Sustainable Supply Chain


The Company procures products and services from suppliers and contractors for the main activities of industrial estate business operations and the work that supports the management of industrial estates. As a result, the quality of products and work of suppliers and contractors have a direct impact on the Company and its stakeholders, both positively and negatively. Suppliers and contractors with substandard performance or high ESG risks are likely to cause non-compliance with laws and regulations. They may also create negative social and environmental impacts, such as poor waste management, and risks to the safety of people and property. Furthermore, without a good audit process, the Company's suppliers and contractors may contribute to labor and human rights violations, which can create risks to the Company's reputation and credibility beyond the direct economic impact on the Company from the quality of work and delivery time.


Effective supplier and contractor management is crucial for the Company to mitigate risks and minimize social and environmental impacts in its supply chain, as well as the impacts on surrounding communities of the industrial estate, both in the short and long term. Additionally, it will increase the quality and efficiency of its work, leading to greater customer satisfaction with the Company's products and services. Screening and developing high-quality suppliers and contractors will help elevate the standard of business partners, supporting the Company's business expansion for long-term mutual growth.

Management Approach

The Company has appointed the AMATA Procurement Working Committee, which is chaired by the Senior Vice President of Accounting & Tax, Finance & Treasury, Investor Relations, and Information Technology. The Working Committee consists of senior executives from the Company and its subsidiary companies and is responsible for developing procurement best practices that comply with international and ethical standards. The Committee also sets the procurement standards of the AMATA Group and prepares and disseminates the Supplier Code of Conduct to communicate the Company’s commitment to ethical business practices that take economic, social, and environmental impacts into consideration, including an ESG risk assessment within the Company's supply chain. This includes all suppliers and contractors that adhere to good corporate governance, economy, society, and environment. The Working Committee sets management guidelines and strategies suitable for each group of suppliers and contractors and facilitates the development and enhancement of their potential to reduce the sustainability risk and impact of business operations in the short and long term.
Hence, the Company has established the guidelines for sustainable supply chain management as follows:

The Company has communicated the Supplier Code of Conduct and AMATA Group Procurement Manual to its critical suppliers in line with the Sustainable Supply Chain Management Policy. This initiative aims to underscore the importance of, and provide guidelines for, ethical business practices that comply with the Company's standards. The focus is on social and environmental responsibility, along with honest, fair, and transparent business practices, addressing the following issues:

Business Ethics

Comply with laws and regulations, conduct business based on accuracy and integrity, anti-corruption, transparency, and verifiable information disclosure.

Human Rights

Ensure accurate and lawful employment, provide fair treatment, and prohibit child or forced labor in any form.

Occupational Health and Safety

Comply with occupational health and safety laws, provide appropriate and adequate safety equipment, maintain records of work-related illnesses and accidents, and communicate clearly and effectively to ensure understanding and compliance.

Social Responsibility

Provide channels for receiving stakeholders’ complaints and be aware of the impacts arising from the operation.

Environmental Responsibility

Comply with environmental laws and regulations, prepare measures to prevent and reduce environmental impacts from the operation, and promote environmentally friendly technologies and products.

In 2023, 100% of critical suppliers have responded to the Supplier Code of Conduct Acknowledgment. The following procurement processes were undertaken according to the AMATA Group Procurement Manual:

1. Critical Supplier Identification Criteria

The Company identified critical suppliers from two groups: those that do business directly with the Company (tier 1 suppliers) and those that do not (non-tier 1 suppliers). An analysis was conducted to identify these critical suppliers using the following criteria:

  • High-volume suppliers and contractors accounting for the first 80% of the total procurement or
  • Suppliers of critical components or services that are important to the business or
  • Non-substitutable or oligopoly suppliers

 In 2023, the Company has a total of 654 tier-1 suppliers and contractors who have continuously conducted business with the Company. Analysis revealed that 63 of these were critical tier-1 suppliers and contractors, accounting for 89% of the total procurement value. Specifically, 13 critical suppliers were in the real estate and rental businesses, representing 14% of the critical suppliers’ procurement values, while 50 were in utility and service businesses, accounting for 86%. Additionally, there were 24 critical non-tier 1 suppliers who did not directly conduct business with the Company.

2. Risk Assessment in Supply Chain

The Company has conducted ESG risk assessments with its suppliers, especially with critical suppliers and all new suppliers, by requiring them to complete a self-assessment questionnaire (SAQ) that covers economic, social, environmental dimensions, and corporate governance. For suppliers with a medium-to-high risk level (self-assessment scores below 80%), the Company will have a site visit and conduct an on-site ESG audit. Additionally, the Procurement Department and business units utilizing these suppliers' products or services are tasked with conducting annual supplier quality assessments, the frequency of which varies based on the risk level. High-risk suppliers are required to present preventive and corrective measures in accordance with the Company’s recommendation. The Company will provide assistance as needed to foster and maintain good relationships.

The Company set targets for all critical tier-1 suppliers and new suppliers to undergo evaluations focusing on economic and sustainability risks, including environmental, social, and governance aspects. In 2023, risk assessments were successfully completed for all 63 critical tier-1 suppliers and 52 new suppliers, as planned. These assessments determined that none of the critical suppliers posed high risks in economic, social, or environmental aspects.

3. Supplier Audit and Evaluation

The Company requires all critical suppliers and contractors that have already passed the economic and sustainability risk assessment by using the Self-Assessment Questionnaire (SAQ) to have an audit on the economic, environmental, social, and governance topics at their workplaces (on-site ESG audit). The patterns and frequency of the on-site ESG audit depend on the risk level. The critical suppliers with high risk will have an on-site audit as soon as possible; those at moderate risk will be audited once a year; and those at low risk will be audited every two years. The auditing items are set according to the Company’s criteria and the environmental management system (ISO 14001) standards and will be conducted by examining relevant documents and an on-site audit by the AMATA Procurement Working Committee.

In 2023, there were 22 critical suppliers that met the set criteria, and all of them underwent on-site audits by the Company.

Additionally, the Company mandates that suppliers and contractors who have business transactions with the Company undergo an annual performance evaluation and relationship assessment following the delivery of their goods or services. The results will be taken into account for the subsequent procurement.

The Company has put in place risk management measures for each supplier and arranged supplier development activities to reduce the likelihood of risk and the impact of such risks. However, the Company has not yet terminated business relationships with any assessed suppliers or contractors (0%).

4. New Supplier Registration

The new supplier selection process includes reviewing the qualifications and past performance of suppliers and contractors to determine whether they meet the Company's requirements. All new suppliers are required to complete an ESG risk assessment using a self-assessment questionnaire prior to new supplier registration. If a passing score is achieved and no economic, social, or environmental risks are found, the new supplier will sign the Supplier Code of Conduct Acknowledgement and be registered as a new supplier. If a passing score is not achieved or there are risks, the supplier must develop and submit a preventive or corrective plan and implement it until the score is acceptable before it can be registered as a new supplier.

In 2023, there were 52 new suppliers. All of them passed the specified new supplier selection process (100%).

5. Supplier Support and Development

The Company is committed to conducting business fairly with its suppliers to support their liquidity and capital management, benefiting both parties. It adheres to all supplier agreements and commitments and treats all suppliers equitably. The Company has established policies for screening and evaluating suppliers, including manufacturers, contractors, and subcontractors, ensuring that these processes are effective, standardized, and uphold social responsibility. Additionally, the Company has implemented procurement policies and procedures and formed a procurement committee to ensure transparency, verifiability, and strict adherence to the selection processes.

Regarding supplier payments, the Company adheres to agreements and commitments by offering fair and appropriate trade credit durations, which fosters business collaboration and is crucial for sustaining long-term growth. A Credit Term Policy has been established, specifying payment to suppliers within 30-50 days through a banking channel. This method builds trust with suppliers and ensures timely payments within the policy framework. However, the actual payment period may vary due to specific business limitations, such as product types, service specifications, contract terms, and quality standards. Details on the average account payables days for purchasing products and services are as follows.

The Company places importance on the development of suppliers and contractors in its supply chain, especially critical suppliers of utility and industrial services, to reduce social and environmental risks and impacts as well as compliance risks. It also encourages suppliers and contractors to improve their efficiency to be in line with the Company’s standards, i.e., encourage the critical suppliers and contractors to develop management systems and obtain appropriate international standard certifications, such as ISO 9001, ISO 14001, ISO 17025, and OSHA 18000. 

Supplier Development for Regulatory and Standard Compliance

  • On 24 May 2023, AMATA Facility Services Co., Ltd. hosted an online annual meeting for its stakeholders to communicate the Company’s work policies, control systems, and standards. The meeting also updated suppliers and contractors on relevant regulations and procurement systems, and solicited their feedback to improve operational efficiency. Additionally, the company will conduct supplier assessments and annual contractor performance evaluations to measure the success of these collaborative efforts.

Supplier Development for Safety Standards

  • AMATA Facility Services Co., Ltd. organized a training session on '2023 Review of Safety and Environmental Requirements' for its contractors at AMATA City Industrial Estate Chonburi and AMATA City Industrial Estate Rayong. The goal was to update and ensure operations comply with basic safety and environmental standards. Additionally, a workshop was conducted to deepen understanding and enhance skills in conducting Job Safety and Environmental Analysis (JSEA) for their specific tasks, with the aim of reducing or eliminating work-related risks and potential impacts.
  • On 22 July 2023, AMATA Facility Services Co., Ltd. organized a solid waste spill recovery drill for garbage picking and sorting workers at the contractor's waste sorting plant, aiming to enhance knowledge and skills in waste and environmental management and elevate the safety standards and operational efficiency of the contractor's employees.
  • On 4 November 2023, AMATA Facility Services Co., Ltd. conducted a training course on basic fire extinguishing and evacuation for contracted staff at the company’s premises. This training aimed to equip staff at the waste sorting plant with the necessary skills to prevent and manage fire incidents, thereby protecting life and property. Although no fire incidents occurred at the waste sorting plant in 2023, the training significantly improved the emergency response capabilities of the contracted staff. Regular reviews and updates of safety training have enhanced the safety of waste management contractors, resulting in no severe accidents, injuries, or fatalities among their staff in 2023. These practices have also contributed to maintaining a clean and orderly environment in the industrial estate, thereby reducing the risk of waste pollution and environmental contamination.
  • On 26 November 2023, AMATA Summit Ready-Built Co., Ltd. held a workshop on 'Working at High Workplaces' for consulting engineers and contractors responsible for factory repairs. The training focused on ensuring compliance with regulations and safety procedures for working in elevated areas, which are prone to impacts, falls, or material collapses. The goal was to prevent accidents that could occur from such heights. The contractors are required to conduct hazard identification, risk assessment, work planning, hazard prevention, and control measures. Additionally, it was essential to educate and inform the workers about the risks prior to starting work, closely supervise their activities, and document safety procedures for inspection.

Supplier Development in Knowledge, Capability, and Work Efficiency

  • On 15 June 2023, AMATA Summit Ready-Built Co., Ltd., in collaboration with Tokura (Thailand) Co., Ltd., and BMB Steel & Accessories Co., Ltd. (BMB Steel Thailand), hosted a training session on the ‘Design and Installation of Pre-Engineered Buildings (PEB)’. The session aimed to explore the technology, processes, and installation techniques of PEB systems, which represent a new technology designed to accelerate factory construction and enhance workplace safety.
  • On 5 September 2023, AMATA Water Co., Ltd. arranged a supplier training session on "Basic knowledge on data compilation for Carbon Footprint of Organization (CFO)" conducted by the Federation of Thai Industries.

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