Local communities and Company have paid great attention to the management of social impacts and supporting social development so the Company have determined to create a participation process of the stakeholders within and around AMATA Industrial Estates to jointly develop AMATA's industrial estates to become the perfect cities that the surrounding local communities can coexist with the industrial estates happily and jointly create the shared values.
If the communities surrounding the industrial estates are not taken care of and prevented the impacts from the Company's business operations, there may be risks of losing the good relationships between the Company and communities resulting to the conflicts and resistance from the communities against the Company's future expansion of business, as well as, affecting the investors’ confidence and decision-making.
Community development in various dimensions by aiming to ensure the communities to be safe and have better quality of life through adequate access to quality basic services will help to obtain the social license to operate including building trust to all groups of stakeholders enabling the Company to continue operating the business smoothly. Besides, the implementation of community and social development projects to help improving the quality of education will enable the Company to have skilled local workers to continuously support the customers’ needs. This will help creating jobs and occupations to community people along with developing the local economy, as well as, continuously supporting the growth of Company's customers.
Based on "ALL WIN" philosophy which has always been adhered as a principle of business operations by the Company and the Company's goal in strengthening the business growth along with sustainable community and social development, the Company has established a key strategy of sustainability connected with communities and society by focusing on the cooperation among the Company, communities, customers in the industrial estates and the government agencies. In addition, the Company has adopted the UN Sustainable Development Goals (SDGs) as a guideline for community development.
The Company has set the operational framework for community development by focusing on building good relationship with the local community who is one of major stakeholders to create an understanding and confidence in the Company’s business operation and to provide opportunities for local citizens and other stakeholders to have access to the Company’s services. Additionally, the Company focused on creating a network of cooperation amongst other stakeholders, e.g. customers, suppliers and various entities to help develop communities and society at large.
The Company has set up the Community Relations and Social Responsibility Working Committee since 2014 to drive the projects under its sustainable development goals which link with community and social development and to efficiently supervise and monitor community development projects. The Company conducted a survey about problems, needs and expectation of local community through stakeholder engagement process and developed material topics on sustainability into the Company’s strategy and activities target.
Currently, AMATA has been developing two industrial estates in Thailand with over 70 square kilometer of area covering three provinces, i.e. Chonburi, Chachoengsao, and Rayong. There are more than 300,000 factory employees working in AMATA's industrial estates and more than 840,000 people living in the surrounding communities. The industrial estate expansion has affected the surrounding communities and society such as increasing population density and traffic congestion, urbanization caused by migrant labor, road safety, etc. Consequently, social impact management is a material sustainability issue that both the Company and stakeholders place importance on. The Company has therefore established a social impact and community support and development management approach as follows:
People in surrounding communities are directly affected by the Company's business operations. The Company, therefore, places importance on supervision of the local communities located within a radius of 5 kilometers from the AMATA Industrial Estates in order to mitigate potential negative impacts and to foster good relationships with each other to live together sustainably.
AMATA City Chonburi Industrial Estate currently operates in the areas of over 43 square kilometers covering the areas of 24 subdistricts of 5 districts in Chonburi Province and Chachoengsao Province. There are communities in 212 villages surrounding the industrial estate within a radius of 5 kilometers from the edge of project area covering the areas of over 260 square kilometers with the census registered population in the surrounding communities of approximately 318,527 people, but the total population including the non-registered population relocated to work in these areas is approximately 697,855 people (Source: Statistics Report on Population and Housing for the year 2021, Department of Provincial Administration, Ministry of Interior). The number of employees working in various industrial factories in AMATA City Chonburi Industrial Estate as of 31st December 2021 is more than 177,665 people.
AMATA City Rayong Industrial Estate currently operates in the areas of 27 square kilometers covering the areas of 6 subdistricts of 4 districts in Chonburi Province and Rayong Province. There are communities in 20 villages surrounding the industrial estate within a radius of 5 kilometers from the edge of project area. There are the census registered population of approximately 84,370 people in the surrounding communities, but the total population including the non-registered population relocated to work in these areas is approximately 154,946 people. (Source: Official Statistics Registration Systems for the year 2021, Department of Provincial Administration, Ministry of Interior). The number of employees working in various industrial factories in AMATA City Rayong Industrial Estate as of 31st December 2021 is more than 81,094 people.
The Company has established various community committees as a channel to receive and respond to problems, expectations, and community suggestions for better improvement, as well as to provide facts and efficiently resolve complaints in order to make the Company's major stakeholders, i.e. communities and government agencies governing the Company, get better understanding of its business operations and to build confidence, trust, and relationship.
Tripartite Committees, or committees whose members are representatives from the communities, government agencies and the Company, i.e. the Committee for Surrounding Community Development, Eco-Green Network and the Tripartite Council of Klong Luang Basin, etc., are established. Each committee has a responsibility relating to the development of the community surrounding both industrial estates of the Company, and to address the community’s concerns or complaints stemming from the Company’s operation.
The Committee for Surrounding Community Development - AMATA City Chonburi Industrial Estate comprising 97 representatives from public, government agencies and business sector
The Committee for Surrounding Community Development - AMATA City Rayong Industrial Estate comprising 29 representatives from public, government agencies and business sector
The working group consists of representatives from the Company, factories in the industrial estates, local communities, local government entities, hospitals and schools
Tripartite Council of Klong Luang Basin
Social impact assessment is one of the environmental impact assessment (EIA) processes whereby the Company adopts the Stakeholder Analysis method to analyze business activities that directly and indirectly affect stakeholders together with the community attitude survey which is conducted annually to prevent and mitigate environmental impacts during the Company's business operations.
According to the results of the survey of community attitudes and expectations of various community committees in 2021, the social impacts could be concluded into 2 issues: 1) traffic problem and 2) community economic problem. In addition, the communities had the expectations of caring for the environment including wastewater management as well.
The Company has laid the community development strategies and activities in consistent to the needs and expectations of each stakeholder group appropriately in collaboration with the Company’s customers operating in the industrial estates, government sector, local authorities and communities under 5 areas of community development framework that also supports the UN Sustainable Development Goals (UN SDGs) by setting the community development goal in 2021 that the community satisfaction scores towards AMATA must not less than 85%.
In 2021, the Company had implemented a total of 81 projects and activities by spending social investment budget of 18.52 million Baht (excluding donation). There were 125,000 participants joining the activities and more than 1.1 million people were directly and indirectly benefited by these projects and activities.
The growth of the industrial estates has both positive and negative effects towards economic system of local community, e.g. income distribution, increasing demand for labor or the creation of demand for goods or services, while urbanization increases cost of living. Accordingly, the Company places importance on the growth of local community in parallel with its expansion by using strategy on creating economic opportunities to all groups of stakeholders in the community, e.g. local business operators, working age labor, senior citizens and the underprivileged, through the support of local employment and project arrangement to respond to the needs and to develop stakeholders in such community so that they could have jobs and income for their own independence sustainably.
Farm to Factory Project
According to the results of the Company’s local community survey, the community was found to have many agricultural and processed products that need marketing support. The Company foresees that many factories in the industrial estates and their employees are the target purchasers having great demand for many agricultural products. As a result, it has organized "Farm to Factory" Project aiming to promote trades between the factories in both AMATA industrial estates and the local communities in order to support local communities to have the opportunities to sell their products, especially the agricultural and processed products, in a long run, thereby enhancing a sustainable growth of the local economy while purchasers are able to obtain the fresh and quality products directly from the producers.
In 2018, the Company started the Farm to Factory Project in collaboration with the Industrial Estate Authority of Thailand (IEAT) by using AMATA City Chonburi Industrial Estate as a pilot area. The Company acted as a facilitator between the local communities and the factories in the industrial estate in trading of agricultural products. The Company and the Industrial Estate Authority of Thailand had also stepped in to help upgrading the standards of the products to meet the purchasers’ requirements.
The Company aimed to provide the community enterprises in the targeted communities nearby AMATA City Chonburi Industrial Estate to have a trading channel for their products and generate income to the enterprise members. In 2021, there were 40 factories in AMATA City Chonburi Industrial Estate and 32 local communities from Chachoengsao and Chonburi provinces joining the "Farm to Factory" Project where the market was opened on an average of 1 time per month, generating sales revenue of Baht 8.72 Million Baht in total.
In addition, the Company has also developed a channel to sell community products online on the website: https://amatachuanshop.com/ to increase the sales channel for community products. As a result, the community products of more than 18 items of both AMATA City Chonburi and AMATA City Rayong have already been publicized for sale on the website.
The Company does not only focus on water and waste management within the industrial estates but is also aware of nurturing the communities surrounding the industrial estates affected by the Company's operations due to the expansion of its business which causes those communities to become crowded. As a result, the Company initiates a pilot community in sustainable water and waste management project using the Company’s expertise and experience in water and waste management in the development of the pilot community. The project provides knowledge and understanding to people in the community regarding proper solid waste disposal and sorting according to the 3Rs principles in order to utilize waste efficiently and to add value according to the circular economy principles. This would help reduce the impact on the community and the environment, especially on community water resources from littering and releasing household wastewater into the water resources. In implementing the project, the Company receives a cooperation from various agencies such as Nong Mai Daeng Municipality, operators in Ninja Market Chonburi, operators in Kamnan Dam Market, Ban Huay Salika School, Wat U-Tapao Kindergarten School, etc.
In 2021, the water quality in natural water resources in the community using BOD (Biochemical Oxygen Demand) value which was targeted to not exceed 10 mg/L (better than PCD standard value not exceeding 20 mg/L) at Klong Tumru Watergate. The result showed that the mean value of BOD was 7.3 mg/L, which has been steadily declining since 2017.
Road Safety Management
There are approximately 300,000 employees working in the areas of both AMATA Industrial Estates. According to the results of the survey of using roads within AMATA Industrial Estates, more than 116,800 vehicles were found using the routes in the areas per day, categorized into 1,800 employee shuttle buses, 48,000 private passenger cars and 67,000 motorcycles, resulting to high risks of road accidents. The Company, therefore, has to strictly manage the traffic and provide a road safety management plan that integrates all sectors to jointly manage the traffic within AMATA Industrial Estates.
The Company had brought the statistics data of road accidents such as the causes and types of accidents to analyze for using in management process and solving the problems, especially the problems arising from the road structure and the pattern of the traffic lanes. In 2021, the Company had improved the traffic pattern of the roads within AMATA City Chonburi Industrial Estate by changing the pattern of crossroads with heavy traffic and statistics of many car accidents in each year into roundabouts at 2 locations. So far until now, there are 5 roundabouts completely constructed by the Company enabling to reduce the road accidents by 57.46% from 2020 and 70.3% from the base year of 2017.
As large-scale industrial estates, there are a lot of employees, both Thai and foreign, working in both AMATA industrial estates. Total population in the surrounding communities are more than 500,000 people. Therefore, they are the areas with high potential for blood donation as blood reserve for the Thai Red Cross Society. The Company thus cooperates with the Regional Blood Service 3, Chonburi, Rayong Red Cross Chapter and the Industrial Estate Authority of Thailand to promote and invite the employees within AMATA group and those of the factory operators in both AMATA industrial estates to donate blood.
The company targets to receive blood donations of at least 1 million cc to the Thai Red Cross Society by organizing continuous activities annually. In 2021, the 10th year of the Company’s blood donation activities, there were 5,738 blood donors from the Company’s employees and workers of the factories in both industrial estates. 2,295,200 cc of blood was collected. Total accumulated blood donated during this ten-year period amounted to more than 16.3 million cc which could assist more than 122,250 patients.
In collaboration with Pluak Daeng Public Health Office, Pluak Daeng Hospital, Map Yang Phon Subdistrict Administrative Organization and AMATA City Rayong Industrial Estate Office, the Company had established Map Yang Phon field hospital with the capacity of 300 beds and had collaborated with AMATA City Chonburi Industrial Estate Office to establish AMATA City Chonburi Community Isolation Center with the capacity of 300 beds, becoming 600 beds in total, to accommodate the groups of asymptomatic cases or showing mild symptoms (Green-Yellow group) by having the doctors and nurses from Pluak Daeng Hospital and Vibharam Amata Nakorn Hospital stationed at the field hospital and the center 24 hours a day. In this regard, the prefabricated factory buildings for rent had been supported by Frasers Property (Thailand) Public Company Limited, located in the area of AMATA City Chonburi Industrial Estate and AMATA City Rayong Industrial Estate, to establish a field hospital and an isolation center and the paper beds had been supported by SCG Packaging Public Company Limited, as well as, the equipment and utensils to be used in field hospitals such as mattresses, blankets, table fans and snacks had been supported by more than 100 factories in AMATA Industrial Estates.
In 2021, Map Yang Phon field hospital in AMATA City Rayong Industrial Estate and isolation center in AMATA City Chonburi Industrial Estate had been able to accommodate the patients totally 600 beds by having started the operation since 4th August 2021 and having taken care of totally 1,828 patients.
AMATA City Chonburi Industrial Estate is an area that had been allocated the vaccines against COVID-19 for the insured under Section 33 by the Ministry of Labor. The Company, therefore, had supported the area in AMATA Castle building for being a vaccination center from July to October 2021, totally 4 months, and had obtained the support of medical personnel from Vibharam Amata Nakorn Hospital for giving vaccinations to the insured under Section 33. As a result, the vaccinations of 1st shot and 2nd shot had been given totally 95,381 doses to 48,518 employees in AMATA City Chonburi Industrial Estate. As for AMATA City Rayong Industrial Estate, the vaccines of 4,633 doses were allocated under the quota of the Eastern Economic Corridor (EEC) area by the Ministry of Labor and 1,655 people had received the vaccinations from this program.
The emergence of COVID-19 pandemic has the continuous impacts on the economic conditions of the surrounding communities due to some local workers have been affected, such as having to stop working or being laid off resulting to lack of incomes during such period. The Company, therefore, had established "AMATA Fights COVID-19" Project to urgently mitigate the impacts on the communities by donating the survival bags, each consisting of 5 kilograms of rice, eggs, household medicines and dry food, to the affected target groups by distributing the survival bags directly to the unemployed workers, people with low income, people with disabilities in the communities or bedridden patients.
Owing to the past activities, the Company had supported the products of nearby communities to be arranged for the total of 15,810 survival bags worth more than 2.4 million baht. The Company had delivered those survival bags to people affected by the COVID-19 crisis including the elderly, the handicapped and the bedridden patients. As a result, the total of 47,430 people had been benefited.
In addition, the Company had supported the medical personnel to be able to perform their duties safely because they are the important persons to cope with and directly take care of the infectious patients. During the past period, the Company had supported the self-protection equipment, such as surgical masks, face shields and rubbing alcohol, to the public health agencies and had support Andrographis paniculata to 29 isolation centers and field hospitals in the communities, valued 380,000 baht. Also, the Company had collaborated with 35 entrepreneurs in AMATA Industrial Estates to jointly support the self-protection equipment for medical personnel as well.
Since the Company and its stakeholders have greatly focused on the importance of human resource development because presently the industrial sector has required more competent personnel and skilled workers in accordance with the development of technology in the production process and in response to the future needs of the industrial sector to invest in EEC projects, the Company has developed and implemented various educational projects to help upgrading the capabilities of factory personnel and local workers by providing the access to quality education for everyone and promoting the continuous learning.
Brain Based Learning Area Development Project
The Company had cooperated with the Industrial Estate Authority of Thailand and Amata CSR Volunteer Club of AMATA City Rayong Industrial Estate to organize a learning development project in Ban Map Yang Phon School, Map Yang Phon Subdistrict, Pluak Daeng District, Rayong Province, for total 1,572 students in order to promote outside classroom learning thru drawing on an area of over 440 square meters by using brain-based methodology or Brain-Based Learning.
The Company has given the importance to support and engage in the local traditional and cultural activities of the communities in order to carry on the good traditions and build the good relationships and attitudes with the communities. The Company has collaborated with the Industrial Estate Authority of Thailand, entrepreneurs in both AMATA Industrial Estates and the communities surrounding both AMATA Industrial Estates in continuously participating and supporting the local traditional and cultural activities of the communities.
In 2021, the Company’s executives and employees had participated in an activity of kathin offerings at Map Sam Kliao Temple, Chonburi Province and had joined exhibiting the booth in a traditional activity of Songkran and Elderly Day organized by the Subdistrict Administrative Organization by giving the souvenirs and consumer goods to the elderly of Khao Mai Kaew Subdistrict, Bang Lamung District, Chonburi Province and Pluak Daeng Subdistrict.
The Industrial Estate Authority of Thailand (IEAT) organizes the annual satisfaction survey of the communities towards the industrial estates at 33 industrial estates and jointly conducts the community satisfaction survey with the Company in both AMATA industrial estates. In 2021, the result showed that AMATA City Chonburi Industrial Estate and AMATA City Rayong Industrial Estate received 91% and 85.2% satisfaction scores, respectively.
In addition, in 2021 the Working Group of Community Relations and Corporate Social Responsibility of the Company conducted a satisfaction survey of the communities surrounding both AMATA industrial estates jointly with the Faculty of Communication Arts, Sripatum University, Chonburi Campus, to gain an insight on the communities’ satisfaction towards the Company’s community development projects as well as clear need and expectation of the communities. It targeted a level of satisfaction of more than 85%. AMATA City Chonburi Industrial Estate received 93% satisfaction scores while AMATA City Rayong Industrial Estate received 89.6% satisfaction scores.
The Company obtains recommendations from the communities' satisfaction survey surrounding both AMATA industrial estates and analyzes and plans the implementation of activities to support and develop the communities next year. The Community Relations and Social Responsibility Working Committee also takes a field trip to conduct an in-depth interview to obtain source of problems and expectations of the community towards the Company. The information will be used as a basis for further activities in the future.