6 GREEN LPN SD REPORT 2020

6 GREEN LPN L.P.N. Development PCL SUSTAINABILITY REPORT 2020

• Message from Chairman

• Vision & Mission for Sustainable Growth

• LPN WAY

• Outstanding Operation Performance

• Sustainability Awards 2020

• Development Business Strategy Map 2020

• Sustainable Development Goals • LPN’S GREEN JOURNEY

• GREEN ENTERPRISE

The Business Strategy that Emphasizes the Management for Sustainability and the Management of Human Capital

• GREEN FINANCIAL MANAGEMENT

The Strategy to Achieve Appropriate Return and Organization Growth

• GREEN DESIGN CONCEPT

The Environmentally Responsible Design of Product

• GREEN MARKETING

The

to the

and competitors

• GREEN CONSTRUCTION

The

Message from Chairman

Dear Respected Shareholders,

2020 was a challenging year for many businesses around the world, including L.P.N. Development Public Company Limited. They needed to cope with economic volatility and uncertainty since the economy was affected by the Coronavirus disease 2019 (COVID-19).

Mobilizing the organization toward sustainable growth economically, socially and environmentally (ESG: Environmental, Social and Governance) and adhering to corporate governance - being prudent and cautious in every process and operating with transparency and accountability - enabled the Company to overcome the crisis.

Economically, mobilizing the organization under the concept of Green Enterprise and Green Financial Management enabled the Company to generate revenues and profits as planned and provide returns to every groups of stakeholders appropriately.

Socially, even in a face of crisis, the Company was able to maintain employment and develop the quality of its products and services under the Green Marketing Management guideline. It also managed quality of life of residents and staff members with Green Community Management concept. As a result, communities managed by the Company did not become an epidemic area of COVID-19.

Environmentally, being faced with uncertain situation, the Company continued developing residential properties and manage projects under the standard of Green Design Concept and Green Construction Process. It developed and delivered quality products in accordance with international standards such as Leadership Energy and Environmental Design or LEED and the Thai’s Rating of Energy and Environmental Sustainability or TREES.

In 2020, the Stock Exchange of Thailand selected LPN as one of the Sustainable Development Showcase 2020 for its COVID-19 crisis management guidelines. At the same time, the Company received sustainability awards domestically and internationally including “Best Sustainable Developer (Asia) 2020” Award from PropertyGuru Asia Property Awards 2020 and Thailand Sustainability Investment Award (THSI) for the 5th consecutive year at the SET Sustainability Awards 2019 event organized by the Stock Exchange of Thailand. The Company was ranked Excellence in corporate governance (5 stars) from the Thai Institute of Directors (IOD).

In addition, the Company received several awards from various organization for being a socially and environmentally responsible business organization over 31 years of its business operation such as Special Recognition in CSR Award for its sustainable development guideline and responsibility for environmental and social impacts of its operation, “in process”, “out process” and “as process” and Special Recognition in ESG from the 15th PropertyGuru Thailand Property Awards 2020 for its sustainable business operation comprising E:Environment, S:Social and G:Governance. It was another indicator showcasing the sustainable stability of the business.

What happened in 2020 has proven that unity and solidarity of all team members are the driving force for the organization to cope with the economic uncertainty and volatility.

I would like to express my gratitude to the executives, staff members, trade partners and customers who have dedicatedly supported our operation and to all stakeholders for your faith and trust. Every support is the driving force for the Company to develop the best product and service incessantly as it is our determination to build quality homes that create “Real Pleasure of Living” for everybody.

(Amornsuk Noparumpa) Chairman of the Board of Directors

VISION & MISSION FOR SUSTAINABLE GROWTH

The Board of Directors considers and approves the vision, mission, strategy and business plans of the Company, subsidiary companies and associated companies. The vision of the Company has been revised every three years in order for the Company to achieve sustainable growth targets by taking into account the balance of both quantitative and qualitative rewards for all stakeholders as well as social and environmental responsibilities. The operation of the Company is in accordance with the principles of good governance. A mission statement is developed annually to reflect the changing environments. The organization is driven by the LPN Way which is derived from the extensive experiences in business operation.

VISION 2020-2022

“To increase efficiency and effectiveness in term of turnover of real estate development business operation while maintaining balance and responsibility toward stakeholders for sustainable development.”

MISSION

Shareholders Staff Customers

Operate corporate business under the principle of good governance and risk management in crisis situation for the sake of sustainability.

Develop staff competency until they are proficient and determine to deliver great contributions utilizing their skills, knowledge and information.

Make them proud to be an owner by handing over product value and delivering service with “Livable Community” and “You are important” strategy.

Business Alliances (LPN Team)

Collaborate and be supportive in every sector of the operation in order to get through the crisis.

Neighboring Communities Residents Construction Workers Environment

Be responsible for the impacts of the operation and promote participation and good relationship.

Residents: Hand over the “Real Pleasure of Living” under “Livable Community” strategy and affordable price to all residents.

Enhance the quality of life, safety and occupational health of the workers by supporting the operation of business alliances and organization of activities.

Operate the business in a responsible manner for all stakeholders in accordance with 6 GREEN LPN concept to achieve sustainable development.

ZERO WASTE SUPPLY CHAIN

PARTNERSHIP

FIGHTING SPIRIT AND SMART WORKING

SUSTAINABLE

LPN WAY: Moving the organization towards sustainability

LPN Way comprises two milestone values i.e. “continuous development” and “respect for stakeholders”. The seven components of the values are “C-L-A-S-S-I-C” which is integrated into the operation of the Company and is adhered to by all segments of the Company. It has been developed into the organization values (LPN Values) and LPN Way with an aim to achieve the goal of the operation both in terms of quality and quantity and to drive the Company towards “Sustainable Development”.

C-L-A-S-S-I-C (Core Competency)

Cost with Quality

The project management which realizes the importance of the careful utilization of resources and the efficiency of project management which focuses on the reduction of direct costs and hidden costs as well as the reduction of extra expenses in all departments without affecting the planned target and quality.

Lateral Thinking Alliance

The new way of thinking that is flexible and different without any fear of obstacles in order to improve, change, develop and create new products and services. The implementation and assessment of the new process must be possible. The aim is to add value to the products and services as well as the growth of the organization.

The way of treating long-time and trustworthy business alliances with trust and fairness with the willingness to collaborate and develop the work continuously as if being in the same organization for the achievement of a common goal.

Speed with Quality Service Minded Integrity Collaboration

The focus on the development of the working and problemsolving process that is quick and attentive to details for the quality of the work and the completion before deadline to be one step ahead of others.

The care for all groups of customers at all times by putting ourselves in their shoes and showing willingness and enthusiasm to provide full services that exceed their expectations in order to add value to services and create good impression.

The action towards the organization and related business partners which is honest, responsible, transparent, fair and ethical at all times.

The sense of collaboration from staff at all levels in the operation or activity of the Company for the achievement of the common goal.

COVID-19 - Crisis that must be overcome

In 2020, Thailand and the world had encountered novel coronavirus disease 2019 (COVID-19) pandemic situation that radically affected economic development of Thailand and other countries worldwide. Due to lockdown measures implemented by all countries to prevent the spread of COVID-19, the global economy including Thailand’s were suspended during the severe outbreak period between MarchJune 2020. According to the World Bank’s report, the global economy in 2020 declined by 4.4 percent compared to 2019. Meanwhile, the Bank of Thailand reported that the Thai economy shrunk by 6.6 percent compared to 2019. This indicated that most of the countries around the world has entered into recession.

The number of confirmed cases of COVID-19 worldwide reached 100 million persons in January 2021. Meanwhile, the number of confirmed cases in Thailand was about 24,000 persons (as of 10th February 2021). The number of infected patients has increased continuously over the past 1 year, affecting the lifestyle of people around the world, including Thailand. People began to place emphasis on wellness under the New Normal focusing on personal and public hygiene, adopted social distancing and touchless society to prevent the spread of COVID-19 in public and private areas.

The new normal lifestyle has changed the behaviors of people in society, including preferences of form of residences from residential condominiums to residential homes. According to a survey of LPN Wisdom, a product and service research and development company under the subsidiary of LPN Development Public Company Limited (LPN), it was found that a total of 44,000 units of new residential homes, accounting for 76% of the total number of new residential projects and worth 205,000 million baht, were launched in Bangkok and its vicinity in 2020, an increase of 40% of the number of new projects launched in Bangkok and its vicinity in 2019.

As a result of such trend, real estate developers have to adapt themselves in the development of residential projects to meet the needs of buyers (Customer Insight). LPN Development Public Company Limited was one of the real estate companies that has decided to develop residential projects to meet the needs of buyers in terms of products and services under the concept of Wellness, Smart Living and introduction of technology in product and service development.

Product Design Adaptation

Amidst the rapid changes, the Company has adopted design concepts that take into account well-being, Smart Living, and appropriate utilization of technology to meet the current and future needs of buyers in the market in research and development on residential projects, including residential condominiums and residential homes, which are completed, under construction and newly designed projects.

The Company has renovated areas of the existing projects, adjusted designs of the projects under construction as well as established guidelines for new project designs. In addition, the Company has introduced Touchless technology in the projects, as well as selected materials that are environmentally friendly and promote well-being, such as automatic sliding doors, Keycard systems, elevators with access control and exposure reduction, automatic faucet, automated toilets, design common areas to support social distancing, choose materials that are resistant to alcohol-based sanitizers and make design by taking into account air circulation system in accommodating rooms and common areas of residential condominiums and residential homes.

Semi-Public Area are designed to tailor to the recent consumer behaviors which prefer delivery products and services for residential condominiums. Common areas are designed to be multi-functional and flexible to support various functions with Co-Separate Spaces, both in residential condominiums and residential homes, etc.

Residential designs which support 5G and IOT technologies.

Service Adaptation

Regarding services, LPN Development Public Company Limited and affiliated companies such as Lumpini Property Management Co., Ltd, focuses on development of services in accordance with the changing lifestyles under the New Normal with regard to well-being, Smart Living in order to allow residents to live comfortably and safely amid COVID-19 pandemic situation and apply technology appropriately to meet the present and future needs of buyers and residents in the communities.

Well-Being

The Company applies Touchless and Social Distancing measures in the common areas by adopting reservation system through Smart Application, design areas suitable to support food delivery service by allocating specific areas to reduce the risk of infections from outsiders, design parcel acceptance areas appropriate for changing lifestyles of residents who turn to purchase more products via online and delivery services. In addition, the Company has modified areas of the existing projects and the design future projects to reduce infection from outsiders, etc.

The Company develops services according to the needs of customers (On Demand), such as residential cleaning service, consignment-renting of condominium units, air conditioner cleaning service, relocation of belongings, car rental via Smart Application to facilitate the residents in the project to enjoy comfortable living.

The Company has developed Smart Application system to reduce exposure (Touchless), and facilitate house and condominium residents such as payment of various expenses, namely common fees, water fees, insurance fees to the residential project juristic persons, reservation of common areas, appointment of repair works or housekeeping services, parcel notifications and liaison with juristic persons through Application LPN connect system specifically developed for Lumpini residents.

LPN Development Public Company Limited and affiliated companies have developed products and services during and after COVID-19 pandemic situation (in the future) based on sustainable housing development so that buyers and residents in the projects are able to enjoy a balanced and comfortable life in a new normal way, encounter the public health crisis and in situations where the public health crisis are overcome in the future.

Outstanding Operation Performance

7,457.74 million THB.

716.35 million THB.

1.40* THB 95%

The Company helps create jobs for the total of (*pending approval)

1,534 underprivileged women.

186 communities

160,000 families and 300,000 community members. the total space managed is 9,300,000 sq.m.

4 condominium projects are handed over.

5 projects is launched.

Sustainability Awards 2020

Corporate Governance Awards

• The Company was ranked Excellent (5 stars) in corporate governance from the Thai Institute of Directors (IOD).

Sustainability Awards

• For the fifth year, the Company received Thailand Sustainability Investment (THSI) 2020 Award at the SET Sustainability Awards 2020 organized by the Stock Exchange of Thailand.

• Best Sustainable Developer (Thailand & Asia) The Company won Best Sustainable Developer Award from the PropertyGuru Thailand Property Awards 2020 as a real estate developer that adheres to sustainable development principles all through the past 3 decades. Best Sustainable Developer (Asia) Award from the 15th PropertyGuru Thailand Property Awards showcased our determination to develop real estate in a sustainable manner in order to create a good quality of life for residents and promote social and environmental responsibility with corporate governance principles.

Social and Environmental Responsibility Awards

• Special Recognition in CSR from the Company’s sustainable development guideline and the corporate responsibility for the environmental and social impacts of its operation“In Process”, “Out Process” and “As Process”- was awarded by the PropertyGuru Thailand Property Awards 2020.

• PropertyGuru Thailand Property Awards 2020 awarded the Company the Special Recognition in ESG from the Company’s sustainable business operation concepts comprising E: Environment, S: Social and G: Governance. It is another indicator showcasing the sustainable stability of the business.

• After participating in the Low Emission Support Scheme: LESS, Lumpini Place Borom Ratchachonni - Pinklao Project received a Letter of Recognition from Thailand Greenhouse Gas Management Organization (Public Organization) certifying that the project’s waste segregation project reduced 3.316 tCO2e of greenhouse gas emission.

• In 2020, the Company received a recognition for being a Carbon Neutral Company by Thailand Greenhouse Gas Management Organization. This recognition reflects its operational standard that drives forward its plan to become a truly environmentally responsible organization.

Development Business Strategy Map 2020

Corporate Strategy Map 2020

Shareholder Dimension

Customer

Dimension

Sustainable Development Goals

The Company has been establishing a vision to serve as a guideline for business operation for more than 16 years in order to ensure that the operation of all departments in the organization is moving towards sustainable development. Each vision is strengthened and appropriate growth target is determined to develop and drive the organization forward. The business plan and short-term goal are identified annually both in terms of values and finance to be in conformity with the mission towards all stakeholders. It is to generate a sound profit, bestow the values of the operation on the customers and be responsible for the environment and society.

Year 2020 is the first year of the new vision. The Company still focuses on driving corporate sustainability forward. However, amidst the economic crisis resulting from the widespread and consistent impact of the novel coronavirus pandemic, this year the Company has to operate with caution under concise risk management and adapting to various impacts in order to be able to lead the organization and all stakeholders through the crisis in a safe manner.

Regarding the main goal for organization’s growth, the Board of Directors places importance on and sets organization’s goals that are in line with the 2030 Agenda for Sustainable Development that includes 17 Sustainable Development Goals (SDGs) set by the United Nation. The goals in various issues are as follows:

SDGs

Give back to the society by supporting “social enterprises” to enhance the quality of life and dignity of underprivileged women.

Continue collaborating with Thai Health Promotion Foundation and identify well-being as the crucial agenda of the organization.

Enhance well-being and occupational safety of staff.

Provide educational opportunity to underprivileged women.

Support gender equality in the organization.

Design projects with the residents’ well-being in mind.

Employment, Wages and Income Distribution

Employment, Wages and Income Distribution

Enhance well-being and occupational safety of construction workers.

Be responsible for possible impacts on the environment and society.

Promote schooling for underprivileged children living in construction worker camps.

Treat employees in a fair and equal manner.

Take care of the quality of life and the safety of residents of all ages.

Develop projects that protect and restore water-related ecosystem.

Design with water-use efficiency in mind.

Treat wastewater before it is reused or discharged.

Encourage the reuse of treated wastewater.

Encourage wastewater treatment within the community before discharging good quality water to public waterways. Reuse treated wastewater in the communities.

SDGs

Create jobs, income and operational profits.

Carry on anti-corruption operation.

Design buildings to be energy efficient to reduce energy use.

Establish appropriate target of return and profit growth of all subsidiary companies.

Promote a sustained and sustainable economic growth of stakeholders.

Encourage integrative researches to enhance the adjustment to become a sustainable organization in the property development industry.

Treat all stakeholders equally.

Respect human right and give significance to providing equal opportunity to people with disability.

Develop projects to ensure access for all to adequate and safe housing.

Establish an energy consumption management plan within the projects.

Regularly organize activities to promote energy conservation.

Establish a policy to promote a full and productive employment and decent work for all women and men.

Support process innovation, product innovation and service innovation and business model innovation.

Treat all stakeholders equally. Treat all stakeholders equally. Treat all stakeholders equally. Treat all stakeholders equally.

Treat all stakeholders equally.

Develop projects in densely populated areas in response to the increase in population.

Develop projects that have green and public spaces accessible by everybody.

Build a Livable Community for all to encourage the creation of participatory and sustainable societies.

SDGs

Emphasize the importance of environment in all operational processes.

Establish a plan for an efficient use of natural resources.

Promote waste recycling and reduction in the organization.

Raise awareness and integrate climate change measures into the organizational policies and strategies.

While designing, keep in mind the projects’ overall energy consumption efficiency and water consumption rate.

Design environmentally friendly projects by applying Green Design Concept Standard.

Take into consideration impacts on existing ecosystem while developing a project.

Use the universal design concept while designing the projects so that everybody can use project space without discrimination.

Identify the organizational goals in accordance with international goals.

Collaborate with other organizations to develop various technology and knowledge.

Efficiently manage and use natural resources in the construction.

Establish a specific policy to eliminate hazardous waste and pollution from the construction.

Promote recycling and reduction of construction waste.

Develop environmentally friendly project.

Control negative impacts caused by construction process using the LPN Green Construction Process Standard.

Establish a plan for an efficient use of natural resources in the community.

Promote recycling and reduction of household waste.

Avoid and prevent possible negative impacts on ecosystem of the project area during the construction operation.

Conserve the ecosystem within the project to ensure its abundance and sustainability.

Provide standardized services in a fair manner.

LPN’S GREEN JOURNEY

LPN’s sustainable development path

L.P.N. Development Public Company Limited has adopted the Philosophy of Sufficiency Economy as a guideline for business operations. This includes principles of sustainable development that focus on 3 dimensions which are economy (Profit), society (People) and environment (Planet). The environment, in particular, can be widely impacted by several processes in real estate development business such as the design process and the construction process.

The Company has applied the international green building design principle to the design and the development of its projects. It has been developed further until it becomes LPN Green Design Concept standard and LPN Green Construction Process standard that place importance on the environment from the design concept. In addition, one of the key strategies which is considered the strength of LPN is the zero-waste design. No waste is left behind. These were 2 main strategies of the Company when it first began its environmental and social responsibility operation. Later on, the standards of other relevant processes are developed until completed and become a sustainable development strategy and a concrete practice guideline under the 6 GREEN LPN concept.

In 2020, the company has made improvements on its several processes to strive for excellence in the implementation of environmental and social responsibilities on continuous basis. The company has set goals to conduct carbon footprint assessment of the organization with the objectives to become Carbon Neutral Organization and determine its total greenhouse gas emissions. In addition, the company also has an intention to create guidelines to reduce the greenhouse gas emissions. In order to realize such goals, the company has initiated carbon footprint assessment. In addition, the company has purchased carbon credits to offset all of its greenhouse gas emissions and obtained 2 types of carbon labels.

First LPN Signature

Green Project 6 GREEN LPN

Green Design Concept and Green Construction Process Standard

First LEED Certified Project Dream House Project

Livable Community Model

The Seeds: Idea Suggestion

Green Design Concept and Green Construction Process Standard for Housing BEC Awards

The Seeds: Idea Suggestion #2

Construction Camp Site - Quality Improvement Project

100% BIM Implementation

LPN Signature Course

Year of Shift

ISO 14001 and ISO 9001 Kick-off year

Product Development Center

Green Enterprise Standard

Green Marketing Management Standard

Green Financial Management Standard

Year of Change

Lumpini Property Management Co.,Ltd achieves ISO 9001: 2015

LPC Social Enterprise Co.,Ltd. achieves ISO 9001: 2015

Lumpini Project Management Service Co.,Ltd. achieves ISO 9001: 2015 and ISO 14001: 2015

LPC Social Enterprise Co.,Ltd. certified as the first group of SE

TREES Certification Anticipated

Green Community Management Standard Service Development Center

Year of Excellence

LPN Zero Waste Management Project 2022 Kick off

Year of Proficiency

LPN Zero Waste Management Project 2022

Carbon Neutral Organization

LPN Zero Waste Project

The LPN Zero Waste project was initiated in 2019 as the Company has a goal to become a waste-free organization. The project raises awareness about the impact of waste generated in every process of the operation starting from the head office, sales office, construction units, and within projects where communities are managed by the Company to the final process of waste management. Details of works done in 2020 are as follows.

Waste Management in Construction Units

The Company, together with LPN Team, manage waste generated by construction sites and make maximum use of the discarded materials. There are waste segregation policy and a policy to reuse usable materials in other projects.

“Won” Project

The Company participates in Won Project originated by TPBI Public Company Limited. The Won project accepts soft plastic films and plastic bags from various participated organization and agencies and recycles them to its maximum extent. Torn or aged “Won bags” can also be recycled. This can reduce the amount of plastic waste released to the environment and general waste entering the waste disposal system. In 2020, LPN delivered 242 kilograms of plastic bags to the project.

Campaign Media

The Company produces campaign media to educate people about waste reduction and segregation. It is used as a communication tool to create understanding and raise awareness among the residents and workers of Lumpini communities so that they can take part in waste reduction and segregation in the community in the right way. The public relation and communication are done on a regular basis at least once a month to remind them and help them memorize and adjust their behavior.

Plastic Glass for Money Project

Campaigning on waste segregation at Lumpini Tower where the group of L.P.N. Development Public Company Limited and other co-owners are located, the juristic person has organized a “Plastic Glass for Money” project to encourage everybody to segregate waste before throwing them away and to ease the burden of cleaning officers. One hundred baht in cash is offered in exchange for 100 plastic glasses. The juristic person started the event in August 2020 and was able to collect 15,000 plastic glasses in total.

“Not Worthless, Once Segregated” Project

This project handles the multilayer flexible packaging materials (foil sachet). The objectives are to build a model, encourage participation in handling foil sachets and promote circular economy. Five entities participated in this project include L.P.N. Development Public Company Limited, Nestle (Thai) Co., Ltd., Best Polymer International Co., Ltd., the Federation of Thai Industries and Thai Beverage Recycle Co., Ltd. The project’s goal is to recycle foil sachets into 2 lawn table sets for Lumpini Place Borom Ratchachonni - Pinklao project. 30,000 foil sachets or more are needed for the production.

In addition, the Company has continually promoted this project via online media and noticeboards in Lumpini Place Borom Ratchachonni - Pinklao. Every second and forth Saturday of each month from September 2020 to March 2021, foil sachets can be brought for an exchange. The participants are also interviewed. After organizing 8 activities, 55,833 foil sachets are collected which is 186% of the target (as at December 2020).

Greenhouse Gas Emission Reduction

L.P.N. Development Public Company Limited determines to continuously develop and improve the quality of products and services along with the social and environmental responsibility policy. Greenhouse gas reduction is one of the Company’s policies that is declared to all employees for them to acknowledge and abide by. Measuring the carbon footprint, the Company realizes the quantity of greenhouse gas emissions and removals associated with the operation and various activities. As a result, the organization can formulate a management guideline to effectively reduce the Greenhouse Gas emissions in the future.

In 2020, the Company has created a Carbon Footprint for Organization (CFO) to assess the quantity of greenhouse gas emitted from all of its activities, both directly and indirectly. It is calculated as carbon dioxide equivalent (CO2e) and used in setting an effective greenhouse gas emissions reduction guideline. This Carbon Footprint for Organization has been assessed for the first year. The period from January 1, 2019 to December 31, 2019 is identified as the base year for calculating the quantity of greenhouse gas emissions. In addition, the Company has requested a limited assurance certification from the Thailand Greenhouse Gas Management Organization (Public Organization) with a materiality threshold of 5%.

In 2019, the greenhouse gas emissions from the operation were 1,412 tons of carbon dioxide equivalent.

To become a Carbon Neutral Organization, the Company purchased carbon credits to compensate for the total greenhouse gas emissions of the organization and received a Carbon Neutral Certificate from Thailand Greenhouse Gas Management Organization (Public Organization) on 26 November 2020.

Picture: Carbon Footprint for Organization Label

Picture: Carbon Neutral Certificate

In addition to creating a Carbon Footprint for Organization, the Company participates in the Low Emission Support Scheme (LESS) organized by Thailand Greenhouse Gas Management Organization (Public Organization) with an aim to encourage and support simple operations or activities that reduce greenhouse gas emissions. It allows the Company to start raising awareness for the organization to take part in greenhouse gas emissions reduction and conduct environmentally friendly activities. A Letter of Recognition is presented to the Company to honor good works.

The Company requested to be certified for the assessment of the greenhouse gas quantity that could be reduced from the waste segregation activity of Lumpini Place Borom Ratchachonni - Pinklao Project. The period of certification was from 1 July to 30 September 2020. On 26 November 2020, the Company received a Letter of Recognition from Thailand Greenhouse Gas Management Organization (Public Organization) certifying that this activity could reduce 3.316 tCO2e of greenhouse gas emission.

Picture: Letter of Recognition, Low Emission Support Scheme (LESS)

The greenhouse gas quantity that could be reduced from the waste segregation activity of Lumpini Place Borom Ratchachonni – Pinklao Project. the Company received a Letter of Recognition from Thailand Greenhouse Gas Management Organization (Public Organization) certifying that this activity could reduce 3.316 tCO2e of greenhouse gas emission.

SUSTAINABLE POLICY

Sustainable Policy

The philosophy of sustainable development has been compiled and refined into an internal knowledge of the organization as well as become the practice that all departments adhere to. It will be the foundation that mobilizes the organization at the strateg ic and operational levels.

Policy

The Philosophy of Sufficiency Economy

Strategy

Operation

Sustainability Guideline and Performances

Foundation of Sustainable Development Based on the Philosophy of Sufficiency Economy

Since the establishment of the Company, it has been conducting the business in a responsible and fair manner by ensuring the balance of benefits for all related parties. The stability of the Company is achieved from internal management process along wi th the development of human resources. After the economic crisis in 1997, the Company focuses on the development of projects in accordance with the strategy of the organization and overall economic situation. The Company has attempted to maintain appropriate growth of the organization. In addition, the business operation of the Company has been conducted in accordance with the “Philosophy of Sufficiency Economy” of H.M. King Bhumibol as follows:

3 principles 2 conditions 4 dimensions

The Middle Path on the 3 principles includes:

1. Moderation

Regularly assess the Company potentials and risks in order to set an appropriate growth rate.

Seek adequate profits from business operation by not exploiting or taking advantage of customers or society.

Use the world’s resources with gratitude.

Return the products and the profits to the society.

2. Reasonableness

Analyze the economic situation and other factors before identifying targeted customers and projects.

Take into consideration quality of life of the residents in all aspects, both products and service, with the “Livable Community” concept.

Create a balance of benefits for all stakeholders.

Consider the impacts of the business operation in all dimensions.

The Middle Path on two conditions

1. Knowledge

Strive to be a learning organization, encourage knowledge and skill sharing and integrate various fields of knowledge for the most efficient operation by putting LPN Academy at the core of the mobilization.

Balance and sustainability in four dimensions

2. Virtue

3. Cautiousness

Emphasize continual human resources development.

Operate business with caution by establishing suitable strategies for economic situations.

Continuously develop innovation, tools and process for business operation.

Focus on risk management in order to prepare for upcoming crisis.

Assess impacts on stake holders and stakeholder risks throughout the whole process.

Identify “integrity” and “honesty” as ones of the corporate values leading to corporate governance which is the cornerstone of business operation, as well as comply with good corporate governance principles.

In every step of business operation, the impact must be taken into account and the balance of the following four dimensions must be created.

Economy - generate adequate income and profits and do not take advantage which will cause negative effects in other dimensions.

Society - build a good relationship with communities and wider society, be a good global citizen and respect all stakeholders.

Environment - use the resources with gratitude in the most efficient and effective manner and reduce the impact on the environment.

Culture - be a part of a wholesome culture conservation, respect diversity and conduct business on good ethical principles.

“We believe that sufficiency and adequacy will bring about balanced and sustainable growth.”

Policy and Sustainable Management Goal

The business operation of the Company has always been done in a socially and environmentally responsible manner in all processes and in every step. This is to prevent and minimize possible environmental and social impacts and take proper care of stakeholders according to the organization’s sustainability management guideline or LPN Platform 3-6-8-10, which has been refined and constantly developed throughout 30 years of its operation. Triple Bottom Line framework, a principle of sustainability development that focuses on the 3 ultimate components in economy, society and environmental has been applied in the establishment of the operational goal of the Company. “6 Green LPN” strategy showcases the responsibility towards eight groups of stakeholders from ten property development processes in order to maintain the balance of the business operation and enhance stable growth. The ultimate goals of the three components of our business operation are as follows:

PLANET ENVIRONMENT

PROFIT ECONOMIC

PEOPLE SOCIETY

PROFIT

ECONOMIC

Create the balance of adequate and regular profits from the operation on the basis of good corporate governance, responsibility and transparency in business operation, appropriate risk management and the consideration for profit-sharing with all stakeholders.

PEOPLE PLANET

SOCIETY ENVIRONMENT

Take social responsibility not only for internal stakeholders but also external parties including trade partners, customers, residents and neighboring communities, construction workers as well as the national society at large.

Reduce the impacts of the project development (In Process) in terms of the project design and construction and takes care of the environment and quality of life of the residents and neighboring communities after the handover of the project.

LPN and Sustainable Development

Usually, the responsibility of a real estate developer comes to an end after the product or condominium units are handed over to customers. On the contrary, the Company realizes how significant it is to ensure that the quality of life of the residents of the projects developed by the Company is enhanced and taken care of as they have trust in Lumpini brand and decide to make our condominium unit their “home”. This is the beginning of the development of “Livable Community” concept which is an after-sale service offered both in terms of building management and community management. The concept has been implemented for more than 30 years. The responsibility towards all stakeholders of the Company has started from the policy level within the organization. It follows the Philosophy of Sufficiency Economy that emphasizes on creating integrated values in all sectors for sustainable development and focuses on using the information obtained from the study, research and development and the use of technology for decision-making based on good governance that takes into account all stakeholder groups in all 10 core processes of the property development of the Company as follows:

10 PROCESSES

1

Project Location

The development concept is designed to be appropriate with the project location. The two concepts for project development are pilot project i.e. project development in new locations with minimum competition (Blue Ocean Strategy) and expanded project i.e. project development in highly successful locations where demands for residential property are high.

Project Development Process Specification

Projects are analyzed and development goals are set in order to specify project’s characteristic and size and development steps, including brand and product value that will be delivered to customers, by considering the return on investment, the location suitability and the project development pattern.

4 2 5 3 6 PROCESS PROCESS PROCESS

Land Purchase

The decision made by the Management to buy a piece of land is based on the vision as well as information from the Research and Development Department and Marketing Department. The demand, supply and feasibility for project development are carefully studied beforehand in order to ensure that the project development is in accordance with the strategy of the organization and customers’ needs.

PROCESS

Design Concept

Products are designed with environmental and social responsibility in mind in response to the needs that are in ‘balance’ with every dimension of living. It uses the LPN Green Design Concept Standard which is developed by LPN and is consistent with internationally accepted Green Building Standard. This is to standardize the product making it a residence that promote resource conservation and truly minimize environmental impact.

PROCESS

Sales & Marketing Management

The marketing activity of the Company is “Human Centric” or directly focuses on the needs of the customers. The policy of the Company is to build the first home for those who do not yet own a house. It is to give something back to the society. Furthermore, the Company respects the rights of customers and keeps our promise.

PROCESS

Financial Management

The business growth and returns for stakeholders are identified in line with the annual business plan. The construction costs and profit of each individual project is appropriately prepared. The financial statements are accurate and reliable and are prepared in a transparent and auditable manner without any hidden agendas. In addition, financial risks have always been managed.

Procurement PROCESS

Operational standard is set and the procurement inspection is regularly and concisely performed according to international standard. This includes choosing quality and environmentally friendly materials and promoting the use of materials that contained recycled content to reduce the natural resource consumption.

Project Management Condominium Unit Handover

The Company does not only apply Q-C-S-E-S+P strategy in its management, but also keeps in mind the impact on surrounding society, community and environment in every dimension. Moreover, it manages possible risks during construction by cooperating with alliances and following the Green Construction Process Standard strictly.

The quality of condominium units and common area is fully inspected before the condominium units are handed over to reassure the customers that they receive up-to-standard and good quality products. As a preparation before moving in, the Livable Community policy and residential rules are communicated and informed to residents to create understanding, acceptance and happiness in living together.

PROCESS

Community Mangement

“Livable Community Strategy” is one of the core strategies of the organization. The Company does not only manage the building but also the quality of life, society and environment and promote “togetherness, care and share” culture.

8 STAKEHOLDERS

The Company identifies the first tier stakeholders involved in various operational processes based on the assessment of the level of involvement of each group of stakeholder. The level of involvement of the stakeholders is assessed by the level of influence they have on the organization and operation along with the level of impacts from the operation of the Company in order to be able to identify the importance of each stakeholder and establish a strategy to encourage their participation. The operational framework is established and the impacts on all stakeholders are minimized to enhance sustainable development and growth. The first tier stakeholders of the Company is categorized into eight groups as follows:

SHAREHOLDERS

refer to shareholders of the Company, whether they be companies, funds or individuals who are benefited from the operation that emphasizes good corporate governance and environmental and social responsibility.

1 5 2 6 3 7 4 8

NEIGHBORS

refer to those who live in the communities surrounding the projects of the Company that are under construction and are affected by the impacts from the start of the project development through to after the project is being handed over.

STAFF

refer to those who are working for the Company and driving the operation of the Company to move forward in a sustainable manner, inclusive of staff in the operational level and managerial level.

CUSTOMERS

refer to those who are interested in the project developed by the Company and have reserved to buy and made a down payment. In the future, when the project is completed, the customers will become joint owners /residents. In addition, the customers also refer to those who are interested in renting the Company’s condominium units and have made rental contracts and paid rental fees. In the future, this group of customers may become buyers and residents.

RESIDENTS

refer to those who live in the project of the Company that has been handed over as customers or renters and are parts of the community taken care of by the Company.

LABORS SUPPLY CHAIN

refer to workers of the business alliances (trade partners) that are responsible for constructing the projects of the Company, inclusive of Thai and migrant workers.

refers to trade partners or business alliances of the Company who take part in the design and construction of projects as if they are one of the staff of the Company. The objective is to achieve the mutual goal. LPN team also refers to co-investors in project development. They can be persons or companies.

ENVIRONMENT

refers to the components of sustainability that is at the foundation of all business operations. The operation of real estate development business directly impacts the environment, therefore, the Company focuses on the conservation of environment nearby the project.

6 GREEN LPN

All through the 30 years, the business operation of the Company has always been done in a socially and environmentally responsible manner in all processes. “6 GREEN LPN” concept is developed from our extensive experiences in property development and community management as a practice to ensure a balanced and sustainable operation for the benefit of all stakeholders. At present, 6 GREEN LPN concept is inclusive of six aspects of environmental and social responsibility as follows:

1

GREEN ENTERPRISE

The business operation that focuses on human resources management and human capital.

4

GREEN MARKETING MANAGEMENT

The marketing strategy that is fair for the consumers and competitors.

2

GREEN FINANCIAL MANAGEMENT

The appropriate returns and growth of the organization.

3

GREEN DESIGN CONCEPT

The product design that is environmentally responsible.

5

GREEN CONSTRUCTION PROCESS

The management of environmental and social impacts from construction process.

6

GREEN COMMUNITY MANAGEMENT

The care for and management of the quality of life of the residents after the handover of the project.

LPN SUSTAINABLE STRATEGY

The operation of property development business directly impacts the environment and society especially the development of large-scale projects. It can be seen that low quality properties usually cause serious environmental and social problems. The Company has thus given importance on business operation that is environmentally and socially responsible as well as incorporated the Corporate Environmental and Social Responsibility (CESR) into the business plan in order to pave the way towards sustainability. We do not only focus on CESR In Process along the thinking of “6 GREEN LPN” but also on CESR Out Process by supporting activities that promote “Togetherness, Care And Share” culture.

Moreover, the Company has established organizations, the operation of which is separated from the core business operation of the Company but is partly related to the business processes. The purpose of the organizations is not to seek profits but to support the society. This is considered CESR As Process. The two organizations are LPN Academy, the center for human resources development and knowledge sharing and LPC Social Enterprise Co., Ltd. the center for the development of quality of life of underprivileged women.

Components in the Operation of the Corporate Environmental and Social Responsibility of the Company

CESR (In Process)

The responsibility towards the impacts of all processes of the business operation of the organization on the stakeholders, environment and society.

CESR (Out Process)

The participation in and support for environmental and social activities that are not related to the operation of the organization.

CESR (As Process)

The support for and implementation of environmental and social activities that are not involved with the core business of the organization but are partly related to the business process. 1 2 3

IN PROCESS

1. GREEN ENTERPRISE

The Business Strategy that Emphasizes the Management for Sustainability and the Management of Human Capital

2. GREEN FINANCIAL MANAGEMENT

The Strategy to Achieve Appropriate Return and Organization Growth

3. GREEN DESIGN CONCEPT

The Environmentally Responsible Design of Product

4. GREEN MARKETING MANAGEMENT

The marketing activities that are fair to the customers and competitors

5. GREEN CONSTRUCTION PROCESS

The Management of Environmental and Social Impacts from Construction Process

6. GREEN COMMUNITY MANAGEMENT

Management of Quality of Life of Residents after Handover

GREEN ENTERPRISE

The Business Strategy that Emphasizes the Management for Sustainability and the Management of Human Capital

Sustainability Management

1. Appropriate Growth and Profit

The Company has developed the management guideline and strategy by establishing appropriate growth and profit target giving sustainable and substantial returns to all stakeholders.

2. Affordable Home

Adhering to the Philosophy of Sufficiency Economy which promotes social well-being, the product development policy of the Company intends to build residence that is “suitable” for living as well as create a better quality of life for residents in every dimension.

3. Good Quality of Life in Great Culture

Apart from developing residential condominiums and homes, the Company also enhances the quality of life of all members of the community under the “Livable Community for All” strategy. The projects are equipped with convenient facilities and safety systems. More importantly, “togetherness, care and share” culture is promoted through various activities to raise awareness of a harmonious community.

4. Balanced Profit for Stakeholders

The Company focuses on long-term growth which is consistent with the governance and sustainability principles. There is a policy to generate various forms of profits for all stakeholders in a balanced and appropriate manner.

5. Risk Management and Corporate Governance

All aspects of risks are managed to be under control and the returns are determined upon the competitive situation and performance of the Company. Risks are reduced by reserving fund to maintain the liquidity of the Company. All of the above are done in a responsible, transparent and auditable manner in accordance with sustainability principles. The Company does not exploit others or focuses only on profit.

6. Anti-Corruption

The Company is against all forms of corruption, whether it be internal or external, by establishing concise operational process to reduce risks, communicating the importance of anti-corruption policy to employees, identifying integrity as one of the values of the organization, declaring the intention against corruption and complying with law and regulations and paying taxes.

7. Environmental and Social Awareness and Responsibility

The Company takes responsibility for the operational impacts with the 6 GREEN LPN and operational standards in every departments. It also promotes environmental and social awareness and encourage staff participation through various environmental and social operations and activities.

8. Giving Back to the Society

Operating through LPC Social Enterprise Co., Ltd., an affiliated company of L.P.N. Development Group, the Company takes part in building a great society by creating job opportunities for underprivileged women so that they have stable jobs, earn income to enhance their families’ quality of life and develop a better quality of life for themselves. In addition, the Company also imparts knowledge and experiences to the society.

Human Capital Management

1. Corporate Value

The Company puts emphasis on the development of human resources to carry on the success of the Company. LPN Way is developed from the core competency of staff to be the guideline that will promote the sustainability in the management of human resources in an integrated manner, to build the identity of the organization and be the operational standard. LPN Way comprises two milestone values i.e. “continuous development” and “respect for stakeholders”. The seven components of the values are “C-L-A-S-S-I-C” as follows:

2. Livable Organization

The concept of the management of human capital of the Company is based on the enhancement of happiness through the six factors at work by continuously developing the quality of staff, promoting exchanges of experiences and knowledge in order to become a learning organization and developing the operation guideline under the culture and values of the organization (LPN Way).

6 Factors of Livable Organization

1.

Staff Work

Enhance the happiness of staff by organizing internal activities to build good relationship between executives and staff in all departments and promoting participation in various activities e.g. the activities within the organization and environmental activities to raise awareness about doing good deeds.

4. 2.

Remuneration

Provide appropriate, equal and fair benefits and remuneration and enhances the quality of life of staff by promoting work-life balance.

Regularly improve the efficiency of the operation to increase the efficiency of the operational process and encourage staff to develop process innovation at work.

3.

Workplace

Arrange appropriate working environment and atmosphere and promote occupational health and safety of staff.

5.

Career Opportunity

Provide opportunity for career advancement and signifying career path for staff in all levels equally, whether they be male or female staff as well as build their capacity via trainings.

3. Learning and Growth

6.

Pride in the Organization

Build the reputation of the Company by adhering to the principles of good corporate governance, respecting human rights and operating the business in a transparent manner so that the staff can take pride in being a part of the organization.

With the commitment to develop the organization towards sustainability, the Company has established LPN Academy to develop the capacity of staff to be able to support the business expansion and carry on the values and culture of the organization in accordance with the LPN Way via training courses and curriculums. It is also aimed to transfer the knowledge to external organizations in the future.

4. Work-Life Balance

The Company takes care of the quality of life of staff and encourages them not to over work and to spend time with their family.

The Company sets appropriate working hours per week and encourages all staff to take annual leave.

GREEN ENTERPRISE PERFORMANCE

The Business Strategy that Emphasizes the Management for Sustainability and the Management of Human Capital

GREEN ENTERPRISE PERFORMANCE

Sustainability Management

Managing an organization for sustainability is main philosophy of the Company and the heart of 6 GREEN LPN. It is integrated in all aspects of the Company’s operation i.e. Green Financial Management, Green Design Concept, Green Marketing Management, Green Construction Process or Green Community Management. The Sustainability Management under Green Enterprise concept covers structural management operation of the organization which aims to be an organization with good governance.

Risk Management

Opportunity and risks are presented in every process of business operation. The Company must be prepared to cope with possible risks with a concise procedure and standard to assess and be cautioned of the risks in various dimensions namely risks in general business operation, corruption risks and organizational sustainability risk. These risks can damage the organization if occur.

Sustainability Risk Assessment

The Company realizes that real estate development business operation has significant impacts on various stakeholders such as the environment and neighboring communities. The Company considers that it is directly related to sustainability dimension. Therefore LPN puts an emphasis on keeping the Green Construction Process Standard in order to maintain sustainability and reduce possible risks toward staff of alliances and stakeholders surrounding the projects. The aim is to reduce a 100% of construction impact on stakeholders. The Company adopts technology and innovation from the construction pollution preventative measures in the international green building standards and develops it together with an operation under the QCSE-S+P strategy, which is the original guideline for the company’s project management, until it is suitable for LPN’s operations. This reduces the neighboring communities’ demand regarding construction and brings about safety for workers working on construction sites. It also reduces the possible negative impact on the organization’s reputation which is important for maintaining the sustainability of the company.

Apart from assessing the construction risks, the Company also emphasizes on the well-being of residents and co-owners. Focusing on the development of project management and services to customers under the “Livable Community” strategy is considered a business sustainability. Not only the equipment and assets are well-maintained to ensure that they are ready and safe to use but the Company also pays attention to creating happiness and good society. It seriously and consistently builds an environmental awareness in accordance with the F-B-L-E-S+P approach that has been studied and developed from a long experience in community management.

Revision of Risk Management Policy and Internal Control

Risk management policy of the Company is in accordance with the risk management and internal control principle. Risk management policy has been regularly reviewed in order for the policy to be in accordance with changing situations and the current circumstances that involve various factors and change rapidly from internal and external factors. This is to reduce impacts by reducing the risks to an acceptable level. The Audit Committee, who is independent from the Executive Committee, is responsible for proposing risk management guidelines and providing risk management recommendations to the Executive Committee. Furthermore, the Committee monitors the management and reviews and revises the internal control system together with the auditors on a quarterly basis. The issues includes the operation, use of resources and assets to prevent any mistake, damages or corruption, credibility of financial reports and compliance with rules and regulations are examined so that the internal operation of the organization is smooth, transparent according to the good governance and corporate governance principles and in line with organizational strategy.

Good Governance and Management Structure

The Company adheres to the good corporate governance principle when conducting business. Good management structure and clear division of responsibility and management which enable checks and balances on the basis of fairness, equality and transparency accountability are important characteristics for good corporate governance.

Having fair and transparent management structure supports good corporate governance and helps develop business competitive ability of the Company. The management which bases on honesty, integrity, virtue and ethics contributes to transparent and accountable cooperation between stakeholders and the organization. This enables the organization to operate with higher efficiency, effectiveness and stability as well as sustainable growth. It will add economic value to the operation, build the confidence of shareholders, investors and stakeholders and reflect social responsibility of the organization.

• The Board of Directors, thus, established core corporate governance principles of the Company and subsidiary companies in which the Company is holding more than 90% of shares as follows:

• Treat all shareholders and stakeholders equally and fairly.

• Dedicate to the Company and perform duties with caution and transparency for the highest benefits of the organization, shareholders, investors and all stakeholders.

• Establish the Code of Conduct for the Board of Directors and staff as a principle and guideline for compliance with the good corporate governance. In 2020, the Company adapts its training methods. The anti-corruption policy and steps are communicated and trained in the online staff orientation and online revision tool.

and reviewing the Code of Conduct

1. Continuous Training

Staff Orientation

1,105 staffs

2. No. of Staff Completing the revision test (Cumulative)

3. Online Revision Tools

new tools

Organization Structure

Committee

Managing Director

Deputy / Assistant Managing Director

Corporate Environmental and Social Responsibility Committee

This Committee has been established to provide oversight of the Company and subsidiary companies’ environmental and social responsibility. The focus is on the possible impacts on stakeholders.

The Board of Directors participates in the corporate operation on social and environment responsibility through this Committee. The Board of Directors appoints an appropriate person to take up the position of the Chairman of the Committee. The Chairman of the Committee is responsible for selecting qualified persons from every department of the Company, subsidiary companies and affiliated companies to be committee members. At the end of 2020, the Committee has 36 members including the Chairman of the Committee.

The composition of this Committee is truly an association for sustainability. It is a cooperation between highest-level executives of the Company, subsidiary companies and trade partners in order to consider all environmental, economic, social and good governance risks and impacts as reflected by prominent stakeholders who have influence on the decision-making of the organization. (See more details regarding names of committee members in the 2020 Annual Report (Form 56-1 One Report).)

Corporate Governance

The Company has publicly announced the Corporate Governance Policy on www.lpn.co.th under “Investor Relation” topic and “Good Corporate Governance” subtopic which allows stakeholders and public an easy access to the policy. The Board of Directors as the highest authority in the organization has to abide by this good practice. It is one of the significant sustainability issue that the highest-level executives must take parts in moving it forward. The principles established by Corporate Governance Policy are as follows:

1) Establish Clear Leadership Role and Responsibilities of the Board as the head of the organization who creates sustainable values for the business

2) Define Objectives and Goals for Business Sustainability

3) Strengthen Board Effectiveness

4) Nominate and Develop High-Ranking Executives and Personnel Management

5) Nurture Innovation and Responsibility Business

6) Strengthen Effective Risk Management and Internal Control

7) Ensure Disclosure and Financial Integrity

8) Ensure Engagement and Communication with Shareholders

Anti-Corruption

The Company has established the anti-corruption policy in every dimension and strictly in compliance with law. The Company has encouraged staff to monitor the corruption together. Integrity is identified as one of the core values of the Company that staff and executives have to strictly comply with The guidelines for promoting and instilling a core value of being “Smart and Good” in the staff are as follows:

• Communication and training on anti-corruption

The Company adapts its communication and training methods to be in line with current situation. For new staff, the content is included in the online orintation course. Revison of Code of Conduct will be communicated to all staff and the staff will complete the revision form online.

• Establish a corruption risk assessment.

• Revise anti-corruption measures on a regular basis.

• Establish various complaint channels for staff to notify the act of corruption or misconduct as follows.

o Directly inform the Chief Executive Director or the supervisors

o Send a message to the Chief Executive Director or the supervisors on WhatsApp.

o Submit complaints by post.

o The Suggestion Box in the office

o The organizational commitment questionnaire.

o Inform the Organization Development Section, Human Resources Management Department.

• In-house corruption

In 2020, there are 13 corruption cases including 7 cases of embezzlement, 4 cases of time card falsification and 2 cases of confidential information disclosure. The punishment for all cases is termination of employment.

Fair employment and diverse workforce

Amidst the COVID-19 pandemic crisis in 2020, the Company’s policy is to maintain the number of employees to control expenses. There is no replacement of resigned employees except in service work that needs replacement. The Company emphasizes on an efficient and fair recruitment procedure for new employees. To be identified as the most qualified persons for the job, the candidates are required to have eligible qualification and succeed both technical knowledge tests related to each position and interviews to ensure that the Company hires the right person for each job.

In 2020, 256 new employees were recruited, and 281 employees resigned. In order to develop an employee care process and reduce the resignation rate, the Human Resources Office has concluded the top 5 resignation reasons as follows.

1. Relocation to hometown/Taking care of family

2. New job offered/Misconduct/Failing probation

3. Private business and others i.e., ending of contract, furthering education

4. Insufficient income

5. Problem at work and problem with job description/Change in line of work

From the above reasons, the Company has come up with the following solutions.

Reasons

1. Insufficient income (29 people)

2. Problem at work/Problem with job description (21 people)

3. Working with other real estate business (11 people)

4. Misconduct (35 people)

5. Days off and working hours (8 people)

Solutions

- Recruit experienced candidated to increase income base accordingly.

- Inform employees about monetary and non-monetary income and benefits before the start of work.

- Establish a mentoring system to provide guidance and consultation.

- Establish a systematic on the job training.

- Supervisors to provide a close supervision during the probation period.

- Find and compare facts.

- Provide incentives and commission for salespersons.

- Supervisors to increase monitoring and close employee supervision, learn about their private problems and financial problems and give them advice and assistance in accordance with the Company policy.

- Human Resources Management Office to regularly remind and communicate with employees..

- Implement a rigorous audit system and reduce corruption risks.

- Clarify during the interview.

- Allow employees to swap days off, accumulate vacation leaves and use them later according to the Company’s policy

- Supervisors to fairly and properly create work schedules.

Regarding employment opportunities for persons with disability, the Company aims at recruiting 44 disabled persons (which is higher than the number specified by law). Currently, the Company has recruited 39 staff who are persons with disability.

Treatment of staff

It is the Company policy to treat all staff at all levels in an equal manner and this extends to staff in the affiliated companies and in the LPN team. Importance is placed on all areas including appropriate remuneration and welfare benefits, occupational safety and health for all and well-being of staff and their family members. Details are as follows:

1. Maternity leave and post-natal leave

The Company policy is to enhance quality of life of staff. The staff’s families are considered an important factor to make staff perform their work happily and efficiently. The Company supports pregnant staff to take a full period of maternity leave according to law, while being remunerated fully. In 2020, 33 staff took maternity leave; 5 of them were still on post-natal leave and 25 came back to duty while 3 of them resigned after giving birth.

2. Impact and complaints on unfair employment practice

There was no complaint (0%).

3.

Proportion of standard wages and minimum wage

33 staff took maternity leave.

5 of them were still on post-natal leave.

25 came back to duty.

3 resigned.

In 2020, the wages paid to staff by the Company is higher than the minimum wage. The wage of the operational staff (L.1-4) is 1.31 times higher than the average minimum wage. The wage of community service officers (housekeepers) is 1.1 times higher than the average minimum wage.

4. Welfare Committee in the workplace

The Company promotes participation of staff in designing policy regulations that concern their welfare benefits in order to protect their interest and to ensure fair treatment for their best interest. In 2020, a new Welfare Committee for 2020-2022 was elected, comprising 28 committee members.

Pathum Thani

5. Work Injury and Absenteeism

25 staff were injured at work. There was no work-related fatality. Those who are at risk of work-related diseases will be constantly examined and followed up.

• Accident Rates by Gender and Region

* Table: Data of Injury, Fatality and Absentee Rates in 2020

6. Workforce by Gender and Age

• Proportion of Mangement and Staff by Gender

• Proportion

7. Remuneration, welfare and other benefits in 2020

In 2020, although the Company is worryingly concerned about the pandemic, the economy and the overall residential property development business, it doesn’t abandon welfare policies. This is an important matter affecting livelihood and well-being of the employees. The Company is well aware of the necessity and importance of maintaining several welfare programs that help alleviate the burden of employees during difficult times in the past year. The Company has managed the risks and adopt policies that have the least impact on the important staff welfare. Details are as follows.

• Permanent staff welfare

Welfare Other benefits

• Life/Accidental insurance

• Group health insurance

• Grant welfare

• Loan welfare

• Child scholarship

• Provident fund

• COVID-19 health insurance

• Bonus

• Annual wage adjustment

• Annual level adjustment

• Extra benefits during COVID-19 situation

Human Rights Policy and Labor Practices

The Company recognizes and respects human dignity and equality of individuals without discrimination. Employees of the Company and its subsidiaries must treat each other and all stakeholders with respect and dignity. The employees, while performing their duties, need to behave properly in accordance with the Company’s rules and regulations and good traditions without causing any harm to the image of the Company.

In addition, the Company also give importance to labor issue. It will fairly treat both Thai and foreign employees and workers including staff with disability in accordance with labor laws, rules, regulations and labor related restriction. The Company encourages staff with disability to take part in the Company’s activities and training courses on human rights. There have been six aspects of human rights promotion (for staff with disability), including:

1. Support and promote operation

2. Support and promote learning and development of knowledge

on knowledge sharing and assignments of key organization tasks suitable to their skills and skills in working with other staff through using sign languages and knowledge and skills training for work with outsiders

3. Support and promote health aspects

such as meeting with medical doctors for consultation

4. Support and promote volunteerism

such as social benefit activities

5. Support and promote good relationships

through regular quarterly meetings of staff with disability, success celebration parties and recreational activities of staff in the same line of work.

6. Support and promote opportunity and quality of life

such as three types of sports competitions i.e., five lawn bowls events, one bowling event and one badminton event.

7. Complaints on human rights violation in 2020.

There was no complaint.

Green Enterprise Standard Checklist of LPN

The Green Enterprise Standard Checklists of the Human Resource Management Office included 32 action items, 31 of which were processed and 1 has not been processed.

Supply Chain Management

The Company is confident that having good relationships with trade partners does not only bring about collaborative success but also build a strong collaboration in going through crisis. The fact that the organization and stakeholders, in this case ‘trade partners’, are able to survive the 1997 economic crisis and continue operating their business operation indicates that business operation of the organization can truly create sustainability in the society.

Although strong identity and values of LPN together with concise risk management play a part in getting the Company through the economic crisis, having good trade partners who are cooperative and supportive during tough time is the turning point and has contributed to the Company’s success until now.

For more than 20 years, the “trade partners” have become “alliances” and are turned into “business alliances”. Now they have become “LPN Team” sharing business development and growth and working as if we are a part of each other. Thus, there are collaboration in every process of operation throughout the Company’s supply chain aiming to achieve the highest goal in supply chain management of the organization.

The Company realizes that to build this kind of business’s supply chain collective values and collective success must be create d. Operating profits do not guarantee business’s survival should there be another economic crisis. Creating collaborative responsibilities and tight bonds that allow business alliances to operate their business indicates that the Company can also maintain its business operation and both can achieve sustainable growth together.

The Supply Chain Management Process

The staff of the Company and LPN Team communicate with each other on a regular basis. It is two-way communication via WhatsApp so that all participated parties are able to learn, share ideas and be up-to-date which generate utmost operational efficiency.

COMMIT

ASSESS

LPN finalizes the business plan.

LPN and LPN Team have a meeting to:

• Recognize the plan and establish collaborative goals.

• Listen to each other’s opinion and expectation.

• Identify and consider any impact that may happen while working together.

• Develop a possible risk prevention plan

Participation of LPN and LPN Team in each project development

LPN and LPN Team operate in accordance with the established work plan.

LPN and LPN Team organize a monthly meeting.

• Follow-up the work, assess the performances and analyze problems to improve the operation or adjust the operational plan as appropriate. This will help increase the efficiency of the operation in the supply chain.

GREEN FINANCIAL MANAGEMENT

The Strategy to Achieve Appropriate Return and Organization Growth

Green Financial Management is the management of finance with the objective of achieving stable and sustainable business growth, operating performance that have appropriate and continuous profitable growth and balanced allocation of profit among all stakeholders. The financial ratio and expenses of the Company and subsidiary companies are properly managed to suit the income target and business plan of the organization. It includes the distribution of the dividend at the rate of no less than 50% of net income to shareholders, the appropriate remuneration for executives and staff as well as the establishment of selling price of condominium units to be cheaper than those of the competitors for the benefit of the customers. The Company has also allocated a budget to promote the quality of environment and society during project construction.

Furthermore, the preparation of the financial statement is transparent and auditable. Documents have been prepared on a quarterly basis to communicate the performance of the Company to the shareholders in order to build their confidence and showcase the importance of the financial discipline and financial risk management.

Accountability Financial Statement

The Company realizes the importance of the accuracy and transparency of the financial statement and has arranged appropriate and efficient internal control system. Significant information is disclosed in the notes to financial statement along with the explanation and analysis to ensure that the accounting information is accurate and complete for the utmost benefit of the shareholders and investors in using the financial statement. The components of the accountable financial statement are as follows:

1. Transparency

The financial statement of the Company is prepared in a transparent manner in accordance with the good corporate governance principles. The appropriate and efficient internal control system is arranged. The Board of Directors of the Company has appointed an Audit Committee comprising four independent directors, three of whom are knowledgeable in finance and accounting, to review the accounting policy and audit the quality of the financial statement as well as the internal control system. The report of the Audit Committee will be included in Form 56-1 and the Annual Report of the Company.

2. Auditability

The Board of Directors of the Company has appointed the Audit Committee to oversee the operation and review both annual audit plan and long-term audit plan. The items in the financial statement are to be randomly audited and the outcome of the revision will be considered on a quarterly basis. Any issues found will be addressed in a timely manner. The Audit Committee opines that the internal control system of the Company is sufficient and effective and supports the development of the quality of audit work both in terms of personnel and operation to be of international standard.

3. Disclosure without Hidden Agenda

The Company discloses sufficient significant information in the notes to financial statement along with the explanation and analysis to ensure the accuracy and completion of the financial information record for the utmost benefit of the shareholders and investors in using the financial statement, especially the disclosure and report of the prices of all pieces of land bought to the Stock Exchange of Thailand.

4. Measurable

In order to ensure the transparency of the audit standard which will entail the sustainability of the Company, the financial statement of the Company is prepared in accordance with the financial reporting standard as prescribed by the Accounting Profession Act B.E. 2547. The brief items in the financial statement are prepared in compliance with the notification of the Department of Business Development, the Ministry of Commerce in 2011 regarding the requirement for the brief items to be shown in the financial statements, and in compliance with the regulations of the Securities and Exchange Commissions regarding the Preparation and Presentation of Financial Statements under the Securities and Exchange Act B.E. 2535.

5. Discipline

The discipline and auditability in the financial management of the Company are ensured. The investment is controlled so that the capital of the Company is not invested in the business that is outside the area of expertise or in the activities that have conflict of interest with the Company. It is also made sure that the circulating capital of the Company is sustained to be sufficient for the payment of the remuneration for staff and all stakeholders.

Green Financial Management Standard Checklist of LPN

6. Financial Risk Management

Risks are taken into account in the investment or financial operation of the Company. Investments will not be made if the Company has to borrow more than we can afford to repay. Instead, the Company will invest with the existing resources and knowledge. The debt to equity ratio is maintained not to exceed 1:1 and is audited by the Risk Management on a regular basis.

Apart from Accountability Financial Statement Principle, the Company has developed its own checklist for Green Financial Management. The checklist is developed by Financial Management Department in 2018 as a management standard to be used by policy level to operational level. It focuses on transparency and has a good and effective internal control system. The allocation of returns to stakeholders is fair and appropriate. An important business goal is the continuous growth of the Return on Investment and profits. Thus, financial management plan and strategy should be appropriated and takes environmental and social responsibility into consideration in order to achieve sustainable growth.

Green Financial Management Standard Checklist

Standard 1

3 topics

• Goals: Identify the returns and the organizational growth properly.

Standard 3

3 topics

• Internal Control and Financial Risk Management: perform an effective internal control with good governance.

Standard 2

4 topics

• Equilibrium Returns: Create equilibrium returns or adequate and constant operational profits based on good corporate governance including sharing the returns to every group of stakeholders.

Standard 4

3 topics

• Financial Budget and Disclosure of Financial Budget Management and Accurate and Reliable Tax: disclose the information with transparency and verifiability.

GREEN FINANCIAL MANAGEMENT PERFORMANCE

The Strategy to Achieve Appropriate Return and Organization Growth

GREEN FINANCIAL MANAGEMENT

Profit-Sharing and Balancing Wealth with Stakeholders

Under the framework of Green Financial Management principle, the Company gives emphasis on profit-sharing and balancing wealth with stakeholders in an aprropriate proportion to create economic value added which is a part of the country’s economic mobilization as follows.

1. Focusing on providing appropriate returns to trade partners and business alliances in terms of conducting business in both investment and construction processes.

2. Providing appropriate remuneration and welfare to staff and the teams so that they have good quality of life and good welfare.

3. Providing appropriate dividend payment to investors and shareholders.

4. Conducting business with transparency and paying tax to the government for the country’s development.

5. Allocating appropriate budget to community investment to develop a better quality of life for community and society.

• Achieving an Appropriate Return and Organization Growth Information as at December 31, 2018 - December 31, 2020

Employee wages and benefits

8.24%

Operating costs

74.78%

In terms of financial management for sustainability, the Company has ensured that the financial management is transparent and auditable. The reporting and disclosure of the financial statement to the public are done on a regular basis as a listed company in the Stock Exchange of Thailand. In addition to the above, the financial management framework that emphasizes the importance of financial discipline is established. There are indicators to signify the status and follow up the operation of the Company to ensure that it is appropriately conducted. Financial risks are managed for continuous and steady growth and profits are generated from effective operational system. The operational performance is disclosed in detail in the Annual Report of the Company including the main indicators that support the sustainability operation.

Indicators

1. Debt to Equity Ratio

The debt to equity ratio or debt ratio is calculated by dividing a company’s total liabilities by its shareholders’ equity. The ratio indicates what proportion of equity and debt the company is using to finance its assets. Higher debt ratio translates into higher risks of the company being unable to pay debts as they fall due either in time of profit or loss. On the other hand, a lower debt ratio usually indicates that the company’s major financing is done by its shareholders/own resources more than by creditors which will positively enhance growth and competitiveness in the market.

2. Gross Profit Margin

Gross profit margin is the proportion of gross profit and net sales volume of a company which indicates the efficiency of the business operation in terms of profit generation and cost management. A business with satisfactory gross profit margin implies the ability to achieve the highest sales volume comparing with the sales cost. However, the gross profit margin should not be too high as it may show that the customers, employees, trade partners and other stakeholders are being taken advantage of and that the company is not being socially and environmentally responsible which is against the policy to create a balance among all stakeholders of the Company.

3. Dividend per Net Profit Ratio

The earning per share is the portion of a company’s net profit from the operational performance each year to be allocated to shareholders as dividends. It indicates the profit from the investment of the company. The Company will present the information on the earning per share to the Annual General Meeting of Shareholders to seek approval for dividend payment. This is the true indicator of the operational efficiency of the Company.

A goal to maintain appropriate returns and sustainable corporate growth

Goal setting to maintain the returns and the corporate growth plays a part in determining the direction of business operation so that the corporate can sustain its returns and growth sustainably. This is done through the following financial indicators.

1. Debt to Equity Ratio

The Company maintains its policy that identifies the debt to equity ratio at 1:1. It creates the Company’s discipline and financial strength, reduces the risk of over indebtedness and, at the same time, maintain an appropriate growth rate.

2. Gross Profit Margin

The Company has identified the gross profit margin target that is appropriate with the operation and no less than the gross profit margin of the competitors in the market. The comparison to the competitors in the market is done to indicate the efficiency of the business operation.

3. Dividend per Net Profit Ratio

The Company has identified the target of the earning per share and dividend payment at the proportion of no less than 50% so that shareholders receives appropriate returns. At the same time, the Company is able to maintain its investment money for continuous business expansion by considering the market competition ability for a sustainable growth.

GREEN DESIGN CONCEPT

The Environmentally Responsible Design of Products

GREEN Design concept is the environmentally responsible design of products. The Company gives importance to the “Balance” of design and development of project from the process of designing the product and the layout of the project to minimize environmental impact and better suit all living lifestyles.

1. Strategic Location

The location must be close to convenient facilities, public transportation system and express ways to reduce environmental impacts from large-scale project development as well as energy usage in transport.

2. Green Design Concept Standard

LPN’s buildings are designed with an aim to generate a holistic approach to performance while creating spaces that are reliable, safe, comfortable and truly responding to residents’ needs. In the designing LPN has followed the LPN Green Design Concept Standard developed from the Green Building Standard of the U.S.A or LEED (Leadership in Energy and Environmental Design) and the Green Building Standard of Thailand or TREES (Thai’s Rating of Energy and Environmental Sustainability). Energy saving, environmental conservation and worthy utilization of resources are taken into consideration.

In addition, in 2020, when the world was facing the COVID-19 crisis, the company has adopted international health standards, i.e. WELL, in product designs in order to raise product standards to meet the needs of residents. In this regard, LPN Green Design Concept Standard has the following main topics:

Sustainable Site Development

The environmental impacts from project development are minimized by selecting the project locations which are highly populated on a main road and near convenient facilities. It must also be close to public transportation system and express ways which will directly help ease the traffic and reduce energy usage.

Energy Efficiency

LPN’ building design is an energy-efficient design. There are skylights to let in natural light. Insulation sheets and tinted glasses are installed to reduce heat transfer from outside. It can save a lot of energy since air-conditioners do not work too hard. It also lowers the outside noise.

Water Efficiency

LPN opts for water-conserving sanitary ware within the projects according to the Green Label standard. Treated wastewater is used for the irrigation of green space in the project to reduce water usage as well as the discharge of wastewater into public drainage system.

Material and Resources

To ensure good quality products, the Company meticulously selects building materials considering from the durability, low maintenance and environmental friendliness.To reduce the use of primary resource, the design of LPN follows the Modular System concept to avoid material cutting and reduce residues. In addition, LPN also promotes the use of materials that contain recycled materials to reduce natural resources consumption. It also has a policy to promote the use of domestically produced products.

3. Real Pleasure of Living

Indoor Environmental Quality

LPN has placed importance on design of areas that promote good health, pollution-free and design of common areas with good ventilation, and installation of air purifiers to enhance indoor air quality, allocates green spaces and both outdoor and indoor exercise areas to encourage residents to exercise. In addition, LPN has also applied the principle of universal design, with the aim of enabling everyone in the community to fully and equally utilize the spaces as well as to promote discipline and culture of living together under the concept of “Livable Communities for People of All Ages”.

With an intention to deliver the “Real Pleasure of Living”, every inches of LPN projects are designed using the information from our research and development so that the products and services can respond best to the needs of target groups in term of living and lifestyle. Moreover, the Company gives an emphasis to the increase of living value by developing common area and green space into community activity area in accordance with the “Livable Community for All” concept.

GREEN DESIGN CONCEPT PERFORMANCE

The Environmentally Responsible Design of Products

3.

GREEN DESIGN CONCEPT PERFORMANCE

Lumpini Place Taopoon Interchange

Connecting every lifestyle at the new business hub in Taopoon

The Lumpini Place Taopoon Interchange is located only 90 meters from the Tao Poon MRT station which is an interchange station. Residents can conveniently commute via MRT Blue Line and MRT Purple Line. The Bang Son station (S.R.T. Red Line) is also nearby. It is surrounded by full amenities including markets, educational institutions, hospitals, and department stores.

Eco-Design

Lumpini Place Taopoon Interchange is designed in harmony with nature and the surroundings. The building is placed in the direction that mitigates the effect from solar radiation which produces high heat. An increase of void spaces, southwest-northeast of the building, enhances ventilation. There are more green areas. It is designed in way that every space is fully utilized.

Green Layering Garden

A green layering garden and a vast green space are designed to create a new private recreational experience in nature. A jogging track is provided to ensure the healthiness of the residents and support present urban lifestyles.

Eco-Lobby

The lobby which connects to the green area and a semi -outdoor common space allows natural wind to blow through all the time. It does not only reduce energy consumption from air conditioners, but also reduces the risks of exposure to pollutants or pathogens in the air which directly affects the health of users.

Relaxing Pool

The design of the pool area on the 9th floor allows the residents to enjoy private leisure time and a serene setting surrounded by trees which makes them feel fresh and close to nature.

Co-Working Space

A common space that suits current work styles helps balancing city lives. The co-working space can be adapted to accommodate a variety of activities according to residents’ preferences.

Kitchen Garden

The rooftop area can be turned into a roof garden where residents can grow vegetables. It does not only increase green space, but also reduce heat from entering the building.

Attentive to every detail

Every square inch of the condominium unit has undergone a research process before being designed, in order to satisfy every aspect of needs of residents who actually live there. Attention is paid to every detail to ensure that it is in “balance” with daily livelihood of all ages and all genders.

GREEN MARKETING MANAGEMENT

The maketing activities that are fair to the customers and competitors

The marketing strategy of the Company is designed to be in accordance with our determination to build the first high quality home at affordable price for the middle to lower-middle income earners in order to create a great quality of life and society for the residents in a responsible manner both before and after project handover. The marketing policy of the Company is fair, respects consumers’ right and treats the competitors with fairness. The 6Ps Marketing Strategy is as follows:

1P

The Company strives to deliver unique product values both in condominium units and common area to the customers. The product values are developed from knowledge and experiences in project development to accommodate the lifestyle of the residents.

2P

Product Strategy Price Strategy

By managing costs and expenses in all production processes, the selling price of the product is affordable and competitive. The profit and terms and conditions of the installment payment for down payment are determined in line with the status of the target group. The Company also provides financial management services to customers to facilitate their loan application and create an opportunity for them to own a home.

3P

Place Strategy

The location of the sales office must be on or near project development site so that it would be accessible to the customers. All the details must clearly be stated and easy to understand without any hidden agendas.

4P

Promotion Strategy

Marketing and promotion are done in a transparent manner and must take the Company and customers’ benefit into account. The sales terms and conditions must take into consideration the financial capacity of customers. The advertisement should be creative, clear and fair without a hidden agenda. The Company treats business competitors fairly and does not harm the competitors’ ability to compete in the market.

People Strategy

The Company gives a great deal of importance to customers’ satisfaction. The standard of touch points e.g. sales officer, maid and security officer has been established and trainings which are in accordance with LPN Service Culture (S-E-R-VI-C-E-S) are provided on a regularly basis to bring about positive customer experiences and build up sales volume from referral. The net promoter score measuring customer loyalty is the guarantee for after-sale services. There are also various channels for submission of complaints and suggestions for service improvement.

Process Strategy

All processes must provide convenience for customers. The reservation making and contract signing processes must be simple and speedy. Various payment channels and methods must be in place. The deposit forfeit and return must be considered carefully and consider the concerns of customers. Also, the Company makes an attempt to minimize complaints arising from high expectations of customers by highlighting important issues in the reservation agreement and communicating with customers for mutual understanding.

Green Marketing Management Standard Checklist of LPN

The Company has established Green Management Standard Checklist to be used as a standard for fair operation of marketing communication in response to the Green Marketing Management Strategy of the organization. The checklist is a voluntary code of ethics that the organization establishes by itself and use it for internal evaluation to ensure that marketing activities or ma rketing communication are done in a fair manner in order to create the best experience for customers and maintain social responsibility at the same time.

The 7P principle compri sing of Product, Price, Place, Promotion, People, Process and Physical is used to identify each practice. As a result, there shall be a sustainable marketing management standard, straightforward and unexaggerated advertisement of products and services and advertising messages that do not take advantages of consumers nor lead to misunderstanding of essential issues.

Green Marketing Management Standard Checklist

Product

• Hand over product values as promised.

• Inspect the products prior to each handover.

• Provide an insurance and a post-handover service.

Price

• Price and payment condition are appropriate and match the target groups.

• Profits are appropriate and match the target groups.

Process

• Sales and purchase condition must be in line with the regulation of the Office of Consumer Protection Board (OCPB).

• All types of sales documents must be clear, transparent, unambiguous, no hidden agenda, and verifiable.

• Train salespersons to become product and financial consultant.

• Give justice to customers in case of a loan rejection or a cancellation of purchase agreement out of necessity and provide them refunds.

• Provide complaint channels for customers to report any problem regarding products or services.

• Sales office is ready to serve customers as specified.

Promotion

• Launch clear and transparent advertisement and sales promotion with no hidden agenda and no attack on competitors.

• Promote home ownership with “Baan Sarn Fun” project.

Place People

• Establish Human Touchpoints.

• Train and educate the staff and include the Code of Conduct trainings.

• Establish a clear and accurate communication standard for salesperson to communicate with customers.

• Do not violate Right to Privacy.

Physical Evidence

• Hand over “Livable Community” as advertised i.e. having Co-Dining or Co-Living area.

GREEN MARKETING MANAGEMENT PERFORMANCE

The marketing activities that are fair to the customers and competitors

4.

GREEN MARKETING MANAGEMENT PERFORMANCE

Customer Experience Management through Touchpoint

Customer Experience Management through Touch Point is provided at 3 periods: before purchase, during purchase, and after purchase. LPN gives importance to the most important stakeholder of the organization which is the customer. The emphasis is put on creating good customer experience, analyzing, developing and matching customer service with customer life cycle and improving customer satisfaction to build brand loyalty. This is a part of our sustainable development goals.

• Before Purchase

The information provided to customers must be completed and accurate to support informed decision-making of customers. Customers must be able to access information from various sources and the quality of services provided must be impressive.

• During a purchase

The customers must be informed of the project progress and operation process of the Company so as to build up their confidence in the project and service value and to be prepared to move in.

Channels for Building Customer Experience

• After a purchase

After the condominium unit is handed over and the customers move in, their quality of life and safety are taken care of and managed under the concept of “Livable Community for All”.

The Company creates customer experiences through both human and non-human touch points. The corporate touch points are identified as follows.

Channels for Receiving Customer Feedback

The Company welcomes customers’ feedback and opinions since it strives to improve and develop its products. Complaints will be managed and solved through complaint management process after they are received through four channels. In 2020, the Company has opened a direct communication channel with customers through the Line program. That channel has been developed until the Company can communicate and provide various services to increase customers’ convenience in the digital age.

Call Center

Tel 02-689-6888, every day from 8.30-19.00 hrs.

From the above channels, the Company received a total of 652 feedbacks for development. They are categorized as follows:

Customers’ Feedback 2016-2020 (case)

Monitoring customer feedback during the past 5 years, the Company finds out that the complaints have been increasing for 3 consecutive years. Particularly in 2020, the number of complaints increases 59 complaints when compared to 2019 or increasing 16%. The Company has analyzed the data and found out that the increase comes from the changes in housing behavior. In the past year, customers tend to spend more time living in the property and working from home. Particularly, the growth in condominium management of the Company leads to an increase in the number of projects in the past year.

In the past year, there has been an increase in customer feedback from various channels. Responding, investigating and solving the problems are the first priority of the Company. Although COVID-19 situation has made it difficult to solve some of the cases, a new approach to customer care has emerged to solve problems and build customer satisfaction. The Company will take negative feedback into consideration and solve the problem so that it will not happen in the future. At the same time, we will maintain quality and standard of the services that receive compliments and develop them further. Thus, L.P.N.’s “Livable Community” will bring happiness to its residents in a sustainable manner.

Complaint Management Process

The Company compiles and categorizes complaints so that the information can be used in the operational development and improvement, particularly those involve the delivery of product and service values to customers. The complaints are categorized into two groups i.e. Product Value and Service Value. Each step of feedback and complaint management process is as follows:

Receive complaints from various channels

- LPN Care, Website, Call Center, Line

- Direct call to staff

- External website e.g. pantip.com

- Executives

Inform the related department within one day and record it in the complaint system

Related department acknowledges the complaint and contacts the customer within one day after being informed of the complaint

Take action to solve the problem and record the outcome in the system and inform the customer of the proposed solution.

Related department reports the outcome of the action taken to the Customer Experience Management Department and executives

Contact the customer to follow up on the issue

Prepare a monthly report to be submitted to the executives and related department

File the report and share interesting case studies with other staff in the knowledge sharing session

Investigate the nature of the problem

Customer Satisfaction Survey

Service Evaluation system was used to evaluate the level of satisfaction with services and the Net Promotor Score (NPS) this year. Customer satisfaction will be evaluated right after services are rendered. The system will report the evaluation result if it failed to reach the Company’s standard. The Company will contact the customers to get more details about the unsatisfied services or the customers’ needs for further improvement.

• Satisfaction with Services

• Net Promoter Score: NPS

The overall scores in 2020 have increased. This is because the survey method has been designed to become more meticulous and questionnaires are now collected online. As a result, the Company can find its weak spots and improve the standard. Thus, a better direction can be seen in the long run.

Complaint Management Guideline for Sustainability

Besides managing the existing customers’ complaints or feedback, the Company manages to come up with guideline for prevention of repeated complaints to guarantee customers’ satisfaction and highest benefits. One of the guideline is that complaints shall be used as case studies and shared with related staff. The guideline succeeding complaint management are as follows:

1.

Respond within an hour of receiving the complaint.

2.

Use repeated complaints as case studies and prepare Q&A in advance.

3.

Manage complaints according to the level of urgency and impacts on customers.

LPN Connect

The shift in today’s customer behavior from offline to online platform and the situation of Coronavirus 2019 (COVID-19) pandemic in the previous year are important factors that stimulate the development of new services and online platform. The services respond to the New Normal customer behavior which has been changed due to concerns about the spread of the virus through contact and from meeting with other people or traveling to areas with risk of infection.

Seeing ways to develop such services, the Company develops a customer service through the Line Official Account - LPN Connect platform. Line channel is a very popular communication channel in Thailand. It has a variety of service features and is easy to use. It is another option to reduce worry and increase customer convenience. The customers can access to various services with less touching and without traveling to the sales office or the juristic persons office.

There have been more than 70,000 users since the service was launched in 2020. “Services for residents” such as bill payment, electronic receipt/invoice, parcel notification, Jaew Lumpini Service and condominium unit repair notification are the most popular services on the platform. In 2021, the Company plans to add more online services and constantly improve them. This will enhance service excellence and respond to customer needs and living behavior that change according to social conditions. The goal is to create the highest level of satisfaction in service and in being residents of “Livable community”.

GREEN CONSTRUCTION PROCESS

The Management of Environmental and Social Impacts from Construction Process

Green Construction Process is the management of environmental and social impacts from the construction process which affects the environment and society the most. The Company has continuously developed the construction process by increasing the efficiency of the operation and reducing the environmental and social impacts through new technology and innovation. The Q-C-S-E-S+P strategy is developed as a guideline for construction operation for both the staff of the Company, business alliances who desig n the project and contractors. The environmental responsibility and safety of workers and related persons are particularly emphasized. The Q-C-S-E-S+P strategy is as follows:

Quality of Product

It is the management of project construction by emphasizing the quality of products i.e. common area and condominium units that meet the expectation of the customers.

Cost Control and Management

The costs are carefully controlled and managed not to exceed the estimated amount. Both direct and indirect costs such as material costs, labor costs and other construction and operation expenses are managed to maintain the benefits of all stakeholders.

Speed of Delivery

It is to ensure that the construction and operational process are completed in a timely manner to reduce the risk of project delay.

Environmental Responsibility

It is the responsibility towards the environment to reduce the impacts both in the construction site and on neighboring communities during the construction process. The measures to reduce the environmental impacts indicated in the Environmental Impact Assessment (EIA) report are to be strictly implemented.

Safety of Workers and Participants

The Company ensures the safety of construction workers and related parties during construction by establishing a strict operational standard in terms of safety to prevent any accidents that may occur. Moreover, the Company also stresses the importance of occupational health and good quality of life of construction workers.

People Management

It is to manage the impacts on the stakeholders. The Company gives importance to the labor rights and quality of life of the construction workers that are normally ignored by other business operators, the responsibility towards neighboring communities of the construction site as well as mutual growth and development with the business alliances or trade partners. The communities and environment surrounding the construction site are also developed.

GREEN CONSTRUCTION PROCESS PERFORMANCE

The Management of Environmental and Social Impacts from Construction Process

GREEN CONSTRUCTION PROCESS PERFORMANCE

LPN Green Construction Process Standard Checklist

of LPN

The LPN Green Construction Process Standard has evolved continuously since 2016. It was established in collaboration with business alliances in the construction sector. It aims at preventing impacts from construction activities. This standard has been developed from international environmentally friendly construction criteria such as the US LEED Rating System, TREES Green Building Rating System of the Thai Green Building Institute including pollution control standards from the Pollution Control Department, Ministry of Natural Resources and Environment so that the LPN’s standard can cover all dimensions of operations.

The standard for condominium projects is divided into 7 sections in accordance with the project development steps from the pre-construction work to the handover and the welfare of workers’ camps. The standard comprises of 71 operations and the goal is to achieve more than 90% of those in every under-construction projects.

The Green Construction Process Standards for residential projects is still under development. In the pilot version of the standard, there are 4 sections as follows:

1. Studying and surveying neighboring buildings and doing pre-construction work including general work,

2. Construction of roads, bridges, dams and internal wastewater management,

3. Construction of model houses and common buildings,

4. House construction.

There are 47 items in total. They will be tested in residential construction projects. Data is collected for standard improvement and further goal setting. It is scheduled to be officially used in 2023.

Construction Pollution Prevention

All construction activities taking place within the LPN project must strictly comply with the established construction standards. There will be measurements, data collection and processing at every step of the operation to prevent pollution or damage to the environment and neighbors. Such standards will cover 4 types of pollution control as follows:

1. Water pollution

LPN emphasizes on managing wastewater that comes from construction activities. Temporary drainage ditches are built to prevent water in the construction site from flowing out to neighboring areas. There are sedimentation ponds and treatment ponds within the construction site. All wastewater must be treated to a standard before being released to the public system.

The quality of treated water has been monitored on the following parameters: pH balance (pH), Suspended Solids (SS), Total Dissolved Solids (TDS), Biochemical Oxygen Demand (BOD), Total Suspended Solids (TSS), Oil & Grease (O&G), Total Kjeldahl Nitrogen (TKN), Sulfide and Fecal Coliform Bacteria (FCB).

2. Air pollution

LPN has strict operational measures to prevent dust and air pollution no matter it is prevention of soil erosion, restriction of areas for activities that cause dust, covering buildings with canvases during construction or water springling to reduce dust emissions. The air quality within the construction project will be measured by experts every month to ensure that the amount of dust does not exceed the set standards.

The monitoring of air quality has been done on the following parameters: Total Suspended Particulate (TSP), PM-10, Sulfur Dioxide (SO2), Nitrogen Oxide (NO2), Carbon Monoxide (CO) and Hydrocarbon (THC).

3. Noise and vibration pollution

During construction, noise and vibration created by several activities may disturb neighbors. Therefore, LPN has taken measures to control and prevent noise and vibration in all activities that may pose such risks, such as piling, using noisy equipment or moving large construction materials. The measurement tool will be used and the results will be recorded at all times.

The monitoring of noise level has been done on the following parameters: average noise level over a 24-hour period (Leq 24 hours), maximum noise level (Lmax) and noise nuisance.

4. Construction waste pollution

The problem from construction waste is another issue that can have a wide impact. Moreover it is the cause of other pollution. LPN, therefore, has established measures to manage waste originated by project development. The waste generated from construction activities will be segregated and disposed of according to the type of waste, e.g., general waste, hazardous waste, and recyclable waste.

Data recorded includes the amount of waste generated within the construction project separated by type.

Safety and Living Quality of Construction Workers

In addition to managing the construction process to deliver quality products to customers, the Company also gives importance to the care and the promotion of welfare of construction workers who are the work force behind the completion of the construction process. We believe that construction workers should have the same quality of life as employees working in other departments of the organization.

The Company has continuously developed the LPN Green Construction Camp Standard to take care of the well-being and welfare of construction workers in their camp to ensure that the environment of the camp is appropriate, safe to live and safe for livi ng. This is considered as a part of building a good quality of life for construction workers working in our projects.

Taking care of the quality of life of LPN construction workers includes ensuring their personal sanitation and providing them with standard, safe and hygienic camps. In addition, the company has implemented various projects to promote good hygiene for workers including annual medical checkup, first aid and medical use training, vaccination against diphtheria, tetanus and rubel la, randomized drug testing and organizing morale building activities. Moreover, the company also builds a small-child center which is a safe zone for children. Parents can leave their children there while going to work. There will be people supervising and teac hing the children during that period as well.

The guideline for the care for neighboring houses to minimize the impacts from construction

Besides dealing with impacts of the construction, it is the Company’s policy to build relationship with neighboring communities. Coordinating with community leaders, the Company’s officers will visit and survey the public space of the communities and related agencies surrounding the projects before construction. The priority is given to the areas that are adjacent to the project or the sensitive zones which may be affected more than other areas. The neighbors will be asked for their opinion on environmental problems, possible impacts of the construction, concerns relating to the construction as well as their environmental and social activities that need support. The Company will help coordinating and taking action in order to build good relationship with them and minimize subsequent complaints

Survey the environment around the project

Before the construction, the environment around the project is surveyed, the map of neighboring houses indicating house number, name of owner and telephone number is prepared and the officers visit the neighboring houses to introduce themselves.

Build good relationship with neighboring residents

Visit neighboring residents to build good relationship with them, listen to their concerns and ask about the impacts with them.

Establish pollution prevention measures

Put up canvas for dust and noise prevention, clear up the site, build temporary houses for workers, etc.

Monitor the environment and follow up the progress

Regularly monitor the surrounding environment and take immediate action when a problem is found.

Take action to solve the problem

Should there be any impacts or damages caused by the construction, they must be resolved immediately.

Compile the information

6.1 Feelings of neighboring residents

6.2 Problems and solutions

6.3 Points for improvement and outcome

Assess

Green Construction Process Performance in 2020

In 2020, L.P.N Development Public Company Limited has 5 under construction condominimum projects. All of them have followed the 71 items of the Green Construction Process Standard throughout the construction. The outcomes of the inspection are as follows:

Lumpini Tower Vibhavadi-Chatuchak

Lumpini Ville Phatanakan-Srinakarin

Lumpini Park Boromratchachonni-Sirindhorn

Lumpini Ville Sukhumvit 101/1-Punnawithi

Every projects can achieve more than 90% of the standard and the average overall performance of all projects is 98% which is according to the set target.

The Green Construction Standard for residential home has been tested in 8 residential home projects. The outcomes are as follows:

Lumpini TownVille Phahonyothin - Saphanmai

Lumpini Townplace Rama 2-Tha Kham

Lumpini TownVille Ratchaphruek-Pinklao

Lumpini TownVille Ladkrabang - Suvarnabhumi)

Lumpini TownVille Lat Pla Duk-Bang Phai Station

Lumpini Townplace Sukhumvit-Srinakarin

Baan 365 Muangthong

Baan 365 Rama III

The overall performance of all 8 residential home projects according to the pilot version of the standard is at 88%. Data from the evaluation will be used for the operational development and for setting goals of green construction standard for residential homes in the future.

Waste Management in Construction Sites

Waste at construction sites can be divided into two categories i.e., construction waste and household waste of construction workers. Each category needs to be managed differently. Household waste created by construction workers or general waste will be collected and sent to related government agency for disposal. Regarding construction waste, even though the LPN projects have been designed using modular system to reduce wastage of material to the minimum since the beginning of the process, it is still unavoidable to generate scrap or construction waste. The Company has a specific waste management procedure which includes segregation of waste by type, control of dumping areas, measures for material relocation from the project front as well as a policy to reuse some construction materials in next projects.

• Management of Waste in Construction Site

Type

of

Waste and Management of Waste

Waste from Construction Workers Collected and sent to related government agency for disposal

Materials Unit

Soil

Shutter Board

Steel Rebar

Accommodation of construction workers

6-meter height steel framed canvas fence around the project

Concrete Sand

Used in 2020 (3 projects) Proportion of reused materials from 2019 (%)

materials from 2019 projects

Unable to reuse materials from previous projects. Number of New Materials

* Number of construction materials is calculated from 3 projects whose construction started in 2020 including Lumpini Ville Sukhumvit 101/1-Punnawithi, Lumpini Place Taopoon Interchange and Lumpini Park Boromratchachonni-Sirindhorn.

• Total Reuseable Materials in 2020 (3 Projects)

With the reusable policy and the effective allocation of construction resources, the Company can reduce 30% of the total usage of materials due to the fact that some construction material can be reused in 2-5 construction projects.

Besides the policy to reduce waste from its construction by reusing and recycling, the Company is also developing waste management measures and measures to make use of construction material scraps with an aim to establish a zero-waste construction process in accordance with LPN Zero Waste project.

COVID-19 and LPN Construction

Due to the fact that the COVID-19 outbreak situation has been worsened since the beginning of 2020, LPN, together with LPN Team, have developed specific measures for construction sites and construction workers’ camps. Working closely together and living together in group, workers are at high risk if there is an outbreak in the community. The Company provides them self-care instructions and pandemic situation updates on a regular basis.

The Company provided COVID-19 screening tests for 1,284 workers in 16 under construction projects. There was no case of Covid-19 infection in any of the projects.

Job standard at construction units

1. Workers’ body temperature to be measured every time the workers are entering the construction sites.

2. Hands to be washed every time before entering the units.

3. Masks to be worn while working all the time.

4. Outsiders to be strictly prohibited from entering construction areas.

5. Workers to be informed about the COVID-19 pandemic situation and provided with health care information.

6. The entrance-exit to construction sites to be limited to one only.

7. Every garbage bin to have a tight-fitting lid.

Outbreak control standard and implementation in workers’ compounds

1. The camp gate opening hour is changed from 5 A.M. - 10 P.M. to 5 A.M. - 8 P.M. with further adjustment according to the situation.

2. Food selling vehicles must receive a permission before entering the compounds.

3. Workers are not allowed to leave the compounds on holidays. In case of emergency, the supervision must be informed in advance.

4. No outsider is strictly allowed into the compounds.

5. Only one entrance/exit to the workers’ compounds is arranged.

6. Tight-fitting lids are provided for every garbage bin.

7. The use of common areas is allowed as necessary. The workers are asked to stay in their room.

GREEN COMMUNITY MANAGEMENT

Management of Quality of Life of Residents after Handover

The responsibility of real estate developers should not be ended when the “residence” is handed over to the customers. The building and environment should also be managed and maintained afterwards. However, the Company has realized that there are more to project development and thus developed building management guideline and community management strategy to promote gracious culture and harmony of living together in the society.

During the past 30 years, the Company has created and handed over a “home” to members of more than 120,000 “Lumpini” families and taken care of the environment and quality of life of the residents and neighboring communities via “Livable Community” strategy. The Company does not only ensure the safety and standard of the equipment but also the safety of the community, the happiness of the residents as well as environmental awareness of the residents on a regularly basis in accordance with the F-B-L-E-S+P guideline. It is developed from extensive community management experiences with the aim to deliver a great quality of life, environment and society to the residents. The details are as follows:

Facility Management

It is to maintain the efficiency of common properties whether it be architectural structure, convenient facilities and various systems in the building e.g. elevator, electricity generator, electrical system and sanitation system to ensure that all components of the building function normally and are safe to operate.

Budgeting Management

It involves the management of budget for condominium juristic person to be in line with the policy approved by the Annual General Meeting of Joint Owners as well as the management of the stability of the fund for the financial stability of the community. A financial report that is easy to understand, transparent and auditable will also be prepared.

LLife Quality Management

It is the management of the quality of life of the residents and promotion of compliance with the regulations of condominium to entail the harmony of co-existence in the society and “togetherness, care and share” culture. Various activities promoting gracious culture in the society are organized and help build good relationship in the family and between “Lumpini” members.

Environment Management

The Company puts very much emphasis on environmental issues. Green Clean Lean concept is promoted and various activities are implemented such as tree planting activity, increase of green space in the community and neighboring community, waste segregation program, waste water treatment, reuse of treated waste water in the project, energy conservation campaign and promotion of renewable energy.

Security & Safety Management

The Company has established a strict performance standard in terms of safety from the design of the project layout. The standard of the security officers and safety equipment such as closed-circuit television, alarm system and communication system is ensured. Participation of community members and related government agency is also promoted to enhance the utmost security of the members of the community.

People Management

The Company gives importance to the management of related persons in community management whether it be Community Management Department, Juristic Persons Committee or the residents to ensure their satisfaction. The problems and conflicts between residents that may affect the community are also managed. The focus is on the development of attitude and skills of the Community Management Department and the means of communication to increase knowledge and understanding about community management of Juristic Persons Committee especially the Chairman so that they are on the same page. The management of human resources capacity will play a role in promoting the efficiency of the F-B-L-E-S strategy. The sustainable community will comprise the following people:

Internal staff

i.e. executives, Community Managers and the management team, all of whom play an important role in promoting the sustainability of the community. The Company has developed their capacity through various training programs as well as promoted service culture for the success of the “Vibrant Community” strategy.

Residents

i.e. the residents in the project inclusive of the joint owners and renters. Different activities are organized by the management to promote the concept of co-existence in the community, reduce environmental impacts, promote a good society and create vibrant community.

Juristic Person Committee

i.e. the representatives of the stakeholders in the project. They drive forward the process of implementing the concept of vibrant community in the project by building the knowledge and understanding of the Chairman and committee members.

GREEN COMMUNITY MANAGEMENT PERFORMANCE

Management of Quality of Life of Residents after Handover

GREEN COMMUNITY MANAGEMENT PERFORMANCE

The Green Community Management Strategy is established in response to “Livable Community” concept of the Company. Two important groups of stakeholders are customers and neighboring communities. We need to consider our customers as our family members and ensure that they, together with neighboring communities, have a good quality of life in accordance with the FBLES+P guideline which includes Facility, Budgeting, Life Quality, Environment, Security and Safety Management and People Management. The performance in 2020 are as follows:

Juristic Persons:

Number of communities: Areas: Families:

Environmental

Management in Lumpini Community

In 2019 the theme of UN World Environmental Day 2019 is “Beat Air Pollution”. The United Nation calls on all sectors to prioritize the solution to air pollution that is threatening people around the world. It affects the livelihood, health and the national e conomy, as well as causes climate change and global warming.

The Company has focused on conducting business with environmental and social responsibility continuously and increasingly. It also concerns about effects of various pollution problems such as PM 2.5, therefore it establishes an organization’s strateg ic plan focusing on environmental and social responsibility including waste management and electricity and water conservation as follow s:

LPN ZERO WASTE 0

In 2020 the Company has developed an ongoing project, “Lumpini Zero Waste”. The focus is on waste management at source especially single-use plastic waste. The policy is to become a waste-free organization. Therefore, there are operational guidel ines to reduce waste in every work process. The Company also creates knowledge and waste management processes that cover all aspects.

The “LPN Zero Waste” project is one of environmental management in the Lumpini community that arises from the need to respond to significant environmental issues at present. At the same time, the Company has campaigned for awareness and participation of officers, shopkeepers and residents through the following 3 operations:

1. Provide information via exhibition and multimedia continuously (one issue per month)

2. Build motivation using games and activities

3. Create participation through action

In addition, the company plans to implement additional public relations campaigns within the community. The residents are asked to use alternatives such as cloth shopping bags, reusable glasses and food boxes etc. The shape of the response is in a good direction since each store has a consistent opinion. There is a public relations campaign in the form of public relations board s placed at various locations within the community or at participating stores and advertisement on LED screens in the elevator. Organizing activities to create knowledge and understanding within the community is a must.

Waste Management in Lumpini Community

Waste generated in Lumpini community can be categorized into three types, namely, food waste and general waste, recyclable waste and hazardous waste. In 2020 the average of 1,398 tons of waste is generated per month, increasing 0.16% from the previous year. Looking at the average per day data in detail, it is found that after promoting community waste segregation, recyclable waste decreases from the previous year due to an increase in delivery services during the COVID-19 pandemic. 96.33% of waste are food waste and general waste (increasing from 94.97% in 2019). 3.61% of waste are recyclable waste (decreasing from 4.96% in 2019). 0.06% of waste are hazardous waste (stable at 0.07% in 2019).

The components of condominium waste are studied in order to compile information on the amount and types of all waste generated and the current waste management system. The information will be used for improving the efficiency of the waste management system in the community. The Company’s goal is to handle waste in a sustainable manner in accordance with the Circular Economy principle. Waste is managed by the reuse, recycle and re-material process for the worthwhile use of resources and the reduction of environmental pollution.

waste 46,615 kg./day (~1,398 ton/month) (Eguivalent to 220 gram of waste generated per person per day)

General/kitchen waste

96.33%

Total of general/kitchen waste 44,903 kg./day

Total of hazardous 30 kg./day 1 Separate waste containers 1,178 kg./day 2 Average of waste

3.61% Recyclable waste

Total of recyclable 1,682 kg./day Waste segregated 504 kg./day

0.06% Hazardous waste

Segregate waste again - Put it in common garbage room

Recyclable waste is put in dry garbage room. Waste is collected by BMA every 1-2 days.

Recyclable waste is sold 2-4 times per month.

Waste is collected by BMA every 1-2 days.

Hazardous waste plant

Waste sorting plant

Waste per day in LUMPINI COMMUNITY

Electricity Management

Electricity consumption in Lumpini Community

Electricity used in condominium units accounts for 70% of all electricity consumption in the community. The other 30% is the electricity used in common area and building systems e.g. elevator system, water pumps system, wastewater treatment system, lighting system, main electricity system, swimming pool, fitness equipment, air-conditioning system and others. In 2020 the average electricity used in building systems and common area (calculated from 144 projects) is 4,988,000 units (kWh) per month or 59,856,000 unit (kWh) per year, decreasing 1.5% from the previous year and costing 18.45 million THB per month in average.

Air conditioners and other appliances

Swimming pool and fitness equipment

Main electricity system

Lighting system

Proportion of Electricity use in common area

Elevator system

Water pump system

Wastewater treatment system

Average Price of Electricity (3-8 year old buildings) the campaign and are able to save 67,700 units of electricity (= -2.62%) save 250,500 THB/month = save 3 million THB/year

2019 = 2,587,300 units/month

2020 = 2,519,600 units/month

Energy conservation

In 2020, the Company has organized activities to reduce energy consumption in the electronic equipment and system, i.e., the selection of energy efficient equipment and machines, the installation of power consumption control devices, the installation of solar PV rooftop and the planning of electricity usage and the operation of machine system according to schedule. The measures implemented to save energy in common area will not affect the daily life of the residents. These activities can save 67,700 units of electricity per month which is equal to 250,500 baht per month decreasing 2.62% from the same period in 2019 (calculated from projects that are 3-8 years old).

In addition, the Company runs a campaign to promote energy conservation so that the residents can participate in energy conservation. Electricity in common area is turned off for an hour on every third and fourth Saturday of the month. 176 Lumpini communities take part in the campaign and can save 21,988 kilowatts of electricity in total or 81,354 THB.

Electronic Equipment and System: The Company installs power consumption control devices and chooses energy efficient equipment and machines such as the installation of Variable Speed Drive on Condenser Water Pump to save energy and achieve maximum efficiency and the change of 142,000 light bulbs to LED bulbs.

A Campaign to Promote Energy Conservation encourages the residents to participate in the energy conservation by turning off the electricity in the common area for an hour from 8.30 P.M. to 9.30 P.M. every third and fourth Saturdays of the month, turning lights on/off during a certain period of time and turning off air-conditioners during lunch break and before getting of work.

Electricity Usage Reduction within the Project as a Result of Water Treatment of Bangkok Metropolitan Administration The Company has canceled the operation of water pumps used in the treatment system of 39 projects. Wastewater is channeled to the central treatment system of Bangkok Metropolitan Administration and the municipality. The cancellation of the pumps and the discharged water analysis and the reduction of overall maintenance fee can save 80% of electricity when compared to wastewater treatment expenses.

Use of Renewable Energy in Lumpini Community From 2019 to present, Solar PV Rooftop has been installed in three projects as an alternative source of energy. The progress of each project is as follows:

(1) At Lumpini Place Rama 9-Ratchada project, after the Solar PV Rooftop has been installed and turned on 100%, the electricity usage in common areas decreased 10,740 kWh per month or 17.4%. The electricity cost decreases 38,700 THB per month in average (when compared to electricity usage before Solar PV Rooftop installation).

(2) At Lumpini Place Rama 8, the progress of solar PV rooftop installation is at 73%. For the rest, the documnet is being submitted for consideration. After the usage, the Company can reduce 8% of electricity usage and the electricity cost decreases 12,000 THB per month in average (when compared to electricity usage before Solar PV Rooftop installation).

(3) At Lumpini Tower, the progress of solar PV rooftop installation is at 78%. For the rest, the document is being submitted for consideration. After the usage, the Company can reduce 5.9% of electricity usage and can save an average of 27,400 THB per month of the electricity cost (when compared to electricity usage before Solar PV Rooftop installation).

17.4%

LUMPINI PLACE RAMA 9-RATCHADA the electricity usage in common areas decreased 10,740 kWh per month or 17.4%. The electricity cost decreases 38,700 THB per month in average

5.9% 8%

LUMPINI PLACE RAMA 8 the Company can reduce 8% of electricity usage and the electricity cost decreases 12,000 THB per month in average

LUMPINI TOWER the Company can reduce 5.9% of electricity usage and can save an average of 27,400 THB per month of the electricity cost.

Water Management in Community

Water used in Lumpini communities is distributed from Metropolitan Waterworks Authority and Provincial Waterworks Authority. In 2020 the average water use is 734,360 cubic meters per month. The average used water or wastewater released is 587,490 cubic meters per month, accounting for 80% of all water in the community. Some of the water evaporates naturally. The remaining 146,870 cubic meters per month or 20% of all water use will be reserved for future use.

Wastewater will be treated before being released into natural water resources. In 112 Lumpini communities, wastewater is treated by the wastewater treatment system of the communities. In 47 Lumpini communities, it is treated by the central wastewater treatment system of Bangkok Metropolitan Administration or local authority. Around 0.87% of treated water will be reused for watering plants, cleaning streets and cleaning wastewater treatment ponds inside the communities. The remaining 99.13% of the treated wastewater will be released into natural water resources.

The average used water per person is 70-75 liter per day

Waste Management in Lumpini Community

OUT PROCESS

Environmental and Social Responsibility – Out Process

The Company’s environmental and social responsibilities (Out Process) operating guideline emphasizes on promoting consciousness of responsibility within the organization and in the communities developed by the Company first before extending it to the society at large. The collaboration from all stakeholders such as staff, customers and business alliances is essential, as the saying goes, “Great environment and society must begin with us. When we are ready, we will promote it among communities developed and managed by us and then surrounding communities (from Corporate ESR to Community ESR)”.

Such concept has become the community management policy which aims to create “Livable Community for All” in all projects developed by the Company and to be a leading example for other real estate business operators. In addition, it leads to the concept of organizing activities for the environment and society. The Company’s activities mostly promote good relationship within communities and express the spirit of “togetherness, care and share” giving back to society and environment. All of them are core activities implemented annually by the Company.

However, in 2020, there has been an outbreak of Coranavirus Disease 2019 (COVID-19). As a result, organizing activities can cause infection risks. The Company has, thus, adjusted the style of activities to the New Normal life and tried to encourage people in the community to participate with social distancing.

1. Blood Donation Project

The Company provides blood supply from Lumpini community blood donation units to the National Blood Center, Thai Red Cross Society under “Lumpini Donates Blood” campaign. In 2020, the Company establishes another blood donation unit at Lumpini Township Rangsit - Klong 1. In total, there are 11 blood donation units as follows:

1) Lumpini Tower

2) Lumpini Sukhumvit 77

3) Lumpini Condotown Ramindra - Nawamin

4) Lumpini Group Ramindra - Laksi

5) Lumpini Condotown Bodindecha - Ramkamhaeng

6) P.S.T. City Home

7) Lumpini Megacity Bangna

8) Lumpini Ville Chaengwatthana - Pakkret

9) Lumpini Park Nawamin - Si Burapha

10) Lumpini Park Pinklao

11) Lumpini Township Rangsit - Klong 1

The Company aims at > 5% increase in the collection of blood supply when compared to year 2019. (Blood collected in 2019 was 1,340,000 cc.). In 2020 blood collected from all donation units is 1,410,150 c.c. which increases 5% when compare to the same period in 2019 (Accumulated data from January to December 2020).

In 2020 blood collected from all donation units is

1,410,150 C.C. which increases 5% when compare to the same period in 2019.

5 %

• Lumpini Blood Donation 2020 (Donation program)

Lumpini Blood Donation

Blood volume comparison chart for 2019 and 2020

An increase of 4.95% (compared to 2019)

2. Lumpini donates blood to fight with COVID-19 crisis

The situation of COVID-19 pandemic effects blood donation at every donation center. Pre-scheduled blood donation program are affected because of the premise entry monitoring to prevent the spread of the disease. Travel limit, restriction on activities and people’s anxiety about leaving home cause the continuous decline in the amount of blood donation. As a result, the blood supply is inadequate all over the country.

The Company, together with the National Blood Center, Thai Red Cross Society, organize special mobile units to collect blood donation at “Lumpini” condominiums and projects that managed by subsidiary companies. Twenty-three projects participate in the event. (Six of which are in the plan and seventeen of which are special units.) There have been 41 events from 26 March to 29 August 2020. 580,300 c.c. of blood supply are donated by 1,658 donors.

23 communities

Number of projects organized

2,075 people

Number of participants

1,658 people

Number of donators

580,300 c.c.

Blood volume obtained

In addition, the Company sponsors the production of promotional t-shirts worth 200,000 baht for the “Summer of Kindness Through Blood Donation” program every year. The T-shirt will be given to blood donors as souvenirs.

AS PROCESS

Environmental and Social Responsibilities - As Process

In term of environmental and social responsibility As Process, LPN has established a specific corporate for environment and society (CESR-As Process), namely LPC Social Enterprise Co., Ltd. It is formally certified by Ministry of Social Development and Human Security to help enhancing the quality of life of underprivileged women following a social enterprise concept.

Apart from the operation as a social enterprise, L.P.N. Academy is also founded particularly for staff competency development. It has a continuous performance in the previous year.

LPC SOCIAL ENTERPRISE

The real estate development business of LPN involves various types of services especially cleaning services. Most of the employees in this group of companies are women with low income, families to feed, and education lower than elementary level. Thus, importance is given to this group of stakeholders. The Company established Lumpini Property Service and Care Co.,Ltd. to take care of this group of employees. It has been transformed to LPC Social Enterprise Co., Ltd. in order to provide an opportunity for underprivileged women in a sustainable manner.

LPC Social Enterprise Co., Ltd. is established in 2011 as a social enterprise. It is an organization designed to help enhancing the quality of life of underprivileged women. It provides an opportunity for the ‘underprivileged women’ to work and support themselves with dignity.

The Company has defined ‘Underprivileged Women’ as follows:

1. Having low level of education (illiterate or elementary level).

2. Being a single mother.

3. Being exploited by former employers.

4. Being an elderly person (retired).

5. Being a person with disability (holding a disability card).

Since its establishment, LPC’s goal is to generate a good quality of life for this group of women so that they can earn an appropriate income and be self-reliant. LPC provides them educational opportunities, offers a wage that is 10% higher than minimum wage and gives them vocational trainings so that they can earn extra money from part-time jobs. Moreover LPC acts like a mediator in solving informal debt issues between staff and loan sharks. The Company also provides interest-free loans and promotes saving disciplines to this group of staff. Therefore, their financial status can be strong enough to live on.

In 2020 the total of 1,534 community service officers or 66% of them meets the criteria of being underprivileged women as set by the Company. Seven hundred and eighty-three persons or 34% of them do not fulfill the criterions specified by the Company (not being underprivileged). With regards to staff with disability and senior staff, they are allocated community service duties and social assistance as appropriate.

Furthermore, the Company continuously organizes activities to enhance their knowledge and efficiency at work. The enhancement is done in 5 areas as follows:

Education Promotion Promotion of Good Deeds

The improvement of knowledge and skills is an importance foundation that helps improve quality of life of community service officers. The Company thus supports community service officers with education as well as sponsors scholarships for their children. The details are as follows:

Non-Formal Education Project (NFE): There are 26 students (15% decrease from the same period in 2019). The decrease is due to resignation, rotation, and graduation of staff.

High Vocational Program 2020: This is a new project sponsored by the Company. High Vocational Certificate Program in Housekeeping at Eamla-or Vocational College is provided for 16 community service officers.

English for Communication Program: The program is organized to enhance skills of operational staff and community service officers. There are 12 participants in the program.

Supporting the education of staff’s children: In 2020, the Company grants scholarships of 4,000 baht per scholarship per person to 624 children of employees which is 17% increase when compared to 2019. Moreover, the Company also has 2 scholarship programs for employees’ children who have academic excellence, divided by level of education as follows:

- High school, high vocational school and vocational school: 38 scholarships at 5,000 baht per scholarship

- Undergraduate: 13 scholarships at 10,000 baht per scholarship

Building career growth: A “Community Service Supervisor Development” course is opened. There are 14 participants. Enhancing quality of life of employees’ families: The Company opens a sHe Cafe to ensure that the next generation in employees’ families (children of employees) has a good quality of life.

The Company encourages and expresses appreciation to community service officers who do good deeds in the community by collecting and returning lost property to the owners and providing assistance to the residents of Lumpini community. The total of 223 good deeds are done by community service officers, decreasing 50% when compared to 2019. This is because the data recording method in 2020 is changed. Small value assets such as keys and key cards are not recorded.

Voluntary Activities

Community service officers are divided into groups to help clean public areas such as temples, communities, police stations and beaches. The total of 2,362 social activities are organized, decreasing 17% when compared to 2019. As a result of the government’s social distancing campaign, the Company has postponed volunteer works of community service officers since April 2020.

Moreover, during the COVID-19 outbreak, the community service officers produced 20,000 face shields to distribute to hospitals, infirmaries and government offices in Bangkok and upcountry. They also volunteered to spray covid-19 disinfectant in neighboring communities.

“I Love Saving” project encourages staff to save money by opening them a bank account and depositing 100 THB or more, deducting from their salary, into their bank account each month. After 12 months of savings, the Company will contribute 50 THB per month and deposit it to the staff’s bank account once every year. (The first contribution was paid in July 2019.) In 2020 there are 384 more staff participating in the project.

The “Same Rice Pot” project reduces living expenses of the community service officers and builds a good relationship among community service officers working in each project. The Company gives uncooked rice to 2,400 community service officers, increasing 14% when compared to 2019.

New Year Event 2020: The Company organizes a New Year event every year as a gift for community service officers. At the event, commemorative pins are presented to community service officers who have worked with the Company for 10 and 15 years.

In “Rice for Sale at Low Cost” project, rice is sold to community service officers at cost price. The Company will promote this project in advance. Interested staff can pre-order online. The total order is 1,530 bags of rice, increasing 236% from 2019.

Social Enterprise Standard Checklists

LPC’s not-for-profit operations have been focused on helping societies for many years. Thus, LPC has created Social Enterprise Standard Checklists (22 items) to increase the efficiency of the operations. Social Enterprise Standard Checklists are divided into 2 categories as follows:

Category 1: Qualifications of “Social Enterprise” which consist of 5 sub-categories as follows:

1) Social objectives identification (3 items)

2) Major income (1 item)

3) Fair employment system and policy (4 items)

4) Social-friendly operational process (3 items)

5) Profit management (3 items)

Category 2: Responsibility for the impact on the stakeholders of the social enterprise which consists of 1 subcategory, namely the quality of life of community service officers (8 items)

In 2020, LPC completes all 22 checklist items on Social Enterprise Standard Checklists.

34,738 liters of Effective Microorganisms have been produced for use in cleaning activities of Lumpini projects.

Social Enterprise Standard Check Lists

1. Employment of the underprivileged

2. Donation of profit after expenses to non-profit organizations or social activities

3. No dividend paid to shareholders

4. Major income coming from sales of products or services

5. Recruitment of underprivileged women from surrounding communities and provincial areas

6. Paying a higher wage than required by law (Minimum wage: 331 baht)

7. Providing more welfare benefits than required by law (Two welfare benefits as required by law are the minimum wage and the compensation fund of the Social Security Office.)

8. Putting happiness before profits

process

9. EM production to reduce chemical uses

10. Community waste segregation

11. Encouraging employees to be

12. Re-investment of profits

by law)

sHe Cafe

Concept behind the sHe Cafe

Due to the impact of COVID-19 pandemic during New Year, LPC is aware of risks that may occur from condominium unit cleaning service or Jaew Lumpini since cleaning service officers need to provide cleaning services to customers in different areas. To prevent the spread of virus among its housekeepers and customers, the company has an idea to build a sHe Cafe to ease the trouble of the staff and create job opportunities and incomes for underprivileged women’s families. Besides, the sHe Cafe is a pilot job creation and skill development project for family members of underprivileged women. Children of underprivileged women will have an opportunity to learn how to make beverages and how to manage a store including training to be a barista and a material preparation person, checking inventory, reception work, taking order and delivery and cashier work. This does not only generate incomes but also enhance their knowledge and skills. It is a sustainable way to create quality of life for underprivileged women and thier families.

The sHe Cafe has been established in June 2020 when LPN staff and employees of other companies in the Lumpini Tower building return to work. It is opened in accordance with the town’s reopening policy of the government. The first branch of sHe Cafe is in this building. It receives good feedbacks from all customers since the beverages are at affordable prices and the delivery is convenient and fast. Moreover, the sHe Cafe has offered meeting spaces and relaxation spaces to general public working in the Lumpini Tower building.

Surveying customers’ opinion, the sHe Cafe has constantly improved its beverage recipes. It organizes trainings and finds the ways to control the quality of its beverages and services. These constantly enhance knowledge and skills of the staff in the project. The establishment of the sHe Cafe during the crisis is a pride of the companies in LPN group. The Company plans to expand this project further in order to increase assistance and improve the livelihood of underprivileged women and their families.

LPN ACADEMY

The mission of LPN Academy is to promote and support learning of staff so that they can develop their work skills. In 2020, the Company focuses on developing proficient employees by building leadership competency of executive staff and developing knowledge and functional competency of operational staff in order to develop capable and professional personnel through various offline and online learning formats. The information on business growth plan, creation and recruitment of successors, appointment and transfer, annual performance evaluation and remuneration will be systematically linked with the data of the Human Resources Management Department for the efficiency of human resources management and development. Building and maintaining staff capacity will enable the Company to become a “value organization”. The Company has established L.P.N. Academy as the center of development and training for staff of the Company and its subsidiaries.

In 2020, L.P.N. Academy has organized the following trainings for staff of the Company and subsidiary companies:

Competency-Based Development

The core mission of LPN Academy is to develop the capacity of staff with their line managers to encourage them to be enthusiastic and eager to develop themselves in terms of knowledge, skills, attributes or attitude to be of the standard expected by the organization. The assessment of capacity is done annually in different forms to assess whether the behavior of each individual reflects each aspect of capacity and how. The objective is to find a gap and prepare individual training and development plan to close that gap. It is also a tool that line managers can use to develop their team.

The competency-based development comprises the three following aspects:

Core Competency Development or C-L-A-S-S-I-C refers to the development of knowledge, skills and qualifications that everyone in the organization should have. Such knowledge, skills and qualifications are regularly reviewed and staff are encouraged to apply what they learn to their everyday work. The assessment has also continuously been done to build the traits that will support the organization to achieve its goal, mission and vision Leadership Competency Development refers to the development of management knowledge, skills and qualifications that are necessary for staff at executive and managerial level who are responsible for managing a team.

Functional Competency Development refers to the development of knowledge, skills and qualifications that staff in each department should have so that they can perform their duties and responsibilities in their line of work to achieve the target.

• Outcome of Leadership Competency Development

The development of leadership competency is very crucial to the success of the organization as leaders are directly responsible for leading and motivating a team to achieve the target. L.P.N. Academy has developed the leadership competency of middle to high-level executives (level 8-13) in seven aspects of competency. In 2020, L.P.N. Academy has supported the managerial level staff and supervisors to build coaching culture in their team development for them to create online individual development plans. In addition, it has developed innovative mindset of staff through the Make It Simple project and the Quality Built-in project. Every Friday of each week is scheduled as a Development Day. Every department’s heads will organize a team brainstorming to enhance a better quality and a more convenient work process. The continuous learning and development that happen every week and every month bring about staff self-learning. Therefore, the score in “people” aspects have improved.

Development and Training

In 2020, the trainings organized are as follows:

Managerial & Leadership Course

The Company has prepared a development and training plan to develop the knowledge and skills. The focus is on the development of knowledge, skills and competency in managing individual, teams of staff and work. It is also to build leadership and develop leadership competency to meet the proficiency level expected by the organization. In the development plan, the training courses can be categorized into two types as follows:

1)

Core Course

The course focuses on building a good attitude towards LPN operational standard such as LPN Way, Code of Conduct, LPN Proactive Services, social responsibility and participation in organization development towards sustainability, and etc.

2) Managerial Course

The course focuses on the development of management knowledge, skills and competency and coaching such as courses on Team Leader Excellence, the 6 Critical Practices for Leading a Team, Unlock your Potential and etc. Trainings are to be conducted in four levels as follow:

- High-level executive development plan (Level 11-13)

- Mid-level executive development plan (Level 8-10)

- Entry level manager development plan (Level 5-7)

- Operational Staff development plan (Level 2-4)

Functional Course

The aim of functional course is to develop knowledge and skills of staff in accordance with the operational characteristic of the Company. The emphasis is on improving knowledge, skills and abilities at work. The weakness, strength, operational performance in the previous year and professional necessity are analyzed. Training plans are designed according to work categories i.e. Sale-Transfer -Brokerage Business, Project Management, Community Management, Maintenance Work, Community Service and Support Function.

Elective Course

These courses are for building knowledge and skills of staff in all lines of work. The staff can choose which topic they would like to learn such as English for Communication, Safety at Work, Digital Literacy, and so on.

• The Learning Ratio of 70:20:10

The learning ratio of 70:20:10 has been applied in planning the staff development and training. It also includes on the job training (OJT) and learning from interaction with others in order to apply the knowledge learned in classroom to actual workplace.

• 70 refers to learning from job-related experiences at the workplace and other supports.

• 20 refers to learning from society and interaction with others including knowledge sharing, coaching, mentoring or giving advice through social network.

• 10 refers to learning from trainings, workshops and online platform (ZOOM, MSteam).

On the Job Training

• Outcome of the Development and Training

In 2020, the Company aims to create learning and development opportunity for staff. Staff are encouraged to plan their individual development together with their supervisors and continually develop themselves through self-learning method using the learning format designated by the organization. One hundred percent of staff in each level has created their individual development plans. The average training hours and self-development is 45 hours/person. It can be categorized by level and gender as follows:

- High-ranking executive (L.11-15)

- Middle-ranking executive (L.8-10)

- Entry level manager (L.5-7)

- Operational staff (L.2-4)

Development of Trainers in the Organization

In 2020, L.P.N. Academy organizes 33 trainings courses that are led by 42 trainers of the Company. The knowledge from the courses can be applied to the work in the Company. The courses also help revise the knowledge and skills learned. Intensive courses led by internal trainers are signature courses in each line of work. For example, New Staff Orientation, Primary Knowledge in Community Management and Preventive & Maintenance (CM/P&M New Staff), LPN SERVICES, Community Management Training Course (CMTC), Sales Management Training Course (SMTC), Service Community Management Training Course (SCMTC), Condominium Act in Community Management, English for Communication, Finance and Accounting courses, Legal Knowledge in Community Management, Development of Mentor, Information technology for Sale-Transfer-Community Management Work, Development courses for each department, and etc.

In 2020, the L.P.N. Academy, together with the Information Department, has continually developed an LPN Academy website. The website serves as another channel for learning and helps make it easier for staff to register in training courses. It is also used as a tool to assess the knowledge and understanding of the trained staff. In addition, the Company develops an online system that can record knowledge and benefits from self-learning so that the staff can use it as another channel for self-development. Moreover, the Company has created various E-Learning courses providing a library of knowledge for employees to learn online. The courses can be easily accessed by employees through Line OA: LPN Friends application on their smartphone devices. For examples, a Real Estate Know-How course, Service True Story, Knowledge in Management and knowledge that benefits each type of work in each function. These courses will promote online learning, increase learning opportunity, and make it more convenient for staff to access learning resources.

Development of Signature Courses to Create Professional-Quality Personnel

In 2020 L.P.N. Academy has personnel development courses that serve as signature courses for developing professional staff in each department. The courses are designed to develop strong leadership competency, management competency and team management competency as well as deliver service value to build service excellence. Throughout the year, L.P.N. Academy has created 225 quality staff according to the following details.

- Develop professional service delivery team through LPN SERVICES course 8 classes 182 persons

- Develop professional community manager through CMTC #18 1 class 29 persons

- Develop professional community service head through SCMTC #6 1 class 14 persons

Promotion of Fundamental Education, Higher Education (High Vocational Certificate) and Extra Careers of Community Service Staff (Underprivileged Women)

In 2020 L.P.N. Academy together with LPC Social Enterprise in LPN Group, signs an MOU with Eamla-or Vocational College for the collaboration on educational opportunity for Lumpini community service staff, most of whom are underprivileged women. This is to continue what the Office of the Non-formal and Informal Education has been doing. High Vocational Certificate Program in Hotel Housekeeping, Hospitality Division, Tourism Industry Department, is provided for the Lumpini community service staff who graduated from the Non-Formal Education Promotion Project organized by the Company and the Office of the Non-formal and Informal Education as well as to the ones who finished Grade 12 from elsewhere. In 2020 there are:

- 16 participants in High Vocational Certificate Program,

- 26 participants in Fundamental Education Promotion Program (illiteracy - primary education - secondary education).

Knowledge and Experience Sharing with Public and Educational Institutions

The Company provides an opportunity for educational institutes, government agencies and private organizations to learn about project development and management concept of the Company in order to cascade the knowledge to the society at large by sharing direct experiences. In 2020, the total of two study groups have visited the Company. One group is a governmental agency and another group is a judging panel of a competition. In total, there are 50 visitors. The topics of interest are as follows:

- Community management 1 group

- The judging panel of 1 group

- “The PropertyGuru Thailand Property Awards 2020” collecting information for final decision.

Accommodation Scholarship for University Students

The Company, together with Rajamangala University of Technology Thanyaburi (RMUTT) under an MOU for the collaboration on LPN Scholarship, grants 4-year accommodation scholarships to university students. The Company sponsors 50 condominium units to 100 students which are equivalent to 100 scholarships worth 12 million THB (calculated from the rental price of 5,000 baht per unit for 4 years). The pilot project is at Lumpini Township Rangsit - Klong 1, Building C2. The students’ qualification is reviewed by the Rajamangala University of Technology Thanyaburi. They must be new or current students who get good grades and are well-behaved but lack of accommodation or originally from the countryside. These scholarships help reducing the students’ expenses and anxiety and allow them to have a good quality of life living at Condo Lumpini. Moreover, the Company also gives an opportunity to the students to work on holidays to get extra incomes by being part-time salespersons at Lumpini Township Rangsit - Klong 1 so that they can gain work experiences and have a chance to work with LPN in the future. The students who receive the scholarships have done social activities for the community, so called Give and Take activity, through the volunteer program “We do good by heart”. They give foot massage to the co-owners and the residents of the community.

Budget for Training, Development and Seminar

In 2020, the Company supports the budget of 8,000,000 THB for development, training and seminar events through L.P.N. Academy. The details are as follows:

• Internal training costs 1,629,513.81 THB

• External training costs 393,925.00 THB

• Other costs 5,818,748.28 THB

The average training cost per person is 5,004.59 THB.

INNOVATION

INNOVATION

All these years, real estate projects created by the Company reflect the Company’s leadership in innovation for residential sustainability through the Company’s operational framework in terms of strategy, product and process. The Company has always given importance to innovation development and promotes an atmosphere to foster innovation in all operational processes. Lateral thinking is identified as one of the core competencies of the organization that will motivate the executives and staff to create new innovations to add values to the products and services. The innovation of the Company can be categorized into three levels as follows

1 2

Strategic Innovation

is the innovation that supports the vision and strategy of the organization e.g. Livable community for all.

3

Product Innovation Process Innovation

is the innovation that adds value to the product e.g. LPN Design, LPN Green Project or designs according to lifestyle.

Product Innovation

Virtual Reality Mock-up

is the improvement of the operational process or service in response to the needs of customers e.g. application of B.I.M. system in construction process and community management.

In the past LPN has used the All White mock-up or a 1:1 model to assist designers in developing products. Usually it takes 1 week to construct a model and the modification expense is relatively high. In addition, the COVID-19 pandemic makes its inconvenient for staff in several departments to travel to the Mock-Up center. Hence, the LPN Product Development Center replaces the All White mock-up that does not fit with the current situation with virtual reality technology in its design process.

“Virtual Reality” (VR) or virtual reality experience is one of the talk-of-the-town technology in the past 1-2 years. The prominent point of virtual reality technology is that it links users to the VR world by creating a 3D simulation environment. Users will feel like they are parts of the virtual reality world perceived through devices they are wearing and a software designed specifically for VR technology. When the VR technology is used in the design of LPN units, the users can not only walk around the room and see the difference after modification as before, but can also see the colors of materials in details. Hence, the VR mock-up has made the atmosphere more real than the normal All White mock-up.

Smart Living

• Energy Center

The Company aims at ensuring that product is developed according to the Building Energy Code (BEC) and the Company’s efficiency goals. The PDC therefore coordinates with the Department of Alternative Energy Development and Efficiency (DEDE) of the Ministry of Energy to examine the five M&E works including the building envelope system, electric lighting system, air conditioning system, water heating system and overall energy consumption as well as chosen materials to ensure that they are efficient and in good quality. Every designed building must receive the evaluation certificates of energy conservation building design.

• Smart Living

In 2020, the Company imports a smart living technology that can accommodate convenient living in selected projects. This technology is called IoT (Internet of Things). It connects with censors or equipment to control security, lighting, cooling and other systems within households or condominium units. Residents can install the LPN Smart Room application in their smart phones or tablets. This is an answer to increased comfort and better quality of life for residents in the digital age.

Smart Room

With just one switch, you can turn everything on and off and give order from your mobile phone in your own lifestyle. How comfortable it would be to let the air-conditioner cool your home awaiting for your return.

Smart Connect

The wireless system levels up your living and keeps you in trend. You can easily and conveniently connect to online world.

Smart Money (Save Energy)

When you forget to turn off the air-conditioner or are not sure whether you leave the electric stove on or not, you can remotely turn them off from your mobile phone to save money, energy and the Earth.

Smart Security

You can feel safe and sound from the security system that will alert you on your mobile phone if the door is opened when you are not around or sleeping. For additional safety, when you forget to turn off the electric stove, you can remotely turn it off from your mobile phone.

Furthermore, the Company is in the process of developing an air quality monitoring system and an automatic air purifying system in the residential units. Other technologies and innovations are also developed to ensure well-being of the residents and to realize a true smart living of the Company’s products.

Process Innovation

is the improvement of the operational process or service in response to the needs of customers. For example, the development of LPN Connect system simplifies customers and residents’ living through various services of LPN.

At the same time, the Company emphasizes on developing innovation in work process in order to constantly increase its efficiency, speed and quality. Innovation is applied in internal organizational development, knowledge building and creative work-flow stimulation to ensure standardized and auditable work processes. A “Make it Simple” system is developed to simplify and optimize the work execution. A “Quality Built in” system is developed to improve qualities of work process. Developing a “Knowledge Management” system is to strengthen and share knowledge that is valuable for each line of works and can be further implemented in future works.

In 2020 the Company has developed the following innovation.

Management of quality of life for residents

During the COVID-19 pandemic in the previous year, the Company emphasizes on sanitation, social distancing and touching. LPN has updated its appearance and contents in various media making it modernized, user friendly and compatible with every device. The LPN has a professional community management team with an ISO 9001 certification namely Lumpini Property Management Co., Ltd. The Company promotes a balance of living together physically in quality society with hygiene while taking into consideration responsibility for the environment through several communication platforms such as Facebook, You Tube, Instagram and Line.

• LPN Living Solution

is a service that simplifies and speeds up daily lives of LPN residents and co-owners. Nowadays, technology has played more role in the residents’ life style. Services provided are as follows:

1. Bill payment e.g. water bills, electricity bills and common fee bills

2. Parcel notification

3. Repair request

4. Online contact with juristic persons

• Online sale office during the COVID-19 pandemic LPN needs to adjust its selling methods to promote sanitation and support social distancing policy in order to reduce COVID-19 infection risks. The Company uses technology to accommodate people who are interested in Lumpini properties allowing them to visit the property 24 hours a day.

• Jaew Lumpini Service of LPN Social Enterprise Co., Ltd.

provides in-unit cleaning services to accommodate residents of Condo Lumpini. The services include basic cleaning services such as floor sweeping and mopping, bathroom and wall scrubbing, furniture cleaning, waste collection and carpet vacuuming and a special service like dust mite removal. Service reservation can be made through LPN Connect Application.

• LPN Share Market

LPN has developed an LPN Share Market platform as a showcase for shops in and around the properties. While sellers have more channel to promote their products, buyers have more convenient delivery options. It also emphasizes the “Livable Community” concept and the Company’s wishes to create a “togetherness, care, and share” society.

Process Innovation Development

• Daily update of COVID-19 situation

Since LPN is concerned about Lumpini’s residents, it provides daily updates of COVID-19 situation and communicates disease prevention knowledge to LPN’s residents caringly and attentively.

In order to develop a more efficient, faster and better quality work process, the Company has developed Service Excellence platforms to increase efficiency and develop services of excellence for the team to meet the needs of customers. This is done through the following 3 main work processes.

1. Make It Simple

is streamlining the work process to be more efficient, reducing unnecessary steps by using innovations or new methods, and allowing employees to propose ideas and solutions in a participatory and integrative manner. The development of “Proficient Pro” in 2020 receives good feedbacks as follows:

Staff submits stories of their job performance improvement, e.g. time saving, expense reduction, efficiency enhancement, both personally and as a team more than 1 stories per quarter. Eight-one percent of staff submit the stories via LPN system. Frontline staff satisfaction with the improved work process efficiency is 92%. The goal is to reach 100% 2021.

Performances:

- Develop user-friendly recording tools and system.

- Organize trainings and set the implementation goals of Make it Simple.

- Encourage operating staff to make notes of how the work efficiency is improved.

- Continually improve activities to increase qualities of the recorded data.

- Collect data and use it to improve service efficiency.

2. Quality Built-In

is a performance monitoring system of each process to ensure efficiency of operation and achievement of the set goals and reduce errors that may occur during the process. According to the 2020 goals, staff in the Quality Built-in project report more than 1 mistake and solution per month. Eighty-four percent of staff submit their stories via LPN system. Frontline staff satisfaction with each process’ performance monitoring efficiency is 92%. The goal is to reach 100% 2021.

Performances

- Develop user-friendly recording tools and system.

- Organize trainings and set the implementation goals of Quality Built-in.

- Encourage operating staff to make notes of how the work process is improved.

- Continually improve activities to increase qualities of the recorded data.

- Collect data and reduce operational mistakes, suggest how to self-solve them and encourage organizational integration.

3. Knowledge Management

is a center of knowledge gathering and management in each line of works. It is established to promote culture of learning and development of new knowledge and skills necessary for work as a tool for human resource management and long-term growth planning. In 2020, we encourage our staff to perform knowledge management in their own work so that it is convenient for future use and further development. Seventy-one percent of staff participate via LPN system. Frontline staff satisfaction with the knowledge presentation and gathering including the dissemination for the sake of each line of works and the organization is 92%. The goal is to reach 100% 2021.

Performances

- Develop user-friendly recording tools and system.

- Organize trainings and set the implementation goals of Knowledge Management.

- Encourage operating staff to make notes of how to disseminate knowledge that is beneficial for work.

- Continually improve activities to increase qualities of the recorded data.

- Encourage staff knowledge sharing and collect, disseminate and manage organizational knowledge for future use and further development.

About L.P.N.

Company Name : L.P.N. Development Public Co., Ltd.

Type of Business : Listed company in the Stock Exchange of Thailand

Stock Symbol : LPN

Registration Date : 21 June 1989

Registered Capital : 1,475,698,768 THB

Registration Number : 0107537002303

Country of Operation : Thailand

Head Office : 1168/109, 36th Floor, Lumpini Tower, Rama 4 Road, Tungmahamek sub-district, Sathorn, Bangkok 10120

Contact Number : Tel. 02-689-6888

Website : www.lpn.co.th

Type of Business Operation and Affiliated Companies

Real Estate Developer

L.P.N. Development Public Co., Ltd. (LPN)

Develop residential condominium.

Pornsanti Co., Ltd. (PST)

Develop real estate projects other than residential condominium.

Service Provider

Lumpini Property Management Co., Ltd. (LPP)

Provide comprehensive community management service.

Lumpini Project Management Service Co., Ltd. (LPS)

Provide comprehensive real estate development service.

LPC Social Enterprise Co., Ltd. (LPC)

Provide community services.

Lumpini Wisdom and Solution Co., Ltd. (LWS)

Provide product and service research and development services in real estate business.

LSS Solution Security Guard Co., Ltd. (LSS) A business providing comprehensive security services.

Products and Services and Service Market of LPN

Real Estate Development Business

L.P.N. Development Public Company Limited operates real estate development business with an aim to sell residential projects targeting middle to lower-middle income earners (Focus Strategy). Since 2017, the target group of customers and the product development have been expanded to include lower-middle to upper income earners. The differentiation strategy in creating uniqueness in terms of products and services is applied. The condominiums units and common area of the projects developed by the Company are developed under “LPN Design” concept which is in accordance with the Principles of Universal Design. The common area is specially designed as a co-living space for the residents of all age groups. Moreover, after-sale service in the form of community management under “Livable Community for All” strategy has been developed. The strategy helps create the uniqueness of the Company and builds confidence among customers.

The Company has identified the position of each product for clarity and to cover the Company’s target group. The products of the Company are categorized by objectives into two groups, namely, the urban residential condominium and vacation condominium project and the residential home and townhouse project.

1. The urban residential condominium

Apart from developing residential condominiums in Bangkok and peripheral area, since 2012 the Company has also developed projects in other provinces i.e. Chonburi, Udonthani, Phetchaburi and Pattaya. The brand positioning is as follows:

1) "The Lumpini"

It is the premium brand developed for the special occasion of the 24th year of operation of the Company. The project is located on the highest potential location in Soi Sukhumvit 24 surrounded by convenient facilities. The Lumpini is perfect for luxurious, high class living reflecting the success of a superior life.

3) “The Selected by L.P.N.”

It is the mid-to-high-end brand whose product value is developed to match the unique lifestyle of target groups in each project. The first project development is located opposite to Kasetsart University. Therefore, the project is developed as a campus condominium. The design of common areas is perfect for studying i.e. spaces for group working, quiet reading corners and areas for brainstorming, exercising, and outdoor activities.

2) "Lumpini Suite"

It is the high-end brand developed in response to residential needs of business owners or high-ranking executives who are in search of aesthetic life that is simple and yet luxurious. The location for the development of such projects, therefore, is in central business district near major transportation systems such as BTS and MRT stations and major expressways. The project is fully equipped with amenities. The number of units is minimal so the residents are able to enjoy the privacy.

4) "Lumpini Place"

It is the mid-to-high-end brand developed for the workingage target group. The project location is in densely populated area and near main streets. It may be in or around central business districts and is conveniently located near modern transportation system. The project is fully equipped with technologies and amenities for everyday living. "Lumpini Place" is the model of City Condo along BTS and MRT route with the price of around one million THB developed by the Company since 2001. It was initiated under "LPN Design" concept which focuses on the functionality of space. City Condo projects are successful and positively received by the customers since it meets the needs of the working people in the city.

5) "Lumpini Park"

It is the mid-to-high-end brand developed for largescale community. "Suan Ruam Jai," a community park which is a green and shady area where family members and residents of the projects can do activities together, is initiated to add value to the product and service. It is in line with the concept of creating a "Livable community" in which residents live together in harmony under "Togetherness, Care and Share" culture. The first project is Lumpini Park Pinklao.

7) “Lumpini CondoTown"

It is the mid-to-low-end brand focusing on building a residence for a great quality of life of those who just start their career and are freelancers. The locations of the projects will be in the fringe of urban-outer area which is densely populated. This is a large group of people who are in need of a residence. It is to be the first quality home and the starting point for those who are about to start their lives and build a happy family.

6) "Lumpini Ville"

It is a mid-end brand developed from "Lumpini Place" for professionals looking for their first private homes for the convenience in transportation and privacy. The project is located in densely populated area and near workplace and convenient facilities such as department stores, schools, etc. "Lumpini Ville" brand is thus an alternative for young people who want to live a life of their own while still maintaining a close bond with their family.

8) "Lumpini Township"

It is the large-scale, mid-to-low-end brand developed to create an opportunity of owning a home at an affordable price. The "Livable Township" strategy is initiated for middle- and lower-income groups. The first project with over 10,000 units is developed on a 100-rai plot of land is "Lumpini Township Rangsit-Klong 1. The project is fully equipped with convenient facilities such as various recreational areas for a large number of residents, a community mall and convenient stores to enhance the quality of life as well as great environment and society for the residents.

2. Vacation Condominium Project:

In addition to living in urban area, which is close to workplace and amenities, the Company has initiated the development of a vacation condominium as the second home. The pilot project is firstly developed in Pattaya and then Cha-am in Phetchaburi Province.

1) “Lumpini ParkBeach”

It is the mid-to-high-end brand developed from “Lumpini Park” which combines the atmosphere of Suan Ruam Jai with the liveliness of the seaside atmosphere. The first project developed is Lumpini ParkBeach Jomtien. All the condominium units are designed to have the ocean view. The price is also extremely affordable. Since the project is well-received, the Company has decided to develop another project of the same brand in Cha-am, Petchaburi Province in 2015.

2) “Lumpini Seaview Jomtien”

It is the mid-end brand for professionals who would like to buy a vacation home by the beach. “Lumpini Seaview Jomtien,” is the first project developed in Pattaya, not far from “Lumpini ParkBeach Jomtien” which is the first resort condominium of the Company. It is designed as an affordable vacation home for the customers in the middle-income range who are the main target customers of the Company. The residents can enjoy panoramic view of the ocean. The project is managed under the “Livable Community” concept and provides services that cater to the lifestyle of people who want to stay at a resort style condominium.

3. Residential Home and Townhouse Project

In 2011, to build on the customer base, the Company has expanded the scope of project development to middle to lower-middle residential homes and townhouses through the operation of Pornsanti Co., Ltd. (PST) by adapting the strengths of the residential condominium development, including LPN Design, cost management for efficiency and after-sales service according to “Livable Community for All” strategy. In 2017 the Company expanded the development of projects to cover customers who want premium homes. The product position set by the Company is as follows:

1) “BAAN 365”

It is a flagship project of premium single house and townhome of the Company. The location is meticulously selected. The first project is developed on Rama 3 Road as it is right in the city and yet private. It responds to the need of customers with high purchasing power who tend to expand their family and prefer a city home that can accommodate 3 generations under one roof.

3) “Lumpini Townville”

It is the mid-end housing brands developed to meet the needs of residential condominium customers who want to expand the functional space. It is suitable for professionals 25-35 years of age who want to expand their family due to an increase in family members. The house is designed to meet their needs providing proper space allocation to all members at an affordable price. The interior is very functional with the living room, the kitchen, the bedrooms and the elderly room. The provided common areas such as gardens and clubhouses serve as gathering places for residents allowing them to perform social activities together under the “Togetherness, Care and Share” concept.

2) “Lumpini Townplace”

It is the mid-to-high-end housing brand developed for professionals (35 years older). The Company has selected locations that can be accessed from several routes and are close to amenities making everyday life more perfect. It fits the new normal city lifestyle perfectly. The design of the common area and the body of the house are suitable for living. Materials are of good quality. It improves the quality of life and social quality.

Pornsanti Co., Ltd. (PST) is not only a real estate developer of mid-end and mid-to-low-end non-condominium projects such as single houses and townhouses, but also responsible for the management of commercial property for rent i.e. commercial unit in residential condominium projects as well as shops in community malls. It supports the total solution service policy which aims to provide convenience in daily life of the residents. Apart from adding value to the projects, these properties for rent also create recurring income for the Company.

Stakeholder Engagement & Materiality Analysis

The Company is able to identify major stakeholders who are involved in different operational processes. It is based on the assessment of the level of their involvement both in terms of their influence that affects the Company and its operation as well as the impacts from the operation of the Company. The level of importance is measured following the guidelines of the Stock Exchange of Thailand (SET), Thai Institute of Directors (IOD) and ASEAN Corporate Governance Scorecard. The treatment, method and frequency of communication and expectation of each group of stakeholder are established as follows:

Stakeholder (8S)

SHAREHOLDERS

Treatment of Stakeholder

• Respect basic shareholders’ rights in accordance with the law and Articles of Association.

• Treat all stakeholders equally.

• Have a mechanism in place that will ensure shareholders that they will receive accurate information and a sound profit and dividend according to the policy of the Company.

• Monitor connected transactions, determine measures to prevent conflict of interest and prevent the use of internal confidential information for personal benefit.

SUPPLY CHAIN

Business alliances are trade partners of the Company. It is the network of entrepreneurs such as architects, engineers, consultants, construction companies, construction materials manufacturers, transport companies and security services providers.

• Promote collaboration among “alliances” by developing LPN Team which is treated as a subsidiary company of the Company.

• Offer appropriate return, do not exploit trade partners or only take into account the profit of the Company, conduct business based on fairness.

• Set out clear purchasing policy. All trade partners must submit a cost proposal and the Company will select the one with fair and reasonable price and high-quality services based on the purchasing guideline of the Company.

STAFF

• Treat staff with fairness in regard to career opportunity, remuneration and appointment or transfer, all of which should correspond to the performance of each staff and business success of the Company.

• Establish a short-term structure of remuneration of staff which is decided from the profit of the Company and the staff’s contribution to the success of the Company each year.

• Consider the overall remuneration of staff based on Key Performance Indicators (KPIs). The remuneration rate must be in accordance with the market rate. The knowledge, ability, experience and performance of each staff will be taken into account, as well as equality and fairness, inflation rate and Gross Domestic Product.

• Offer annual bonus based on the annual performance of the Company.

• Provide welfares e.g. health insurance, annual medical check-up, provident fund, financial loan, financial aid in case of death of staff’s parents or spouse and fitness area.

• Promote work-life balance of staff and regular workplace inspection. Provide safety equipment to staff and organize fire drills.

CUSTOMER

• Give importance to and be responsible for all customers on a regular basis. Enhance customers’ satisfaction and confidence, develop products, be liable for the quality and standard of products as promised, improve customer service quality and maintain customer confidentiality.

• Establish a Call Center and Customer Experience Management Department Tel. 02-689-6888 to receive complaints.

Concern and Expectation

• Generate appropriate growth and profit.

• Take environmental and social responsibilities.

• Generate a balanced return for all stakeholders.

• Adhere to corporate governance principles.

• Manage risks.

• Act against corruption.

• Respect shareholders’ right.

• Implement 6 GREEN LPN policy to achieve sustainable development.

• Promote unity.

• Establish a joint business plan.

• Share knowledge.

• Generate a balanced return.

• Support organizational development process of trade partners.

• Build environmental and social awareness to mutually achieve growth and development.

• Promote work-life balance.

• Promote learning and career advancement.

• Promote “Livable Organization” concept and happiness at work.

• Build capacity and promote organization values.

• Provide appropriate remuneration and welfare.

• Promote equality and basic rights.

Method of Promoting Participation Frequency

• Annual Report and Sustainable Development Report

• Annual General Meeting of Shareholders

• Shareholders’ Newsletter

• Project visit

• Meeting with analysts

• Meeting with Investors and Fund Managers

• Project progress report

• Meeting with LPN Team (Executive Level)

• Meeting with LPN Team (Operational Level)

• Training and knowledge sharing

• Relationship building activities

• Happiness at Work Survey

• LPN Academy

• Activities promoting participation

• Staff Relations Team

• Performance Evaluation

• Internet website and email

• Executive Knowledge Sharing

• Welfare Committee

• WhatsApp / Line OA

• Build affordable home with appropriate and fair price.

• Promote product and service value and brand’s credibility.

• Enhance customers’ satisfaction and manage complaints.

• Respect consumers’ rights.

• Call Center

• Various activities

• Satisfaction Survey

• Lumpini Family Day

• Touchpoint

• Customer Experience Management

• Market Research

• www.lpn.co.th

• Line OA

Stakeholder (8S)

RESIDENTS

Treatment of Stakeholder

• Enhance the quality of life and build good relationship with residents through various activities on a regular basis.

LABORS

• Enhance the quality of life of construction workers and provide necessities of life such as food and sanitation. Accommodation of construction workers in construction sites is inspected to ensure the cleanliness and tidiness of the site and provide assistance if needs be. Various activities are regularly organized, for example,

- Provision of free haircut and lunch to construction workers.

- Drug test.

- Monitoring the amount of waste at the site for proper waste management.

- First aid training and training on medicine use.

- Annual medical check-up and vaccination.

NEIGHBORS

• Monitor the environmental quality in construction sites.

• Manage wastewater and waste in Lumpini communities.

ENVIRONMENT

• Establish a clear policy and guideline to build awareness of staff, trade partners and communities managed by the Company.

• Appoint a Corporate Environmental and Social Responsibility Committee to monitor the operation and ensure that it is in line with the policy. A Charter is to be established. Crucial operational processes are to be supervised by high-ranking executives.

• Apply the Triple Bottom Line (3P- Profit, Planet, People) approach in the operation, establish 3-6-8-10 guideline i.e. 6 GREEN LPN, 8 Stakeholders, 10 Processes and emphasize CESR In Process. The concept of 6 GREEN LPN includes the six areas of environmental and social responsibilities as follows:

1. Green Enterprise

2. Green Design Concept

3. Green Financial Management

4. Green Marketing Management

5. Green Construction Process

6. Green Community Management

• Regularly organize CESR Out Process activities.

Concern and Expectation

• Promote product and service value.

• Enhance customers’ satisfaction and manage complaints.

• Respect consumers’ rights.

• Promote “care and share” culture.

• Promote participation in CESR activities.

• Promote learning among youth residents.

• Provide an opportunity for the residents to decide the guidelines for management of community.

Method of Promoting Participation Frequency

• Annual General Meeting of Joint Owners

• Mobile App

• Call Center

• Various activities

• Satisfaction Survey

• Lumpini Family Day

• Chairman of Juristic Persons Seminar

• Touchpoint

• Customer Experience Management

• Market Research

• www.lpn.co.th

• Line OA

• Ensure safety at work.

• Enhance the quality of life and sanitation of construction workers.

• Offer standard remuneration rate and respect basic rights.

• Treat all workers equally.

• QCSES+P

• Activities promoting the quality of life of construction workers

• Medical check-up

• Minimize noise, dust and impacts from construction.

• Be open to suggestions.

• Comply with the Environmental Impact Assessment Report.

• Take sustainability of the neighboring area into consideration in project design.

• Minimize construction impacts.

• Campaign for waste segregation in communities managed by the Company.

• Promote energy conservation.

• Use resources efficiently.

• Promote sustainable project design.

• Raise CESR awareness in communities managed by the Company.

• Create jobs and enhance quality of life of underprivileged women.

• Share knowledge with other organizations via LPN Academy.

• Public Hearing

• Visiting, Meeting, Discussing

• Increase of Green Space

• Space Improvement

• Sustainable Project Design

• Suggestion Box

• 6 GREEN LPN

• LPN Green Signature Project

• QCSES+P

About This Report

Report Preparation Guideline

Sustainable Development Report 2020 is the sixth sustainable development report of L.P.N. Development Public Co., Ltd. The first one was published in 2014 to monitor and disclose the information on the positive and negative impacts of the operation of the organization on the economy, environment and society. It also aims to disseminate the concept of business operation of the Company which is based on sustainable development as well as the Philosophy of Sufficiency Economy i.e. moderation, reasonableness and self-immunity together with Knowledge and Morality as reflected in 6 Green LPN management concept.

The information included in the Report is compiled between 1 January and 31 December 2020. The preparation of the content of the Report, particularly the general information of the organization, management guideline and operational key performance indicators, is in conformity with the Global Reporting Initiative Standard (GRI Standard): Core Option which is different from the previous year report that used GRI - G4 version. The linkage between the business operation of the organization and the Global Sustainable Development Goals 2030 (SDG2030) is also presented in this Report.

Defining Report Content and Boundary

The reporting framework and content is defined mainly upon the significance and benefit of the content. Material sustainability aspect is assessed along with sustainability context, stakeholder inclusiveness and completeness of the content in accordance with GRI Sustainability Reporting Guidelines.

Defining Material Aspects and Boundary Process

Identifying Sustainability Topics

A number of sustainability topics have been identified in the Sustainability Report 2020 all of which are relevant to real estate development and construction industry and substantively influence the expectation, assessment and decision of stakeholders on the organization’s responsible operation. Sustainability aspects will be assessed following the GRI Sustainability Reporting Guidelines.

Furthermore, the considered sustainability aspects are being reconsidered. Feedback from each stakeholders, operational guidelines and sustainability assessments by different agencies are taken into consideration together with other existing aspects so that the consideration for significant aspects in 2020 are more completed.

Prioritizing Material Aspects

After defining the topics relevant to the operation on sustainability of the Company, the working group prioritized the topics based on the influence on stakeholders’ assessments and decisions as well as the significance of economic, environmental and social impacts in order to determine the “materiality” of the report.

Validating Material Aspects

The working group proposed the sustainability topics to the Chairman of the Board of Directors, the highest-ranking executive of the organization, for endorsement so as to ensure that such topics are inclusive of possible impacts of the Company’s operation and are of importance to each group of stakeholders. The topics will be used as a guideline for the planning of sustainable operation and preparation of the Sustainability Report. The materiality of the report is identified and shown in the diagram on prioritizing materiality aspects in accordance with the analysis of the Company Materiality Aspects in page 128.

The Company made use of the feedback of the stakeholders on the Sustainability Report 2019 to develop the Sustainability Report 2020. The contents are reviewed whether they are relevant to the sustainability topic of the organization so that the operation of the Company achieves sustainable development goals that are most relevant and significant to the organization. In addition, the feedback is used to determine the direction of socially responsible operation of the organization in the next phase. In 2020, stakeholders are able to send their feedback and suggestions on sustainable and responsible operation through a number of channels provided by the Company as well as the attached questionnaire.

LPN’s Materiality Matrix

Resources management (material, energy, water, and effluence & waste)

Stakeholders grievance mechanism

Employment, training and education, and occupational health and safety

Customer health and safety

Supplier human rights practices

Marketing communication and dissemination of information to customers

Economic performance

Anti-corruption

Local community and social grievance mechanism

and

Dissemination Channels

• Website: http://www.lpn.co.th: “Sustainability Report” in “Good Corporate Governance” under “Investor Relations”

• 200 printed copies (Thai version) and 15 printed copies (English version)

Contact Person for the Preparation of Sustainability Report and Sustainable Operation

Ms. Monnaphat Suphakitchanusan

Brand Development Department, Brand Management Division

L.P.N. Development Public Co., Ltd. 1168/109 Lumpini Tower, 36th Floor, Rama 4 Road, Thung Maha Mek, Sathorn, Bangkok 10120

Tel : 02-285-5011-6

Email : bnd@lpn.co.th Fax : 02-285-5017

Number of staff

Number of staff by age and level

Operational Change Statistics (person) (1)

Note : **

Number and Proportion of Welfare Communittee

Note : * Since the number of staff of Pornsanti Co., Ltd. is less than the minimum number required by the Labor Protection Act, the company does not have any representative in the Welfare Committee.

Maternity Leave

Information on Maternity Leave

Number of female employees

Number of employees that are entitled to maternity leave

Number of employees that took maternity leave by gender

Number of employees that returned to work in the reporting period after maternity leave ended

Number of employees that returned to work after maternity leave ended that were still employed 1 year after their return to work

Return to work rates of employees that took maternity leave

Retention rates of employees that took maternity leave

Note : 1 Return-to-work Rate = (Number of employees that returned to work after the maternity leave ended/Number of employees that took maternity leave by gender) x100

2 Retention Rate = (Number of employees that returned to work after maternity leave ended that were still employed 1 year after their return to work/Number of employees that returned to work in the reporting period after maternity leave ended) x 100

Satisfaction Survey Form for the Readers of Sustainability Report of L.P.N. Development Public Co., Ltd.

Section 1: General Information

1.1 Relationship with the Company

Shareholder Staff Customer

Joint Owner/ Resident Trade Partner Investor

1.2 Have you ever read a Sustainability Report of the Company before?

Yes No

Section 2: Report Content and Presentation

2.1 Your awareness and understanding of the overall operation of the Company is increased.

2.2 Your awareness and understanding of the operation on sustainability of the Company is increased.

2.3 The content of the Report reflects important operations of the Company as expected.

2.4 The content is clear.

2.5 The content is easy to read and understand.

2.6 The content is useful.

2.7 The report layout is beautiful

2.8 Overall, you are satisfied with the Report.

Section 3: Sustainability Reporting Improvement

3.1 This Report addresses the issues that are of your interest.

Yes No

Commercial or Financial Institution

General Public

Agree Stongly Disagree Agree Disagree

3.2 Other comments or suggestions

(please specify the issues that you are interested in and should be included in the next Sustainability Report.)

Please submit the form to:

Department of Brand Development

L.P.N. Development Public Co., Ltd.

Address : 1168/109, 36th Floor, Lumpini Tower, Rama 4 Road, Tungmahamek sub-district, Sathorn, Bangkok 10120

Email : bnd@lpn.co.th

Your comments and suggestions are valuable for the sustainable development of the Company. Thank you very much for your cooperation.