Climate change is a global challenge that leads to the risks of disaster and the impacts to the economy, the well-being and sustainability of the global society.

The current impacts have eminently become tremendously severe. Thus, the Company is well aware of the importance of collaboration of all sectors in order to jointly reduce the effects of climate change and to support the Paris Agreement reached in December 2015 which Thailand had also expressed its intent to reduce the greenhouse gas emissions by 20-25%, compared to the 2015 base year, within 2030 in order to keep a global temperature rise this century well below 2 degrees Celsius above pre-industrial levels. The Company also promote renewable energy and reduce coal and fossil fuel consumption in accordance with the Glasgow Climate Pact, including achieving the UN Sustainable Development Goal 13.

Risk

Climate change is a challenge to the Company’s operation. For example, change in the pattern and volume of rainfall in the eastern region of Thailand causes drought or flood in certain years, causing an increase in the Company’s operating cost and risk of water management which is a major component of the industrial estate operation which requires them to consistently provide standardized clean water for the factory operators in the industrial estate. The consequence of climate change also affects a number of stakeholders in value chain, such as the factory operation, the living and well-being of factory staff and surrounding communities which potentially leads to the conflicts over water.

Opportunity

The Company sees an opportunity in developing products and services that can cope with and prevent the impact of a climate change, as well as responding to current and future needs of the customers such as clean energy production within the industrial estate, technology which helps increase the energy efficiency etc. Such opportunity will help mitigate the effect on the industrial sector, build confidence and generate income and competitiveness to the Company accordingly.

Management Approach

Climate change is a topic that the Company considers material and is committed to taking part in reducing the climate change effects. In 2019, the Company had officially announced the intention of AMATA Group to reduce the greenhouse gas emissions and had formulated the policies and the management approaches to reduce the greenhouse gas emissions from the operations and to tackle the climate change problem under "Save Earth, Safe Us" campaign.

The Company has thus set the strategies and management approaches to deal with the climate change by dividing into two areas, which are:

  1. To mitigate the climate change effects. The Company has considered the sustainable management of all types of water as a very significant issue, i.e. raw water, consumption water, wastewater and flood, by continuously developing the water management project for each type of water including the provision of raw water reserves to be at least 150% more than the demand for consumption in the industrial estates, the reuse of treated wastewater for the utmost use in order to reduce the reliance on the raw water from natural water resources, the development of public utility system for the preparation and prevention of flood and encouraging all stakeholder groups to realize the sustainable water management through AMATA Learning Center of Water Management and the Development of Model Community in Water Management Project.

  2. To reduce the greenhouse gas emissions. The Company is well aware of the importance of the collaboration of all sectors in jointly reduce the greenhouse gas emissions.  The Company, therefore, has integrated the climate change management policy into the Company's business development plan aiming to be a low carbon city by driving AMATA Smart City Project that focuses on energy efficiency through the adoption of technology and low carbon energy resources, as well as application of the principles of circular economy to the work process and business development of AMATA Group and its related stakeholders.

The Company is well aware of the importance of a cooperation amongst all sectors to reduce the greenhouse gas emission.  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 & 2) intensity by 30%, compared to the 2019 base year, within 2030.

Performance

1. Greenhouse Gas Emission of Organization

The Company has reported the direct greenhouse gas emission (Scope 1), indirect greenhouse gas emission from energy use (Scope 2) and other indirect greenhouse gas emission (Scope 3) data referring to the Approved Consolidated Methodology from the Carbon Footprint for Organization of Thailand Greenhouse Gas Management Organization (Public Organization).  In this regard, the greenhouse gases used in the calculation consisted of Carbon dioxide (CO2), Methane (CH4), Nitrous oxide (N2O), Hydrofluorocarbon (HFC6), Perfluorocarbon (PFCs), Sulfur hexafluoride (SF6) and Nitrogen fluoride (NF3). The Company collected the greenhouse gas emission data for carbon footprint calculation once a year.  The scope of disclosure covered the activities in three offices of the Company and in the common areas of AMATA City Chonburi Industrial Estate and AMATA City Rayong Industrial Estate which are under the responsibility of the Company.

In 2021 the Company’s 2020 carbon footprint of the organization (CFO) was certified by Thailand Greenhouse Gas Management Organization (Public Organization) for the second year.

In 2021 the Company emitted 12,219 tons of carbon dioxide equivalent (tCO2e) of direct and indirect greenhouse gas (Scope 1&2), comprising 470 tons of carbon dioxide equivalent of direct greenhouse gas (Scope 1) and 11,749 tons of carbon dioxide equivalent of indirect greenhouse gas from energy use (Scope 2).  Such emission decreased by 24.7% compared to the previous year, and by 32.1% compared to 2019 base year.  The 2021 greenhouse gas emission data are still under review by the Centre of Excellence on Environmental Strategy for Green Business (VGREEN), Kasetsart University.  It is expected to complete by the 2nd quarter of 2022.

The combined greenhouse gas emission (scope 1&2) intensity in 2021 stood at 2.1 tons of carbon dioxide equivalent per million Baht, a 28.2% reduction compared to that in 2019 base year.  A decrease in combined greenhouse gas emission intensity resulted from the Company’s Work-from-Home measure during Covid-19 pandemic which lowered the use of electricity and gas for transportation, and significantly increasing use of renewable energy in AMATA Industrial Estates aimed to reduce the use of electricity bought from external parties.

The Company is aware of the importance of a reduction in greenhouse gas emission, especially indirect greenhouse gas emission from purchased electricity (Scope 2) used in its main activities. As such, the following operational guidelines for a reduction in purchased electricity consumption in main activities are determined:

Activities

Operational guidelines

electricity consumption in common areas of the industrial estates
  • Increased the use of electricity from clean energy in the Company’s common areas
  • Changed bulbs of streetlamps to energy-saving LED light bulbs
  • Installed automatic street light control system
electricity consumption in water pumping and sprinkler systems
  • Increased the efficiency of energy use by inspecting and improving high-energy consumption machines in water pumping system
    • Increased the use of electricity from clean energy in water pumping system
    electricity consumption in office buildings
    • Encouraged staff to help save the energy while working
    In 2021 the Company emitted 19,534 tons of carbon dioxide equivalent of other indirect greenhouse gas (Scope 3), or decreased by 8.7% from that in 2020. Such other indirect greenhouse gas emission (Scope 3) resulted from contractors’ works in various activities as follows:
    Therefore, the Company has encouraged contractors to apply innovations and technology in the reduction of fossil fuel consumption and supported the use of renewable energy in the maintenance of its utility system to reduce the purchased electricity consumption.

    2. Energy Management

    The key energy-consuming activities in the Company are as below:
    In 2021, the Company consumed a total of 105,947 gigajoules of energy, a decline of 16,314 gigajoules or 13.3% from that in 2020. Energy consumption intensity in 2021 was 18.14 gigajoules per million Baht, a decrease of 16% from that in 2020 due to a significant drop in the activities which consumed energy within the Company such as fuel used in transportation and the use of electricity in office buildings, etc.
    However, the Company remains committed to continuing the process to ensure that its overall use of energy both from electricity and fuel is efficient. Approaches to reduce the use energy are as follows:

    2.1 Energy Saving in Office Building

    The Company has organized the activities continuously to promote the Company’s employees and the tenants in the office building to obtain more knowledge about the energy consumption reduction in the building by focusing on building every employee’s awareness to participate in energy conservation and the appropriate consumption of natural resources and environment to achieve sustainability; e.g. campaign to turn off air conditionings and unnecessary lights, campaign to use the stairs instead of elevators and adjustment of the temperature of air conditioning system in the offices not to be lower than 24 degrees Celsius, and turn-off of the screen of computer’s monitor every time when not in use, etc. 

    In 2021, the Company's office buildings had a total electricity consumption of 436,179 kWh, or a decrease of 20% from that in 2020 as a result of work-from-home measure during COVID-19 pandemic and the change in patterns of work whereby the employees can work from anywhere.

    2.2 Energy Saving in Common Areas

    In term of common areas of the industrial estates, the Company is responsible for all road lighting systems within the industrial estates.  In 2021, energy consumption in common areas increased by 7.29% due to an expansion of new developed areas.  All lighting systems in common areas of both industrial estates are LED light bulbs (100%).  Smart control system was installed in lighting control boxes to enhance the efficiency of lighting system.  Additionally, the Company installed solar traffic lights in 112 locations in AMATA City Chonburi Industrial Estate and AMATA City Rayong Industrial Estate for energy conservation.

    2.3 Promotion of the Use of Renewable Energy in the Company's Public Utility System

    The Company has encouraged its subsidiaries within supply chain to increase the energy efficiency and to reduce purchased electricity consumption particularly in water system for industrial use which consumes the highest amount of energy.  AMATA Water Co., Ltd., in charge of water and wastewater management in AMATA Industrial Estates, has studied on how to adopt solar energy to replace the electricity power in the operational process.  It has commenced the installation of solar roof system at the water supply production plant with water reclamation system since 2017.

    In 2021, AMATA Water Co., Ltd. had installed three additional solar panels consist of one ground-mounted solar panel and two floating solar panels in the reservoirs at AMATA City Chonburi Industrial Estate and AMATA City Rayong Industrial Estate.  As a result, total capacity of electricity generation from solar cells was increased by 2,152 kWh, accounting for 426.28% of total capacity in 2020. Total self-generated electricity in 2021was 3.81 million kWh meanwhile the greenhouse gas emissions were reduced by 1,647.28 tons of carbon dioxide equivalent per year.

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