Materiality Assessment
[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
1. Identification
EGCO Group reviews the context of its business activities and relationships throughout its value chain as a basis for determining material topics covering economic, social, and environmental aspects. In addition, consideration is given to ensure compliance with international standards and the current situations at both country and global levels which includes analyzing trends in comparison with global sustainability issues and peer companies in the energy and utilities sector. This is to identify material risk and opportunities by taking into account the business case and business impact of the Company, as well as associated actual and potential, negative and positive impacts on the economy, environment, and people, including impacts on human rights, across activities, business relationships and value chain
1.1 Understand EGCO’s Context
1.2 Identify Actual and Potential Impacts
2. Prioritize Material Topics
EGCO Group prioritizes the significance of material topics by considering the level of actual and potential impacts affecting stakeholders positively and negatively. As part of the process of identifying and prioritizing material topics, EGCO Group conducted a stakeholder survey of relevant internal and external stakeholders from 12 stakeholder groups including employees, shareholders, government agencies, creditors, investors, suppliers & business partners, contractors, communities, society, customers, media, and non-governmental organizations. Opinions and survey results from all stakeholder groups will be used to improve operations of each issue to increase efficiency.
Stakeholder Survey
Age
Gender
Nationality
Stakeholder View
EGCO has not yet added any new projects for bidding domestic power plants. Therefore, I would like EGCO to give more importance to management in terms of bidding on power plants.
EGCO Employee
Set a challenging net zero goal for the organization and have a clear road map on the direction of renewable energy development. As well as social engagement of people in the surrounding area of the power plant and collaborate to increase the quality of life of people in the project area/nearby areas
Society
In addition to the 15 material topics that have been determined, it is proposed that EGCO Group shall consider the topic on biodiversity. (It may be included as a topic under Supply Chain Management)
Society
Since EGAT is very big and stable, if EGCO continues to link with EGAT they may not be about to grow internationally. EGCO should consider introducing a more diversified leader to help the company grow in the upcoming selection.
Shareholder
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Community
Thinks EGCO is very responsive to community needs, encourages continuation of providing community health check up, and is satisfied with the current CSR project. Wishes EGCO engages with the community more and looks after the environment such as pollution from the factory. While one interviewee is satisfied with EGCO’s community, another interviewee recommends EGCO to communicate and give more information to community members to clarify that, for instance, some negative impacts are not from EGCO’s facility.
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Society
Encourages EGCO to continue creating positive impacts such as forest and biodiversity conservation, set a challenging net zero target and establish a clear roadmap for renewable energy and be involved with people in the area to help improve their quality of life. Furthermore, EGCO should expand the definition of corporate citizenship to include transformative business that will protect community members from human rights and supply chain management risks.
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Media
Gives importance to corporate citizenship and energy management and encourages EGCO to head towards a sustainable organization in the future.
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NGO
Suggests EGCO to allocate fair benefits to farmers who sell biomass to EGCO and increase the budget to supporting social projects and provide opportunities for stakeholders to be involved with submitting proposals for such projects. Regarding communication, usually communication would come from the company themselves, however, consider using stakeholders as communicators as well to increase credibility and create involvement in social and environmental projects.
Furthermore, to consider the impacts of individuals related to business operations as well as impacts on human rights. EGCO Group has conducted human rights risk assessment to identify vulnerable groups and individual rights related to business activities and business relations. In 2022, EGCO Group adopted human rights risk assessment to be part of the process for stakeholders to prioritize material topics. The overall risk level of each topic is determined based on the likelihood and severity ranking.
Identify impacts on Human Rights across EGCO’s activities and business relationships
| Material Topic | Issue | Vulnerable Group | Individual Human Rights |
|---|---|---|---|
| Opportunities in Competition | Not observed based on Human Rights Risk Assessment | - | - |
| Climate Change & GHG Emission | Community Standard of Living |
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| Power Generation Stability & Capability | Employee/Contractor Health and Safety Community Standard of Living Land Acquisition and Forced Resettlement Security Practice |
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| Risk and Crisis Management | Not observed based on Human Rights Risk Assessment | - | - |
| Human Capital Development, Labor Practice & Talent Attraction | Employee Working Condition Discrimination and Harassment Freedom of Association and Collective Bargaining |
|
|
| Digital Transformation & Innovation Management | Not observed based on Human Rights Risk Assessment | - | - |
| Waste & Hazardous Waste Management | Community Standard of Living Community Health and Safety |
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| Occupational Health & Safety | Employee/Contractor Health and Safety |
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| Energy Management | Not observed based on Human Rights Risk Assessment | - | - |
| Corporate Governance | Not observed based on Human Rights Risk Assessment | - | - |
| Corporate Citizenship | Community Standard of Living Community Health and Safety |
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| Supply Chain Management | Contractor Working Condition Contractor Health and Safety Discrimination and Harassment Vendor Discrimination |
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| Human Rights & Due Diligence | Employee/Contractor Working condition Employee/Contractor Health and Safety Discrimination and Harassment Freedom of Association and Collective Bargaining Illegal Forms of Labours Vendor Discrimination Community Standard of Living Land Acquisition and Forced Resettlement Security Practice Data Privacy |
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| Data Security & Privacy | Data Privacy |
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| Water & Wastewater Management | Community Standard of Living Community Health and Safety |
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Reference: IFC Guide to Human Rights Impact Assessment and Management (HRIAM)
2.1 Prioritize the Significant Impacts
2.2 Assess the Significant of the Impacts
Material Prioritization Approach
Stakeholders rank material issues by giving an overall ranking of the impacts. The ranking is a simplified version of the human rights risk assessment process, where the severity and likelihood of an issue is considered to determine the overall risk level of the issue.
3. Validate Material Topics
EGCO Group engages third party experts to collect and analyze opinions on the impact of material topics. The assessment conducted is based on the principle of double materiality to ensure impartial results.
EGCO Group’s materiality assessment process is verified by a third-party assurance provider, as well as the impacts on the economy, environment, society, and human rights throughout the value chain. This is to ensure that the material topic covers and corresponds to the impacts arising from the Company’s activities with reference to the energy and utilities sector. The materiality assessment results are signed off by the Board of Directors and President.
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:
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
- Operations
- Products/Services
- Supply Chain
- Raw Material Provision
- Power Generation
- System Installation and Maintenance Business Unit
- Other Relevant Power Business Units
- Products and By-products
- Supporting Activities
- Customers
- Shareholders
- Government Agencies
- Employees
- Communities
- Creditors
- Suppliers & Business Partners
- Investors
- Contractors
- Non-governmental Organizations
GRI 201: Economic Performance (2016): 201-1
For more information, please see Climate Climate Strategy and Market Opportunities Overview
One Report: Opportunities in Competition
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
- Operations
- Products/Services
- Supply Chain
- Raw Material Provision
- Power Generation
- System Installation and Maintenance Business Unit
- Other Relevant Power Business Units
- Products and By-products
- Supporting Activities
- Customers
- Shareholders
- Government Agencies
- Employees
- Communities
- Creditors
- Suppliers & Business Partners
- Investors
- Society
- Contractors
- Media
- Non-governmental Organizations
GRI 305: Emission (2016): 305-1*, 305-2*, 305-3*, 305-7*
For more information, please see Climate Strategy and Market Opportunities Overview
One Report: Climate Change
Increased operational excellence leads to more job security and compensation for employees
Less power security for customers and reduction of job security for employees
- Operations
- Products/Services
- Supply Chain
- Power Generation
- System Installation and Maintenance Business Unit
- Other Relevant Power Business Units
- Products and By-products
- Customers
- Shareholders
- Government Agencies
- Employees
- Communities
- Creditors
- Suppliers & Business Partners
- Investors
- Contractors
GRI 2: General Disclosures (2021)
For more information, please see Power Generation Stability & Capability
Power Generation Impact Valuation
One Report: Power Generation Stability & Capability
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
- Operations
- Products/Services
- Supply Chain
- Raw Material Provision
- Power Generation
- System Installation and Maintenance Business Unit
- Other Relevant Power Business Units
- Products and By-products
- Supporting Activities
- Customers
- Shareholders
- Government Agencies
- Employees
- Communities
- Creditors
- Suppliers & Business Partners
- Investors
- Contractors
GRI 2: General Disclosures (2021)
For more information, please see Risk and Crisis Management Overview
Increased employee competency results in higher employee engagement, satisfaction, and retention in company
Decreased morale in employees and inability to retain talented people
- Operations
- Products/Services
- Raw Material Provision
- Power Generation
- System Installation and Maintenance Business Unit
- Other Relevant Power Business Units
- Products and By-products
- Supporting Activities
- Employees
- Contractors
GRI 404: Training and Education 2016: 404-1
GRI 405: Diversity and Equal Opportunity 2016: 405-2*
For more information, please see Our Employees Overview
Increased reliability of operations and decreased burden for employees
Decreased competitiveness and failure to upskill employees to adapt with new technology
- Operations
- Products/Services
- Supply Chain
- Power Generation
- System Installation and Maintenance Business Unit
- Other Relevant Power Business Units
- Products and By-products
- Customers
- Employees
- Suppliers & Business Partners
- Creditors
GRI 2: General Disclosures (2021)
For more information, please see Innovation Management Overview
Promotion of circular economy and increased reputation from stakeholders
Create excessive waste pollution and disturb surrounding community
- Operations
- Products/Services
- Supply Chain
-
- Power Generation
- System Installation and Maintenance Business Unit
- Other Relevant Power Business Units
- Products and By-products
- Customers
- Communities
- Suppliers & Business Partners
- Society
- Contractors
GRI 306: Waste (2020):306-3*, 306-4*, 306-5*
GRI 306 Effluents and Waste (2016):306-3*
For more information, please see Waste Management
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
- Operations
- Products/Services
- Supply Chain
- Raw Material Provision
- Power Generation
- System Installation and Maintenance Business Unit
- Other Relevant Power Business Units
- Products and By-products
- Supporting Activities
- Customers
- Shareholders
- Employees
- Communities
- Creditors
- Suppliers & Business Partners
- Investors
- Contractors
GRI 403: Occupational Health and Safety (2018): 403-9*
For more information, please see Occupational Health and Safety Overview
Increased efficiency in energy usage leads to reduced emissions
Increase in greenhouse gas emissions due to inability to manage resource efficiently
- Operations
- Products/Services
- Supply Chain
- Power Generation
- System Installation and Maintenance Business Unit
- Customers
- Shareholders
- Employees
- Communities
- Contractors
GRI 302: Energy (2016):302-1*, 302-3*
For more information, please see Energy Efficiency Management
Sound governance leads to transparent communication and increased reputation and trust from society
Lack of governance results in corruption or non-compliance
- Operations
- Supply Chain
- Raw Material Provision
- Power Generation
- System Installation and Maintenance Business Unit
- Other Relevant Power Business Units
- Products and By-products
- Supporting Activities
- Customers
- Shareholders
- Government Agencies
- Employees
- Communities
- Creditors
- Suppliers & Business Partners
- Investors
- Society
- Contractors
- Media
- Non-governmental Organizations
GRI 2: General Disclosures (2021)
GRI 205: Anti-corruption (2016):205-2, 205-3
GRI 206: Anti-competitive behaviour (2016): 206-1
For more information, please see Corporate Governance Overview
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
- Operations
- Products/Services
- Raw Material Provision
- Power Generation
- System Installation and Maintenance Business Unit
- Other Relevant Power Business Units
- Supporting Activities
- Shareholders
- Employees
- Communities
- Society
- Media
- Non-governmental Organizations
GRI 413: Local Communities (2016):413-1
For more information, please see Corporate Social Responsibility Overview
One Report: Corporate Social Responsibility
Suppliers meet expectations in producing and delivering resources sustainably
Discrimination in procurement process for suppliers
- Supply Chain
-
- Raw Material Provision
- Suppliers & Business Partners
- Contractors
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
For more information, please see Supply Chain Management Overview
Guarantee equality in workplace where no rights are violated for all stakeholders
Violates human rights for stakeholders from operation activities
- Operations
- Products/Services
- Supply Chain
-
- Raw Material Provision
- Power Generation
- System Installation and Maintenance Business Unit
- Other Relevant Power Business Units
- Products and By-products
- Supporting Activities
- Customers
- Shareholders
- Government Agencies
- Employees
- Communities
- Creditors
- Suppliers & Business Partners
- Investors
- Society
- Contractors
- Media
- Non-governmental Organizations
GRI 2: General Disclosures (2021)
For more information, please see Human Rights Overview
Guarantee safety of sensitive data
Personal Information is leaked and decrease in employee and customer trust
- Operations
- Products/Services
- Supply Chain
-
- Raw Material Provision
- Power Generation
- System Installation and Maintenance Business Unit
- Other Relevant Power Business Units
- Products and By-products
- Supporting Activities
- Customers
- Shareholders
- Government Agencies
- Employees
- Creditors
- Suppliers & Business Partners
- Investors
- Contractors
GRI 418: Customer Privacy (2016): 418-1*
For more information, please see Privacy Protection and Cybersecurity Overview
Guarantee water security for the community
Contribute to water scarcity and pollution which creates conflict with the surrounding community
- Operations
- Products/Services
- Supply Chain
-
- Power Generation
- System Installation and Maintenance Business Unit
- Other Relevant Power Business Units
- Products and By-products
- Employees
- Communities
- Suppliers & Business Partners
- Society
- Contractors
GRI 303: Water and effluents (2018): 303-3*, 303-4*, 303-5*
For more information, please see Sustainable Water