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.
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 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. It also continuously supports the growth of the Company's customers in the long run.
Based on "ALL WIN" philosophy, which has always been adhered to as a principle of business operations by the Company and the Company's goal of strengthening 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 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 relationships with the local community, which is one of its major stakeholders, to create understanding and confidence in the Company’s business operations 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 community and social development, and to efficiently supervise and monitor community development projects. The Company conducted a survey about the problems, needs, and expectations of the local community through the stakeholder engagement process and incorporated material topics on sustainability into its strategy and target activities. The Company has established a management approach to social impact management and community development for better quality of life as follows:
Currently, the development of two 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 1.2 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 operates in the areas of over 44.4 square kilometers, covering the areas of 24 subdistricts in 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 the project area, covering an area of over 260 square kilometers, with a census registered population of approximately 315,689 people, but the total population including the non-registered population relocated to work in these areas is approximately 686,876 people (Source: Statistics Report on Population and Housing for the year 2022, Department of Provincial Administration, Ministry of Interior). The number of employees working in industrial factories in AMATA City Chonburi Industrial Estate as of 31 December 2022 was more than 210,000.
AMATA City Rayong Industrial Estate currently operates in the areas 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 project area, and approximately 86,119 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 145,988 people (Source: Official Statistics Registration Systems for the year 2022). As of 31 December 2022, the number of employees working in industrial factories within AMATA City Rayong Industrial Estate was more than 82,000.
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.
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
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 2022, 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 out the community development strategies and activities in consistent with 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 the 5 dimensions of community development framework that also contributes to the UN Sustainable Development Goals (UN SDGs). The Company has set the community development goal in 2022 that the community satisfaction scores towards AMATA must not be less than 85%.
In 2022, the Company had implemented a total of 34 projects and activities with a social investment budget of 3.8 million baht (excluding donations). There were 31,800 participants in the activities, and more than 1.23 million people were directly and indirectly benefited by these projects and activities.
The growth of the industrial estates has both positive and negative impacts on the local community’s economic system, e.g., income distribution, increasing demand for labor, or the creation of demand for goods or services, while urbanization increases the cost of living. Accordingly, the company places importance on the growth of the local community and uses a strategy to create economic opportunities for all stakeholders, including local business operators, working-age labor, senior citizens, and the underprivileged. This is achieved through support for local employment and projects, which respond to the needs of the community and promote sustainable job creation and income generation for stakeholder independence.
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 the "Farm to Factory" project, aiming to promote trade between the factories in both AMATA industrial estates and the local communities in order to support local communities in having the opportunities to sell their products, especially the agricultural and processed products, in the long run, thereby enhancing the sustainable growth of the local economy while purchasers are able to obtain the fresh and quality products directly from the producers.
The Company initiated the “Farm to Factory” project in 2018 together with the Industrial Estate Authority of Thailand by using the AMATA City Chonburi Industrial Estate as a pilot area. By acting as an intermediary between local communities and factories in industrial estates, the Company aimed to provide the community enterprises in the targeted communities nearby AMATA City Chonburi Industrial Estate to have a new distribution channel and markets and generate more income to the enterprise members. Furthermore, the Company and the Industrial Estate Authority of Thailand are working together to help elevate their product quality to meet standard requirement of buyers.
In 2022, there were 40 factories in the AMATA City Chonburi Industrial Estate that participated in the "Farm to Factory" project, as well as 18 local communities from Chachoengsao and Chonburi provinces that sold their products to the factories, averaging 8 times per month. The total revenue from product sales in 2022 was 6.89 million baht, with an average income of 380,000 baht per community per year.
“AMATA Chuan Shop” Activity
The Company organized the "AMATA Chuan Shop” activity to recommend the local community products to public and provide a free space for communities to bring their products for sale. This activity was held four times in 2022:
Online marketplace platform for the community products
To increase customers’ accessibility, the Company has developed an online marketplace on the website "https://amatachuanshop.com/" to sell community products. Currently, the website offers over 30 products from local communities at AMATA City Chonburi and AMATA City Rayong.
Sustainable Water and Waste Management Model Community Project
The Company does not only focus on water and waste management within the industrial estates but is also aware of the need to nurture the communities surrounding the industrial estates affected by its operations due to the expansion of its business, which causes those communities to become crowded. As a result, the Company initiates a pilot community for a sustainable water and waste management project in 2017 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 3 R's principles in order to utilize waste efficiently and add value according to the principles of the circular economy. 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 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, Khlong Tamru Municipality, etc.
In 2022, the Company provided waste management knowledge to officials and volunteers in the Klong Tamru and Nong Mai Daeng Municipalities. The Company also educated teachers and students at the Wat U-ta-pao kindergarten in the Nong Mai Daeng District, to ensure that the community understands how to dispose of waste properly in accordance with the 3Rs principle. This initiative helps reduce the environmental impact of waste in the community.
Continuous implementation of sustainable water and waste management model community project has resulted in a decrease in the average BOD (Biochemical Oxygen Demand) value in that area. The water quality at the Klong Tamru drainage gate in 2022 had an average BOD value at 6.2 mg/L which continuously decreased since 2017. This has achieved the project target set by the Company to have a BOD value not exceeding 10 mg/L which is better than the water quality standards set by the Department of Pollution Control, which is not to exceed 20 mg/L.
Sister Parks Arrangement for Resources and Knowledge Sharing (SPARK) Project
The AMATA Foundation has been implementing the Sister Parks Arrangement for Resources and Knowledge Sharing (SPARK) project in collaboration with the Department of National Parks, Wildlife and Plant Conservation, and the International Conservation Caucus Foundation (ICCF) since 2013, aiming to elevate Khao Yai National Park to world-class standards and to use it as a model for learning about park management for other national parks in Thailand as well as in the ASEAN region.
A study by ICCF experts in 2015 found that an urgent issue that needed immediate action was sewage management. This aims to ensure that the water sources both the within and outside the national park would not be negatively impacted by sewage from tourists and park officials because the Dong Phayayen-Khao Yai forest is an important source of Thailand's main five major rivers, namely Nakhon Nayok River, Prachin Buri River, Lam Takhong River, Muak Lek River, and Mun River. Therefore, managing sewage in the national park is critical matter.
In 2022, the AMATA Foundation and AMATA Water Co., Ltd., which specialize in water management, collaborated with their business partner, ICCF's experts, and Khao Yai National Park officers to undertake a project aimed at enhancing wastewater management in the park as follows:
Road Safety Promotion Project
There are more than 260,000 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 in high risks of road accidents. The Company must therefore strictly manage traffic and provide a road safety management plan that integrates all sectors to jointly manage traffic within the AMATA Industrial Estates and surrounding areas according to the ‘6E Concept’. Further details can be found under the section titled "Building a Safe Community" on page xx.
The Company has collected statistics on road accidents, including the causes and types of accidents, to analyze them for use in the management process and to solve problems, particularly those arising from road structures and traffic lane patterns. The Company also aims to raise awareness of traffic laws, wearing helmets and seat belts, obeying traffic laws, and driving with kindness on the road, by taking proactive action to raise awareness of road safety in both industrial estates and nearby communities and schools.
In 2022, the Company provided traffic discipline training, basic fire fighting training, and fire evacuation drills to the students of Mab Sam Klew Municipal School, Don Hua Lo sub-district, Mueang district, Chonburi province.
Blood Donation Project
As large-scale industrial estates, there are a lot of employees, both Thai and foreign, working in both AMATA industrial estates. The total population of the surrounding communities is more than 500,000 people. Therefore, they are the areas with the highest 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 and those of the factory operators in both AMATA industrial estates to donate blood.
The Company has targeted to receive blood donation at least 1 million cc per year to support the Thai Red Cross Society. Therefore, the Company has organized blood donation activities annually. In the year 2022, the 11th year of this project, the Company promoted blood donations at the AMATA City Industrial Estate blood donation center in Chonburi and at Thai Red Cross Society mobile blood donation vehicles. AMATA employees and factory employees participated in the blood donation activities, and a total of 2.99 million cc of blood was donated in 2022. The cumulative amount of blood donated over the past 11 years is over 21 million cc, which can be used to help more than 148,742 patients.
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 upgrade the capabilities of factory personnel and local workers by providing access to quality education for everyone and promoting continuous learning.
"Sufficiency Schools " Project - Learning How to Grow Oyster Mushrooms
The Company collaborated with the Industrial Estate Authority of Thailand and the AMATA CSR Volunteer Club at AMATA City Rayong to organize the "Sufficient School" project to teach students about growing oyster mushrooms at Ban Phu Sai School, Khao Mai Kaeo Sub-district, Bang Lamung District, Chonburi Province. The project aims to promote various mushroom cultivation skills to students through practical training, including packaging, seeding, and greenhouse maintenance, so that they can use them to make lunch at school, cutting costs and creating additional revenue for the school.
School and E-library Development Project
The Company partnered with the Industrial Estate Authority of Thailand and the CSR Club at AMATA City Chonburi, to organize a project for developing schools and electronic libraries three times, including: 1.Don Hua Ror Municipal School 1, 2.Ban Ngiew Temple School, and 3. Ban Huai Tak Dai School. The project aims to provide new and second-hand computers, desks, and chairs to support online learning platforms. The total value of the donations to the schools is 486,490 baht. The project repaired and renovated playgrounds for children, and established mushroom cultivation for use in school lunches and as a supplementary source of income. Additionally, games were organized, and prizes were given out to students.
AMATA Drawing Contest Project
In 2022, the Company organized a drawing and coloring contest for grades 4-6 students on the topic of "Good things at AMATA" at schools surrounding the AMATA City Chonburi Industrial Estate and Rayong. The purpose of the contest was to promote creativity, observation skills, and learning about various social issues, culminating in the creation of artistic works. The contest received over 150 entries, and the winners were awarded a scholarship of over 50,000 baht.
The Company has given importance to supporting and engaging in the local traditional and cultural activities of the communities in order to carry on the good traditions and build good relationships and attitudes with them. 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 in and supporting the local traditional and cultural activities of the communities.
In 2022, the Company’s executives and employees participated in activities with local communities in the vicinity of AMATA City Conburi Industrial Estate, such as the "Thot Kathin Mahakusol" event at Wat Bunyawat, Klong Tamru subdistrict, Thot Kathin Samakkhi event at Wat Mab Samklaew, and Thot Kathin event at Wat Bangnang, Chonburi Province, as well as the 2022 annual candle parade.
In the area surrounding the AMATA City Rayong Industrial Estate, the Company participated in traditional Songkran Festival and Elderly Day activities organized by the subdistrict administration. During these events, souvenirs and consumer products were given to the elderly in Khoa Mai Kao sub-district, Banglamung District, Chonburi Province, Pluak Daeng sub-district, Pluak Daeng District, Rayong Province, and Nakhon Pattana sub-district, Rayong Province. The Company also participated in Buddhist Lent traditions and the Loi Krathong Festival at Mab Yang Porn sub-district.
The Company’s Community Relations and Social Responsibility Working Committee have conducted annual satisfaction surveys of the communities surrounding AMATA Industrial Estates. The committees have worked with the Faculty of Communication Arts at Sripatum University’s Chonburi Campus on an in-depth study of community needs and expectations as well as a survey on the community’s satisfaction with the Company’s community development projects. The survey results showed that AMATA City Chonburi Industrial Estate received an average satisfaction score of 92% and AMATA City Rayong Industrial Estate received an average satisfaction score of 98%.
Furthermore, the Industrial Estate Authority of Thailand conducted an annual community satisfaction survey on 33 industrial estates nationwide, and the Company collaborated in community satisfaction surveys in both AMATA industrial estates. In 2022, AMATA City Chonburi Industrial Estate received an average satisfaction score of 91%, and AMATA City Rayong Industrial Estate received an average satisfaction score of 89%.
The Company obtained suggestions from the community satisfaction survey surrounding both AMATA industrial estates and analyzed and planned the implementation of activities to support and develop the communities for the following year. The Community Relations and Social Responsibility Working Committee also conducts an in-depth interview to determine the cause of problems and the community’s expectations of the Company which can be used as basic information for future activities.