Community and Social Development

Risk

The growth of industrial estates has both positive and negative impacts on local communities and society in economic, environmental, and safety aspects that directly affect people’s health and quality of life in local communities. If the surrounding communities are not taken care of and prevent the negative impacts from the Company's business operations, there is a risk of losing the good relationship between the Company and the communities. This could result in conflicts and resistance from the communities against the Company's future business expansion, as well as affect investors' confidence and decision-making.

Opportunity

In community development, across various dimensions, the Company aims to ensure that communities are safe and have a better quality of life by providing adequate access to high-quality basic services. This approach helps the Company obtain a social license to operate, build trust with all stakeholders, and enable it to continue operating smoothly. Moreover, by implementing community and social development projects to promote the quality of education, there will be more local skilled workers to supply the demands of customers continuously, creates jobs for the community members, and also helps develop the local economy. Additionally, it continuously supports the growth of the Company's customers in the long run.

Management Approach

Guided by the 'ALL WIN' philosophy, which has long been a cornerstone of its business operations, the Company aims to strengthen business growth alongside sustainable community and social development. To achieve this, it has established a key sustainability strategy that emphasizes cooperation between the Company, communities, industrial estate customers, and government agencies. Additionally, the Company has adopted the UN Sustainable Development Goals (SDGs) as guidelines for community development.

The Company has developed an operational framework for community development centered on forging strong relationships with the local community, one of its primary stakeholders. This strategy not only aims to foster understanding and confidence in the Company's operations but also to offer local citizens and other stakeholders greater access to its services. Additionally, the Company is committed to building a collaborative network with customers, suppliers, and various other entities to further enhance community and societal development.

The Company has established the Community Relations and Corporate Social Responsibility (CSR) Division, dedicated to advancing projects that fulfill its sustainable development objectives. This division oversees and monitors the progress of these community initiatives. Through a robust stakeholder engagement process, the Company has gathered insights of the local community's challenges, concerns, and expectations, integrating these vital perspectives into its strategic sustainability endeavors and targeted activities. The Company has crafted a management approach for social impact and community development, aimed at enhancing the quality of life, detailed as follows:

1. Identify Target Groups and Community Survey

Currently, the development of three AMATA Industrial Estates in Thailand covers an area of over 73 square kilometers in three provinces: Chonburi, Chachoengsao, and Rayong. The factory workers and surrounding community residents are totally over 1.25 million people. The industrial estate expansion has affected the surrounding communities and society such as increasing population density and traffic congestion, urbanization caused by labor migration, road safety issues, and more. Therefore, the Company places great importance on supervising and taking care of the local communities located within a 5-kilometer radius of the AMATA Industrial Estates, who are directly affected by the Company's business operations.

AMATA City Chonburi Industrial Estate currently operate in the areas of over 44.5 square kilometers, covering the areas of ​​31subdistricts in 5 districts in Chonburi and Chachoengsao Province. There are communities in 236 villages surrounding the industrial estate within a radius of 5 kilometers from the edge of the project area, covering an area of ​​​​over 260 square kilometers, with a census registered population of approximately 227,826 people (Source: Basic Information for Planning and Development of Chonburi Provincial Administration and Website of Municipality and Subdistrict Administration in Chonburi Province); however, the total population including the non-registered population relocated to work in these areas is approximately 734,957 people. The number of employees working in industrial factories in AMATA City Chonburi Industrial Estate as of 31 December 2023 was more than 210,000.

AMATA City Rayong Industrial Estate currently operates in the area of 28.6 square kilometers, covering 6 subdistricts of ​​4 districts in Chonburi and Rayong Province. There are 20 villages located within 5 kilometers radius from the edge of the project area, and approximately 100,805 people are registered in the census as residing in these surrounding communities. However, the total population, including non-registered individuals who relocated to work in the area, is approximately 220,990 people (Source: Official Statistics Registration Systems for the year 2023).  As of 31 December 2023, the number of employees working in industrial factories within AMATA City Rayong Industrial Estate was more than 85,000.

2. Create Local Community Engagement

The Company has determined to create a stakeholder participation process in various forms for the stakeholders within and around AMATA Industrial Estates to express their concerns, problems, and needs in order to develop AMATA Industrial Estate into a perfect city where surrounding local communities can happily co-exist and create shared values.

The Company has established a number of community committees to receive and respond to problems, community expectations, and suggestions for better improvement, as well as to provide information and swiftly address complaints, in order to help the Company’s major stakeholders, namely communities and the government agencies that regulate it, gain a better understanding of its operations and foster engagement, trust, and confidence.

The established committees comprise of Tripartite Committee, or committee whose members are representatives of communities, government agencies, and the Company, the Committee for Surrounding Community Development, and the Eco-Green Network, etc. Each committee is responsible for the growth of the neighborhood surrounding the Company’s two industrial estates as well as for resolving any issues or grievances brought up by the neighborhood regarding the Company’s operations.

CommitteeObjectives2023 Performance

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

  • Building confidence of stakeholders in the Company’s environmental management by disclosing the results of environmental supervision
  • Being a forum for the Company’s stakeholders especially the communities and local government agencies to share negative impacts and challenges to the environment caused by the operations of the industrial estate and to consider recommendations, solutions and community development ideas
  • The Committees of both industrial estates had two meeting in 2023.
  • The Committees of both industrial estates expressed satisfaction and confidence in the Company’s environmental management in accordance with set standards.
  • The Committee of AMATA City Rayong Industrial Estate expressed an interest in the traffic, wastewater management and income distribution to the community.

Eco-Green Network:
A working group formed to develop and link the operational network called “CSR + ECO + Environment & Safety + CG or Eco-Green Network” in AMATA City Chonburi Industrial Estate and AMATA City Rayong Industrial Estate

The working group consists of representatives from the Company, factories in the industrial estates, local communities, local government entities, hospitals and schools

  • Elevating and developing Eco-Industrial City for both industrial estates by creating five dimensional harmonies in physical, economic, environmental, social and management attributes
  • Encouraging and supporting participation of all stakeholders, especially factories, local communities and local government entities in advancing AMATA industrial estates to be Eco-Industrial City
  • Publicizing achievements of the Eco-Industrial City at AMATA industrial estates
  • One meeting of the Eco-Green Network’s working group at AMATA City Chonburi Industrial Estate and one meeting at AMATA City Rayong Industrial Estate were held in 2023.
  • A 2023 action plan and projects to develop an Eco-Industrial City concept for the industrial estates were discussed.
  • The Eco-Green Network’s working group of AMATA City Chonburi Industrial Estate expressed an interest, in particular, in community wastewater and waste management, traffic problems solving, and the use of alternative energy such as solar cell.
  • The working group of AMATA City Rayong Industrial Estate expressed particular interest in wastewater management, traffic problem and community occupational support.

3. Local Community Impact Assessment

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.

In 2023, Amata City Rayong Company Limited, in cooperation with SS Consultant Corporation Company Limited and local government agencies, held three public hearings in March and June 2023. The meetings took place at Chalerm Phrakiat Hall at Dok Krai Reservoir, Pluak Daeng District, Rayong Province; Sala Sang Suk (Ban Nong Rakam), Phananikom Subdistrict, Nikhom Phatthana District, Rayong Province; and the meeting hall of Bo Win Subdistrict's Administrative Organization, Bowin Subdistrict, Si Racha District, Chonburi Province. The meetings invited people from relevant communities and local government agencies to join and listen to information about the Amata City Rayong Industrial Estate Extension Project Phase 6's environmental impact assessment guidelines and the preventive measures to address environmental impacts. This involved implementing measures to monitor environmental impacts and allowing the community comprehensive opportunities to provide their opinions. These efforts will benefit the project's progress. More than 1,000 representatives from local government agencies, the public, and the media expressed interest in attending these meetings.

According to the results of the 2023 survey on community attitudes and expectations conducted among various community committees, social impacts were divided into two significant issues that communities emphasized greatly: 1) traffic problems, and 2) community economic problems. Additionally, communities articulated their expectations for environmental stewardship, with a specific emphasis on wastewater management, waste management, and educational support.

4. Design Project/Activity to Respond to the Community

The Company has developed community development strategies and activities that align with the specific needs and expectations of each stakeholder group. These efforts are conducted in collaboration with the Company’s customers operating in industrial estates, government entities, local authorities, and communities. This approach is structured around a five-dimensional community development framework that also supports the UN Sustainable Development Goals (UN SDGs). For 2023, the Company has set a community development goal to achieve a community satisfaction score of no less than 85% towards AMATA.

In 2023, the Company had implemented a total of 21 projects and activities with a social investment budget of 5.66 million baht (excluding donations).  There were 42,624 participants in the activities, and more than 188,460 people directly and indirectly benefited from these projects and activities.

5. Regularly Monitor Project/Activity Performance

The Community Relations and Corporate Social Responsibility (CSR) Division at AMATA has been conducting annual satisfaction surveys in the communities surrounding AMATA City Chonburi and AMATA City Rayong Industrial Estates. In collaboration with the Faculty of Communication Arts at Sripatum University’s Chonburi Campus, the CSR division undertook an in-depth study to assess community needs and expectations, as well as satisfaction with the Company’s community development projects. The 2023 survey results indicated that AMATA City Chonburi Industrial Estate achieved an average satisfaction score of 91.5%, while AMATA City Rayong Industrial Estate scored 91.3%.

Additionally, the Industrial Estate Authority of Thailand conducted an annual community satisfaction survey across 46 industrial estates nationwide. AMATA collaborated in these surveys for both of its industrial estates. In 2023, AMATA City Chonburi Industrial Estate achieved an average satisfaction score of 94%, while AMATA City Rayong Industrial Estate received a score of 87.4%.

The Company collected feedback from the community satisfaction survey and used it to analyze and plan activities aimed at supporting and developing the communities for the upcoming year. Additionally, the Community Relations and Corporate Social Responsibility (CSR) Division conducted in-depth interviews to identify the underlying causes of issues and the community's expectations of the Company. This information will serve as a foundation for planning future activities.

The 2023 community satisfaction survey from areas around AMATA City Chonburi Industrial Estate highlighted a significant demand for education-focused initiatives within the industrial estate, especially in providing opportunities for quality education. The community also expressed a desire for initiatives that promote professions and local products to sustainably boost the grassroots economy. In the communities surrounding AMATA City Rayong Industrial Estate, there was a clear need for economic enhancement initiatives, such as increasing local employment, promoting professions and local products, enhancing income generation, and distributing income more effectively to the surrounding areas. Furthermore, there is a strong desire for greater community involvement in the development of the industrial estate communities.

The Company has leveraged the suggestions from the survey to develop initiatives that are in line with the findings. This includes planning various projects such as the 'Farm to Factory' initiative, which integrates community products into factory kitchens and coordinates with factories to provide spaces for community members to sell their products. This project aims to stimulate the economy and facilitate income distribution within the communities of AMATA City Chonburi and AMATA City Rayong. Additionally, the Company plans to expand online marketing channels for community products through the 'AMATA Chuan Shop' website and organize Facebook live broadcasts to promote the sale of these products.

The Company has launched educational initiatives that include the establishment of E-Libraries in local schools and the 'Khru Arsa AMATA (Volunteer Teacher)' project. These efforts involve partnerships with businesses located within both AMATA Industrial Estates and participation from AMATA group employees in activities with nearby schools. Additionally, the Company offers a scholarship program for students from underprivileged families, aimed at improving their educational opportunities.

In terms of health promotion, the Company has actively supported a variety of activities. These include organizing knowledge-sharing sessions for the community, facilitating participation in public service events like the 'AMATA Caravan: Creating Smiles Project,' and distributing face masks to community members.

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