Climate change is a significant challenge that leads to high risk in industrial water management as water is a major raw material for industrial estate business operations and also causes physical risks from natural disasters that are more severe each year. Climate change, therefore, has a significant impact on many stakeholders in the value chain, such as the industrial water use in the factories’ production lines and the livelihoods and well-being of the factory employees and surrounding communities. Besides this, its effect increases the Company’s operating costs on industrial water production in order to continuously supply water that meets industrial quality standards to factories in the industrial estates and on physical risk prevention against various natural disasters in the existing industrial estates and future projects.
In addition, there are currently changes in domestic and international laws and regulations relating to the climate, which pose a transition risk for the Company and factory operators in the industrial estate. As a result, the Company must prepare for the increasing climate-related demands of current and future customers, such as by preparing and disclosing its energy consumption and greenhouse gas emissions from various utilities or developing sustainable products and services to better meet the needs of customers and reduce the risk that will impact the Company’s competitiveness in the future.
The Company sees opportunities in developing new products and services that arise from the needs of existing factory operators in the industrial estates, who are affected by changing climate-related laws and regulations, trade standards that are influenced by government policies in each country, and increasingly stringent climate policies from their parent companies. This will enable the Company to respond to the increasing demand from new customers or target groups that place greater importance on climate change.
The Company is well aware of the importance of cooperation among all sectors to reduce greenhouse gas emissions. As such, it has integrated a “Climate Change Management Policy” into the determination of the Company’s goals and business plan toward a low-carbon city, which focuses on energy efficiency by 2040 and a reduction of direct and indirect greenhouse gas emission (Scope 1 and 2) intensity by 30%, compared to the 2019 base year, within 2030. The Company has launched the “Save Earth, Safe Us” campaign as well as policies and management guidelines aiming to reduce greenhouse gas emissions and cope with climate change. These consisted of three management strategies:
The Company places a high value on dealing with climate change from the past, such as precipitation patterns, rainfall, and the intensity of rainstorms in the eastern region that have caused drought or flooding in the past years. The Company, therefore, focuses on integrated and sustainable water management of all types, including raw water, industrial water, drought, wastewater, and flooding, to create water security, build confidence for customers and communities in the area, and reduce risks that may affect business operations and stakeholders’ quality of life.
The Company places importance on reducing greenhouse gas emissions, which are the main cause of climate change, and has established more ambitious targets towards becoming a carbon neutral city by 2040 and reducing greenhouse gas emissions by 30% by 2030 compared to the 2019 base year. This is in line with the Paris Agreement and Thailand’s goal, which was announced at the 26th session of the Conference of the Parties (COP 26) to the United Nations Framework Convention on Climate Change (UNFCCC), of reaching carbon neutrality by 2050 and net zero greenhouse gas emissions by or before 2065.
The Company foresees an opportunity to develop new products and services based on the needs of factory operators in today's industrial estates who are affected by the enforcement of climate change laws and regulations, changes in foreign trade regulations by the government policies in each country, and more stringent climate policies from overseas head offices, as well as meeting the needs of new customers or target groups who are more concerned about climate change.