[GRI 2-1 (2021), 2-2 (2021), 2-3 (2021), GRI 2-14 (2021), 3-1 (2021), 3-2 (2021), 3-3 (2021)]

EGCO Group conducts materiality assessment annually with consideration to related internal and external operations, including potential impacts they can have on the company, stakeholders, society, and the environment, as well as the relevant topics regarding stakeholders’ expectations. The materiality topics assessed covers the aspect of economic, social, and environment (ESG). The identified materiality issues will be determining EGCO Group’s business direction and use as a framework for the development of One Report on the topics related to sustainability development which covers operations for companies under EGCO Group’s operational control and joint ventures both in Thailand and other countries.

Process to determine Material Topics

List Material Topics

In 2023, EGCO Group identified 15 material topics. In comparison to the previous year, the identified material topics remain the same. However, there is a change in the significance level of the material topics according to the changing situation.

EGCO Group 2023 Material topics are as follows:

Definition
"Increasing Opportunities in Competition" focuses on identifying sustainable business opportunities in the electricity sector's transition to a low-carbon economy, attracting global financial interest, aiming for economic growth through ESG investing, resilient business models, and investor-company collaboration.
Risks and Opportunities, Actual and Potential Impacts

Increased opportunity leads to new business development

Lack of growth compared to competitors due to low flexibility and agility, leads to decreased revenue and lower compensation for employees

Cause of Impact
  • Operations
  • Products/Services
  • Supply Chain
Impact Level
Financial Impact Level
Double Materiality
Value Chain
  • Raw Material Provision
  • Power Generation
  • System Installation and Maintenance Business Unit
  • Other Relevant Power Business Units
  • Products and By-products
  • Supporting Activities
Stakeholders
  • Customers
  • Shareholders
  • Government Agencies
  • Employees
  • Communities
  • Creditors
  • Suppliers & Business Partners
  • Investors
  • Contractors
  • Non-governmental Organizations
SDGs
GRI Topic Standards

GRI 201: Economic Performance (2016): 201-1

Management of Material Topics: Policies, Commitments, Tracking of Actions Taken

For more information, please see Climate Climate Strategy and Market Opportunities Overview

One Report: Opportunities in Competition

Definition
GHG emissions are primary factor in climate change, prompting governmental responses to set climate goals or enforce regulation. Organizations commites to net zero, carbon neutrality, and biodiversity commitments to align with international targets, enhancing business resilience against climate-induced transitions and physical changes.
Risks and Opportunities, Actual and Potential Impacts

Increased opportunity for collaboration with other business partners and increased revenue

Unable to reduce greenhouse gas emissions and contribute to climate change and loss of biodiversity

Cause of Impact
  • Operations
  • Products/Services
  • Supply Chain
Impact Level
Financial Impact Level
Double Materiality
Value Chain
  • Raw Material Provision
  • Power Generation
  • System Installation and Maintenance Business Unit
  • Other Relevant Power Business Units
  • Products and By-products
  • Supporting Activities
Stakeholders
  • Customers
  • Shareholders
  • Government Agencies
  • Employees
  • Communities
  • Creditors
  • Suppliers & Business Partners
  • Investors
  • Society
  • Contractors
  • Media
  • Non-governmental Organizations
SDGs
GRI Topic Standards

GRI 305: Emission (2016): 305-1*, 305-2*, 305-3*, 305-7*

Management of Material Topics: Policies, Commitments, Tracking of Actions Taken

For more information, please see Climate Strategy and Market Opportunities Overview

Climate Impact Valuation

One Report: Climate Change

Definition
Efficient electricity generation management ensures stable, secure, and sufficient supply to meet customer needs while preventing disruptions in generation continuity.
Risks and Opportunities, Actual and Potential Impacts

Increased operational excellence leads to more job security and compensation for employees

Less power security for customers and reduction of job security for employees

Cause of Impact
  • Operations
  • Products/Services
  • Supply Chain
Impact Level
Financial Impact Level
Double Materiality
Value Chain
  • Power Generation
  • System Installation and Maintenance Business Unit
  • Other Relevant Power Business Units
  • Products and By-products
Stakeholders
  • Customers
  • Shareholders
  • Government Agencies
  • Employees
  • Communities
  • Creditors
  • Suppliers & Business Partners
  • Investors
  • Contractors
SDGs
GRI Topic Standards

GRI 2: General Disclosures (2021)

Management of Material Topics: Policies, Commitments, Tracking of Actions Taken

For more information, please see Power Generation Stability & Capability

Power Generation Impact Valuation

One Report: Power Generation Stability & Capability

Definition
Efficient risk management involves identifying, assessing, and mitigating risks while fostering a corporate culture that prioritizes risk management policies. Businesses are encouraged to integrate sustainability considerations, e.g., finance, climate, biodiversity, etc., into decision-making processes to ensure long-term value creation and effective sustainability governance framework.
Risks and Opportunities, Actual and Potential Impacts

Increased business resilience leads to trust from shareholders and other stakeholders on risk awareness and management

Business disruption due to failure to manage risk and crisis

Cause of Impact
  • Operations
  • Products/Services
  • Supply Chain
Impact Level
Financial Impact Level
Double Materiality
Value Chain
  • Raw Material Provision
  • Power Generation
  • System Installation and Maintenance Business Unit
  • Other Relevant Power Business Units
  • Products and By-products
  • Supporting Activities
Stakeholders
  • Customers
  • Shareholders
  • Government Agencies
  • Employees
  • Communities
  • Creditors
  • Suppliers & Business Partners
  • Investors
  • Contractors
SDGs
GRI Topic Standards

GRI 2: General Disclosures (2021)

Management of Material Topics: Policies, Commitments, Tracking of Actions Taken

For more information, please see Risk and Crisis Management Overview

Definition
Human capital development facilitates employee growth, empowering them to contribute to the organization's development and direction. Providing welfare, promoting diversity and equality fosters incentives and a supportive working environment, cultivating a culture of acceptance and non-discrimination
Risks and Opportunities, Actual and Potential Impacts

Increased employee competency results in higher employee engagement, satisfaction, and retention in company

Decreased morale in employees and inability to retain talented people

Cause of Impact
  • Operations
  • Products/Services
Impact Level
Financial Impact Level
Double Materiality
Value Chain
  • Raw Material Provision
  • Power Generation
  • System Installation and Maintenance Business Unit
  • Other Relevant Power Business Units
  • Products and By-products
  • Supporting Activities
Stakeholders
  • Employees
  • Contractors
SDGs
GRI Topic Standards

GRI 404: Training and Education 2016: 404-1

GRI 405: Diversity and Equal Opportunity 2016: 405-2*

Management of Material Topics: Policies, Commitments, Tracking of Actions Taken

For more information, please see Our Employees Overview

Definition
Digital technology and innovation enhance business value and operational efficiency by improving products, reducing costs, and optimizing procedures, while also safeguarding against disruptions and aligning with the growing demand for clean energy from stakeholders and changing regulatory trends.
Risks and Opportunities, Actual and Potential Impacts

Increased reliability of operations and decreased burden for employees

Decreased competitiveness and failure to upskill employees to adapt with new technology

Cause of Impact
  • Operations
  • Products/Services
  • Supply Chain
Impact Level
Financial Impact Level
Double Materiality
Value Chain
  • Power Generation
  • System Installation and Maintenance Business Unit
  • Other Relevant Power Business Units
  • Products and By-products
Stakeholders
  • Customers
  • Employees
  • Suppliers & Business Partners
  • Creditors
SDGs
GRI Topic Standards

GRI 2: General Disclosures (2021)

Management of Material Topics: Policies, Commitments, Tracking of Actions Taken

For more information, please see Innovation Management Overview

Definition
Proper waste management ensures minimal negative impacts on health, safety, and the environment, emphasizing reduction, reuse, and recycling, while the circular economy aims to maintain resource value through recycling and minimizing resource use.
Risks and Opportunities, Actual and Potential Impacts

Promotion of circular economy and increased reputation from stakeholders

Create excessive waste pollution and disturb surrounding community

Cause of Impact
  • Operations
  • Products/Services
  • Supply Chain
Impact Level
Financial Impact Level

-

Double Materiality
Value Chain
  • Power Generation
  • System Installation and Maintenance Business Unit
  • Other Relevant Power Business Units
  • Products and By-products
Stakeholders
  • Customers
  • Communities
  • Suppliers & Business Partners
  • Society
  • Contractors
SDGs
GRI Topic Standards

GRI 306: Waste (2020):306-3*, 306-4*, 306-5*

GRI 306 Effluents and Waste (2016):306-3*

Management of Material Topics: Policies, Commitments, Tracking of Actions Taken

For more information, please see Waste Management

Waste Management Impact Valuation

Definition
The organization maintains employee and contractor safety through Occupational Health & Safety policies, reducing operational risks, and ensuring workplace well-being by implementing safety measures to foster safe behaviour and productivity.
Risks and Opportunities, Actual and Potential Impacts

Attentiveness to safety fosters a safe working environment and leads to increased trust in the organization

Disregard of safety leads to injury or even fatality in the workplace

Cause of Impact
  • Operations
  • Products/Services
  • Supply Chain
Impact Level
Financial Impact Level
Double Materiality
Value Chain
  • Raw Material Provision
  • Power Generation
  • System Installation and Maintenance Business Unit
  • Other Relevant Power Business Units
  • Products and By-products
  • Supporting Activities
Stakeholders
  • Customers
  • Shareholders
  • Employees
  • Communities
  • Creditors
  • Suppliers & Business Partners
  • Investors
  • Contractors
SDGs
GRI Topic Standards

GRI 403: Occupational Health and Safety (2018): 403-9*

Management of Material Topics: Policies, Commitments, Tracking of Actions Taken

For more information, please see Occupational Health and Safety Overview

Definition
Energy management involves analyzing and enhancing machinery and operational processes for efficiency, alongside ensuring energy security and employing eco-friendly technology to mitigate carbon emissions.
Risks and Opportunities, Actual and Potential Impacts

Increased efficiency in energy usage leads to reduced emissions

Increase in greenhouse gas emissions due to inability to manage resource efficiently

Cause of Impact
  • Operations
  • Products/Services
  • Supply Chain
Impact Level
Financial Impact Level
Double Materiality
Value Chain
  • Power Generation
  • System Installation and Maintenance Business Unit
Stakeholders
  • Customers
  • Shareholders
  • Employees
  • Communities
  • Contractors
SDGs
GRI Topic Standards

GRI 302: Energy (2016):302-1*, 302-3*

Management of Material Topics: Policies, Commitments, Tracking of Actions Taken

For more information, please see Energy Efficiency Management

Definition
Good corporate governance ensures trust, transparency, and accountability by aligning business practices with stakeholder expectations through comprehensive policies e.g., corporate governance policy, anti-corruption policy, code fo conduct and active engagement with relevant associations and councils.
Risks and Opportunities, Actual and Potential Impacts

Sound governance leads to transparent communication and increased reputation and trust from society

Lack of governance results in corruption or non-compliance

Cause of Impact
  • Operations
  • Supply Chain
Impact Level
Financial Impact Level
Double Materiality
Value Chain
  • Raw Material Provision
  • Power Generation
  • System Installation and Maintenance Business Unit
  • Other Relevant Power Business Units
  • Products and By-products
  • Supporting Activities
Stakeholders
  • Customers
  • Shareholders
  • Government Agencies
  • Employees
  • Communities
  • Creditors
  • Suppliers & Business Partners
  • Investors
  • Society
  • Contractors
  • Media
  • Non-governmental Organizations
SDGs
GRI Topic Standards

GRI 2: General Disclosures (2021)

GRI 205: Anti-corruption (2016):205-2, 205-3

GRI 206: Anti-competitive behaviour (2016): 206-1

Management of Material Topics: Policies, Commitments, Tracking of Actions Taken

For more information, please see Corporate Governance Overview

Definition
Fostering strong ties with local communities enhances operational efficacy, promotes trust, and aligns with responsible business practices, supporting both organizational success and the UN Sustainable Development Goals (SDGs).
Risks and Opportunities, Actual and Potential Impacts

Gained social license to operate in the community

Insufficient attention to corporate citizenship leads to tension with community members causing conflict and possible business interruption

Cause of Impact
  • Operations
  • Products/Services
Impact Level
Financial Impact Level
Double Materiality
Value Chain
  • Raw Material Provision
  • Power Generation
  • System Installation and Maintenance Business Unit
  • Other Relevant Power Business Units
  • Supporting Activities
Stakeholders
  • Shareholders
  • Employees
  • Communities
  • Society
  • Media
  • Non-governmental Organizations
SDGs
GRI Topic Standards

GRI 413: Local Communities (2016):413-1

Management of Material Topics: Policies, Commitments, Tracking of Actions Taken

For more information, please see Corporate Social Responsibility Overview

One Report: Corporate Social Responsibility

Definition
Effective supply chain management involves selecting and assessing suppliers, mitigating risks, and conducting fair transactions to ensure efficient business operations and sustainable procurement while minimizing operational risks.
Risks and Opportunities, Actual and Potential Impacts

Suppliers meet expectations in producing and delivering resources sustainably

Discrimination in procurement process for suppliers

Cause of Impact
  • Supply Chain
Impact Level
Financial Impact Level

-

Double Materiality
Value Chain
  • Raw Material Provision
Stakeholders
  • Suppliers & Business Partners
  • Contractors
SDGs
GRI Topic Standards

GRI 2-6 Activities, value chain and other business relationships (2021)*

GRI 308: Supplier Environmental Assessment (2016): 308-1

GRI 414: Supplier Social Assessment (2016):414-1, 414-2

Management of Material Topics: Policies, Commitments, Tracking of Actions Taken

For more information, please see Supply Chain Management Overview

Definition
The organization develops and implements policies aligned with UN or international standards, ensuring human rights protection, labor rights, diversity, equality, and fair recruitment practices, while preventing any adverse impacts in business operations.
Risks and Opportunities, Actual and Potential Impacts

Guarantee equality in workplace where no rights are violated for all stakeholders

Violates human rights for stakeholders from operation activities

Cause of Impact
  • Operations
  • Products/Services
  • Supply Chain
Impact Level
Financial Impact Level

-

Double Materiality
Value Chain
  • Raw Material Provision
  • Power Generation
  • System Installation and Maintenance Business Unit
  • Other Relevant Power Business Units
  • Products and By-products
  • Supporting Activities
Stakeholders
  • Customers
  • Shareholders
  • Government Agencies
  • Employees
  • Communities
  • Creditors
  • Suppliers & Business Partners
  • Investors
  • Society
  • Contractors
  • Media
  • Non-governmental Organizations
SDGs
GRI Topic Standards

GRI 2: General Disclosures (2021)

Management of Material Topics: Policies, Commitments, Tracking of Actions Taken

For more information, please see Human Rights Overview

Definition
Organization’s preparation to prevent incidents related to information security and/or cybersecurity, including responding and appropriately responding to and managing critical information security incidents.
Risks and Opportunities, Actual and Potential Impacts

Guarantee safety of sensitive data

Personal Information is leaked and decrease in employee and customer trust

Cause of Impact
  • Operations
  • Products/Services
  • Supply Chain
Impact Level
Financial Impact Level

-

Double Materiality
Value Chain
  • Raw Material Provision
  • Power Generation
  • System Installation and Maintenance Business Unit
  • Other Relevant Power Business Units
  • Products and By-products
  • Supporting Activities
Stakeholders
  • Customers
  • Shareholders
  • Government Agencies
  • Employees
  • Creditors
  • Suppliers & Business Partners
  • Investors
  • Contractors
SDGs
GRI Topic Standards

GRI 418: Customer Privacy (2016): 418-1*

Management of Material Topics: Policies, Commitments, Tracking of Actions Taken

For more information, please see Privacy Protection and Cybersecurity Overview

Definition
Effective water and wastewater management increases safe water supply for all, protects ecosystems, reduces community conflict, and provides economic benefits through recycling treated wastewater for other beneficial purposes, and enhancing overall water resource sufficiency.
Risks and Opportunities, Actual and Potential Impacts

Guarantee water security for the community

Contribute to water scarcity and pollution which creates conflict with the surrounding community

Cause of Impact
  • Operations
  • Products/Services
  • Supply Chain
Impact Level
Financial Impact Level

-

Double Materiality
Value Chain
  • Power Generation
  • System Installation and Maintenance Business Unit
  • Other Relevant Power Business Units
  • Products and By-products
Stakeholders
  • Employees
  • Communities
  • Suppliers & Business Partners
  • Society
  • Contractors
SDGs
GRI Topic Standards

GRI 303: Water and effluents (2018): 303-3*, 303-4*, 303-5*

Management of Material Topics: Policies, Commitments, Tracking of Actions Taken

For more information, please see Sustainable Water