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 positive and negative impacts they can have on the company, stakeholders, communities, and society throughout the organization’s value chain. EGCO Group also assesses key issues that align with stakeholders’ expectations covering economic, social, and environment (ESG) dimensions. The identified material topics are incorporated into EGCO Group’s business operations and used as a framework for reporting the annual report which covers operations for companies under EGCO Group’s operational control and joint ventures both in Thailand and overseas.
Process to determine Material Topics
Step of Materiality Assessment
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’s corporate social and environmental responsibility projects can help create income opportunities and improve the quality of life for surrounding communities.
Community
Playing a larger role in clean technology and encouraging consumers to manage their energy independently is one approach that supports the energy transition. This not only aligns with government policies but also presents a business opportunity for EGCO.
Government Agency
Supporting sustainability by actively promoting policies to reduce EGCO's greenhouse gas emissions can lead to the development of more sustainable cities and communities.
Contractor and Subcontractor
Currently, the energy industry faces a trilemma: stability, affordability, and sustainability. If EGCO can offer a solution for all three, it will create more value for customers and consequently more corporate value.
Shareholder
Competitive strategy is the key to leading an organization toward success. When an organization has a clear strategic plan and efficient management, it creates opportunities for growth and sustainable results.
Employee
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Governments Agency
EGCO Group’s business strategy should focus on establishing its image and role as a national leader in energy, particularly in clean energy and digital innovation, to support the energy transition and align with government carbon reduction policies. This transformation not only enhances the company’s business competitiveness but also contributes to mitigating climate change impacts and strengthening the country’s energy system. Governance according to best practices and support for community development are also essential in promoting EGCO’s image as a sustainable energy leader in the eyes of stakeholders and society.
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Customer
Prioritize advanced technology and efficient management practices to ensure stable and sufficient power supply. At the same time, the company is committed to sustainability initiatives, such as ESG investing.
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Contractor and Subcontractor
The integration of technology into operations is intended to enhance efficiency, resulting in reduced costs, time, and resource usage, while also improving the safety of energy management. This progress must proceed alongside compliance with existing and forthcoming legal and regulatory requirements. Additionally, a learning center at the power plant has been established, offering interested organizations and educational institutions the opportunity to learn from and visit the facility.
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Media
EGCO Group is a leader in natural gas power generation, investing in renewable energy and promoting the quality of life of local communities through development funds. EGCO also collaborates with government officials for upstream forest conservation and preventing environmental impacts of EGCO’s ecosystems, aiming for carbon neutrality and Net Zero by 2050. EGCO also initiates social projects such as "Youth Shining Bright“ project to further engage youth in energy innovation, underscoring EGCO's commitment to sustainability and community development.
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. 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.
Human Rights Risk Assessment
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 |
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| Digital Transformation and Innovation Management | Not observed based on Human Rights Risk Assessment | - | - |
| Energy Management | Not observed based on Human Rights Risk Assessment | - | - |
| Governance, Risk and Crisis Management | Not observed based on Human Rights Risk Assessment | - | - |
| Occupational Health & Safety | Employee/Contractor Health and Safety |
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| Human Capital Development, Labor Practice & Talent Attraction |
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| Corporate Citizenship |
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| Supply Chain Management |
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| Human Rights & Due Diligence |
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All identified individual Human Rights issues relevant to EGCO Group’s business |
| Ecological Impact and Biodiversity |
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| Data Protection & Cybersecurity |
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| Water & Wastewater Management |
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| Waste & Hazardous Waste Management |
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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 and indicating whether the impact is positive or negative. 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 senior management.
List Material Topics
In 2024, EGCO Group identified 15 material topics. The identified material topics have changed from the previous year in response to global trends and the needs and expectations of stakeholders regarding EGCO Group's business operations.
EGCO Group 2024 Material topics are as follows:
| No. | Material Topics | Impact Level | |
|---|---|---|---|
| 1 | Opportunities in Competition | ECON 1 | Value Creation |
| 2 | Climate Change and Greenhouse Gas Emission | ENVI 1 | Value Creation |
| 3 | Power Generation | ECON 2 | Value Creation |
| 4 | Occupational Health and Safety | SOC 1 | Enabler |
| 5 | Digital Transformation and Innovation Management | ECON 3 | Enabler |
| 6 | Energy Management | ENVI 2 | Enabler |
| 7 | Governance, Risk and Crisis Management | ECON 4 | Foundation |
| 8 | Human Capital Development, Labor Practice and Talent Attraction | SOC 2 | Foundation |
| 9 | Corporate Citizenship | SOC 3 | Foundation |
| 10 | Supply Chain Management | ECON 5 | Foundation |
| 11 | Human Rights and Due Diligence | SOC 4 | Foundation |
| 12 | Ecological Impact and Biodiversity | ENVI 3 | Foundation |
| 13 | Data Protection and Cybersecurity | ECON 6 | Foundation |
| 14 | Water and Wastewater Management | ENVI 4 | Foundation |
| 15 | Waste and Hazardous Waste Management | ENVI 5 | Foundation |
Enhanced job creation and economic development from new sustainable energy projects
Higher energy costs during the transition period while companies invest in new technologies and infrastructure
- Strategic Risk
- Financial Risk
- Operations
- Products/Services
- Supply Chain
Short-term impact
- 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 access to greener and more sustainable energy which can lead to cost savings and improved quality of life
Unable to reduce greenhouse gas emissions and contribute to climate change and loss of biodiversity
- Strategic Risk
- Operational Risk
- Financial Risk
- Operations
- Products/Services
- Supply Chain
Long-term impact
- 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
- Operational Risk
- Operations
- Products/Services
- Supply Chain
Short-term impact
- 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
Enhance safety and well-being of employees, suppliers and contractors
Disregard of safety leads to injury or even fatality in the workplace
- Operational Risk
- Operations
- Products/Services
- Supply Chain
Short-term impact
NA
- 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
Improved reliability and stability of the business due to digital transformation
Decreased competitiveness and failure to upskill employees to adapt with new technology
- Strategic Risk
- Organization Structure Risk
- Operations
- Products/Services
- Supply Chain
Medium-term impact
- 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
Increased efficiency in energy usage leads to reduced emissions
Increase in greenhouse gas emissions due to inability to manage resource efficiently
- Operational Risk
- Operations
- Products/Services
- Supply Chain
Long-term impact
- 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
Ensure a stable and uninterrupted electricity supply with affordable energy prices
Disrupt daily life and cause financial losses due to frequent and prolonged power outages from company's failure to manage risks
- Strategic Risk
- Operational Risk
- Financial Risk
- Compliance Risk
- Organization Structure Risk
- Operations
- Products/Services
- Supply Chain
Short-term impact
- 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
- Society
- Media
- Non-governmental Organizations
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
- Organization Structure Risk
- Operations
- Products/Services
Short-term impact
NA
- 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
Enhanced quality of life of local communities by implementing responsible corporate citizenship initiatives
Insufficient attention to corporate citizenship leads to tension with community members causing conflict and possible business interruption
- Strategic Risk
- Operations
- Products/Services
Short-term impact
NA
- 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
Fair transactions and timely payments foster strong relationship with suppliers
Discrimination in procurement process for suppliers
- Operational Risk
- Supply Chain
Short-term impact
- 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
- Operational Risk
- Compliance Risk
- Operations
- Products/Services
- Supply Chain
Short-term impact
- 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
Preserve ecosystems, protect endangered species and maintain ecological balance by using environmentally friendly technology to conserve biodiversity
Inefficient management on biodiversity leads to increased pollution and damage to the ecosystem and public health problems
- Strategic Risk
- Operational Risk
- Operations
- Supply Chain
Long-term impact
NA
- Raw Material Provision
- Power Generation
- System Installation and Maintenance Business Unit
- Other Relevant Power Business Units
- Products and By-products
- Supporting Activities
- Customers
- Employees
- Communities
- Suppliers & Business Partners
- Society
- Contractors
- Non-governmental Organizations
GRI 304: Biodiversity 2016: 304-1 304-2 304-3
For more information, please see Biodiversity
Guarantee safety of sensitive data
Personal Information is leaked and decrease in employee and customer trust
- Operational Risk
- Operations
- Products/Services
- Supply Chain
Short-term impact
NA
- 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
- Operational Risk
- Operations
- Products/Services
- Supply Chain
Long-term impact
NA
- 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
Improved public health and safety from less exposure to hazardous substances and pollution
Create excessive waste pollution and disturb the surrounding community
- Operational Risk
- Operations
- Products/Services
- Supply Chain
Short-term impact
NA
- 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