Climate Change

1. Importance

Climate action is a strategic imperative for the Group as the impacts of climate change continue to intensify across environmental, economic, and social dimensions. As a leading renewable energy producer, the Group plays a critical role in supporting Thailand’s transition toward a low-carbon economy, contributing to national energy security while reducing greenhouse gas emissions. Proactive climate management enables the Group to mitigate operational and regulatory risks, enhance resilience against climate-related disruptions, and align with evolving stakeholder expectations, including investors, regulators, and communities. Furthermore, embedding climate considerations into business strategy supports long-term value creation by unlocking opportunities in clean energy innovation, strengthening competitive positioning, and contributing to global efforts to limit temperature rise in line with international climate goals.

2. Targets and Performance

To demonstrate its commitment to climate action, the Group has established clear goals and systematically monitors performance against these material topics, as outlined below:

3. Management Approach

The Group adopts an integrated and forward-looking approach to climate change management, aligned with its commitment to sustainable growth, carbon neutrality, and global climate action. As a renewable energy leader, the Group embeds climate considerations across governance, strategy, risk management, and operations.

To support its Zero Carbon Emission Goals (Net Zero) by 2050, the Group framed the 8 steps to Net Zero Emission:

3.1 Climate Related Policy

The Group is committed to creating organizational value while addressing climate change and reducing environmental pollution, as a leader in renewable and clean energy businesses. This commitment is aligned with government policies and global efforts to mitigate global warming, through development toward carbon neutrality. This commitment supports both national policies and global efforts to limit global warming. The Group has set a long-term target to achieve net zero greenhouse gas emissions by 2050, supported by interim targets to reduce emissions by 25% by 2030, 50% by 2035, and 75% by 2040. This target was established in 2025 with a baseline of approximately 500,000 tCO₂e, based on preliminary GHG emissions estimates from the Group’s planned operations, including Khon Kaen MSW power plant, Krabi MSW power plant, and Koh Khanun natural gas power plant.

Additionally, the Group promotes decarbonization through improved operational efficiency, circular economy practices, and climate resilience, while integrating sustainability principles across all business activities. The Group established 4 key strategic pillars to support climate-related commitments including:

• Carbon Management – including methane avoidance from land fill and operational efficiency of power plant combustion to minimize greenhouse gas emission per unit of electricity generation.
• Circular Economy Integration – focusing on resource recovery from waste and by-products.
• Climate Resilience – covering designing and improving infrastructure to withstand extreme weather conditions (such as state-of-the-art flood protection systems) to ensure energy security for communities.
• Transparency – reporting environmental performance in accordance with the international standards (i.e., TCFD, GRI, CDP)

3.2 Governance and Accountability

Climate change is governed at the highest level through oversight by the Board of Directors and the Sustainability and Risk Management Committee. The Chairman of the Sustainability and Risk Management Committee is responsible at the Board level for overseeing climate-related risks and opportunities, with regular reporting to the Board. Climate considerations are integrated into enterprise risk management and strategic decision-making processes, with performance linked to executive remuneration.

See more information:

• Charter of the Board of Directors
• Charter of the Sustainability and Risk Management Committee

Climate considerations are also integrated into enterprise-wide policies, including risk management and sustainability frameworks. The Group continues to strengthen governance by enhancing clarity on designated Board-level responsibility for climate oversight.

3.3 Climate Strategy and Decarbonization Pathway

The Group’s climate strategy is aligned with its Net Zero pathway, which includes:

• GHG inventory and baseline development (Scopes 1, 2, and 3) using Carbon Footprint for Organization (CFO) methodology. In 2025, the Group also prepared a Carbon Footprint for Organization (CFO) for the Sirindhorn Clean Energy Power Plant, which is currently undergoing verification.
• Science-aligned target setting consistent with a 1.5°C pathway
• Strategic implementation roadmap, covering short-, medium-, and long-term actions

• Continuous monitoring, evaluation, and disclosure of climate performance

Key decarbonization levers include:

• Enhancing combustion efficiency and operational performance
• Increasing renewable energy generation and internal clean energy use
• Developing low-carbon technologies (e.g., carbon capture, waste heat recovery)
• Leveraging carbon markets (e.g., I-REC, carbon credits)

In 2025, the Group generated a total of 1,195,407,222.47 kWh of electricity from renewable energy sources, including biomass, municipal solid waste, and solar energy, representing 64.68% of the Group’s total electricity generation. All electricity generated from these renewable sources contributed to reducing carbon dioxide emissions into the atmosphere compared to electricity generated from fossil fuels.

Considering biomass power generation alone, the Group produced 971,213,222 kWh in 2025, accounting for 81.25% of the total renewable electricity generated. Compared to generating the same amount of electricity from fossil fuels, the Group helped avoid carbon dioxide emissions of approximately 913,911.64 tCO₂e and 428,305.03 tCO₂e, when compared with coal-based and natural gas-based generation, respectively. These estimates are based on a Life Cycle Assessment (LCA) approach.

3.4 Climate Risk and Opportunity Management

The Group places importance on mitigating global temperature rise to reduce the severity of climate related impacts, as outlined in its sustainability management policy. Climate change has been identified as a key risk in the Group’s annual risk assessment process, which is integrated into the company-wide, multi-disciplinary risk management framework. The assessment results are communicated to relevant departments to ensure that climate-related risks are incorporated into strategic, operational, and business planning across the organization. The Group adopts a structured approach aligned with TCFD principles, covering both:

• Physical risks: e.g., drought, floods, extreme weather affecting biomass supply and operations
• Transition risks: e.g., regulatory changes, carbon pricing, market shifts, and technology evolution

Risk assessment is conducted using climate-related risk matrix to identify likelihood and impact of each climate-related event. The outcomes are integrated into strategic and operational planning and communicated across business units.

To strengthen resilience, the Group implements mitigation and adaptation measures such as:

• Diversifying biomass fuel sources and developing alternative feedstock

The biomass fuels used by the Group are derived from a variety of agricultural residues. Each biomass power plant utilizes multiple and different types of feedstock depending on location, climate conditions, and the types of economic crops in the surrounding areas. However, climate change poses significant risks to agricultural ecosystems in the long term, including natural disasters such as droughts, floods, storms, and crop diseases, which may lead to shortages of biomass feedstock for power generation.

• Investing in R&D for fuel optimization

The Group conducts research and development on biomass fuel formulations by blending various agricultural residues in optimal proportions to enhance calorific value, supported by chemical composition analysis. The Group also explores and develops new types of biomass fuels to increase fuel diversity and strengthen long-term energy security.

• Enhancing infrastructure resilience (e.g., flood prevention systems)
• Implementing safety measures against climate-related hazards (e.g., fuel self-ignition)

In 2025, the Group considered implementing the ISO 45001:2018/Amd 1:2024 - Occupational Health and Safety Management Systems Amendment 1: Climate Action Changes in evaluating the organizational context and stakeholder needs. A SWOT analysis was conducted, and continuously implement measures to address climate change. An example of these measures includes flood prevention in both power plants and during the construction of solar power plants. These measures must be intensified and capable of responding to emergencies that may arise from global climate phenomena, such as heavy rainfall over short periods (Rain Bomb) and global warming (Global Boiling), which can cause fuel self-ignition. It is mandated to monitor and store fuel properly to reduce the risk of heat accumulation and prevent potential fire hazards.

At the same time, the Group actively captures opportunities from climate transition, including:

• Revenue from renewable energy certificates (I-REC) and carbon credits

The Group is well-positioned to offer International Renewable Energy Certificates (I-REC) to organizations seeking to support their greenhouse gas reduction efforts, particularly for offsetting indirect emissions (Scope 2) from electricity consumption. These certificates serve as internationally recognized mechanisms to verify the origin of renewable electricity, ensuring transparency and traceability in clean energy generation and consumption

• Circular economy practices (e.g., biomass residues utilization, ash reuse)

The Group has implemented the “Less Burning More Earning” initiative to address global warming and PM2.5 pollution. The program purchases more than 50 types of agricultural residues, such as rice straw, rice husk, sugarcane leaves, corn stalks, and corncobs, to reduce open burning in agricultural areas including rice fields, sugarcane plantations, and cornfields. These materials are used as feedstock in the Group’s biomass power plants across all regions of Thailand. The initiative is carried out in collaboration with government agencies, community leaders, and farmers, offering fair purchase prices for agricultural residues. In 2025, the Group procured about 2.076 million tons of agricultural residues for use as fuel, contributing to the reduction of open burning over approximately 2,320,847.768 rai of agricultural land, thereby mitigating PM2.5 pollution. The Group also promoted eucalyptus plantation projects, which contributed to carbon sequestration of approximately 2,418,000 kgCO₂e.

• Access to green finance and sustainable investment instruments

Access to green finance enables the Group to secure the opportunities for low-interest funding, such as Green Bonds and Sustainability-linked Loans, by supporting the Net Zero transition. At the same time, it can capture RE100-related opportunities by supplying renewable electricity or renewable energy certificates (RECs) to multinational companies in Thailand seeking 100% clean energy, strengthening both financial resilience and growth potential.

Furthermore, to enhance employee awareness of climate change, the Group has integrated ESG principles with ISO standards, including ISO 9001:2015 AMD1, ISO 14001:2015 AMD1, and ISO 45001:2018 AMD1, incorporating climate change considerations into its 2025 operations. This integration aims to strengthen employees’ knowledge, understanding, and participation in assessing organizational context, as well as climate-related and greenhouse gas emission risks.

The Group also commits to aligning all future capital expenditures (CAPEX) with its Net Zero 2050 target and the Paris Agreement’s 1.5°C objective, prioritizing investments in renewable energy, energy efficiency, and low-carbon technologies.

The Group avoids and progressively phases out investments in carbon-intensive assets, focusing on renewable energy projects such as biomass, waste-to-energy, and solar power, to minimize transition risks and support a low-carbon portfolio.

To ensure alignment, all investment decisions undergo climate screening, including carbon impact assessment (Scopes 1–3) and alignment with the Group’s Net Zero pathway. Climate considerations are integrated into capital approval processes and overseen by senior management to ensure consistency with decarbonization goals.

3.5 Involvement in Climate-related Organization

The Group demonstrates active involvement in climate-related organizations through its membership in the Water and Environment Institute for Sustainability (WEIS) under the Federation of Thai Industries (FTI). This organization is dedicated to advancing climate action, greenhouse gas management, and low-emission industrial development.

The Group’s involvement extends beyond membership to active participation in multi-stakeholder programs and technical training initiatives in collaboration with national regulators (e.g. Department of Industrial Works, IEAT) and international organizations (e.g. UNIDO). The Group contributes by building internal capacity and supporting industry-wide adoption of climate-related practices.

In 2025, the Group nominated employee representatives to participate in certified training programs, including Industrial Water Management for Efficiency and Sustainability and Carbon Footprint for Organization (CFO) (covering Scope 1, 2 and 3), accredited by the Thailand Greenhouse Gas Management Organization (TGO). These activities strengthen the Company’s capability to measure, manage, and reduce greenhouse gas emissions in alignment with national climate frameworks.

Through these engagements, the Group actively contributes to climate knowledge development, regulatory alignment, and the transition to a low-carbon economy.

3.6 Energy Management

The Group has established a sustainable management approach based on eco-efficiency business practices. It promotes social and environmentally friendly business development and resource utilization management to maximize efficiency. Through the sustainable management approach, the Group committed to reduce energy consumption in production and services via continuous improvement of operations saves investment with a plan to manage and maintain machinery and equipment regularly.

The Group requires an in-house energy management to ensure efficient use of energy resources and promote serious and sustainable energy conservation by establishing a working group on energy management within the power plant operation area which has the powers and duties as follows:

1. Implementing energy management in accordance with energy conservation policies and energy management methods
2. Coordinating with relevant agencies for cooperation in the implementation of energy conservation policies and organizing methods, energy management, as well as providing training or activities to raise awareness among personnel.
3. Supervising energy management in accordance with energy conservation policies and energy management methods.
4. Reporting on energy conservation and management in accordance with energy conservation policy and energy management methods.
5. Making recommendations about setting or reviewing energy conservation policies and energy management methods.

For energy management practices, the Group has implemented an Auto Load Control (ALC) system to automatically control electricity generation in order to enhance operational efficiency, reduce fuel consumption, and minimize non-productive energy losses. In addition, the Group utilizes Big Data systems to collect and analyze operational data of individual equipment, which is used to support the design and improvement of machinery to better align with actual usage, as well as to determine appropriate maintenance intervals. Furthermore, the Group has replaced lighting equipment with energy-saving lamps and continuously promotes employee awareness and participation in electricity conservation.

The Group has successfully managed energy consumption in line with its plan, setting a target to reduce electricity consumption in 2025 by 5% compared to 2024. The actual performance achieved a reduction of 8.92% across 14 power plant operational sites (excluding SPP Khlong Khlung Power Plant (“BPP”), which commenced commercial operation in April 2024). Electricity consumption performance covering 15 operational sites is detailed in the table below.

Remark: * excluding SPP Khlong Khlung Power Plant (“BPP”)

Electricity consumption of solar power plants by project is as follows:

Remark: Solar power plants are currently in the process of collecting baseline data; therefore, a comparison of changes in energy consumption is not yet available.

4. Relevant Documents