality of life, reducing expenses and increasing income of

will push the Company forward in a strong and solid manner.

people in surrounding communities, with activities involving education and youth, career development, religious and culture, and campaign on energy conservation. 3) Environmental care: growing power demand is at the expense of more fuel burning for power generating, resulting in higher CO 2 . For a balance, the Company opts for low-carbon fuels in the generating production process. The Company also pays significant attention to cutting edge technology. All power plants have installed an environment quality management system which meets global standards

Sincerely Yours,

and demonstrates high efficiency. At Ratchaburi Power Plant alone, the investment in this regard required Bt 4,000 million and the system has been continuously inspected and maintained to ensure the environmental-friendly electricity

(Noppol Milinthanggoon)

generation. The system encompasses the checks of air

Chief Executive Officer

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Social & Environment Responsibility Report 2012

RATCH Values and Ethics

12

Aiming to become a leading independent power producer in the region trusted by the public, Ratchaburi Electricity Generating Holding PCL has followed good governance practices since its establishment in 2000. The Code of Conduct and Ethics have been developed and implemented as a guideline for business and non-business operations.

Aiming to become a leading independent power producer in

The Company’s ethics are targeted to promote good

the region trusted by the public, Ratchaburi Electricity

governance among all business units of Ratchaburi Electricity

Generating Holding PCL has followed good governance

Generating Holding PCL. The Code serves as an ethical

practices since its establishment in 2000. The Code of Conduct

framework for all units’ operations, to ensure greater business

and Ethics have been developed and implemented as a

success of the group and is recognized by all related parties.

guideline for business and non-business operations, and the

With this in mind, the Code of Conduct is based on honesty;

Company has strictly conformed to those rules and regulations.

tra nspa re nc y ; i nte g ri ty ; re spo nsi bi l i ty to w a rd s s o ci et y,

In order to cope with rapid changes in business environment,

environment and all stakeholders; and stricted compliance with

the Company has revised and implemented the new core values

laws. The board of directors, executives and employees of all

or company culture in 2011 conducted by employee engagement

levels are endorsed, committed to and abided by the Code of

at all levels.

Ethics. Corporate values are also upheld as our concrete foundation and commitment from all executives and employees in steering the organization towards the Company’s ultimate goal for a sustainable development.


RATCHABURI ELECTRICITY GENERATING HOLDING PCL.

RATCH Values

Collaboration

Values demonstrate the shared aspiration that executives and

Believing in the power of collaboration

employees must engage in our business operation, to deliver

s

To respect team members

and finally achieve the organizational goals; which are:

s

To be sincere and willing to obtain knowledge from others , share experience, and view as a team

Professionalism

s

To create a trustworthy and supportive working environment.

Fostering proficiency to build trust and credibility

s

To take part in the team’s goal setting and achievement

s

To acknowledge differentiation among others and understand

s

To be responsible for the organization’s success and failure

s

To develop employees with a sense of belonging and engagement

other’s behaviors s

To simultaneously coordinate with all groups at all levels for constructive relationships

s

To be professional and ethical one

s

To inspire others as well as oneself

s

To treat others in friendly and supportive manner

s

To pass on knowledge to others

s

To accept and comply with the majority’s decision, and

s

To follow the business and social etiquette

To prioritize mutual benefits

realize the role as part of the team

s

To be punctual in all occasions

s

s

To be open-minded and adjustable to a change of personnel,

s

To be a considerate one with compassion to others

policies and business environment

s

To voluntarily assist cross functional operation as well as

s

To compromise differontiation and minimize conflict among

s

To possess positive and strong interpersonal skills expressed

s

To be polite : show appreciation and apologetic manner in

To constantly develop and improve the efficiency and work

s

To embrace others’ opinions or suggestions with respect

process

s

To make friends and keep up on a good relations with

s s

other activities of the organization

To get hold of a positive attitude To be proficient in communication and presentation skills

others

Passion for Excellence

with open conversations

Striving towards self-development at its best possible result s s

s

appropriate

To perform their duties with determination and devotion

others in their organization and outside

To develop oneself, striving for obtaining new skills and knowledge

s

To be creative and attain holistic thinking

Good Governance

s

To overcome difficulties with determination

Maintaining integrity and corporate governance

s

To achieve particular assignment within or higher sets of

s

To ensure that duty is performed under the righteousness,

s

To ensure an equitable treatment and keeping word of

s

To avoid any improper actions possibly lead to oneself to

s

To comply with laws, rules, regulations and the company’s

s

To keep the Company’s information with confidentiality

s

To demonstrate voluntarily spirit and devote their time to

transparency, and fairness

standards s

To be able to perform more challenging tasks

s

To set clear plans and goals before implementation

s

To embrace the “Can Do” attitude

s

To envision potential obstacles and plan for resolution in advance

s

honour to others in favor of the organization’s interests harm reputation of the organization policies

To think out of the box and show an imaginative view, in order to create any possible innovation

benefit others and the society Throughout our past 13 years, ethics and values are the heart and significant foundation that have formed our executives and employees towards integrity, ethical standards, honesty, respect and accountability to all stakeholders.

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Social & Environment Responsibility Report 2012

Sustainable Development

14

The Company realizes that solid and sustainable business growth must go hand in hand with the improvement in community quality of life, society and environment. It upholds this commitment and act accordingly since the business was established

Management guidelines

Good corporate governance

As a responsible business organization, the Company realizes

The Company has been operating under good corporate

that solid and sustainable business growth must go hand in

governance practices, business ethics, morals and ethics,

hand with the improvement in community quality of life, society

aside from accountability to society, community, environment

and environment. It upholds this commitment and act

and all stakeholders, to push the organization towards an

accordingly since the business was established. Corporate

international status in a solid and sustainable way. This will

governance underlines the company’s practices and shapes

prepare the company for the Asean Economic Community in

the operating framework, to ensure achievements at all units,

2015 and help it achieve the vision to become a leading

value-added returns to shareholders, and equitable and fair

publicly-trusted independent power producer in the region.

treatment to all stakeholders. These run accordingly to the sustainable development philosophy.


RATCHABURI ELECTRICITY GENERATING HOLDING PCL.

The Company’s Board of Directors has applied good corporate governance practices for listed companies and the Securities and Exchange Commission (SEC)’s guidelines in directing the Company and promoting it as an efficient and ethical business organization, aside from responsibility to society, community and environment. These are the fundamentals of sustainable growth. The “Good Governance Policy” have been enforced throughout the group since 2003, with annual reviews and updates.

All subsidiaries of Ratchaburi Electricity Generating Holding PCL are required to follow the same set of guidelines, as universal practices will establish trust and confidence among shareholders, investors and all stakeholders. This is to stress its business responsibility; honest and equitable treatment to stakeholders; accountability; quality information disclosure; commitment to short-term and long-term added value to the organization; supports on good, moral and ethical practices among executives and employees; and responsibility to society and environment.

The company also puts in place other policies to encompass stakeholders, including Risk Management Policy, Shareholders Policy, Employee Policy, Society and Environment Policy, Information Technology and Networking Policy, Safty Policy, Occupational Health and work environment Policy, and the 5S Policy. All are disclosed on the Company’s website. The Company also commissions a study to accommodate challenges from the AEC, resulting from regional amendments in regulations governing listed companies throughout Southeast Asia.

The Company’s good governance framework is as follows;

>> The Board of Directors and sub-committees The Board of Directors, acting on behalf of shareholders, plays a crucial role in leading the Company towards sustainable success. It is tasked to ensure the Company’s compliance to laws, the Company’s goals, regulations, shareholders’ resolutions and related rules.

15


Social & Environment Responsibility Report 2012

As of 31 December 2012, the Board of Directors comprised

s

Supervise human resource management, to ensure

12 experts in areas related to the Company’s operations: 7

transparent and appropriate guidelines, methods and

representing major shareholders (including one member from

procedures for the selection, evaluation, dismissal and termination of directors and high-level executives

the executive) and 5 independent directors. Their role and responsibility can be summarized as follows: s

s

s

Review and supervise process of the internal audit and

Formulate vision, strategies, policies, business plans,

internal control, risk management, control of inside

budgets and work process in accordance with

information used, connected transaction reporting, conflict

competitiveness of the company

of interest, information disclosure and work procedures, to

Regularly examine the performance of the Company and

ensure transparent protection of stakeholders’ interests and

the management in relation to goals and/or forecasts

compliance to related rules

The Company also has 4 sub-committees supervising closely-connected significant matters.

16

Sub-committees 1.

Summarized Scope of Duty

Audit Committee

s

Review and ensure accurate and sufficient financial reporting

Appointed by all independent

s

Review internal audit system and ensure efficient and effective internal control,

directors

to prevent corruption or serious malpractices in the work process s

Review connected transactions or transactions that may incur conflict of interest, to ensure compliance to laws and the Stock Exchange of Thailand’s rules and regulations

2.

Human Resources and

s

Monitor and ensure compliance with laws related to the company’s business

s

Set vision and strategies on human resources and executive capability

s

Formulate clear and transparent policies, guidelines, methods and procedures

Remuneration Committee

enhancement plan

involving in selection, dismissal or termination of directors and high-level executives. Set clear, transparent and performance-linced remuneration to attract and retain capable personnel s

Formulate efficient and effective performance appraisal guidelines, criteria and

s

Disclose the remuneration-setting policy for directors and high-level executives

procedures

and the amounts in a transparent manner


RATCHABURI ELECTRICITY GENERATING HOLDING PCL.

Sub-committees 3.

Risk Management Committee

Summarized Scope of Duty s

Review risk management policy and guidelines to cover various risks inclding risks on investment and businesss development, on the development of under-construction projects, on the operations of commercially-commenced power plants, on finances and on the organization’s image and reputation

s

Formulate risk management strategies and conduct quarterly evaluation to maintain risks at controllable level and ensure no significant impacts to the organization

s

Monitor and control risk factors that may affect business operations and the Company’s future capacity expansion

s

Impose measures to mitigate risk impacts and prevent undesirable events, to avoid serious impacts

4.

Investment Screening Committee

s

Thoroughly and comprehensively review investment plans, to ensure the compatibility to the company’s goals, business circumstances and related factors

In 2012, the Company won the “Excellent CG Scoring” from

investment projects. Employees at all levels have also been

the annual Corporate Governance Report of Thai Listed

ordered to strictly honor the policies, rules and regulations,

Companies 2012 for fifth consecutive years. The Company

and all control measures, to show their accountability. The

was also on the “Top Quartile” of listed companies with market

treatment guidelines for major stakeholders are as follows;

capitalization over Bt10,000 million. The Thai Investors Association also assigned “Excellent” rating for the Company’s

Shareholders

annual shareolder meeting in 2012, reflecting the Company’s

s

Bolster business growth for maximum returns to shareholders.

efficient and effective application of good governance practices

s

Respect, protect and ensure basic rights of all shareholders in the disclosure of necessary information for their evaluation

in business management.

of the Company’s performance. Ensure accurate and regular

>> Business ethics

reporting on operating results and financial statements, in

The Company is convinced that underlying the solid and

line with international standards honored in local and

sustainable business development is honesty, integrity and

overseas capital markets.

ethics. The Company has been committed to operating the

s

Fully and comprehensively comply with accounting standards

business with integrity, transparency, ethics and responsibility

as required by laws and ensure systematic examination from

to society, environment and all stakeholders, aside from strict

internal auditors, independent auditors, the audit committee

compliance with laws. This reflects in the application of the

and the Board of Directors.

generally-acccepted accounting standards; appropriate, costefficient and efficient budgeting; and regular evaluation of

17


Social & Environment Responsibility Report 2012

Employees

18

s

s

who put emphasis on quality and value-for-money of

appropriate and fair compensations.

products/services as well as trust upon ethical business

Resort to fair, just and honest principles on knowledge, skills

practices. s

demanding or offering anything from the Company’s

Ensure regular participation in nurturing the environment,

business partners, creditors and/or debtors. s

the Company’s assets, society, and the environment. Thoroughly encourage employees on knowledge and skill

Compete in a good spirit and do not forge groundless accusations against competitors.

s

enhancement. s

Prohibit directors, executives and/or employees from

and punishing employees.

occupational health and safety for the sake of employees,

s

Improve and maintain sustainable relationship with partners

Base employee remuneration on the merit system, to ensure

and appropriateness in appointing, transferring, rewarding

s

s

Do not seek competitors’ secrets via dishonest and improper means.

Strictly follow labor and welfare laws and regulations. Society and Environment

Business partners, competitors, creditors and debtors s

s

Source out products and services in an ethical and fair

operations and ensure strict compliance with environmental

manner under the following guidelines: - Ensure competition among bidders and ensure proper

laws and regulations. s

and fair selection.

Uphold His Majesty the King’s “Understanding, Accessibility and Development” principle in the operations for peaceful

- Put in place the criteria and standards on partnership consideration and selection.

Put society and environment as the priority in business

coexistence with community and mutual benefits. s

Take community as “good neighbors”, to develop and

- Ensure proper and standardized form of contracts.

strengthen community for a better and sustainable quality

- Put in place the contract management and monitoring

of life.

system, to ensure complete and transparent contract

s

Promote community participation in order to access the Company's

fulfillment whch will prevent corruption and malpractices

information disclosure, bolster positive understanding,

throughout the procurement process.

monitor, and review impacts incurring from the Company’s operations.


RATCHABURI ELECTRICITY GENERATING HOLDING PCL.

s

s

Encourage and promote exchange of knowledge and

>> C o m m u n i c a t i o n s , T i p - O f f s , a n d C o m p l a i n t

experience in the individual and cross-organisation levels,

Management

for proper and continued improvement in the environmental

For righteous, transparent, just and accountable business

condition.

doing in line with the well-preserved good governance, the

Respect local traditions and customs of communities where

Company has put in place proper and various communications

the Company operates and regularly support community

channels for stakeholders, from telephone, facsimile, e-mails,

activities.

postal mails to website. They can also reach corporate communications units like the Office of Company Secretary,

>> Compliance with laws and regulations

Public Relations Department, Investor Relations Department,

The Company is determined to grow the organization for

Community Relations Department and Social Activity

mutual benefits of all stakeholders, while upholding integrity,

Department. The Company also assigns the Human Resource

honestry and ethics under the good corporate governance.

Division and the Office of Company Secretary to handle

This culminates into creditability and recognition from relevant

complaints from stakeholders who discovered, acknowledged

parties. Throughout the years, the Company has followed the

or had questions on actions by any units or employees which

following related laws, rules and regulations:

violate laws, policies, rules, regulations, good governance

Laws, regulations, internal control, and every rule related to

practices, or Code of Ethics and may cause the Company

the Company’s business operations.

damage. There are measures to protect complaint filers who

s

The company’s code of ethics, policies, rules, regulations

filed complaints with good intentions.

s

Employees at all levels and relevant parties must recognize

Filing tip-offs or complaints, the persons must specify details,

and strictly follow rules, regulations and work procedures

their names, addresses and contact phone numbers and send

and cooperate with the Company’s internal control.

them to the Human Resource Division or the Office of Company

s

and work process.

Secretary. The Chief Executive Officer, independent directors

>> Information disclosure and Transparency

or the Audit Committee can be notified of this for direct

Information disclosure and transparency is the fundamental of

investigation and reporting to the Board of Directors.

good corporate governance practices, the Company has adopted as a company listed in the Stock Exchange of

The complaint filers’ names, addresses or their information will

Thailand. The Company’s information has been disclosed

be classified and not disclosed to irrelevant persons, unless

accordingly to the policy and guidelines set by the SET and

required by laws. The Company will also limit access to the

the Securities and Exchange Commission, to ensure sufficient,

information to only persons authorised to the investigation. In

fair and timely disclosure through media and communication

the investigation process, the Company will set up an

channels aside from the SET’s electronics network. This is to

investigation committee and jointly with related parties will

ensure maximum access of target groups. The channels

devise remedial measures. Progress must be reported to the

include the company’s website, annual reports, press releases,

management team and remedial measures must be submitted

press conferences, interviews, investor meeting, analyst

for the management’s consideration in due time. The complaint

meetings, and shareholders’ site visits. Besides, shareholders,

filers will be notified of the investigation result, after the

investors, analysts, the media, communities, regulatory

management acknowledges the result and approves the

government units, or all stakeholders can also make direct

remedial measures.

contacts with the Company’s communications departments. (Details of information disclosure are in Annual Report 2012).

19


Social & Environment Responsibility Report 2012

>> Audit Monitoring

Encourage Community Participation

The Company’s audit monitoring has been a key mechanism

The Company has put community participation as first priorities

in preserving good governance and enhancing trust among

in its social and environmental policy. This has been enforced

stakeholders that the Company’s internal control and risk

in all activities and all stages of project management.

management has been enforced properly and sufficiently. The Internal Audit Division reports directly to the Audit Committee, Project development stage

which is the primary unit to audit the following operational system: s

Review the Company’s systems and procedures to ensure compliance, transparency and compatibility with the policy, work plan, code of practices and related laws.

s

Review and assess the sufficiency of all units’ internal control, with emphasis on efficiency and effectiveness of resource allocation and optimal response to the organization’s goals.

s

20

s 3TUDY PRI M A RY DA TA O N TE C HNI C A L A ND C OM M U N I T Y economic/social/and cultural aspects. s #OMPLETE A PLAN ON COMMUNITY PARTIPATION AND THE project communication plan. s (OSTACTIVITIESTOPROMOTEUNDERSTANDINGINTHEPROJECT and public meeting to sound out community opinions on different issues as required by related government units and regulators.

Review the accuracy and credibility of financial reports and information, encompassing reliability and asset protection

Construction stage

and assessment of the sufficiency of internal control, to ensure that the accounting, registration, papers and financial reporting system is accurate, accountable and shielded against personal mischiefs.

s #ONTINUOUSLY COMMUNICATE AND EDUCATE COMMUNITIES on the progress and the Company’s operations. s 0UT IN PLACE A COMMUNICATION UNIT AS A DIRECT CHANNEL for hearing, suggestion, community's complaint, and

Priority emphasis for strict internal audits are finance/

responding to them timely.

accounting, procurement, asset management, inveritory management, human resource management, and legal compliance. Commercial operations stage s #LOSELYANDCONTINOUSLYCOMMUNICATEWITHTHECOMMUNITIES s (EEDTHEIROPINIONSANDIMPROVEACTIVITIESINACCORDANCE with community needs s #LOSELY MONITOR THE IMPLEMENTATION OF SOCIAL AND environmental impaer mitigation measures identified in EIA report

At Ratchaburi Power Plant, "the Environment Inspector Committee of Ratchaburi Power Plant" is set up, consisting of community representaives, community leaders, and representatives from local and provincial administrative bodies.


RATCHABURI ELECTRICITY GENERATING HOLDING PCL.

At Ratchaburi Power Plant, “the Environment Inspector

Risk Management

Committee of Ratchaburi Power Plant” is set up, consisting of

The Company realizes the need in keeping risks in the

community representatives, community leaders, and

controllable level. The guidelines and procedures to identify,

representatives from local and provincial administrative bodies.

assess, handle and monitor all aspects of risks involving

They inspect the power plant and ensure that the environmental

business units and/or the organizational operations are

impact mitigation measures are implemented in accordance

outlined. The Risk Management Working group comprising

with the environmental impact assessment report and the

executives of all business units and risk management units is

environment monitoring plan. The committee acts as the

established, taking the primary role in ensuring compliance

coordinator with the power plant and disseminates information,

with the policy and practices specified by the Risk Management

facts, problems or possible problems and suggestions from

Committee. Their responsibility is as follows;

the community. This is a major channel of community

s

Identify, analyze and evaluate type of risks and outline risks

s

Study and analyze internal and external factors which may

participation in monitoring the Company’s operations.

which could derail the Company’s goals.

Environment and Occupational Health Measures

cause uncertainties and affect the Company’s operations, to protect the organization from destruction or loss of value,

The Company has enforced international operating standards

as well as seek opportunities to increase competitiveness

across the group. On environment, the group’s power plants

and generate added value to the Company.

- Ratchaburi, Tri Energy, Ratchaburi Power - have applied ISO

s

Specify international-standard risk management guidelines

14001 standards and the operations have been continuously

for business units and the organization, to minimize negative

and closely revierwed and monitored.

impacts. The guidelines will be submitted for the Risk Management Committee’s approval.

In 2011, Ratchaburi Power Plant won the OHSAS 18001

s

Monitor, analyze and ensure that managing risk in business

certificate and the occupational health standards have been

unit and organization all levels is in line with specified

enforced together with ISO 14001. Pradu Tao Power Plant

guidelines, and control risks can be contralled in the level

also won ISO 9001:2008 certificate and the Company has continuously followed through the requirements.

approved by the Risk Management Committee. s

Complete the Company’s quarterly risk management report and submit it to the Risk Management Committee. (Details

In 2012, Solarta Co.,Ltd’s solar farm was enlisted in the Clean Development Mechanism (CDM) sheme under the United

of risk management are in Annual Report 2012) s

Nations Framework Convention on Climate Change (UNFCCC).

The Board of Directors outlines risk management policy and ensures compliance. At meetings, the Board reviews risk factors that could affect the Company’s operations and outlines measures to tackle risks in the most effective way.

s

The Risk Management Committee considers the Company’s risk management framework and measures and reviews the efficiency and effectiveness of the measures.

s

Management team reviews business risks and specifies measures within the framework specified by the Board. The measures are submitted for the Risk Managment Committee’s consideration.

21


Social & Environment Responsibility Report 2012

Risk Management Diagram

Board of Directors

Audit Committee

Risk Management Committee Internal Audit Division Management

Risk Management Working Group Risk management Business level

22 Portfolio Managment Function

Planning and Business Development Function

Accounting and Finance Function

Corporate Administration Function

Managment Business unit risk level

s

s

Risk Managment Working group accumulates possible risks

The control encompasses financial information management to

and monitors risk management of business units. It analyzes

ensure accurate, complete and reliable financial reports as well

and defines business risks, completes measures to handle

as strict compliance with related laws, rules and regulations.

the risks, and submits the measures for the management

The Company’s internal audit emphasizes and requires

consideration.

thorough audit on four major areas:

Business units are tasked to evaluate their risks, which may

s

Efficiency and effective of main operating systems - human

affect the Company’s operations and complete the units’

resource management, accounting and finance, budget

risk management plan. They must report progress on a

disbursement, IT, inventory management, and procurement

monthly basis to the Risk Management Working group.

process s

Accuracy and reliability of financial reports, through the review

Internal Control

and evaluation of the data-processing system, SAP, and

Infornal control system is a mechanism adopted to manage

assurance of correct and properly-screened financial document.

internal risks. Through the independent internal audit unit

s

of the Company, subsidiaries and joint ventures are reviewed.

Conpliance with law, regulations and rules the Company’s business

reporting directly to the Audit Committee, all business units s

Worthiness of investment in joint ventures, through the review

The efficient and effective internal control is developed, to

of the 3 aforementioned areas. For joint ventures with under-

ensure that the Company’s operations are in line with business

development projects, the review is geared towards budget

goals in tems of operating results and resource maximization.

and investment disbursement.


RATCHABURI ELECTRICITY GENERATING HOLDING PCL.

Internal Control System

Board of Directors

Independent Auditor

Audit Committee

Management

Internal Audit Division Coordinate & exchange information with the auditor

23

on audit plan, auditing scope and method, and results

Business units of Company, Annual audit planning

subsidiaries, and joint

Review and execute the audit plan

Submit suggestions when risks emerge and set correction

Complete quarterly audit reports for Audit Committee’s Consideration

Submit audit reports for Board of Directors’ review

The thorough and effective internal control has served well in preventing risks to the operations, having allowed the Company to demonstrate continued growth, achieve business goals and maintain the sustainable and solid leadership in the electricity generation industry.


Social & Environment Responsibility Report 2012

Human Rights

- Denounce child and forced labor as well as sexual

On human rights, the Company has followed the Constitution,

harassment, verbally and non-verbally. Penalties are clearly

related laws like the labor law, as well as the Company’s Code

specified and the approach is being applied with customers,

of Ethics which underlines respects in basic rights and freedom

suppliers and partners.

of stakeholders and equitable and fair treatment. These have

- Open a direct communication channel with stakeholders and

been applied in the operations, resulting in good reputation

a channel for compliant filing, and establish the efficient and

for the Company.

fair process to deal with the complaints, for transparent and accountable operations.

Growing overseas interests in the past two years in line with

- Allow communities to monitor the power plants’ operations,

the Company’s business strategy, the Company considers

recognizing that communities hold the constitutional rights

participating in the United Nations (UN) Global Compact, the

to guard and preserve their natural resources and

international principles having been adopted by international

environment. Dialogues are initiated to promote

organizations, to internationalize the Company’s human rights

understanding and solve problems, to ensure trustful co-

practices. The written code on human rights is in the planning process, to set guidelines for the treatment of employees,

24

customers, suppliers and partners.

existence of the power plants and communities. - Uphold moral, ethical and professional principles in the operations. - Preserve the environment through efficient and above-

Practically, the Company has included human rights principles

standard generating and environmental impact management

into the Code of Ethics, common values, corporate culture and

systems, to keep the environment from harming the health

corporate governance principles, aside from honoring laws

and living condition of communities and society.

which also highlight the human rights principles. The Company’s practices that promote human rights principles are

The principles have been honored and practiced for over a

summarized as follows;

decade. The Board of Directors and the management team hold this as the Company’s basic responsibility for stakeholders.

- Respect human dignity and basic rights as stipulated in the

The Human Resources Department and the Company’s

Constitutions, as well as safety of lives and properties of the

Secretary Office are in charge of monitor the compliance. The

Company’s stakeholders

principles have also been applied with subsidiaries and joint

- Promote equality and treat employees in a fair manner. All

ventures.

employees are entitled to prosper in their profession. The Company has offered appropriate remuneration and welfare

Taking these principles seriously, the Company has established

to employees, at the level comparative to companies in the

good relationship with stakeholders, which reduces risks to

same peer. The merit system is applied in evaluating their

the operations and forges trust and confidence among

performance. The Company also puts in place equitable job

shareholders, employees, regulatory bodies, partners, trade

opportunities and chance to develop and advance,

partners, customers, community and society. This leads to

regardless of their sex, religion, culture, age, race, language

today’s reputation and good image for the Company.

and skin color. - Respect differing opinions, choice of religion, beliefs, traditions and culture, as well as privacy and/or employees’ right to keep customer secrecy.


RATCHABURI ELECTRICITY GENERATING HOLDING PCL.

Anti-Corruption and Prevention On corruption prevention, the Company has strictly honored the laws, Code of Ethics and business ethics since the establishment. The Audit Committee and the Internal Audit D i vis io n ar e in cha rge of moni t ori ng, surv e i l la nc e a nd investigation the procedures of all business units to ensure accurate, transparent and conflict of interest-free procedures. The Company has outlined the rules and regulations and guidelines on malfeasances for executives and employees and subjected them to job termination and legal actions.

The Company also specifies in the business ethics that business partners and/or creditors will not be demanded or offered anything. The Company will also thoroughly and cautiously consider avoiding business doing with individuals or juristic entities with unscrupulous behaviors.

25


Social & Environment Responsibility Report 2012

Sustainable Development on Economy

26

Ratchaburi Electricity Generating Holding Public Company Limited is the country's leading independent power producer. Its mission is to generate electricity, to address demand from the industrial, household and business sectors which are driving the economy and enhancing the quality of life. Aside from business growth, the Company emphasizes on social and environmental balance.

Ratchaburi Electricity Generating Holding PCL is an

approximately Bt 3,800 million, with over 80% in electricity

independent power producer with primary presence in

generating. In 2016, the Company targets to increase its

Thailand, Lao PDR and Australia. Its mission is to generate

generating capacity to 7,800 megawatt capacity from 6,303

electricity, to address demand from the industrial, household

megawatt at present.

and business sectors which are driving the economy and enhancing the quality of life. Aside from business growth, the

Economical risk management

Company emphasizes on social and environmental balance.

Locally and overseas, the Company has formed joint ventures, forged equity participation in under-development projects,

The Company’s business strategy is focused on generating

acquired business ventures, and indirectly built up investment

more electricity from fossil fuels and alternative sources as

through the capital market. All is under the same goal, to

well as investing in related businesses. Towards a more

expand the generating capacity and enhance organizational

integrated business, the Company last year invested

revenues and earnings. This will assure shareholders and


RATCHABURI ELECTRICITY GENERATING HOLDING PCL.

chain and the overall economy. There are six major business

Business performance reflecting economic sustainability

risks to the Company’s operations as follows;

In 2012, the power plants operated by subsidiaries and joint

1. Risk from competition

ventures which are Ratchaburi Power Plant, Tri Energy Power

2. Risk on finance

Plant, Ratchaburi Power Power Plant,Nam Ngum 2 Hydro

3. Risk on the efficiency of assets in revenue generating

power Power Plant, Pratu Thao and Sao Thian Power Plant

4. Risk on human resources,

generated a total combined electricity of 26,337,789.36

5. Risk on image and reputation

megawatt-hours: 88.82 % from natural gas, 2.76 % from

6. Regulatory risks

bunker oil, 0.30 % from diesel and 8.13 % from hydropower.

Details of strategies to deal with the Company’s risks are

For wind power, Huay Bong 2 and 3 wind farms with a

presented in the 2012 Annual Report.

combined capacity of 207 MW, the largest wind farm in the

employees of returns and strengthen the company’s supply

country and South East Asia has started its operation and

Management framework on economy

generated electricity to EGAT. From 14 November, 2012 to

Under sustainable development guidelines that uphold the

1 February, 2013, Huay Bong 3 wind farm generated

balance of three key pillars – the economy, society and

28,777,430 kilowatt-hours of electricity.

environment, the Company has strived to lay out the integrated business structure. Primarily focusing on investment in large

Last year, the Company recorded Bt 60,011 million in revenue

fossil fuels-based power plants, the Company has expanded

and Bt 7,726.27 million in net profit. Dividend payment is

to cover environmental-friendly electricity generating projects

estimated at Bt 3,291.50 million and corporate tax amounted

starting with the generating of power from flue gas – to

to 887.23 million. The Company's subsidiaries contributed Bt

maximize the value of a crude by-product which is usually

208.11 million to the Power Development Fund, which will fund

wasted. The business is extended to encompass the power

projects to enhance the quality of life of communities near the

generating by alternative fuels, in line with the Company’s

power plants and compensation to communities affected by

greenhouse gas minimization strategy and the government’s

the power plants’ operations.

alternative energy development policy. As inventing a power project is time-consuming, the Company diversifies into generating-related business, starting with the establishment of a subsidiary to operate and maintain power plants, a joint venture to refurbish power plants’ gas turbines, and a mining joint venture which supplies coal to power plants. The diversification has solidified the Company’s cash flow.

Since 2000, the Company’s generating capacity has been expanded as well as earning growth, resulting mainly from the solid fundamentals built upon good governance whereby social and environmental concerns are taken seriously. This establishes confidence and trust among stakeholders, leading to business success in the domestic market and overseas, the stronger business strength and eventually sustainable growth.

27


Social & Environment Responsibility Report 2012

Economic Sustainable Results Statement of financial position

Assets

Liabilities

Equity

Million Baht

100,000 80,000 60,000 40,000

28

20,000 0 2012

2011*

2010

2009

Revenue

2008

Year

Profit of the year Revenue from the Company and its subsidiaries

Profit from the Company and its subsidiaries

Share profit of jointly-controlled and associated

Share profit of jointly-controlled and associated

entities

entities

Million Baht

Million Baht

7,000 60,000

6,000

50,000

5,000

40,000

4,000

30,000

3,000

20,000

2,000

10,000

1,000 0

0 2012 Note: *2011 Restated

2011*

2010

2009

2008

Year

2012

2011*

2010

2009

2008

Year


RATCHABURI ELECTRICITY GENERATING HOLDING PCL.

Ratchaburi Power Plant’s Equivalent Availability Factor 2011-2012

94.14 83.43

99.54

88.86

81.5

73.35

65.74

73.73

69.07

67.9

63.17

80

94.35

80

86.67

100

94.45

Dispatch Factor (%)

TP = Thermal Plant CCGT = Combined Cycle Gas Turbine

2554 2555

EAF (%)

93.08

TP = Thermal Plant CCGT = Combined Cycle Gas Turbine

93.74

Ratchaburi Power Plant’s Dispatch Factor 2011-2012

60

40 34.74

21.34

25.77

37.86

40 20

00

29

0

TP#1

TP#2

CCGT#1

CCGT#2

CCGT#3

TP#1

TP#2

CCGT#1

CCGT#2

CCGT#3

Note: Ratchaburi Power Plant, with 3,645 megawatt capacity, is a primary genoration soure of the Company, representing 57.82% of total caparity. The plant comprises of 2x735 units of thermal power plant and 3x725 megawatt blocks of combined cycle power plants

Dividend per share 2011-2012

Dividend payment 2002-2012

Million Baht

3,500

2,500

1,500

1.0

2,175

3,292

3,263

3,263

3,263

3,190

3,045

1,450

2,000

1.17 * *

1.15

1.15

1.10

1.10

1.10

1.10

1.00

1.50 (48.42%)

1.10

1.75 (49.24%) 1.00

1.5

2,900

2.00 2.00 (47.06%) (50.32%)

2.0

3,000

2.27 2.25 2.25 2.20 2.25 2.10 2.10 (49.13%) (48.41%) (62.43%) (67.28%) (42.6%) (51.14%) (52.24%)

2,537

2.5

3,045

Baht

5,00

1.10

1.10

1.10

1.10

1.10

1.00

1.00

1.00

0.90

0.75

0.5

1.50

1,000

0.0

0

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Year

2001 2002 2003 2004 2005 2006 2007 2008 2009 2011 2012

Note: ** An agenda proposed for shareholders' approval in the 2013 Shareholders' Annual General Meeting to be held on 28 March 2013. The Company paid interim dividend at Baht 1.10 per share on 14 September 2012.

Year


Social & Environment Responsibility Report 2012

Environmental-Friendly Business Operations

30

The more electricity demand, the more impacts. The Company thus puts its best effort in balancing the two sides, through the maintenance of power generating efficiency to fully respond to social and economic demands while ensuring the environmental management efficiency for minimum level of impacts.

Environmental Management

Generating process impact management

The Company acknowledges that electricity generating is a

The Company’s policy is to ensure that the generating process

two-sided coin. On one side, electricity is the infrastructure

is friendly to the environment and communities, through

necessary for economic development and convenience of the

preventive measures as follows;

general public. On the other side, electricity generating

1. Follow environment and related laws, rules and regulations,

consumes natural resources which inevitably impacts in social

and strictly follow up, prevent and monitor environmental

and environmental. The more electricity demand, the more

impacts mitigation and prevention measures as specified in

impacts. The Company thus puts its best effort in balancing

the Environmental Impact Assessment reports.

the two sides, through the maintenance of power generating

2. Analyze environmental impacts at the start of the projects

efficiency to fully respond to social and economic demands

and outline the measures to tackle and prevent the possible

while ensuring the environmental management efficiency for

impacts which may emerge during the construction period

minimum level of impacts.

and during the operations, which have successfully prevented and minimized the possible impacts.


RATCHABURI ELECTRICITY GENERATING HOLDING PCL.

3. Apply high-efficiency technology in eliminating and containing

Environmental-friendly generating process

emission from the generating process, to tackle the problems

Ratchaburi Power Plant, the Company’s primary generating

at their root causes. The Company has invested in technology

source with 3,645 megawatt capacity or 58% of total capacity,

which reliably manages, controls and monitors the environmental

has embarked on environmental-friendly generating practices

quality for power plants, to ensure that emission is eliminated

which produce concrete results. Upholding “industrial,

at lower than the legally-required levels.

ecological and environmental friendship” for development

4. Apply international-standard environmental management

which does not affect natural resources and surrounding

system, to strengthen the environment quality management.

communities, Ratchaburi Power Plant acknowledged the value

The Company’s policy is to apply the internationally-

of environment around the premise. The Eco-Industrial concept

recognized management system with all power plants, to

has been applied to highlight the harmonious co-existence of

ensure that the environmental impact management system

the business and the environment, to produce least impacts

is efficient, effective and reliable. Ratchaburi Power Plant,

or ensure that the impacts are within the specified standards.

which is the Company’s primary assets, has won the ISO

Supporting this is the belief that nurturing the power plant’s

14001:2004 certificate from det Norske Veritas (Thailand)

environment is like nurturing the environment of the province,

Co.,Ltd, which also issued the OHSAS 18001:2007

and the better condition in the province will benefit the whole

certificate to the power plant. Under both systems, the power

Kingdom’s environment. This will; in turn, benefit the world

plant has to review all measures under ISO 14001 and

and global population. Showing responsibility for the global

OHSAS 18001 standards every six months. If any fault is

environment and natural resources is an attempt of a small

located, it will be fixed. The rules, manual and operating

start to conserve the global environment, which should lead

guidelines are reviewed regularly, to promptly monitor,

to sustainability of the industrial sector, environment and

prevent and fix problems.

natural resources.

5. Wisely choose fuels for the generating, which is a way to manage environmental impacts from the generating process.

Ratchaburi Power Plant has also applied generating technology

Each fuel causes different levels of impacts. The Company’s

that efficiently contains emission at its source and applied

priority is on natural gas, which is clean and promises low

environmental-friendly equipment; for example, in controlling

combustion emission. The Company has owned 10 natural

combustion chamber’s temperature to prevent nitrogen oxide

gas-fired power plants with combined installed capacity of

or the installation of equipment to eliminate sulfur dioxide

4,940 megawatt; 7 in Thailand and 3 in Australia.

incurring from the switch to auxiliary fuel. These procedures

6. Increase generating capacity with renewable energy, through

derive from the acknowledgement and care for possible

diversification into hydropower, wind power, solar power and

impacts on community and the environment, indicating the

biomass power as their generating process emits no impacts

Company’s responsibility to the future of the environment and

on the environment and communities. This also reduces

natural resources which will be valuable treasure of the

fossil fuels in electricity generating and hence reduces

younger generation.

greenhouse gas emission.

31


Social & Environment Responsibility Report 2012

Climate change solving Involvement

CO 2 Emission Reduction

The Company has a strong determination to tackle the

1. Energy Conservation Campaign

intensifying climate change, by lowering in-process carbon

Global warming is a critical problem and must be tackled

dioxide. The investment is primarily poured on generating

urgently. Wasteful use of electricity speeds up the depletion

projects powered by natural gas, hydropower and renewable

of natural resources and electricity is generated by fossil fuels

sources. Of total capacity, that generated by natural gas

like coal, oil and natural gas. The generating process naturally

accounts for the biggest part, while the capacity from

emits greenhouse gas and causes air pollution.

hydropower and renewable energy has been significantly increased.

Ratchaburi Power Plant has initiated in-door electricity conservation campaign, to promote wise use of electricity and

32

The Company plans to reduce the carbon emission, by

reduce CO 2 . In 2012, the power plant saved electricity by

applying the Carbon Capture Storage concept in the research

12,282 megawatt hours, reducing 6,253 tons of CO 2 . CO 2

project to cultivate spirulina algae with Ratchaburi Power

reduction was more effective than in 2011 thanks to the

Plant’s waste CO 2. The initial result shows that the spirulina

replacement of of HID 250W light bulbs with T5 light bulbs at

algae grows well with the waste CO 2, able to absorb CO 2 nine

the combined cycle power plant. Ratchaburi Power Plant now

times higher than big trees. In the past year, a study was

generates 15,889,156 megawatt-hours, equivalent to the

carried out to evaluate the feasibility of the project’s

emission of 7,679,074 tons of CO 2.

commercialization. Throughout the past 8 years (2005-2012), Ratchaburi Power In the next step, the Company has collaborated with the

Plant had reduced power consumption by 51,552 megawatt-

Department of Alternative Energy Efficiency and Development,

hour, reducing a equivalent to 26,891 tons of CO 2 .

the Energy Ministry, Bangchak Petroleum PCL and Loxley PCL in producing biodiesel from algae, which is grown by Ratchaburi Power Plant’s waste CO 2 . The project is currently in its first phase.

Ratchaburi Power Plant, which generates 58% of the Company’s total capacity, has undertaken numerous approaches to reduce CO 2 to be in line with the Company’s mission to take part in mitigating climate change impacts. The approaches are:


RATCHABURI ELECTRICITY GENERATING HOLDING PCL.

Power Generating & CO 2 Emission Powe Generating from combined cycle power plants (million megawatt-hours) Powe Generating from thermal power plants (million megawatt-hours) Volume of CO 2 emission against power generation (million megawatt-hours)

8.4

7.7

6.7

8.6

8.1

10.7

9.7

10.8

10.2

11.7

12.7

13.3

33

1.9

3.3

3.7

4.7

5.8 4.2

13.8

11.8

14.7

14.8

14.5

2008

2006

2007

2008

2009

2010

2011

2012

Power Consumption Saved & CO 2 Emission Reduction Power Consumption Saved (megawatt-hours) Carbondioxide Reduction Emission (tons) 12,000

20.0

20.35 9,000

15.0

12.28

10.0

6,000

6.16

4.56

3.20

3.07 3,000

5.0

1,639

1,564

2,323

10,403

1,628

3,134

6,252

2.56

1,514

2.36

2004

2005

2006

2007

2008

2009

2011

2012


Social & Environment Responsibility Report 2012

2. Green area enhancement

Sustainable energy consumption

Acknowledgement in environmental impacts drives Ratchaburi

The Company has put greater emphasis on sustainable energy

Power Plant to grow trees in the premise. Green area now

consumption, through attempts in cutting power usage at

amounts to 472 rai or 23.4% of total area.

office buildings and power plants as well as improving the power plants’ fuel efficiency while maintaining the electricity

Under the tree planting project, teak trees account for 52%,

generating capability.

mahoggani 15%, mast trees 10%, Siamese neem trees 9%, golden shower trees 2%, palm trees 2% and others 10%.

Establishing energy-saving awareness is part of the efforts, to

Greening the premise, these trees produce pleasant scenary,

educate employees and communities of energy saving and

absorb CO 2 in the atmosphere and become a sanctuary of

sustainable energy consumption. They are educated on the

many lives.

source of energy, significance of energy in everyday life and economic development, proportional increase in energy demand in line with growing population, possible shortages from overuse, environmental impacts from the consumption, global warming and energy-saving tips for sustainability. In the past year, the sustainable energy consumption campaign

34

targeted community forest leaders in the Central, Eastern and Northern parts of the country, aside from a campaign on youth in the Southern and Northeastern community forest areas, on hope that understanding will lead to awareness and practice. At Kla Yim Youth Camp, One main activity of the love

TYPE OF PLANTS GROWN

Forestland Community project which is the company’s flagship

IN RATCHABURI POWER PLANT

serialland environmental responsibility program in partnership with the Royal Forestry Department the children are taught to

10%

“Eat up their food, drink up their water, and grow 3 trees”.

2% 2%

Daily, waste from their food was measured. The energy value of the waste - measured from raw materials through cooking process - was displayed, along with CO 2 generated by the

9%

process. The youth gained more knowledge on the energy and its social and environmental impacts, thus raising energysaving awareness among them.

10%

52% 15% Teak trees

Siamese neem trees

Mahogany trees

Golden Shower Trees

Mast trees

Palm Trees

Others

Note: Kla Yim Youth Camp, One main activity of the love Forestland Community project which is the company’s flagship serialland environmental responsibility program in partnership with the Royal Forestry Department


RATCHABURI ELECTRICITY GENERATING HOLDING PCL.

Extended community energy project

Target Areas

The concept was replicated to communities near Ratchaburi

Tambon Tharab, Mueang district; and Tambon Ban Singh,

Power Plant, under the extended community energy project

Photharam district in Ratchaburi province. Project period since

in cooperation with Ratchaburi Provincial’s Energy Office, the

from October 2011 to November 2012

Energy Ministry. The project is divided into 10 Steps: The project calls for systematic public participation, to raise

administrative bodies and community leaders

their awareness in the value of energy and knowlege in turning locally-sourced materials into energy for maximum benefits.

Step 1: Explain the project to leaders and members of local

Step 2: Explain the project to community members and the

They are educated on the proper use of energy technology

general public interested in energy issues, and select

and energy management to support their dependence.

community energy volunteers, Entering the cooperation agreements on community energy planning between

Under this project, the community involved in community

Ratchaburi Provincial Energy Office and Ban Singh

energy management with the right and comprehensive

Municipality in Photharam district and Tambon Tharab Administrative Office in Mueng district.

knowledge on energy. They shared ideas and took part in the project in line with the sufficiency philosophy, setting an

Step 3: Collect general data and energy consumption data

example to other communities. For higher efficiency in the

of the communities. Selecting youth and community

community energy project, the Company cooperated with

volunteers for training on the collection of required data like

Ratchaburi Provincial Energy Office to extend the project, to

household details, energy consumption, cooking process,

achieve energy sustainability and collaboration within

as well as transport and agriculture.

communities and support the Company’s corporate social

energy management is part of returning profits to society.

Step 5: Present the data to the communities.

Step 6: A field trip to learn more about sustainable energy technology, as guidance for the development of the

Objectives •

community energy development plans.

Enhance energy-related knowledge and management capability of local administrative bodies

community capability and energy demand.

in target areas, so they can pass on the knowledge correctly

Step 7: Complete the community energy development plans. Community representatives draft the plans, based on the

Improve the capability of communities and the general public

and appropriately to local areas’ capability

Step 4: Process and analyze the data, to compare energy consumption rate and communities’ energy capability.

responsibility. Encouraging public participation in community

Step 8: Public hearing on the plans, to encompass no fewer

Establish energy-related knowledge, to raise awareness in

than 80 community members. Select pilot projects and

the value of energy and conservation and to set a good

nominate model households of the community.

example which leads to community development under the sufficiency philosophy

35


Social & Environment Responsibility Report 2012

Step 9: Have the communities expedite the pilot projects, putting the Provincial Energy Office as their advisor and providing technology support.

Step 10: Conclude the project, through the exchange of experiences, problems and obstacles witnessed by the pilot projects or model households. Solutions and next year’s plans were formulated.

Through the 10 steps, the communities learnt of their energy consumption and capability. Community energy plans, drawn up by the communities, are in place and present pilot projects which will lead to a reduction in energy consumption and the switch to sustainable energy. Key facts from this project are summarized as follows:

36

Key facts

Tambon Ban Singh

Tambon Tharab

Population

11,848

3,931

No. of households

3,783

1,156

Average household income

236,264 baht/year

172,825 baht/year

Aggregate income of the village

867,562,384 baht/year

169,878,151 baht/year

Community energy expenditure

212,426,553 baht/year

58,087,713 baht/year

- Fuel for transport and farming

(24.49% of aggregate income)

(29.50% of aggregate income)

Total energy usage

9,237.98 million tons/year

1,498.80 million tons/year

CO 2 emission from energy

21,734,020 kg/year

5,379,200 kg/year

purposes - Electricity bills - Cooking cost

consumption


RATCHABURI ELECTRICITY GENERATING HOLDING PCL.

Results from the community energy plan execution Pilot projects in Tambon Ban Singh

81 energy community volunteers (52 from Tambon Ban Singh and 29 from Tambon Tharab), will steer forward energy

1. Replace 394 light bulbs with energy-saving ones

conservation and educate others on energy and electricity

2. Promote charcoal stoves, made of 200-litre oil barrels

which will lead to energy saving and efficient energy

(5 units) 3. Promote high-efficiency stoves (Super Ang-Lo) / (29 units)

management in the communities. •

4. Promote renewable energy technology

Pilot projects which lead to these energy consumption forecasts;

(1 set of energy-saving chicken grill stove and 1 set

o

of solar-powered oven)

In 2013, their energy expenpditure will decline by 5% from 2012

o

At least 5% increase in the application of community energy technology

Pilot projects in Tambon Tharab

Both villages can be developed into energy learning centers, if the projects are continued.

1. Replace 81 light bulbs with energy-saving ones to reduce power consumption 2. Promote biogas technology to reduce use of LPG gas for cooling (3 wells) 3. Promote high-efficiency charcoal stoves mock of 200-litre oil barrels (9 sets) 4. Promote biomass-powered stoves for cooling (6 sets) 5. Promote Super Ang-Lo or high-efficient stoves (35 sets) 6. Promote solor-powered ovens (5 sets)

Both communities show a good attitude towards the Company and better understanding in energy and electricity.

37


Social & Environment Responsibility Report 2012

Water management

Water from office buildings undergoes the extended aeration-

Basic environmental management of the Company’s power

activated sludge process. Mixed with chlorine, it is released

plants is focused on impact containment and prevention

to the irrigation pond. Water from the irrigation pond is used

beyond regulatory requirements. The over-10-year experience

to water trees inside the premise. Wastewater from the

in electricity generating is applied in the designing and

annual gas air heater washing is treated and after

development of the prevention system, to minimize the impacts and allow all power plants in concurrently generating power

sedimentation it is released to holding pond. •

Water quality monitoring device is installed at the retention

and preserving the environment and community co-existence.

pond before releasing to natural water channels. This device

Ratchaburi Power Plant’s treatment practices for water

will test the pH, Conductivity. Temperature, Dissolved

released from the power plant and office buildings are as

Oxygen (DO) and Biological Oxygen Demand (BOD). Samples

follows:

are collected for monthly wastewater testing, to ensure no impacts on the quality of water in natural channels.

38 •

Wastewater from chemical area drains and resin-washing water from the demineralization process is contained in

Ratchaburi Power Plant has undertaken regular water quality

neutralized basin. After the water is acid-neutral and

checks, to ensure that water to be released to natural channels

sedimentation, it is released to holding pond and retention

meets the Water Characteristics Discharged into Irrigation

pond (pond 1 and 2).

System of the Royal Irrigation Department No.73/2554 (2011),

Water from the cooling tower is released to holding pond for

Industrial Effluent Standards of Notification of the Ministry of

sedimentation and cooling. When temperature is down to

Industry, No. 2, B.E. 2539 (1996) and the Notification of the

28-30 degree Celcius after 24 hours, it is released to retention

Ministry of Science, Technology and Environment, No.3, B.E.

pond and treated to return to near-natural condition.

2539 (1996).

Oil is extracted from oil-contaminated water. While the water is released to irrigation pond, the oil would be kept in barrels

Wastewater test result

and stored at oil/chemical depot for later disposal.

The result shows that the wastewater meet the standards set by the Royal Irrigation Department, the Ministry of Industry and the Ministry of Science Technology and Environment. On top of this, the power plant recycles as much treated water as possible to reduce the release into natural channels.

In 2012, Ratchaburi Power Plant retrieved 29.3 million cubic meters of raw water from the Mae Klong River for the generating of 15.9 megawatt-hour and released 4.4 million cubic meters to Bangpa canal.


RATCHABURI ELECTRICITY GENERATING HOLDING PCL.

Water Recycling through Reverse Osmosis (RO) and Ultra Filter (UF) Technology The project was conceived to maximize water use. The Cooling

Water Volume Reduction and Capacity at

Water Reuse Plant (CWRP) was constructed. Water from

Ratchaburi Power Plant

holding pond undergoes the process that allows treatment to

Raw water (Million Cubic Meters)

the cell level, under the Ultra Filter (UF) and Reverse Osmosis

Waste water (Million Cubic Meters)

(RO) technology, to allow the safe reuse. In 2012, 734, 747

Electricity Generated (Million Megawatts-Hours)

cubic meters were treated by the RO and UF technology and 325,692 cubic meters of RO water was produced, equivalent

29.3

24.5

which can make use of the treated water. In cooperation with

20.5

the Military Engineer Department in Ratchaburi Province, 40

24.3

23.4

28.3

power plant was turned into the organic demonstration field,

24.6

the released water volume. The 350-rai land in the west of the

32.5

35.3

The power plant also initiates a natural approach to reduce

38.4

to 2.5% of raw water used in the generating process.

17.6

17.1

rai was turned into a rice field and its output is presented to

17.4

12.7

15.9

14.1

2006

2008

2009

4.4

4.0

as well as the nature-learning center for the youth and general public. Ratchaburi Power Plant also designs a sprinkling

6.3

2007

4.5

2006

6.4

8.0

the sanctuary and source of food for marine lives and birds

7.7

9.6

the department. The rest is the water catchment area, being

2010

2011

2012

system, which feeds trees in the premise with the water treated accordingly to the Royal Irrigation Department’s standards.

Volume of water treated by Reverse Osmosis (Ro) and Ultra Filter (Uf) Technology and reused in 2012 Waste water used (Million Cubic Meters)

Jul

21,961

30,615

46,946

67,454 45,493

20,926

60,358

27,518

27,481

21,033

46,542

64,865

30,685

Jan Feb Mar Apr May Jun

59,042

93,052 74,438

43,823

34,417

33,190

18,283

47,094

85,740

RO water output (Million Cubic Meters)

43,723

channels.

15,760

This helps reduce the volume of water to be released to natural

Aug Sep Oct Nov Dec

39


Social & Environment Responsibility Report 2012

Air quality management To prevent and mitigate impacts from fuel combustion in the generating process, despite having natural gas as primary fuel, the Company acknowledges and emphasizes the preventive and monitoring system to assure minimum impacts. Measures seriously undertaken by Ratchaburi Power Plant are as follows;

The thermal power plant’s combustion system is equipped with the low NO burner and and the flue gas re-circulation, to reduce nitrogen oxide.

At the thermal power plant, the flue gas desulfurization (FGD) equipment with 97.2% effective of desulfurization. The equipment is activated when the generator is fuelled by bunker oil, the auxiliary fuel. Effective of desulfurization for over 95%, the FGD equipment is vital for the combustion of sulfer-containing fuel like bunker oil. This is for long-term

40

environmental protection. •

The combined cycle power plant, driven by natural gas, is equipped with the dry low NO burner. When diesel is in use, it will be injected with demineralized water to keep the temperature below the nitrogen oxide formation point.

Aside from mitigating impacts from the burning system, there is a system to monitor preventive measures through the installation of Continuous Emission Monitoring Systems (CEMs). Through CEMs, air from the stack is detected for the volume of nitrogen oxide, sulfur dioxide, carbon dioxide and opacity in every 15 minutes. The reading is automatically reported to the control room and the Pollution Control Department and appeared on the sign boards in front of the power plants. This is to ensure that the air quality remains within the standard criteria.

In case of malfunctions which raise the air quality level near the standard criteria, officers are immediately alerted for a prompt check and problem solving. If the level keeps moving up, the generating capacity will be lowered until the level falls to the normal level. Without success, the power plant will notify the National Control Center and ask for the immediate shutdown.


RATCHABURI ELECTRICITY GENERATING HOLDING PCL.

Aside a close watch at the power plant, communities are

located above or below wind direction from the power plant.

assured of safety through the installation of the Ambient Air

No correlation with fuel was found, at the incident occurred

Quality Monitoring System (AAQMS) at four stations nearby

when the generator was fuelled by natural gas. Ozone level

the plant - Ban Chao Nua, Tambon Banrai; St. Antonio

has usually exceeded standard criteria in the dry season and

Church, Tambon Phaengphuay; Bangkado Temple, Tambon

all stations detected that on the same day.

Ban Singh; and Phoratburana Temple, Tambon Phongsawai. The system will detect sulfur dioxide, nitrogen oxide, ozone

Combustion does not directly generate ozone in the

and particulate matter smaller than 10 micron, and total

atmosphere, which rather formulates on phytochemical

suspended particulate around the clock, to assure that the

reaction - with the mixture of nitrogen oxide, oxygen and

air emitted from the power plant does not affect the

hydrocarbon having sunlight as the catalyst. Thus, ozone has

environment and surrounding communities. The communities

been high in the dry season since 1997, according to the

are informed of the data on a monthly basis.

Pollution Control Department’s air quality check in Muang district of Ratchaburi province. Then, Ratchaburi Power Plant

Ratchaburi Power Plant must meet the Emission Standard from

was not yet constructed.

New Power Plant of Notification of the Ministry of Industiry (2004) and the Notification of the Ministry of Science, Technology and

Nevertheless, the Company takes the problem into

Environment (1996). Meanwhile, the ambient air quality must be

consideration. “The study project to survey and analyze the

in strict compliance with the Notification of National Environment

cause of ozone around Ratchaburi Power Plant and Ratchaburi

Board No. 10 (1995), 24 (2004), 28 (2007) and 33 (2009).

province” was conceived in 2008 and carried out by SECOT Co.,Ltd. (licensed by the Office of Natural Resources and

Air quality monitoring results

Environmental Policy and Planning to complete environmental

Throughout 2012, pollutants in air emitted from the power

impact assessment reports). Its objective was to find the cause

plant’s stack - sulfur dioxide and nitrogen oxide - were within

of high ozone in the area and solutions. The study showed

positive levels as well as dust opacity, whenever the generators

that nitrogen oxide (NO) emitted from Ratchaburi Power Plant

were fuelled by natural gas and/or oil.

was not the primary cause of high ozone in Ratchaburi province. It was found that on the same day and time, ozone

To verify that the monitoring results were within standard level

at all air quality control stations was at high level and one

and the environment remains intact, Ratchaburi Power Plant

some days slightly exceeded the standard criteria. Considering

runs the automatic 24-hour air quality check through its air

wind direction, wind from Ratchaburi Power plant did not hit

quality control stations. The stations monitor sulfur dioxide

some stations. Thus, high ozone in the province was partially

(SO 2), nitrogen oxide (NO 2) , total suspended particulate (TSP),

formed outside the survey area. Regardless of this fact,

and particles not larger than 10 micron (PM 10). Throughout

Ratchaburi Power Plant has strictly followed through the

2012, all were within standard criteria, except ozone gas (O 3)

preventive, corrective and mitigating measures as specified in

which exceeded the standard criteria on one day at all stations,

the EIA report.

41


Social & Environment Responsibility Report 2012

1-hour average of SO2

1-hour average of NO2

(part per billion)

(part per billion)

Ban Don Modtanoy

Ban Khlong Khae

Ban Bangkado

Ban Chaonua

Ban Don Modtanoy

Ban Khlong Khae

Ban Bangkado

Ban Chaonua

340

600

1-hour standard not exceeding 300/ppb

1-hour standard not exceeding 170/ppb 170

300

42

Jan Feb Mar Apr May Jun

Jul

Aug Sep Oct Nov Dec

Jan Feb Mar Apr May Jun

Jul

Aug Sep Oct Nov Dec

1-hour average of Ozone (O3)

24-hour average of total suspended

(part per billion)

particulate (Îź g/m 3)

Ban Don Modtanoy

Ban Khlong Khae

Ban Don Modtanoy

Ban Khlong Khae

Ban Bangkado

Ban Chaonua

Ban Bangkado

Ban Chaonua

200

660

1-hour standard-not exceeding 100/ppb

24-hour standard - not exceeding 330 micrograms per cubic meter

100 330

Jan Feb Mar Apr May Jun

Jul

Aug Sep Oct Nov Dec

Jan Feb Mar Apr May Jun

Jul

Aug Sep Oct Nov Dec


RATCHABURI ELECTRICITY GENERATING HOLDING PCL.

Noise management

• Officers at the power plant must wear noise-protection

Noise generated by generating activity mostly derives from

equipment like ear plugs, when in areas where noise level is

boilers, gas turbines and vehicles communiting in the power

above 90 decibel (A). Their presence in the area must not

plant area. Aside from the buffer zone bordering the power

exceed 8 hours per day.

plant from community areas, rows of trees around the area

• Regularly measure noise level. Noise scale at 3 stations - the

serve as noise barriers. There are also the following noise-

power plant, Ban Samruan and Ban Chaonua - is measured

controlling measures:

3 days in a row every 3 months.

Halt loud activities at night, to not disturb residents nearby

Notably, the power plant’s noise must be maintained at the

the power plant. These include activities that generate noise

level that does not disturb communities in accordance with the

level above 85 decibel (A) in a distance of 1 meter from noise

National Environment Board and must be at the level safe for

origin, under the noise level regulations for industrial plants.

all employees working inside the power plant in accordance

Apply noise-controlling equipment inside the power plant

with the Interior Ministry’s regulation.

during operating hours, focusing on the machinery or equipment of which noise level is above 85 decible (A) to

Noise test results

keep the level below the 85-decibel (A) limit. They are:

In 2012, the test in March, May, August and November

o

Install silencers on the pressure valves at the Soot Blower

indicated full compliance to the National Environment Board’s

Blow Down Tank and at the Ban Tharab water pumping

Announcement No.15 (2007) and the Industry Ministry’s

station.

Annoucement on noise disturbance and industrial noise

Install mobile silencers during the cleaning of steam

pollution (2005). The average and maximum noise level was

turbines ahead of generator activation.

within the stardard criteria of no more than 70 decibel (A) and

o o

Build a dome over the generator’s burner, to reduce the

115 decibel (A), respectively.

generator’s noise from the inside.

o

Growing trees around the power plant to establish a noise barrier.

Power Plant Location

Ban Chaonua

Ban Samruan

Leq 24 hr

L max

Leq 24 hr

L max

Leq 24 hr

L max

March

54.1-56.0

86.5

60.0-61.6

97.6

58.7-66.4

98.0

May

58.6-59.1

88.2

58.3-59.9

99.8

55.7-63.5

92.1

August

61.1-61.7

92.8

59.1-59.8

100.5

61.0-67.5

97.2

November

59.2-61.0

85.4

63.3-68.0

99.2

63.8-64.6

113.1

Standard

70

115

70

115

70

115

Standard : National Environment Board’s Announcement No.15 (2007) and Industry Ministry’s Announcement (2005) Measuring unit: decibel A (dB(A)) Leq L max

24 hr

= 24-hour average scale = maximum scale

43


Social & Environment Responsibility Report 2012

44

Waste and unused materials management

Waste from power generation management

Power plant waste is classified into 2 major categories -

Hazardous and non-hazardous wastes from power generation

general waste and hazardous waste.

like oil-tainted gloves, fiberglass and oil filters are taken care

1. General waste - recyclable waste, wet waste (food), and

of by an authorized company, in full compliance to the Industry

non-disposable or non-recyclable waste 2. Waste from generating process: Hazardous waste including used lubricant, oil-contaminated cloth/gloves, and non

Ministry’s regulation on waste disposal (2005). Others like oil-tainted water is handled by a contractor, which will separate the oil for reuse.

hazardous waste such as Air Inlet Filter insulation wooden paper packages.

In 2012, Ratchaburi Power Plant contracted outsiders to handle 128.98 tons of waste. Contractors were selected based on

General waste management

their “reuse� ability. For instance, some materials were recycled

- Recyclable waste: Recycle Bank* to buy recyclable waste

or used to generate steam in industrial estates lessening

from all units inside the power plant and transfer it to

contaminated underground water ane environmental. Of all

recycling contractors.

waste, 67.25 tons was sediment from wastewater treatment

- wet waste and non-disposable or non-recyclable waste: Ban

system, 20.6 tons of used lubricants, 5.89 tons of used resin,

Rai Municipality is hired to collect the waste which will end

12.28 tons of ragged cloth/tainted gloves, 3.26 tons of

up at landfills. Last waste segregation takes place at landfills.

fiberglass, 12.41 tons of burner deposits or scale, 4 tons of

In 2012, the municipality collected 22 tons of non-disposable

water-contaminated oil, 1.97 tons of brick insulator, 0.30 ton

waste.

of expired light bulbs, 0.62 ton of filters, and 0.20 ton of diesel.

*

Remark:Ratchaburi Power Plant initiated for promoting waste selection and recycling in order to reducing waste volumn and resources used in waste management.


RATCHABURI ELECTRICITY GENERATING HOLDING PCL.

Ecological conservation and biodiversity monitoring

Recycle Waste in 2012

Ratchaburi Power Plant emphasizes on ecological conservation

1,315

and biodiversity. The ecological system is revitalized and Paper boxes

Paper scrap

Glass bottles

preserved under the water catchment project. The area has

Paper (used on both side)

Plastic bottles

Othes

been the sanctuary of wildlife - both local species and migratory ones. The ecological system of water sources - reservoirs for raw water and rainwater and holding ponds - is preserved as wildlife sanctuary or home to migratory birds. Impacts of the operations on wildlife have been monitored, through the

proliferation across the power plant.

987

-Volume (kilogram)

counting of bird species and diversity of their population and

In 2012, Ratchaburi Power Plant’s survey found 97 species of wildlife within the 1-square kilometer radius of the buffer zone: 677

10 amphibians, 10 reptiles, 73 species of birds, and 4 mammals.

565

549

Of total, 30 showed high relation abundance, 30 moderate relation abundance and 37 low relation abundance.

Of total, 73 are protected under a ministerial regulation (2003): 4 reptiles and 69 species of birds. Twenty four species are 196

not protected according to the regulation. It was also found

Paper boxes

Paper (used on both sides)

Paper scrap

Plastic bottles

that 5 wildlife species were protected under the Office of Glass bottles

Others

Natural Resources and Environmental Policy and Planning (2005b)’s rules like the endangered Purple Heron and the near-endangered Indian Cormorant, Watercock, Asian Golden Weaver and Ploceus philippinus. The Asian Golden Weaver is conserved according to near-endangered the rules of international union for Conservation of Nature (IUCN)

Recyclable waste management

The diversity and abundance analysis found no alteration

In 2012, Ratchaburi Power Plant campaigned for waste

during 2009-2012. The area around the power plant has

reduction and recycling, through various schemes undertaken

remained wildlife sanctuary, reflecting the similarity of their

by the Recycle Bank - the schemes to reduce plastic and

original ecological environment and the power plant’s. This

foam, to promote replacement plastic with cloth bags, to

indicates no change in the surrounding ecology. The species

conserve the environment, and to use both sides of paper.

discovered in the first year of study (2007) are still found

These are to cut down natural resource consumption and

around the area. Meanwhile, new species have been

reduce impacts on the environment. In the year, the Company

discovered. In 2012, 3 new species of birds are discovered

recycled 4,685 kilograms of waste. Paper boxes, amounting

– Tringa Tetanus, Irena Puella and Saxicola Stejneger.

1,315 kilograms, topped the list of recyclable items sold to

Naturally-grown and planted trees in the power plant becomes

the Recycle Bank.

bird-nesting and egg-laying places, while some birds nest

45


Social & Environment Responsibility Report 2012

around the piling gypsum boards, left over from the power plant’s desulfurization process. The endangered Purple Heron

Wildlife species found in Ratchaburi Power Plant in August 1997-2012

which nested in the area during 2003-2006 and were unseen during 2007-2010 returned to the scene in 2011 and are still seen.

1997

1998

1999

2000

Environmental-friendly procurement

2001

2002

2003

2004

In the past year, the Company paid more attention to

2005

2006

2007

2008

environmental-friendly procurement, with the adustment

2009

2010

2011

2012

towards green procurement. Initially, the Company required

0

20



60

80

enviornment-friendly procurement for office supplies. It started with the sourcing of products with “No.5” energy-saving labels and green labels, products with recycled parts, and products with carbon labels that show higher CO 2 reduction. The procurement rules are set for the sourcing of raw

46

materials, equipment and parts for the power plant. The rules specified the properties, delivery condition and delivery acknowledgement for all types of procurement - like items for the power plant, chemicals and others - to cover key details of all equipment, storage procedure and emergency preparation. This is to assure compliance with the power plant’s environment, occupational health and safety rules. In particular, chemical procurement required the specification of name, type, size, chemical and physical properties, material safety data sheet (MSDS), the distribution license, and the requirement for the sellers to reuse or properly thrash the containers. Notably, most items required by the power plant are mostly supplied by world-class suppliers who apply environmental-friendly standards in their manufacturing and distribution and have proved concrete results. amphibians reptiles

The Company is in the process of documenting the products

bird

with “No.5” energy-saving labels and green labels, products

mammals

with recycled parts, and products with carbon labels that show higher CO 2 reduction, to outline the Company’s procurement criteria and condition.


RATCHABURI ELECTRICITY GENERATING HOLDING PCL.

Environmental-friendly products

The Company also embarked on other measures to minimize

As an independent power producer which supplies 14% of

pollutants, like the application of the Carbon Capture Storage

the country’s installed capacity, the Company must ensure

concept into the spirulina algae cultivation research project.

all power plants’ readiness in responding to the demands of

The spirulina algae as well as algae cultivated for biodiesel

customers - Electricity Generating Authority of Thailand and

production are fed on waste carbon dioxide from Ratchaburi

Provincial Electricity Authority - as specified in the power

Power Plant, the country’s biggest by capacity. Another

purchase agreements. Meanwhile, the efficiency of power

measure involves the promotion of community forests, to

plants’ environment quality control must be maintained, to

increase community participation in forest conservation as

minimize social and environmental impacts from electricity

forests are the natural carbon sink.

generation. These measures are undertaken out of the Company’s The Company’s electricity is generated by advanced

acknowledgement and care, to ensure that the power plants’

technology that promises efficient environment management.

electricity is environmental-friendly and that the efficiency to

Ratchaburi Power Plant, in particular, invested over Bt4,000

serve power users is maintained.

million in environment equipment which is highly efficient in reducing pollutants.

One of the Company’s focuses is fuels. Of all fuels required for the generating of total 6,303 megawatt, natural gas accounts for 78% of the capacity, hydropower 7% and renewable energy - solar, wind and biomass power 2.5%. These fuels are considered clean and produce minimum social and environmental impacts. This means the Company’s electricity is highly environmental-friendly.

In the past year, all power plants carried out the outage maintenance as planned, allowing them to satisfy customers’ demands and meet the legal requirements on environment quality management.

47


Social & Environment Responsibility Report 2012

Socially-Responsible Activities

48

Throughout these years,the Company has determined to do the business on a basis of socially-responsible way,and taken into account all shareholders interest. In this regard, the Company intends to learn about and respond to demands of all stakeholders. The responsibility is shared by all business in handling and addressing demands of each group of stakeholders, to establish trust and positive relationship. This will remain the Company's business foundation and allow sustainable growth.

Risk and risk management Globalization opens and connects the world, speeding up and

combustion waste which could impact communities and the

widening news circulation. Economic and social advancement

environment. Thus, starting a power plant is controlled and

leads to greater exploitation of limited natural resources, and

regulated by the government, starting from the bidding as

hence greater impacts on society and the environment. Under

carried out by the Energy Regulatory Commission in line with

those changes, businesses must take into account

the Power Development Plan (PDP). After the bidding, the bid

“stakeholders� who are impacted by their operations and

winners are subjected to submit environment impact

review their roles and approaches to handle the increasing

assessment reports, which must encompass participation from

diversity of individuals, interests groups and organizations.

communities around the new power plants as communities are the projects’ direct stakeholders. They play the role in

Electricity is fundamental infrastructure for economic

ensuring the development brings about best interests to

expansion, bringing improvement to the quality of life of all in

communities, society and the environment. Community and

society. Electricity security is thus the national security.

public trust and acceptance is a key success factor of the

Electricity generation also requires fuel and leaves behind

development and solid/sustainable business development.


RATCHABURI ELECTRICITY GENERATING HOLDING PCL.

Meanwhile, larger population leads to higher electricity demand and higher electricity generation. Coupled with climate change as a result of global warming, public awareness and interest in the environment has grown, leading to the establishment of many private development organizations and people’s networks who have pushed forward environmental issues. Embarking on a new power plant thus requires closer involvement with these groups.

Social management strategies Social responsibility has been the Company’s priority in extending the responsiblity to cover all stakeholders, on the conviction that the Company’s sustainable business presence requires safeguarding and developing society as well as achieving financial goals. The Company’s social management framework covers the following 4 strategies:

1) Upholding and abiding by laws is the Company’s fundamental social responsibility as business laws generally are geared towards consumer protection, competition, environment, equality and safety. Upholding and abiding by the laws affirms the Company’s intention to take responsibility for consumers/customers, to nurture fair competition, to protect the environment, to ensure equitable treatment to all stakeholders, and to assure work-related safety. 2) Supporting and responding to the government’s policy. As electricity is the government-controlled public utility, the Company’s operations are under the government’s conditions. Profitability thus depends on reasonable grounds, for stakeholders’ stability. The Company strives for operating efficiency and competitiveness, to continue its role as a power producer according to the government’s policy. 3) Engage in community’s quality of life and social development as a responsible organization, particularly involving communities near the Company’s premises. The Company schemes and takes part in activities that benefits communities and society, to establish trust. 4) Maintain business ethics which influences the Company’s trustworthiness and ensures business continuity in all circumstances.

49


Social & Environment Responsibility Report 2012

Stakeholders of RATCH The Company has been committed to social responsibility and all shareholders’ interests. In this regard, the Company intends to learn about and respond to demands of all stakeholders, not only those directly affected by the Company’s operations but also all others. The responsibility is shared by all business units in handling and addressing demands of each group of stakeholders, to establish trust and positive relationship. This will remain the Company’s business foundation and allow sustainable growth.

50

The Company’s stakeholders

RATCH

Shareholders

Employees

Business partners

Community

Government agencies

Media

Customers Trade partners

Co-investors

Creditors

Social groups Competitors /academics and thought leaders


RATCHABURI ELECTRICITY GENERATING HOLDING PCL.

Engagement process and guidelines to address each group of stakeholders

Stakeholders

Demands

Process

Guidelines

Customers

o

o

Regular machinery

Determined to be a leading power producer in the region,

maintenance

to address power demand in the industrial sector, the

Secure storage of customer

overall economy and households as well as to compliment

information

the national power stability through:

Regular meetings and seminars

o

Readiness to promptly deliver goods and address

o

their demands

o o

Quality products and

o

services

for opinion exchange and

Ethics-based

relationship enhancement

operations

o

Maintaining efficiency in power distribution and output quality, by producing power accordingly to customers’ specification

o

Generating and distributing power as specified in

o

Strictly upholding and complying with requirements and

o o

Following customers-specified regulations and criteria

Maintain and

contracts

enhance good relationship

conditions under the power purchase agreements

Securing customers’ secrets, by not disclosing the information without their consent

o

Improving and maintaining good relationship with customers, for smooth operations and trust

Employees

o

Salary, welfare and

o

o o o

Job security and

transparency

Provide the Company's,

Specifying the code based on the labor law and fairness,

benefits

employee's and executives's

and applying the intenationally recognized standards to

Occupational health

Code of Ethics to use as a

treat employees with fairness

and safety

framework together with honesty, moral principal, and

o o

Merit-based remuneration setting

Skill development

o o

Promoting continuous employee skill development

advancement

Regularly ensuring occupational health and safety at workplaces

Avoiding unfair actions which may affect employees’ job security and treating employees with politeness and human-dignity respect

51


Social & Environment Responsibility Report 2012

Stakeholders

Demands

Process

Guidelines

Trade partners

o

o o

Taking complaints

Treat trade partners fairly, maintain equitable interests in

Transparent and fair short-listing

o

Heeding advice through

line with related laws and regulations, and clearly specify

and selection

meetings and formal/informal

selection criteria and credentials, through:

Appropriate price

gathering

o

timely and

Ensuring fair, transparent and accountable procurement process

payments according to the

o o

Putting in place clear surveillance system

o

Supporting trade partners who honor responsibility to

Strengthening trade partners according to corporate governance principles

contracts

society and environment Business

52

partners

o o

Benefits

o

Knowledge and skill

o

Occupational health and safety

o

Setting meetings for business

Having business partners take responsibility in the work

partners and the management

process concerning occupational health and safety as well

Opening a channel to receive

as knowledge/skill development, for efficient and effective

their opinions

capability, through:

o o

development

Paying out a fair share as required by law Improving business partners’ capability accordingly to their nature of business

Community

o o

Confidence and trust

o o

o

Host public hearing on

Uphold community engagement to become their good

Community

proposed projects, to seek

neighbor under the thought-sharing and joint-action

engagement

their opinions and

concept for good understanding and trust through:

Environmental care

engagement in surveillance

o

Information

o

disclosure

o

Community

o

development

Community relations activities to address community

Open power plants for

needs and create maximum benefits in education,

community visits

health, sports and religion, for example

Consult community through

o

the environmental inspector

Partial revenue contribution to Power Development Fund under the Energy Business Act BE 2550 for power

team

plants vicinities community development

o

Consultation with community through the environmental inspector team

Shareholders

o

Returns and

o o

Rights to information

business growth

Compliance to corporate governance

o o o

Annual shareholder meeting

Operate business under corporate governance for

Quarterly briefings

continued growth and added value thus positive returns

Shareholder visits to power

to shareholders

plants


RATCHABURI ELECTRICITY GENERATING HOLDING PCL.

Stakeholders

Demands

Process

Guidelines

Co-investors

o o

o

Found business on fairness for trust, cooperation, and

Fulfill business plans

Joint meetings

Avoid conflict of

good relationship which will culminate in sustainable

interest

capability and efficiency of the joint investment, and success of such investment

Creditors

o o

Ability to repay, with

o

Joint meetings

Strictly honor conditions and requirements specified in the

good and punctual

contracts through:

returns

o

Not demanding, taking or making any dishonest

o

Reporting accurate, punctual and consistent financial

Maintain cautious

payments

but profitable operations Government

o

Comply with related laws and regulations

agencies

o

information

o o

Campaign against demands and

o

Joint meetings

o

agencies’ visits

with government agencies on academic fronts and

Host public hearings

supports for their activities

o

Provide financial supports to the agencies’ activities

o

Multi-channel information

Emphasize on disclosing information to the media, for

disclosure

accurate, concise and quick dissemination to the public

o

Quarterly press conferences on

through:

Arrange interviews

financial results and company

with executives

strategies

o o o o

Disclose prompt, clear and accurate information

o

Set guidelines in dealing with government agencies based on corporate governance principles and cooperate

corruption Media

o

Welcome related government

o

Site visits

Press releases on major events Press conferences on quarterly operaling performance Special executive interviews on special occasions Continuous and regular activities to strengthen relationship

Social groups/

o

Operate with

academics and

concerns in impacts

thought leaders

and emphasis on environment, society and community

o

o

Heed opinions

Uphold the principle in disclosing complete, clear and

Welcome suggestions and

accurate information, and welcome suggestions from

complaints

all parties for positive understanding and collaboration

Follow articles or news in

to reduce possible conflicts or impacts on the business.

different media

This, also going along with participation in community and

Disclose business

social development, is undertaken through:

information in

o o

transparent manner

o

o o

Socially-responsible business practices Information in annual reports and CSR reporting in

Preserve natural

accordance with the internationally-accepted Global

resources and

Reporting Initiative (GRI)

environment

53


Social & Environment Responsibility Report 2012

Stakeholders

Demands

Process

Guidelines

Competitors

Follow competition

Learn from public channels

Legally promote free trade and competition through:

rules in moral and

o

ethical way and com-

Avoidance of actions which directly and indirectly intimidates or defame competitors

ply with the laws

o o

Promote free trade, by not robbing competi-

Campaign against threats and trade barriers Not putting competitors in a disadvantageous situation

tion opportunities from competitors

Employee connection and development 54

In 2012, the Company was geared towards expanding

Employees’ work livelihood was in focus, through the

business in the domestic and overseas markets, under more

improvement in workplace environment and quality of living,

challenging strategies and fiercer competition. Human resource

the adjusted and improved pay system to motivate highly-

is the key mechanism to achieve sustainable expansion and

talented employees in preparation for current business

achievements. Aside from equitable treatment without

operations and future expansion, and a campaign for

discrimination in race, nationality, sex, complexion or religion

awareness and understanding in the new common values

under the supervision of the HR and remuneration committee,

which will be a key foundation towards a change in corporate

for advancement accordingly to the business strategy and

culture.

direction, the Company undertook adjustment in HR policies to meet the enhanced mission.

To support business expansion, employee esteem and organizational image, in the past year the Company

The Company stepped up on recruiting talented and

commissioned the new permanent office construction and a

experienced personnel, particularly to fill high-ranking executive

management reshuffle. For legal compliance and international

posts. For greater strength, executives of the entire group

standards in terms of safety, occupational health and

were reshuffled to allow new management skills and

environment, the Company set up a business unit to directly

experiences so that they can grow along with the organization.

take charge of the new permanent office management.

Moreover, the Company has the policy to take care of employees and create capable, ethical and talented personnel

The Company’s personnel nomination and selection criteria

to whom the Company’s achievements are the priority. The

are in line with business plans. All employees must come under

Company promoted goodness and ethics among employees,

the se l e c ti o n pro c e ss, w he re by the y a re s u b j ect ed t o

ensuring they are aware of responsibility for themselves and

competency tests to guarantee that the Company has the

others and engagement in social and community development.

“right” persons to help it achieve the determined goal.


RATCHABURI ELECTRICITY GENERATING HOLDING PCL.

Employee selection process

Behavioral and Competency Based Interview

Applicants

RATCH people

“To be the leading independent power producer in the region trusted by the public” - Ability test - Psychological test - Analytical test

Good, talented and quality people whose attitude aligns with corporate values

The Company has prepared employees to grow together to enhance capability for greater individual ability and corporate competitiveness, through job reshuffle opportunities. There are opportunities for overseas posts at the Company’s projects in Australia and Lao PDR. The employee development is designed according to their areas of work. Employees are also groomed on general management, to encourage and ready them for career advancement.

55


Social & Environment Responsibility Report 2012

The Company draws up training criteria to ensure that personnel is prepared to assist the corporate goal. Employees High-level executive

at all level are provided with skill training necessary and appropriate to particular positions, duty and responsibility.

Middle-level executive

Generally, operating-level employees must be trained on technical skill and business knowledge. Primary-level executives must be equipped with necessary technical skills;

Primary-level executives

aside from knowledge in their jobs, they must have the art in handling people for higher work efficiency as well as human relations skill.

Operating-level employees

The Company also targets to improve middle-level executives’ skills in materializing the Company’s policies in their respective areas. Their business units are required to come up with business plans and clear action plans and the executives can

56

lead them professionally. They must demonstrate virtuous and ethical behavior and enhance the leadership. Executive Development Program Leadership /Managerial Skill

For high-level executives, they are trained to efficiently apply

Conceptual/People and Technical Skill

knowledge in organizational management. Opportunities are

Technical Skill and Business Knowledge

offered for experience and knowledge sharing, for the better system and management procedure. They are encouraged to improve their vision and knowledge and acquire new experiences.

Human resource development activities in 2012 were as follows:


RATCHABURI ELECTRICITY GENERATING HOLDING PCL.

Activities

Operating-level employees

Primary-level executives

Orientation

Ratchaburi Power Plant site visit

Site visit to Hongsa Power Plant, Lao PDR

English skill training

Technical skill training

Local cultural training for overseas-posted

employees Safety training for supervisors and executives

High-level executives

57

for executives

evacuation course

Personality and dining etiquette courses

Basic fire extinguishing and high-rise

Middle-level executives

√ √

Energy knowledge course by Thailand Energy Academy

Advance certificate course on public economic management by King Prajadhipok’s Institute

RATCH Volunteering The Company in the meantime promotes employee engagement

In 2012, the Company hosted 11 CSR activities that involved

in Corporate Social Responsibility (CSR) activities, allowing

“RATCH Volunteer” the activities are ranged from environmental

employees at all levels in planning and undertaking CSR

conservation,educational and youth activities, religions and

activities for community and social benefits. Employees are

culture activities. Some are initiated by employee clubs. Last

encouraged to volunteer for the Company’s and clubs’ CSR

year, there were 164 RATCH Volunteers, which accounts for

activities under “RATCH Volunteering” project. Employees are

95 percent of the whole number of staff, who dedicated their

allowed to take upto 3 days per calendar year for volunteer

301 hours to repay the society.

purposes and entitled to extra scores in annual performance appraisal in return for their volunteer.


Social & Environment Responsibility Report 2012

Establishing new core values: Path to the goal As the Company is geared towards more overseas investment, the core value has changed accordingly for the changing course and the more challenging competition. In the meantime, all employees are invited to take part in the change from the beginning as sense of ownership and pride built up on the engagement will help guide all towards the desirable behaviors.

Throughout 2012, the Company campaigned for awareness of the new core values and instill them as well as desirable behaviors in accordance with the values both directly and indirectly in forms of internal communications channels, activities, and meetings. Moreover,the values are applied in many employee relations activities such as family day,sport

58

day,and the Company's traditional and cultural activities.

The Board of Directors demanded evaluation of the awareness and values be part of the Company’s 2012 corporate KPI, which required the survey on all executives and employees. A number of 165 (or 92.69% of all 178 employees) completed the survey. It showed 90.44% of executives and employees were aware of and understood the new values, which met the criterion. In the next years, the campaign will be beefed up to ensure all employees’ greater understanding and cooperation to the 4 values.


RATCHABURI ELECTRICITY GENERATING HOLDING PCL.

New common values Professionalism

Symbols

Guidelines

• Proficient in their jobs • Respectable • Responsible for jobs and the corporate image

Desirable behaviors

• Responsible for success or failure of business units and the organization • Having the sense of ownership about the organization • Possessing professional conduct • Being inspirational • Transferring knowledge to others • Following business and social etiquettes • Respecting themselves and others • Being punctual at all occasions • Open and adaptable to changes to individuals policies and changing circumstances • Being positive • Ready for domestic and overseas posting • Commanding communication and presentation skills

Passion for Excellence

• Determined towards excellence • Improving the capability of themselves and teams • Being undeterred by obstacles

• Being committed and devoted • Constantly improving work efficiency and work procedure • Self-improvement and yearning for new knowledge • Being creative and comprehensive • Being determined to overcome problems or obstacles • Passionate for quality and above-standard achievements • Responsible and ready to take on more challenging tasks • Planning clearly or envisioning framework or goal before acting • Possessing the "Can Do" attitude • Forecasting problems or evaluating the situation, and preparing solutions in advance • Thinking out of the box and having the forwardlooking view, to create new things

59


Social & Environment Responsibility Report 2012

New common values

Symbols

Guidelines

Desirable behaviors

Collaboration

• Being compassionate • Caring, helping and taking care of others like siblings • Trusting and being sincere to others • Respecting their team

• Sincere and willing for knowledge and experience sharing and ready to float opinions to other team members • Creating the trusting, supporting and collaborating environment • Taking part in team goal setting and the team's achievement • Acknowledging individual differences and understanding their behaviors • Coordinating with all groups and at all levels for good relationship • Treating others with friendliness and care • Accepting majority opinions and understanding responsibility as a team member • Putting mutual benefits as priority • Forgiving and understanding others • Volunteering on inter-unit activities and the organization's activities • Neutralizing differences or reducing conflicts for mutual benefits • Smiling and greeting all in all occasions • Expressing gratitude and apology at all occasions • Open to suggestions or advice with respect to others' rights • Seizing opportunities to make new friends and nurturing good relationship with internal and external members

Good governance

• Being honest • Being virtuous and ethical • Honoring the integrity and good values

• Carrying out tasks in righteousness, transparent and fair manner • Treating others equitably and keeping promises, based on corporate interests • Avoiding actions that harm themselves and the organization • Following the law, rules, regulations and the Company's policies • Keeping the Company's secrets and business information • Showing volunteering spirit and devoting own time for the sake of others or society

60

The Company has the confidence that the 4 new core values will inspire all employees towards the behaviors that will allow the Company to achieve its mission and vision. This will pave way for sustainable development and further business expansion in the future.


RATCHABURI ELECTRICITY GENERATING HOLDING PCL.

Healthcare and occupational health:

On occupational health, the Company last year adopted the “5S” activity to improve the workplace environment for tidiness,

Cleanliness and safety as the central part of operations

safety, good hygiene and favorable work atmosphere. The

Aside from welfare and financial assistance for employees’

implemented continuously to make it part of corporate culture.

quality of living, the Company also promotes and supports

Employees were engaged in a contest to find the persons who

good health among employees through the regular

constantly kept their desks clean and tidy, in line with the “5S”

dissemination of health-related knowledge and advice through

activity.

activity drew participation from employees at all levels and was

multi-channels like e-mails, the intranet, announcement boards, and internal TV circuit. Necessary vaccination is

The Company believes that safety, occupational health and

provided like vaccines for tuberculosis (Type B) and influenza.

workplace environment is a key factor for efficient and effective

Annual tests on physical fitness and strength are hosted, to

operations. The systems to manage safety, occupational health

promote health self management. The Company also promotes

and workplace environment are improved to meet the laws,

employees’ physical and mental health through a number of

international standards and other regulations applied to

clubs engaging with football, badminton and golf, for example.

establish sustainable work-related safety culture for employees,

The annual sport day is also hosted.

contractors, visitors or others in the Company’s premises.

The Company’s new permanent office houses an indoor fitness

In the past year,there were no work-related accidents either

center for after-hour exercise, equipped with modern exercise

to the Company’s employees or others.

equipment to boost blood circulation, improve the respiratory system and improve muscle strengthening. Through qualified experienced trainers, the Company guides employees on equipment usage and advises them on sports science and appropriate exercising choices. depending on their ages and health conditions.

61


Social & Environment Responsibility Report 2012

Ratchaburi Power Plant's safety measures Process to instill culture on safety, occupational health and environment

Through the past years, Ratchaburi Power Plant have ensured that its operations would not be harmful to workers, community and the environment, through systemic risk management. While all risks of power plants are envisaged, appropriate

Promote and support employee engagement

controlling measures are devised to bring the risks to acceptable levels. Related laws and regulations are taken into consideration. The following measures are in place for

Assure the efficiency of preventive and corrective measures for risks of danger and environment impacts

controlling efficiency;

- All persons in the premise must strictly follow safety rules and measures.

Instil and raise employee awareness on the signigicance of safety and occupational health

- All persons must attend an orientation course before entering the premise. - All persons must envisage possible risks from their tasks and devise risk controlling measures accordingly. Such must

62 Monitor and review the implementation of safety and occupational health measures outlined in the annual operating plan

be presented to the supervisor at least 5 working days before they carry out their tasks. - The safety of heavy equipment, machinery, slings, chains and prime power tools must be certified before entering the premise.

The Company has emphasized on power plants' safety measures, under the aims to achieve zero losses or accidents

- Supervisors, task leaders or unit chiefs must ensure compliance to the measures from all persons.

harmful to all in the power plants - including the employees

- Those violating the safety rules and measures, regulations,

of the Company, contractors and nearby communities and to

orders or announcements will be barred from entering the

keep power plants from any risks. Throughout the past years,

premise.

the Company's power plants have been instructed to regularly

- Area supervisors, security officers, task leaders, supervisors,

monitor, evaluate and improve safety measures, to ensure that

and security department must jointly examine work safety

lives and assets of all persons in the premises are protected.

at least once a week.

At Ratchaburi Power Plant, the Company's primary power plant, safety measures and procedures are clearly specified and strictly implemented. Safety culture is also incorporated into the operating process , through the standard regulations that all workers in the premise must follow.


RATCHABURI ELECTRICITY GENERATING HOLDING PCL.

Emergency prevention and mitigation

Emergency plans for natural disasters

Preventing the unexpected events and risk management are

From the great flood in 2011, Ratchaburi Power Plant has

the core of the power plants' operations and the measures to

drawn up an emergency plan for floods. A consulting firm was

protect communities around the power plants. Each power

hired to study the possibility of a flood around the power plant

plant must envisage the unexpected events, which could be

and nearby areas, to devise preventive measures and

harmful to employees and others working inside the premises.

preparation for the emergency.

All power plants are required to come up with emergency plans, to reduce and tackle possible risks as well as prepare for what may come. Measures and procedures specified for the emergencies are aimed at minimizing impacts on communities and the environment.

Each year, all power plants of the Company carry out emergency drills, to evaluate and improve the plans and procedures for maximum efficiency and effectiveness. Each drill will encompass local government units in the respective areas.

Contingency plan at Ratchaburi Power Plant Emergencies at the power plant can be driven by the generating activity and natural disasters.

There are 4 emergency plans to address generting-related emergencies. 1. Fire emergency plan 2. Chemical spill emergency plan 3. Gas leak emergency plan 4. Radiation emergency plan

Ratchaburi Power Plant conducts annual drills and training. In 2012, 30 level-1 fire drills, a level-2 fire drill, and a level-3 fire drill were carried out. There were 5 drills for chemical spill emergency, 3 for gas leak emergency, 1 for radiation emergency, and 1 for flood emergency. Business units were clearly given roles and responsibility in each simulated drill, so that all officers and business units realize their parts and mission.

63


Social & Environment Responsibility Report 2012

Community and social development In 2012, the Company rolled out a series of social activities, to show responsibility to society which will bring about a good corporate image. The summary of the activities is as follows:

1. “Love the Forest and the Community” project In cooperation with the Royal Forestry Department, the project conceived under the memorandum of understanding dated 25 January 2008 entitled both parties to primarily conserve community forests via assistance to community for such conservation as guided by Their Majesties’ sufficiency philosophy and wishes. Both have completed the 3 primary activities - community forest contest, Kla Yim community forest leaders’ network seminar and Kla Yim Youth Camp. 2012

64

marked the fifth and the last year of the first phase. On 30 September 2012, the Company and the Royal Forestry

Responsibility for goods and services

Department signed the MoU to launch the second phase which will run from 2013 through 2017.

As electricity must be transmitted through the high-voltage grid to 2 key customers - Electricity Generating Authority of Thaialnd and Provincial Electricity Authority, the current and voltage must meet the specification in the power purchase agreements. Meanwhile, the Company’s power plants must be ready to generate and transmit electricity at all time. All equipment involved with the transmission must be ready and safe at all time.

Conclusion of “Love the Forest and the Community” project Phase I (2008-2012) The business plan requires the Company to get deeply involved with social responsibility on realization that it is a key factor towards sustainable business development. Since 2007, the “Love the Forest and the Community” project has been the company’s key social activity. The Company sought cooperation from the Royal Forestry Department, leading to

Goods and services data is reported to the customers periodically and such information would not be revealed without the customers’ consent. The Company also have a particular unit at the Company’s office and the power plant, to take charge of the communications between the Company and the customers and the between the power plant and the customers, for goods and services improvement.

the memorandum of understanding dated 25 January 2008 to launch the “Love Forest and the Community” project, binding both parties in primarily conserve community forests via assistance to community for such conservation as guided by Their Majesties’ sufficiency philosophy and wishes. The 3 primary activities - community forest contest, Kla Yim community forest network conference, and Kla Yim Youth Camp have been completed.

Compliance with related laws and mitigation of generating impacts on community and environment demonstrates the Company’s responsibility to customers, to assure them that the Company’s goods are environmental-friendly and safe to community. This is an indirect responsibility to customers.


RATCHABURI ELECTRICITY GENERATING HOLDING PCL.

model and learning center for other communities.

Objectives

They must have the following qualifications:

1. Follow Her Majesty the Queen’s wish to raise public

1) Community forest formed with Royal Forestry

awareness on national forests conservation

Department’s approval or

2. Help push forward the application of the royal ideas in

2) Community forest once obtaining Royal Forestry

strengthening community’s self-sufficiency

Department’s approval and

3. Strengthen community and establish community network for

3) Community forest still in existence

effecient community forest management in line with the sufficiency economy philosophy

o

Reviewing and judging process The coordinating committee proposed the Royal

Results

Forestry Department the establishment of 3 judging

Community forest contest

c o m m i tte e s fo r the “ Lo v e the Fo r es t an d t h e

The project’s primary activity to honor the community forests

Community” project, consisting of the department’s

with outstanding and systematic management of the forest

officials, employees of Ratchaburi Electricity

involving all parties in the community - households, temples

Generating Holding PCL, experts, academics and

and schools - in safeguarding, retoring and preserving the

officers with experience in community forest support.

forests as well as in making use of the forests in everyday’s

o

Judging panel for the “Love the Forest and the

life in a sufficient way. From 2008-2012, the forests should

Community” project having the Department’s deputy

set a learning model for other communities. The winner in

director-general as chairman and having the

the national level is bestowed HRH Princess Maha Chakri

Department’s and RATCH’s officers as members.

Sirindhorn’s trophy.

They ruled on the national-level winner and outstanding (area-specific) awardees as well as awardees at all levels. The list was then announced

Contest plan

by the Royal Forestry Department.

Step 1: Contest designing and delegation of responsibility The Royal Forestry Department assigned local units – the

o

Four regional selection committees having chiefs of

Forest Resources Management Office and regional offices

the Forest Resources Management Office and

– to recruit qualified community forests. The “Love the Forest

regional offices as members. They shortlisted

and Community Project” coordinating committee was

community forests from all regions for the national-

established to smooth liason between the department and

level contest and for the outstanding prize on eco-

Ratchaburi Electricity Generating Holding PCL. Its

tourism.

responsibility was to lay down the contest plan, coordinate,

o

Nineteen provincial selection committees having

evaluate and appoint working committees.

chief of the Forest Resources Management Office

Step 2: Identify criteria of exemplary community forest and

as chairman who tasked provincial working

review committee establishment

committees with the nomination of community

o

Exemplary community forest: community forests with

forests for provincial-level contests. Only one

outstanding and systematic management of the

community forest was nominated for the regional-

forest involving all parties in the community -

level contest.

households, temples and schools - and being a role

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Social & Environment Responsibility Report 2012

o

Judging criteria based on four sustainable resource

Prizes

management aspects - social aspect, economic aspect, sustainability, and energy and environmental

Category

Prize

Best National

- HRH Princess Maha Chakri

conservation.

o

Project period

Community Forest (1) Period

Sirindhorn’s trophy - Bt 200,000 fund for community

Detail

forest conservation February-April

- Establish the selection committee for the provincial and Forest Resources

Regional-level community forests (4)

- Bt 100,000 fund for community

- Take applications from community

forest conservation

forests nationwide

66

- Select the provincial-level community forests

June

Resources and Environment Minister

Management office-level selection

May

- Honorary plaque from Natural

Outstanding community forest (1)

- Honorary plaque from Natural Resources and Environment Minister

- Select Forest Resources Management

- Bt 100,000 fund for community

Office-level community forests

forest conservation July

- Select 4 outstanding regional-level community forests

July-August

- Select the national-level winner and

Provincial-level community forests

Forestry Department Director-

(66)

General

outstanding community forest September

- Bt 25,000 fund for community

- Announce and award the prizes for the annual “Love the Forest and the Community” project

- Honorary plaque from Royal

forest conservation Complimenary awards (66)

- Honorary plague from Royal Forestry Department DirectorGeneral - Bt 10,000 fund for community forest conservation


RATCHABURI ELECTRICITY GENERATING HOLDING PCL.

Conclusion of community forest contests

4,412 community forests participated in the contest.

During 2008-2012, 714 awards were presented to community

2008: about 862 community forests

forests.

2009: 674 community forests

• 2008: 125 awards

2010: 735 community forests

• 2009: 190 awards

2011: 1,162 community forests

• 2010: 132 awards

2012: 982 community forests

• 2011: 134 awards • 2012: 133 awards

Summarized contest results

Year

Awardees

2008

Total 125 community forests • Best National community forest 2008 Khao Wong Community Forest, Moo 4, Tambon Wang Takhe, Nongbua Rahew district, Chaiyaphum • 4 outstanding regional-level community forests North: Ban Mae Raharn Community Forest, Moo 4, Tambon Bankard, Mae Sariang district, Mae Hong Son Northeast: Noneyai Community Forest, Tambon Siew,E-se, Pho Srisuwan district, Si Saket Central and East: Phuyang Community Forest, Moo 12, Tambon Thungluang, Pak Thor district, Ratchaburi South: Thamphueng Community Forest, Moo 5, Tambon Tonyuan, Phanom district, Surat Thani • 120 provincial community forests

2009

Total 190 community forests • Best National community forest 2009 Huay Saikhao Community Forest, Moo 6, Tambon Tha Pladook, Mae Tha district, Lamphun • Outstanding community forest (food abundance) Don Chaopoo Community Forest, Moo 3, Tambon Saimoon, Nam Phong district, Khon Kaen • 4 outstanding regional-level community forests - North: Ban Wangtamon Community Forest, Moo 2, Tambon Nakhunkrai, Srisawang district, Sukhothai - Central and East: Ban Yangthone Community Forest, Moo 3, Tambon Srimongkon, Sai Yok district, Kanchanaburi - Northeast: Wangkok-Khaosaluad, Moo 5/17/19/21, Tambon Huay Yai Jiew and Moo 10, Tambon Watabaek, Thepsathit district, Chaiyaphum - South: Ban Sakaew Community Forest, Moo 8, Tambon Saithong, Chaiburi district, Surat Thani • 64 provincial community forests • 120 complimentary awards

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Social & Environment Responsibility Report 2012

68

Year

Awardees

2010

Total 132 community forests • Best National community forest 2010 Baan Huay Rai Burapa Community Forest, Moo 10, 4, Tambon Oobmoong, Nongwuasaw district, Udon Thani • Outstanding community forest on eco-tourism Ban Thamphueng Community Forest, Moo 5, Tambon Tonyuan, Phanom district, Surat Thani • 4 outstanding regional-level community forests - North: Ban Samkha Community Forest, Moo 6, Tambon Huasua, Mae Tha district, Lampang - Central and East: Ban Nonehinphueng Community Forest, Moo 3/4/5, Tambon Dongbang, Prachantakham district, Prachin Buri - Northeast: Ban ALor-Doneban Community Forest, Moo 10, Tambon Nadee, Muang district, Surin - South: Ban Thoongsoong Community Forest, Moo 4, Tambon Khaoyai, Ao Luek district, Krabi • 63 provincial community forests • 63 complimentary awards

2011

Total 134 community forests • Best National community forest 2011 Baan Klang Community Forest, Moo 6, Tambon Bang Toey, Muang district, Phang-Nga • Outstanding community forest on “forest-loving youth” Ban Nongphuk, Moo 10, Tambon Pua, Chiang Klang district, Nan • 4 outstanding regional-level community forests - North: Ban Pakluay Community Forest, Moo 8, Mae Sariang district, Mae Hong Son - Central and East: Ban Huaysaphan Samakki Community Forest, Moo 2, Tambon Nongrong, Phanomthuan district, Kanchanaburi - Northeast: Dong Krasaen Community Forest, Moo 12, Tambon Tha Champa, Tha Utane district, Nakhon Phanom - South: Aow Aiyor Community Forest, Moo 4, Tambon Namtok, Thoongsong district, Nakhon Si Thammarat • 65 provincial community forests • 63 complimentary awards

2012

Total 133 community forests • Best National community forest 2012 Ban Huaysaphan Samakki Community Forest, Moo 2, Tambon Nongrong, Phanomthuan district, Kanchanaburi • Outstanding community forest on “Sustainable development” Ban Denpattana Community Forest, Moo 12, Tambon Pua, Chiang Klang district, Nan • 4 outstanding regional-level community forests - North: Ban Meesuk, Moo 8, Tambon Wangchan, Sam Ngao district, Tak - Northeast: Ban Tad Rinthong Community Forest, Moo 6, Tambon Thatthong, Phukiew district, Chaiyaphum - Central and East: Ban Khaomusi Community Forest, Moo 10, Tambon Nongprue, Nongprue district, Kanchanaburi - South: Ban Chalapornpattana Community Forest, Moo 13, Tambon Sukhirin, Sukhirin district, Narathiwat • 64 provincial community forests • 63 complimentary awards


RATCHABURI ELECTRICITY GENERATING HOLDING PCL.

Kla Yim Youth Camp

Results of Kla Yim Youth Camp project

Targeting young conservationists to help conserve the forests

- Youth can improve their learning and understanding in

and forest sustainability. The camp helps raise conservation

community forests and natural forests in social, economic

awareness among the youth and educate them on the value

and forest sustainability aspects.

of forests, community forest conservation and energy and

- Develop awareness in value of community, realizing the forest

environment conservation in light of global warming. The camp

value as community food source, loving their communities

features expert lecturers and for better knowledge transfer and

and forests in their communities, and realizing their role to preserve community forests for the next generation

understanding, learning through their five senses - hearing, seeing, smelling, tasting, touch and their heart. The Kla Yim

- Youth learn the relationship of trees and energy, understand

camp was hosted 11 times during 2008-2012, encompassing

the global warming, and realize the need of energy saving to ease global warming

890 young people from all parts of the country.

- Communities have younger generation to maintain and preserve community forests

69

Year

Location

2008

1 st:

2009

2 nd : Doi Suthep-Pui National Park, Chiang Mai

2010

Ban Nongree Community Forest, Nong Ya Plong district, Phetburi

3 nd :

Doi Luang National Park, Chiang Rai

4 th :

“Ustream to Downstream� Youth Camp, Samut Songkhram

5 th :

Southern Kla Yim Youth Camp, Ban Thamphueng Community Forest, Tambon Tonyuan,

6 th :

Northeastern Kla Yim Youth Camp, Chaiyaphum

7 th :

Central Kla Yim Youth Camp at Kung Krabaen Bay Royal Development Study Center,

No. of participants

60

160

270

Phanom district, Surat Thani

2011

160

Tambon Khlongkud, Tha Mai district, Chanthaburi

2012

8 th :

Northern Kla Yim Youth Camp, Mae Moh, Lampang

9 th :

Love Forest Youth Camp, Samut Prakan

10 th : Southern Kla Yim Youth Camp, Phang-Nga 11 th : Northeastern Kla Yim Youth Camp, Sakon Nakhon

240


Social & Environment Responsibility Report 2012

Community Forest Leaders’ Network Seminar The forum where community forest leaders exchange their experiences in developing and managing forests. Here, they learn new forest-conservation ideas and approaches, value of

Results - Community forest leaders learn new knowledge and experiences, beneficial for their community forests. - Community forest leaders secure new friends, for form a network in the future.

the forests, and success in community forest management

- Community learns and understands more about energy,

from community forest contest winners. The activity is

realize the necessity of energy conservation, and gain more

strengthening community forest leaders’ bond and establishes

knowledge in community energy.

the network for the exchange in community forest management knowledge which is geared towards the same goal - forest sustainability. For five years, the activity drew participation

Activities related to the “Love the Forest and the Community” project designed to support community forest

from 640 community forest leaders across the country to the

management’s capability

following 8 seminars.

• Nature trails that turn community forest to natural classrooms for unlimited ecological learning. The project involves all parties in the community in initiating and

70

Year

Activity

designing the trails as well as producing learning media for people in the community and outsiders. The project was

2008

Northeastern community forest leaders’ seminar at Khaowong Community Forest, Tambon Wang Takhe, Nongbua Rahew district, Chaiyaphum

kicked off in 2010, emcompassing 10 community forests. 1. Ban Tha Papao Community Forest, Tambon Tha Pladook, Mae Tha district, Lamphun 2. Khao Ai Pode, Tambon Sub Takian, Chaibadan district, Lop

2009

Northern community forest leaders’ seminar at Ban Tha Papao Community Forest, Tambon Tha Pladook, Mae Tha district, Lamphun

2010

1 st : Northern community forest leaders’ seminar at Jae Son National Park, Lampang 2 nd :

Central and eastern community forest

leaders’ seminar in Suan Phueng district, Ratchaburi 2011

1 st : Northeastern community forest leaders’ seminar at Baan Huay Rai Burapa Community Forest, Udon Thani 2 nd : Southern community forest leaders’ seminar in Aow Luek Community Forest, Krabi

2012

1 st : Central and eastern community forest leaders’ seminar at Ban Huay Saphan Samakki Community Forest, Kanchanaburi 2 nd : Northern community forest leaders’ seminar at Ban Meesuk Community Forest, Tak

Buri 3. Ban Sakaew Community Forest, Tambon Saithong, Chaiburi district, Surat Thani 4. Khao Wong Community Forest, Tambon Wang Takhe, Nongbua Rahew district, Chaiyaphum 5. None Yai Community Forest, Tambon Siew/E-Se, Pho Srisuwan district, Si Saket 6. Khaosaluad Community Forest, Tambon Watabaek, Thepsathit district, Chaiyaphum 7. Ban Phu Yang Community Forest, Tambon Thungluang, Pak Thor district, Ratchaburi 8. Ban Yang Tone, Tambon Srimongkol, Sai Yok district, Kanchanaburi 9. Khaokham Hinyoke Community Forest, Tambon Taladraeng, Ban Khewa district, Chaiyaphum 10. Wang Takian Community Forest, Tambon Thasailuad, Mae Sot district, Tak In 2012, all 10 nature study trails are completed, and opened. All the 10 communities educated people about forests, biodiversity and the forests’ benefits through the nature trails.


RATCHABURI ELECTRICITY GENERATING HOLDING PCL.

• 84 Community Forest Reforestration for the King in celebration of His Majesty the King’s 7th cycle birthday anniversary on 5 December 2011 Oriented to tree growing in community forests to promote trees’ carbon dioxide absorption as carbon sink and following His Majesty the King’s initiative on “growing 3 types for 4 benefits”. Promoted in the project are trees for use, foods and economic purposes. A total of 840,000 trees, of 126 species, were planted at 84 community forests in 64 provinces.

• Kla Yim City Forest for the King in celebration of His Majesty the King’s 7th cycle birthday anniversary on 5 December 2011 Set to grow tree in people’s heart, targeting 84 educational institutions and temples nationwide. Schools and temples are turned to forest learning centers to educate the youth of tree species and to encourage them in designing learning materials upon the knowledge for the schools. Trees promoted under the project are: Royally-bestowed auspicious trees of 76 provinces At least 20 species of sweet-smelling flowers At least 20 species of trees used for food Suitable species like auspicious birthday trees, institutions’ official trees, local trees, trees in literature and trees in Buddhism history

• Learning center at Ban Huayrai Burapha Community Forest for the HRH Crown Prince Maha Vajiralongkorn in celebration of the 5th cycle of birthday anniversary on 28 July 2012 The learning center where community members in Tambon Oopmoong and its network can learn and jointly develop community forest management. It is also the gesture of all parties and all community members’ determination towards sustainable forest conservation. an exhibition of community’s progress in forest biodiversity conservation is featured along with local wisdom. The learning center is also a meeting venue, to promote learning and community participation. Through the nature study trail, the general public experience nature and natural studies. There is a seedling nursery where seedlings cultivated to promote reforestation are available for the general public. Rare local herbs are grown and expanded, for academic purpose and local use. From the learning centre, the community forest concept will be replicated by nearby communities and society. Having Ban Huayrai Burapha Community Forest as the model for public learning, it brings pride to the community.

71


Social & Environment Responsibility Report 2012

• “Native trees - Community food” Book for the Queen in

or make references from the book. The book will be the

celebration of Her Majesty’s 80th birthday anniversary

medium to raise public awareness in nature around them and

on 12 August 2012

tree species, which will establish their bond with nature and

To promote knowledge about trees for food and herbs to

encourage them to preserve plants.

community forests nationwide, which will help encourage conservation of these trees in community forests. Targeting

• Evaluation of “Love the Forests and the Community”

community forests and the general public, the book portrays

project

the value of forests as a key source of food and water, vital

To obtain the end-result of the project, for the improvement

to the living of community and society. It also introduces

of future plans, the Faculty of Forestry, Kasetsart University,

native “food’ trees to the general public, to raise their forest

is assigned to play the central role in assessing community

conservation awareness.

forest management under the project since 2010. The evaluation compares award-winning community forests with

72

The book will be distributed to communities participating

those winning no awards. The evaluation of the “Love the

with the “Love the Forest and the Community” project

Forest and the Community” project can be summarized as

natiowide, students and the general public. The book’s

follows:

contents include:

1) A change in community’s attitude in the more positive

• Records of Her Majesty’s activities in forest conservation • Details of the Royal Forestry Department’s community

way through the project period in these areas: •

Community forest management under a community

projects and the “Love the Forest and the Community”

forest committee and public participation. Award

project

winners’ attitude is better than those winning no

• A list of 150 native “food trees” in community forests

award, indicative of most community forests’ focus on

nationwide vital as a food source for communities and

community-inclusive management to ensure

herbs, and their benefits

sustainable forest protection from the entire community.

• Dependence on community forests for food and wood as well as for religious purposes • Details of 150 native food trees covering their scientific information, ecology, use and photos

Planning, regulations, rules and forest resources and environment conservation. The overall attitude improves as award-winning community forests continue to uphold their management plans. Unawarded forests’ attitude improves in the accelerated

The book project has raised public awareness in Her Majesty

pace. Driven by the urge for a prize, community

the Queen’s vision in the conservation of forest resources as

members are enthusiastic in taking parts in all

the vital food and water source for her citizens. Communities

community forest-related activities, particularly the

are educated of the value of community forests as a main food

management planning which could win their community

source, which should strengthen their sense of ownership.

forests an award - the honor and pride to their

Students and the general public can also obtain knowledge

communities.


RATCHABURI ELECTRICITY GENERATING HOLDING PCL.

On compliance with the sufficiency economy,

2) Change in community forest fertility, considering the types

communities’ attitude is overall positive and improves

of forests, the species and the number of big trees, the

in an accelerated pace as communities have applied

ratio of big trees to overall areas, biodiversity of big trees,

the philosophy into their everyday’s life. Involving in

their biomass, carbon dioxide absorption, and overall

community forest management, they automatically

fertility. The study shows overall positive condition of

obtain the understanding in the philosophy as the

fertility and signs of improvement depending on the type

sustainable forest management concept is built up on

of forests. Dry evergreen community forests tend to

the philosophy. Those community forests will become

demonstrate highest fertility, followed by dry dipterocarp

true forests in a sustainable way depends on the

forests and mixed deciduous forests.

73

pattern of use, particularly direct use. The concept is

3) On improvement guidelines, the study team, basing their

annual benefits must not exceed increases in annual

views on community information and opinions during the

output. The project has obvioiusly played a part in

study and evaluation period, comes up with the following

applying t he p hi l osop hy w i t h c omm uni ty fo re st

proposals;

management, to ensure the balanced use of forests. •

On energy and environment conservation, community’s

through the 3 main activities - community forest contest,

attitude is overall positive and continues to improve.

community forest leaders’ network seminar, and youth

Most award-winning community forests emphasize on

camp - as these are the catalyst for higher awareness in

use of wood as an energy source, realizing that the

local forest conservation.

forest condition will improve if trees are tended, with

• Introduce new activities related to community forest

twisted and dead branches being cut. Their goal is to

management, for higher management efficiency.

improve the forest condition and win an award from

Suggested activities are:

the project. The cut wood is a good source of energy. •

• Maintain and promote the project’s outstanding feature

Community’s attitude towards the project is overall positive and tends to improve, as the project is leading to community forest improvement.


Social & Environment Responsibility Report 2012

Promote energy and environmental conservation, encouraging communities to rely more on low-cost

2. Education for Career Empowerment in Lao PDR

alternative energy. Promote and strengthen communnity understanding

The Company is a major Thai investor in Lao PDR’s electricity

in the global warming, including them into voluntary

generating, with combined investment of over Bt 70,000 million.

greenhouse gas reduction scheme through forestation

Supporting economic development, the Company takes into

and agriculture. This should further bring good

consideration social and environmental responsibility. On social

reputation to the communities, the Company and the

responsibility, the Company initiated a project in support of

project.

Lao PDR’s policy to improve education and vocational skill

Introduce activities for awarded community forests like

and produce workforce for the labor market which is expanding

a career development project for products made of

in line with economic growth and foreign direct investment

output from the forests, the development of eco-

particularly in the electricity generating industry.

tourism, academic training on forestry, herbs and

74

widelife, as well as field trips.

The “Education for Career Empowerment” project was

Promote forest diversity, biomass and appropriate use

launched in cooperation with Lao PDR’s Ministry of Education

of firewood through activities like native tree plantation,

and Sports. Under the memorandum of intent signed on 27

fire protection, the making of annual timetable for non

May 2011, the project aims to provide educational opportunities

-timber forest product collection, and training on

to students and teachers in Lao PDR, so that they can improve

firewood.

their knowledge, expertise and skills for the benefits of their

Promote community knowledge in community forest

work and career in the future.

ecological management and their community forest potential analytical ability through training on a simple

The Lao government holds this as a pilot social responsibility

forest survey and data analysis to determine the fertility

project that other private companies are encouraged to follow,

of their own community forests.

to respond to social needs and lift up Lao citizens’ quality of

Sponsor a national academic conference on community

living in a concrete way. The project’s details cover:

forests, where academics and community forest

1) Course scholarships are provided to vocational students

representatives exchange their views, knowledge and

under the conditions set jointly by the Lao PDR’s Ministry of

experiences and learn new initiatives in community

Education and Sports and the Company. The number of

forest development.

scholarships is set accordingly to the allocated budget.

Take the lead in laying down community forest

2) Academic and skill training scholarships are provided for

management foundation, targeting young generation

students, teachers and general public. Lao PDR’s Ministry

in local areas and community forest leaders. Through

of Education and Sports and the Company jointly work out

the youth, local wisdom will live. Meanwhile, there

the number of scholarships and training courses useful for

should be an accessible data network, which should

both Lao PDR and Thailand. Initially, the courses focus on

strengthen the community forests.

mechanic engineering, electricity, and other engineering areas, for example.


RATCHABURI ELECTRICITY GENERATING HOLDING PCL.

3) Other supports on a case by case basis. In 2012, the project’s goals were achieved as follows: - The curriculum and teaching papers for skill training in 3 areas - program for machine control (PLC), metal piercing and machine maintenance - were developed. - Prepare training plan and budget for 2012-2013 academic year, for 120 senior students. - Finalize scholarship criteria for vocational teachers, supporting their further studies for higher vocational and bachelor degrees. - Select 10 teachers for specialized training and award scholarships to vocational teachers in support of their further studies for higher vocational and bachelor degrees. - Provide lab equipment and install the equipment at the labs of Vientaine Polytechnic College, Pakpasak Technical College and Lao-German Technical School. - Install lab equipment for the labs of Vientaine Polytechnic College, Pakpasak Technical College and Lao-German Technical School for senior students’ training. Experiences from the labs will be developed and replicated at other vocational schools in other provinces. • Vientaine Polytechnic College is the pilot lab for PLC training.

Lao-German Technical College is the pilot lab for metal piercing.

• Pakpasa k Te c hni c a l Col l e ge i s t he pi l o t l a b o n machinery maintenance. - Survey for further lab installation at the technical colleges in Vientiane, Luang Prabang and Xayaburi.

75


Social & Environment Responsibility Report 2012

Community care In 2012, communities around the Company’s and subsidiaries’ power plants were the priority of community care.

Power Development Fund Activities at Pratu Thao Power Plant, Tambon Kong, Kongkrailas district, Sukhothai

1) Scholarships In cooperation with Sukhothai Primary Educational Service Area Office, poor students of Pradu Thao School who possess good grades and behavior were selected for 106 scholarships. The scholarships for 4 levels are worth totally Bt 141,400. • Kindergarten level, 41 scholarships, Bt800 each

76

• Prathom 1-4, 39 scholarships: Bt 1,500 each for those with good records and Bt 1,000 each for those with good performance • Prathom 5, 14 scholarships: Bt 2,000 each for those with good records and Bt 1,500 each for those with good performance • Prathom 6, 12 scholarships: Bt 5,000 each for those with good records and Bt 1,800 each for those with good performance The scholarship program has continued since 2008 as a mechanism to establish community acceptance and trust towards the power plant. In 2012, the Company hosted the scholarship presentation ceremony for the 2012 academic year to 102 students of Pratu Thao School, Tambon Kong, Kongkrailas district, Sukhothai, on Thursday 15 November 2012. • Pre-school (3-year), 20 students • Kindergarten 1: 9 • Kindergarten 2: 11 • Prathom 1: 9 • Prathom 2: 11 • Prathom 3: 9 • Prathom 4: 4 • Prathom 5: 15 • Prathom 6: 14


RATCHABURI ELECTRICITY GENERATING HOLDING PCL.

Aside from better quality of life through educational

2) Ratchaburi Power Plant visit and network of schools

opportunities to the youth, the scheme also helps lessen

around the power plant

household expenses, leading to positive community attitude

Plant visit is designed to give the right information on power

towards the project and friendly co-existence. More discussion

plants and to forge relationship with groups residing around

on the power plant followed.

the power plant, including schools and teachers. In 2012, the Company hosted a visit to Ratchaburi Power Plant for

2) Community visit and complaint taking

Arunothai School’s network. They observed the power

The Company has the community relations team, which

plant’s electricity generating process and exchanged views

establishes communications with communities and receive

on local cirriculum for the network of schools around the

their complaints. The team makes regular visits to

power plant. They also observed Ratchaburi Power Plant’s

communities. In 2012, monthly visits were arranged and no

community career development schemes. Participants of the

complaint was filed.

visit during 5-7 August 2012 expressed satisfaction and brought with them better understanding in electricity

Activities at Sao Thian Power Plant, Tambon Krainai, Kongkrailas district, Sukhothai

generating process.

3) Community visit and complaint taking 1) Scholarships

In 2012, the community relations team made out regular

In cooperation with Secondary Educational Service Area

visits to nearby communities and received complaints on

Office 38 and Sukhothai Primary Educational Service Area

loud noise and hot air which affected their rice fields. The

Office, poor students from 8 schools around the project who

complaints were filed and the problems were solved.

possess good academic scores and behavior were selected for scholarships. In the area, there were 7 primary schools

Problem solving

and 1 secondary school.

• Hot air: The air stack was adjusted higher which satisfied

180 scholarships worth Bt 294,5000 were put in 3 categories:

• Noise: The environment team asked the affected for more

those who filed the complaints. • Primary level, 113 scholarships, Bt 1,500 each

detail and installed noise-measuring equipment at 3

• Lower secondary level, 45, Bt 1,800 each

points, to prove the noise level. One fan in the generator

• Higher secondary level, 22, Bt 2,000 each

was turned off, which lowered the noise. A noise barrier construction is planned to solve the problem in the long

For the 2012 academic year, 180 students were presented scholarships at the ceremony on 31 May 2012.

term.

77


Social & Environment Responsibility Report 2012

Activities in Ratchaburi province

training; hosting of a community meeting to brainstorm on

1) Extension of community energy plan for Ratchaburi

community forest management plan as well as annual

The project was carried out in cooperation with Ratchaburi’s

budgeting set according to priorities; ensuring community

Energy Office, covering Tambon Tharab in Muang district

actions go as planned; and advising on tips for sustainable

and Tambon Bansing in Photharam district, during October

community natural resources and environment development.

2011 and November 2012. The two areas are adjacent to

• Training

Ratchaburi Power Plant and Ratchaburi World Cogeneration’s

The process to educate community forest committees on

premise. Details are on Page 35

planning, explain forest management planning to communities, and present forest management plan to local

2) Ratchaburi’s community forest enhancement project

and related agencies for their supports. It must be assured

The project was carried out in cooperation with the Royal

that the forest management and exploitation of forest

Forestry Department’s community forest management office,

resources are in line with laws and regulations, while local

to establish community forests in Ratchaburi under the plan

knowledge and wisdom can be appplied for sufficient living

to preserve forests as the natural carbon sink. This is also

and developed into a career to boost household income.

to promote the right understanding in electricity generation

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• Forest management supports

and raise energy-saving awareness. The project covers the

The process to support communities in devising forest

following areas;

management plans, with knowledge accumulated from the

• 2 in Muang district

day community members approved the community forest

• 9 in Photharam district

registration. They are guided on prioritizing management

• 8 in Jom Bueng district

activities, budgeting and delegating responsibility in the

• 9 in Pak Thor district

management, operation and supporting accordingly to their projects as approved by the Royal Forestry Department for

Six associated activities are to support:

sustainable and maximum benefits to community members.

• Community forest survey and establishment

They are guided in filing for the Company’s supports.

The process to prepare community data for community forest

Through the process, the department and the Company can

application filing (extension). Officers were dispatched to join

advise and take part in problem forecasting and strategy

forest survey and measuring; coordinate with area leaders;

adjustment, to ensure maximum value of the management.

establish relationship with communities, explain and

• Ratchaburi community forests’ network seminar

introduce community forest-promoting activities; participate

The process to steer the community forest project forward,

with community meetings; and write up the community forest

through a network where knowledge and experience in the

project accordingly to the Royal Forestry Department’s

management of community forests in Ratchaburi province

guideline (Community Forest 1-3). The project proposal was

can be exchanged. This is to strengthen the relationship of

submitted to the department for the approval and registration

community forest leaders in the province, so that their unity

of the community forests. The proposal also serves as the

can be used to promote the community forest concept in

communities’ action master plan.

other areas.

• Community forest support The process to draw public participation in nurturing, maintain and revitalize the community forests before and after the Royal Forestry Department’s approval is granted. This includes the selection of community representatives for


RATCHABURI ELECTRICITY GENERATING HOLDING PCL.

• Energy and environmental conservation

• Host the annual 2012 seminar for teachers in “For our

The process to educate communities on electricity, energy

neighbourhood” project (an education network) under

conservation and environment conservation through lectures

“Enhance teaching technique with project approach”.

and community development projects.

This is to improve the teaching skills of teachers of the 27 networked schools near the power plant. Drawing

As of 2012, the activities were in stage 3 - training on the

87 teachers, the seminar at Ban Krud Beach Front

development of community forest management plan. In the

Hotel in Prachuab Khiri Khan had Dr. Prasong

stage, they were educated on the power plant, electricity

Mateapinitkul from the Institute for the Promotion of

generating and environmental management through field trips.

Teaching Science and Technology and his team as the

The community relations team’s survey found that public

speaker.

attitude towards the Company has improved and communities

• Organize the “energy and environment conservation

are more open to absorb the Company’s information. The 28

youth leaders” training, bringing 95 teachers and

community forests encompasses total areas of 13,230 rai.

Prathom 5 and Prathom 6 students from the 27 networked schools to the training at Ruamtawan

3) Ratchaburi Power Plant’s community care

Center, Kanchanaburi. The training was part of extra-

Ratchaburi Electricity Generating Co., Ltd, the subsidiary

cirriculum learning, according to local cirriculum on

which operates Ratchaburi Power Plant, is determined to

alternative energy and environment devised jointly by

take care of nearby communities as a “good neighbor”. A

Ratchaburi Power Plant and the school network. The

series of activities have been rolled out to improve the quality

participating youth were intended to lead in the

of life in various areas like education, sports, health and

formation of the energy and environment conservation

career development. There are also activities to promote

club in their respective schools.

understanding and relationship with nearby communities and

• Annual 2012 scholarships to extend education

promote public participation in its activities - in the planning

opportunities to the youth. In the 7th year, the

and execution stages - for mutual benefits. Major activities

Company awarded 1,009 scholarships to students of

in 2012 are:

the 27 network schools, worth totally Bt 2,002,000.

(1) Quality of life improvement

The scholarship presentation ceremony was hosted at

(1.1) Education and youth

the multi-purpose pavilion of Wat Banmai Buppharam

The Company teamed up with the network of nearby

School, Tambon Watkaew, Bang Phae district,

schools, 27 in 9 Tambons, in hosting major educational

Ratchaburi. These students joined the writing and

activities and projects.

painting contest under the “Follow His Majesty’s

• School executive development, a brainstorming

footstep, developing Ratchaburi” theme, initiated in

seminar on educational planning where the network

celebration of His Majesty the King’s 7th cycle birthday

schools’ plan and the Company’s were integrated.

a nni v e rsa ry . T he sc ho l a rshi ps i n th e year w er e

• Support the establishment of a teacher council,

classified in 3 levels.

representing schools near the power plant which won

Kindergarten level: 198 scholarships, Bt 1,000 each

the contest on local cirriculum highlighting alternative

Primary school level: 629, Bt 2,000 each

energy and environment, and the panel to revise 21

Secondary school level: 182, Bt 3,000 each

local cirriculum. This is to ensure that the cirriculum could be started in the 2013 academic year.

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Social & Environment Responsibility Report 2012

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Throughout the past 7 years, Ratchaburi Power Plant had

• Meditation project for good physical and mental health

awarded 6,878 scholarships worth a total of Bt 14 million.

for residents around the power plant. Ratchaburi

Since 2008, Ratchaburi Power Co.,Ltd. has taken part in this

Electricity Generating Co.,Ltd. hosted this in cooperation

scholarship scheme.

with Phaneonphloo Temple in Tambon Bangpa during

• Annual party for the National Children’s Day. Hosted for

10-17 September 2012, to extend knowledge on the

the eighth year, the party on 13 January 2012 was themed

benefits of meditation on physical and mental health - the

“good kids, good society, good life” and secured

principle of holistic health approach for a good health and

cooperation from Ratchaburi Power Co.,Ltd., local

immunity. Trained meditators were expected to apply the

administrative bodies, teachers from the near-power plant

knowledge with themselves and others, to reduce

school network, students’ parents, and partners in the

sickness. Phra Maha Seephrai A-phatharo from Voranaram

province and nearby areas. The activities were designed

Temple in Chon Buri and his 40-monk troupe were the

for “play and learn” through a variety of activities like

speakers. Over 1,500 participants showed up, consisting

games from the school network, a science and energy

of officers from Tambon Health Promoting Hospital,

vehicle, cartoons, Ratchaburi Hospital’s activities, a

Tambon Municipality and Tambon Administration in 9

power plant tour tramp, free hair cuts, rides and over 50

Tambon around the power plant as well as the general

food stalls. Over 10,000 children and their parents living

public. The event took place at the meditation sala at

around Ratchaburi Power Plant appeared at the party.

Phaneonphloo Temple, Tambon Bangpa, Muang district,

(1.2) Health and health services

Ratchaburi.

• Mobile medical and dentist services - which are free of

• Community health personnel training. Through the little

charge - are one of the Company’s focuses. This initiative

angel and community dentist projects, scholarships were

has won cooperation from all parties like the Tambon

extended to young people selected for studies in nursing

Municipality, Tambon Administration, village chiefs, health

and dental care. They will become professional nurses

offices, health volunteers and private organisations like

and dental officers for the health offices at 9 Tambons

Muang Ratch Hospital which provided the medical team

near the power plant. Achievements in 2012 are as

for health and oral checks and the group of local

follows;

traditional masseuses. In 2012, 6,318 residents were

• Four students graduated with a nursing degree from

served. • Ratchaburi Power Plant hosted a training for officers of Tambon Health Promoting Hospital and health volunteers

Boromarajonani College of Nursing, Ratchaburi, and started working in their home areas. Another 4 are completing the course.

of 9 Tambons surrounding the power plant. Themed

• Two students graduated with a dental care certificate

“Holistic healthcare”, the 2012 training as part of the “For

and were posted at Damnoen Saduak Hospital and

Our Neighborhood” (health group) scheme had Amnuay

Tambon Bansing Health Promoting Hospital. A student

Fuangfookitchakarn, a director of the Chiang Mai

is completing the degree.

traditional Thai medicine association, Health Office 10, as the speaker. The holistic approach offers an alternative that the hospital’s officers and health volunteers can apply with their health schemes designed for people in their respective areas. The training was held for three groups during 11-13 June 2012, covering 237 participants.


RATCHABURI ELECTRICITY GENERATING HOLDING PCL.

(1.3) Sports

• Ratchaburi Power Plant’s Mini Football Academy 2012

The Company launched the Ratchaburi Power Plant Mini

recruited 30 youngsters from the 9 Tambon around the

Football Academy in 2011, to promote football skills

power plant. All attended advance football skills training by

development of young people in Ratchaburi province and

national footballers during 1 June 2012-25 November 2012,

raise their playing standard to that of the international level.

totalling 28 weeks.

In 2012, the scheme was designed to further train the

(2) Ratchaburi Power Plant’s environmental inspector

academy’s graduates for the national youth football league.

Ratchaburi Power Plant kicked off the second series of the

Achievements in 2012 were as follows:

environmental inspector project (2011-2013). The inspectors committee will monitor and ensure the power plant operations

• Training of Ratchaburi Power Plant’s youth team, consisting

are in line with Ratchaburi Power Plant’s measures to prevent,

of attendants of Mini Football Academy Classes 4 and 5.

mitigate and minimizing environmental impacts as well as the

• 1st prize of the Ratchaburi competition under the Prime

environment quality monitoring plan as specified in the

Minister Cup tournament (14-year-old) • 4th place in the West Region tournament under the Prime Minister Cup tournament (14-year-old) •

environmental impact assessment report. The committee will also coordinate with the power plant in environmental inspection as well as disseminate information, facts, opinions

A place in the quarter-final round of Manchester United

and suggestions on the power plant’s environment-related

Premier Cup 2011 (MUPC 2011), for players aged no more

activities to the joint committee on Ratchaburi Power Plant’s

than 15 years

environmental monitoring and community environmental

• Ratchaburi Power Plant’s Mini Football Cup 2012. Ratchaburi Power Plant in cooperation with local administrative bodies in the surrounding 9 Tambons hosted the “Ratchaburi Power Plant’s Mini Football Cup 2011” during 5-11 April 2012. Eighteen teams vied for the victory during the 7-day event. Ratchaburi Power Plant was the main sponsor: 25 uniforms for football players and team officers of each team and the financial support of Bt 3,000 for each of the 9 Tambon. • The 2012 winning team was from Tambon Banrai, which was presented the trophy and a Bt 20,000 cash prize. The 1st runner-up was Tambon Phaengphuay Youth Team, winning a trophy and a Bt 15,000 cash prize; the 2nd runner-up was Tambon Watkaew Youth Team, winning a trophy and a Bt 10,000 cash prize; and the 3rd runner-up was Tambon Samruang Youth Team, winning a trophy and a Bt 5,000 cash prize. Tambon Tharab Youth Team won the “Fair Play” prize.

development. The committee’s activities in 2012 are as follows:

o o

Host a meeting every quarter Host two activities to empower and educate the environmental inspectors committee

1. Grooming on general environmental knowledge and environment management criteria 2. A field trip to Map Ta Phut community, Rayong to enhance their knowledge and experience (3) Development and farmers groups empowerment Ratchaburi Power Plant provided financial supports to 13 development and farmers groups in the nearby areas, to finance their plans in 2012, on hope that the supports will strengthen their operations and develop new careers for additional income. Moreover, Ratchaburi Power Plant also provided training on farm crop and vegetable plantation as well as organic fertilizer making to the development groups.

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Social & Environment Responsibility Report 2012

(4) Participation with Corporate Social ResponsibilityDepartment of Industrial Works (CSR-DIW) Ratchaburi Electricity Generating Co.,Ltd. enrolled into the Department of Industrial Works’ corporate social responsibility project, targeting industrial plants nationwide. A committee was set up to ensure the plant’s social responsibility under the CSR-DIW, consisting of the management team of Ratchaburi Electricity Generating Co.,Ltd. and officers. It has met the CSR-DIW criteria after the coaching from the Department of Industrial Works’ experts and the report was reviewed by the department’s advisor and submitted in September 2012. The Company is awaiting the evaluation, vying for the CSR-DIW Award to be presented by the Department of Industrial Works in November 2012.

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Activities in Pathum Thani 1) Scholarships In cooperation with Pathum Thani Primary Education Service Office Area 1, Ayutthaya Primary Education Service Office Area 2, Secondary Education Service Office Area 3 and Secondary Education Service Office Area 4, the scholarships have been extended since 2007 to promote education of students living around the Company’s operating premise in Tambon Khlong Kwai, Sam Kok district, Pathum Thani. Students with good behaviors and outstanding academic scores were selected for the scholarships. Students from 21 schools - encompassing schools in Som Kok and Lad Lum Kaew districts of Pathum Thani as well as Bang Sai and Lad Bualuang disricts of Ayutthaya - are entitled to the scholarship program.

Types of scholarships 3 levels, totalling 252 scholarships worth Bt 425,000 • Primary school level: 208 scholarships, Bt 1,500 each • Lower secondary school level: 38 scholarships, Bt 2,500 each • Higher secondary school level: 6 scholarships, Bt 3,000 each


RATCHABURI ELECTRICITY GENERATING HOLDING PCL.

Humanitarian assistance Humanitarian assistance remains a vital and necessary issue for Thai society, mostly extended in the form of non-binding donation of money, equipment and other supports.

6) Restoring an old wood building, submerged in water for a period of time 7) Restoring the submerged library Providing dance costumes and local musical instruments damaged by the flood

In the past year, the Company’s major humanitarian assistance, which

Involvement in the restoration of Tambon Khlong Kwai Health

involved financial aid and supports from employees, was to

Promoting Hospital in Tambon Khlong Kwai, Sam Kok district,

rehabilitate Khlong Sa (Sapha Withaya Uthit) School in Pathum Thani

Pathum Thani

and Tambon Khlong Kwai Health Promoting Hospital in Pathum

1) Restoring the building, mostly the fixing of floor, walls,

83

Thani, which were devastated by the 2011 flood disaster. The

ceilings, glass doors, officers’ room, windows and the safety

Company donated a sum of money through the Thai Listed

room to prevent electrocution and short circuits

Companies Association to assist flood victims, which later helped set

2) Replacing damaged medical equipment like stethoscope and

up the Thai Stock Market Flood Relief Fund. The Company also

oxygen tank with accessories, wound stitching kits for small

introduced the “Return schools to our children, nurture community

operations, hand-squeezing pulmonary resuscitation

relationships” project, to restore primarily schools and hospitals in

equipment, digital blood pressure machine, dual blood

flood-affected areas.

pressure monitor, emergency baby-delivery kits, and patient mattress.

As a member of the Thai Listed Companies Association, the Company volunteered to take care of the restoration of Khlong Sa School (Sapha Withaya Uthit) School in Pathum Thani and Tambon Khlong Kwai Health Promoting Hospital in Pathum Thani. The work was

3) Replace damaged office equipment like desks, the drug cabinet and chairs 4) Replace the damaged mosquito control machine and other equipment

completed in 2012. 1) Involvement in the restoration of Khlong Sa School (Sapha Withaya

For community participation in all steps, the Company involved

Uthit) School, in Tambon Khlong Kwai, Sam Kok district, Pathum

community leaders, religious leaders, representatives from

Thani

local government units, and other stakeholders in the tasks to

2) Meeting with the school to hear its needs and coordinate with

ensure that the process properly and thorougly addressed the

Thai Listed Companies Association and the Fund for the budget

problems and properly answered community needs. Igniting

3) Installation of a water filter

sense of ownership, their involvement should lead to

4) The construction of a highly-elevated one-storey building, of which

determination to maintain the properties in a sustainable way.

lower floor is open for for multi-purpose functions 5) Restoring the school’s landscape

This should also raise their morale and unity. Khlong Sa School and Tambon Khlong Kwai Health Promoting Hospital now can resume their normal educational and medical services.


Social & Environment Responsibility Report 2012

CSR innovation and innovation promotion

84

The Company has acknowledged the responsibility for stakeholders and sought continual improvement, to achieve public acceptance as specified in the Company’s Vision.

Since establishment, the Company has acknowledged the

Encourage the power plants’ participation in the Department

responsibility for stakeholders and sought continual

of Industrial Works’ CSR-DIW project. Ratchaburi Power

improvement, to achieve public acceptance as specified in the

Plant joined the scheme last year.

Company’s Vision. Since 2010, the Company has continually

Improve the power plants’ generating efficiency against lower

improved the social and environmental responsibility and taken

fuel consumption, to respond to the country’s economic and

this as a CSR innovation. The innovations can be summarized

social development. Electricity generating technology

as follows;

innovation has been closely monitored, for the application with power plants which are subjected to annual maintenance

Operational innovation •

Improve the organizational values, in raising awareness and

and equipment replacement. •

Improve the system to handle generating pollutants, waste

promoting social and environmental responsibility among

water, waste and biodiversity at power plants, to maintain it

employees which now shape employee behavior. This was

above the legal requirements. World-class environmental

started in the past year.

management standards are applied. Ratchaburi Power Plant

Employees’ social activities, organized to promote and boost

last year applied the OHSAS 18001 and integrated it with

employee participation in the activities initiated by the

the ISO 14001 to increase the efficiency in handling and

Company and employees.

maintaining the impacts on health and living condition of community and society – the Company’s basic responsibility.


RATCHABURI ELECTRICITY GENERATING HOLDING PCL.

Engage in carbon emission management to reduce the global

Collaborate with the Department of Environmental Quality

warming, through energy-saving schemes in power plants

Promotion, the Ministry of Natural Resources and

and the application of Carbon Capture Storage to feed

Environment, in biodiversity conservation, through

spirulina algae with waste CO2. Under a 2-year research, it

participation with seminars for an exchange of ideas and

is proved that the algae that can absorb CO2 9 times higher

progress on the Company’s biodiversity conservation

than big trees. The research project is in the commercialization

practices exercised at the power plants as well as the

process.

conservation of community forests in cooperation with the Royal Forestry Department. •

Cooperate with the Electricity Generating Authority of

Organization-level innovation

Thailand, a major shareholder, in synchronizing social

Sustainable business development requires collaboration from

activities, for greater benefits to the economy, society and

other parties, for success and maximum benefits to society. In

the environment. In the past year, both parties brainstormed

the past year, the Company forged cooperation with other

on cooperation on projects for the next year.

organizations in carrying out the following social activities: •

Cooperate with the Ministry of Energy and Ratchaburi

Collaborate with the Royal Forestry Department, the Ministry

province in extending energy-saving and community energy-

of Natural Resources and Environment, to promote and

saving projects in the province, which is the company’s

expand the community forest concept nationwide.

primary electricity generating location. The project was

Communities are encouraged to take part in forest

kicked off last year at two pilot villages in Muang district and

conservation and make use of forests without harming them.

Photharam district. The project raised community awareness

Forest existence ensures watersheds, a source of food and

in energy saving and knowledge in managing energy

energy. Beside, it is the natural carbon sink that efficiently

consumption in everyday’s life.

reduces the global warming, for the benefit of entire society. ·

Cooperate with the Royal Forestry Department, the Ministry

Sign a cooperation pact with the Department of Alternative

of Natural Resources and Environment, to promote the

Energy Efficiency and Development, the Ministry of Energy,

establishment of community forests in 28 villages which

Bangchak Petroleum PCL and Loxely PCL for an algae-to-

encompass over 13,000 rai in total area. The forests will help

biodiesel project, extended from the project to feed spirulina

absorb carbon dioxide and create favorable environment for

algae with Ratchaburi Power Plant’s waste CO2. The land

the province and the country.

is being prepared for the cultivation of algae at Ratchaburi

Power Plant. The cooperation demonstrates the Company’s

Innovation promotion

determination in combating global warming, for the sake of

The social responsibility innovation has been revealed to

society and the environment.

stakeholders directly and indirectly through various

Participate in the Sustainability Business Development

communications channels, like the shareholders’ meetings,

Institute of Thailand Environment Institute, to extend the

seminars, exhibitions, the Company’s web site, advertisement,

efforts in combating global warming and conserving the

press releases, as well as the visits and discussion with all types

environment. The Company has engaged in the institute’s

of media - television, radio, newspaper and online agencies - to

activities to exchange experiences with and learn from other

ensure all stakeholders’ thorough access to the Company’s

members, in order to improve the Company’s patterns

information.

particularly involving environmental protection and global warming.

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Social & Environment Responsibility Report 2012

Social responsibility reporting The Company has set social responsibility standards, to raise

���

awareness and improve the understanding on social responsibility among executives and employees. The guidelines

executive board at the monthly meetings •

cover the following areas: •

related parties

Posting social activities on the Company's web site and through Thai Listed Companies Association's CSR Club which is overseen by the Stock Exchange of Thailand and

fairness

through Thailand Business Council for Sustainable

4. Respect stakeholders' interests by opening for stakeholders' opinions on the Company's activities

Regularly keeping employees informed about the Company's social and environmental activities

3. Ethical business practices, upholding integrity, equality and

86

Presenting monthly social and environmental activities summary reports to the Board of Directors

1. Responsibility which is open for external audit 2. Transparent dissemination of the Company's activities to

Reporting soical and environmental activities to the

Development (TBCSD) •

5. Uphold the rule of law with the concrete integration of laws

Including volunteering programs into the Company's activities, like the Company's anniversary or annual holiday

and regulations into the Company's operations

trips, and allowing employees to join community activities

6. Honor international principles like treaties acknowledged

which is a way to promote the Company's social activities

by international organizations 7. Respect human rights and individuals’ equitable rights, acknowledging all individuals’ rights under the laws

Since 2010, the Company has embarked on social and environmental responsibility reporting, to inform stakeholders and the general public about the Company's social and

The Company has also forged external cooperation with the

environmental activities. The report covers details in the

public and private sectors and and private organizations, to

following areas:

jointly steer forward the Company's social activities for maximum benefits to society. All employees are welcomed to

make suggestions and participate in social activities.

Business operations - vision and mission reflecting the principle and guidelines of responsible companies, the good corporate governance structure and operating results

In carrying out social activities, the Company forges cooperation

Environment and safety measures - the policy on

with other parties: in the public sector like the Royal Forestry

environment and safety, nature restoration, and waste and

Department, the Ministry of Energy and provincial government

inventory management

units; in the private sector like youth development associations,

Social measures - policy on labor and employees, employee

schools and temples. This reflects the Company's move to

welfare, employee development and training, as well as

become a responsible corporate citizen. Social and

supports to communities located around operating

environmental activities are also directly and indirectly

premises

disseminated through:


RATCHABURI ELECTRICITY GENERATING HOLDING PCL.

The 2012 social responsibility report covers details in the following key areas:

Sustainable development - the summary of business plans; the framework designed towards good corporate governance, ethical and honest business doing, as well as responsibility to society, community and the environment which will ensure solid and sustainable business growth

Risk management - the policy and governance measures to minimize business risks

Sustainable business development - key concepts towards business risk management, strategies and approaches to manage risks, and the Company's operating results which reflect business sustainability

Environmental-friendly operations - the Company's approaches to handle environmental impacts from the generating process and the environmental-friendly generating process with new initiatives for carbon emission reduction, waste water recycling, and power plant ecological conservation, and etc

Socially-responsible operations - the summarized reflection of the Company's business model that is built on moderation, caution, risk management, ethics, zero exploitation to avoid making excessive profits at the cost of social disadvantages, respect in human rights, anticorruption, and readiness to return benefits to society and all stakeholders

In the report, the Company discloses complete, concise and clear information in easy-to-understand language, with the avoidance to use technical terms. Information from outside organizations are property referred to. The sources of such information and the accuracy is verified. The report is disseminated in various channels. For the convenience the readers Not only it is printed in Thai,it is also provided in CD Rom in both Thai and English ,and through the Company’s website.

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RATCH: CSR Report 2012