Climate Issues

Supervision and governance of climate-related risks and opportunities by the board of directors and management: On May 6, 2022, the board of directors reported for the first time the operation and implementation of the company's promotion of sustainable development. The governance structure consists of the chairman and senior management. The general manager serves as the general convener, and a sustainable development promotion group is set up. The original corporate social responsibility committee continues to be responsible for coordinating the company's corporate social responsibility and sustainable development direction strategies and goals.
 It meets at least once a year and holds discussions on major issues from time to time. The most recent report is the 4-7th meeting of the board of directors on August 24, 2023.

How the identified climate risks and opportunities affect the operations, strategy and finances of companies (short-term, medium-term, long-term): through cross-departmental discussions and identification of climate-related risks and opportunities, and identify climate-related risks and opportunities.
◼ Short term
Physical risks: heavy rainfall, drought, annual average temperature increase.Market opportunities: a. Establish a green supply chain, starting from the product source, formulate relevant standards to assess suppliers, and gradually require manufacturers to make carbon reduction statements.
b. Install rainwater storage and wastewater recycling equipment, and change all factory lighting to LED.
c. Convert fuel to electricity, and electricity to green energy.
◼ Medium to long term
Physical risks: gradual increase in extreme weather conditions such as sea level rise, carbon tax.Market opportunities:
a. Use COBOT to transform digital smart factories, reduce labor and carbon emissions, and create more efficient production methods mode.
b. Purchase a new factory area ​​equal existing site, 100 meters above sea level and 50 kilometers away from the coastline in order to backup production capacity.

The financial impact of extreme climate events and transition actions:
Increased operating costs:
a. Increased cost of raw materials: Climate change may make specific raw materials less accessible, resulting in increased procurement costs.
b. Increase in energy costs: The increase in energy prices has led to an increase in the company's energy consumption costs.
c. Increased risk management costs: Climate change creates many related risks, and companies need to increase risk management and comply with laws and related expenses.

How to integrate climate risk identification, assessment and management processes into the overall risk management system:
The company's risk management system and practices when facing climate change risks are as follows:
a. Collect: Identify company-related risks and opportunities.
b. Identification: Assess various risks and opportunities, including the possibility of impact, degree of impact, and time of occurrence, etc.
c. Assessment: Evaluate the possible opportunities based on the possibility of risks occurring.
d. Compilation and review: discuss risk control and response measures, and formulate appropriate management strategies.
◼ Evaluation results In addition to risk response plans that may affect the economy and corporate governance, the company's risk management also includes risk assessment and emergency response plans for the environment, natural disasters, information security and human resources, and improves employees through education and training. The ability to identify risks, reduce the occurrence of risks, and reduce possible losses caused by operational interruptions.

If scenario analysis is used to assess resilience to climate change risks, the scenarios, parameters, assumptions, analysis factors and main financial impacts used should be described.
5.1 Applicability no
5.2 Please describe The company has not yet used scenario analysis to evaluate response strategies in the face of climate change risks, but there will be plans to implement it in the future.

If there is a transformation plan to manage climate-related risks, describe the content of the plan, and the indicators and targets used to identify and manage physical risks and transformation risks.
6.1 Applicability yes
6.2 Please describe
The company has completed relevant independent inventories on greenhouse gases, set energy conservation and carbon reduction goals in response to climate change, set relevant management indicators and goals, and implemented various climate change and environmental sustainability responsibilities as a global citizen. In terms of formulating policies for energy conservation and carbon reduction, greenhouse gas reduction, water use reduction or other waste management, relevant provisions have been formulated in the "Code of Practice for Sustainable Development", which have been in practice for many years and are indeed implemented; the company has implemented sustainable development Develop related projects: (a) Organizational carbon investigation (ISO 14064-1) (b) Product carbon footprint (ISO 14067) (c) Solar green electricity (Soi 12 & Soi 11) (d) Electric lift machine (hydraulic forklift Usage ratio dropped by 4%). The carbon emission intensity in 2023 decreased by 28.092% compared with the previous year, and the total carbon dioxide emission equivalent was 19,603 tons, a decrease of 5.277% compared with 2022. Projects related to sustainable development arranged in the future include (a) supplier intention survey/supply chain carbon reduction promotion (b) Thailand carbon rights certification transaction-tree planting carbon reduction project (green/yellow carbon) (Clean Development Mechanism; CDM) (c) Thailand Green Power Certification Transaction - Green Power Tariff Project (Utility Green Tariff; UGT) (d) Internal promotion of sustainable management/internal policy for carbon emission reduction (e) Sustainable carbon emission certification system ISO 50001, ISO 14064-2, ISO 14068 (PAS 2060), RE100, SBTi (f) Carbon emission reduction manufacturing production/R&D development of low-carbon processes 1. Energy efficiency, carbon capture technology (Carbon Dioxide Removal; CDR) 2. Water-cooled air conditioning.

If internal carbon pricing is used as a planning tool, the basis for setting the price should be stated.
7.1 Applicability yes
7.2 Please describe Plan performance bonuses for senior managers and company-wide year-end bonuses in Scope 3 tied to the achievement of net-zero carbon emission reduction targets

​If climate-related goals are set, information such as the activities covered, greenhouse gas emission scope, planning schedule, annual achievement progress, etc. should be described; if carbon offsets or renewable energy certificates (RECs) are used to achieve relevant goals, information such as Explain the source and quantity of carbon reduction credits or the quantity of renewable energy certificates (RECs) being redeemed.
8.1 Applicability yes
8.2 Please describe​ Thailand has promoted the voluntary carbon emissions trading system (V-ETS) since 2013, setting upper limits on direct carbon emissions and energy indirect carbon emissions on a pilot basis for high-carbon-emitting industries, and planning the implementation policy of the national mandatory ETS. The company has joined the Thailand Voluntary Emission Reduction program (T-VTR) to apply for carbon credits for the 518 tons saved by solar power generation in 2023, the expected emission reduction of 777 to 1,100 tons in 2024, and the 777 to 1,100 tons of renewable energy emission reduction in 2027 ( Carbon Credit), and plans to start purchasing UGT (Utility Green Tariff green electricity rate project) from the Thai Electric Power Company to offset carbon credits of 1,000 tons per year in 2030, and then increase the green power UGT to offset carbon credits to 1,500 tons per year by 2040 tons until 2050.