Water
Grid
Creating security for the nation with the Water Grid, connecting water distribution in every area, fulfilling water demands everywhere
System controlled by
SCADA
Increasing Efficiency of Water Distribution
Water Network Large water distribution pipelines connecting water sources across the country, acting as the main blood vessel nourishing the country’s economy
Water Complex Laying the foundation for systematic, complete water management by reusing water, creating worthwhile use of every drop of water
Indu
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Contents
Part 1
Profile & Sustainable Management
5 6 8 9 10 11 11 12 13 15 16 17 18 19 21
Message from the President & CEO About East Water Vission and Mission Strategies and Corporate Values Organizational Structure East Water Group Business Structure Top 10 Major Shareholders Accomplishments in 2015 Committees Highlights of the Year Membership in Networks for Sustainable Development Report Profile Critical Impacts, Risks and Opportunities Defining Material Aspects Stakeholder Engagement Development and Engagement, Together with East Water
Part 2
Water for Security 28 Water Management 30 Water Sources Managed by East Water 34 Application of Technology in Water Management to Reduce Water Loss in Pipeline 37 Possible Effects from Water Pumping Process 38 Weather Fluctuations and Electricity Consumption
Part 3
Water for Excellent 42 Management of Wastewater Treatment System 43 Water-related Businesses 43 Customer Care and Maintaining Customer Satisfaction / 47
Responsibility to Customers Developing Employees’ Skills in Preparation for Business Expansion and Determining Growth Path
Part 4
Water for Life 52 56 59 63
Social Investments and CSR Activities Policy on Anti-Corruption in the Organization Improving Employees’ Quality of Life Improvement of Workplace Environment, Occupational Health and Safety
Part 5
Appendix 68
GRI G4 Index (in accordance with Core Option and Limited Assurance)
Part 6 II
Assurance Statement
4
Eastern Water Resources Development and Management Public Company Limited
Message from the President & CEO (G4-1) “Water” is the basic element in creating security for life and is an important driver for the country’s economy. Even though water is an infinite natural resource, if we use water extravagantly, lack good management, and don’t look after water quality, we might soon experience a severe water crisis that may cause tremendous harm to society, the economy and the environment. Major factors affecting water management in Thailand include climate change, rising demand for water, and water pollution brought about by human activities. 2015 was an enormously challenging year for East Water as Thailand experienced the worst drought in decades, which affected every sector in the country. East Water, in collaboration with related government and private organizations, played a significant role in monitoring the water situation and establishing preventive measures to deal with water scarcity issues in an integrated manner, through the Eastern Water War Room. The Company used its 23 years of expertise in water management to formulate the 3W concept - Water Grid, Water Network and Water Complex so that water users have equal access to clean water that is sufficient for their demands. As a result, the Eastern region, known to be the country’s most important industrial zone, was able to successfully survive the water crisis. However, the worries of operators concerning water security remain as the industrial sector is rapidly expanding due to the opening of the ASEAN Economic Community. The Pluak Daeng – Bowin area in Sriracha District, Chonburi Province has become a strategic area of this region. The emergence of super clusters as a result of the government’s economic stimulus plan announced at the end of 2015 is expected to cause the demand for water to double. Thus, East Water has prepared plans to develop water sources in the long term as well as to develop the Water Grid into the Water Network. The prototype area under construction is the Nong Pla Lai Reservoir - Nong Kho Reservoir pipeline No. 2, which will be able to sufficiently support the water demands of all sectors in the next 10 years. While committed to creating water security, the Company is concerned about possible impacts to communities, society and the environment during the construction of the pipelines, which is the main process in the development of water sources. In 2015, the Company connected pipes to supply water to tap water systems of communities located along the Prasae Reservoir - Khlong Yai Reservoir pipeline route, a total of 15 locations continuing from 2014. With regard to the Nong Pla Lai Reservoir - Nong Kho Reservoir pipeline No. 2 construction,
East Water following its public affairs and CSR plan has conducted a study regarding the demand for water and access to water sources of the communities along the pipeline route. This is in line with CSR in process which aims to solve communities’ problem of shortage of clean water according to the Ministry of Interior’s policy. Furthermore, East Water has developed its future business plan following the sustainable development concept together with business management focusing on worthwhile use of every drop of water and environmental friendliness, through the Water Complex Project. The Water Complex involves integrated water management in the industrial sector to fit with the requirements of each industry. Waste water can be reused which will help solve the water pollution problem, improve the water quality, increase the amount of cost water for the industrial sector, and reduce problems regarding competing for water with the agricultural sector and consumption sector in the long term. Due to the dedicated efforts of East Water’s Board of Directors, executives and employees and transparent management with systematic governance, East Water’s operating results have continuously grown. The Company has been awarded Top 50 ASEAN PLCs and Top 2 Outstanding Achievement Awards from the ASEAN CG Scorecard 2015. Today, East Water is prepared to be the leader in water management to alleviate the water crisis and create water security for the region in a sustainable manner.
Mr. Jaroensuk Worapansopak Acting President & CEO
SUSTAINABILITY REPORT 2015
5
About East Water
(G4-3, G4-4, G4-5, G4-6, G4-8)
East Water‌ The Expert in Water Management with Water Grid Eastern Water Resources Development and Management Public Company Limited or East Water is a company listed on the Stock Exchange of Thailand with the stock symbol EASTW. East Water is engaged in water resources management with a large water grid 394.5 km long, supplying water to industrial estates and households in 3 eastern provinces of Thailand - Rayong, Chonburi, and Chachoensao. The Company’s important mission is development of main water distribution pipeline systems and provide the water reserves to support expansion of the industrial and tourism sectors which have increasing demand for water.
Connecting almost all major water sources in the Eastern region, with a pipeline system length
15 Pumping Stations
Khlong Khuean Reserve Pond Pumping Station Suan Son Pumping Station Chachoengsao Pumping Station Bangpakong Pumping Station Bangpakong Low Pressure Pumping Station
6
Samnakbok Pumping Station Nong Kho Pumping Station Bang Phra Pumping Station Dok Krai Pumping Station Map Ta Phut Pumping Station 1
Eastern Water Resources Development and Management Public Company Limited
Map Ta Phut Pumping Station 2 Nong Pla Lai Pumping Station 1 Nong Pla Lai Pumping Station 2 Nong Pla Lai Pumping Station 3 Booster Pumping Station
Head Office 23rd - 26th Floor East Water Building, 1 Soi Vibhavadi Rangsit 5, Vibhavadi Rangsit Road, Jomphol, Chatuchak, Bangkok 10900 Thailand
Rayong Operations Center 477 Sukhumvit Road, KM. 201, Huai Pong, Amphur Muang, Rayong 21150, Thailand
Water Volume by Area 32.95%
Unit : Million. Cu.M. Rayong Pluakdaeng - Bowin Chachoengsao-Chonburi
Total Water Volume 296.44 Million. Cu.M.
as of 31 December 2015
59.06% 7.99%
East Water Customers 1.07% 1.45%
27.64%
8.69%
Total Water Volume 296.44 Million. Cu.M.
61.15%
Industrial Estate Household Customer Private Industrial Park Others Internal Use
SUSTAINABILITY REPORT 2015
7
Vision Being the leader in sustainable water management that grows in accordance with the country’s economy and expands to the ASEAN region
Missions
1. To expand investment and develop the water business and related businesses for continuous and sustainable growth 2. To increase competitiveness with the right and up‐to‐date technology and innovation 3. To develop the competency of employees and to improve the management structure to be better 4. To manage the business with efficiency and transparency according to the principles of good corporate governance 5. To be responsible to communities, society and the environment and to maintain good relations with stakeholders
8
Eastern Water Resources Development and Management Public Company Limited
Strategies
1. Increasing net profit and current business strengths 2. Developing water-related businesses to support continuous growth in the medium and long term 3. Having an efficient framework for financial management and business investment 4. Increasing the capability of the East Water Group and developing innovations related to the water business 5. Having good corporate governance with care for communities, society and the environment
Corporate Values
I
Integrity
A
Achievement
C
Customer Focus
T
Teamwork and Leadership
SUSTAINABILITY REPORT 2015
9
Organizational Structure (G4-7) As a listed company on the Stock Exchange of Thailand (SET), East Water must adhere to the Public Limited Companies Act. The Company has constructed an organizational structure in accordance with the principles of good corporate governance specified by the Securities and Exchange Commission (SEC), with the aim of creating transparency for shareholders, customers in the public and private sectors, and people receiving raw water and tap water services with the greatest efficiency. The authority, duties and responsibilities of the Board of Directors and sub committees have been stated in the charter and the Board of Directors Handbook. The Board of Directors must comprise at least 3 independent directors or external directors in order to maintain balance of power between directors with potential conflicts of interest.
Board of Directors
Eastern Water Resources Development and Management Public Company Limited
Audit Committee
Executive and Investment Committee
Risk Management Committee
Corporate Governance and Nomination Committee
Evaluation and Remuneration Committee
President & CEO Audit Department
President & CEO office and Corporate Secretary Executive Vice President, Finance and Accounting
Executive Vice President, Operation
Operation Engineering and Customer Department Services Department
10
Project Planning Division
Corporate Corporate Human Business Resources Development Communications Affairs Department Department Department Department
Eastern Water Resources Development and Management Public Company Limited
Finance and Accounting Department
Information Technology Department
East Water Group Business Structure Raw Water Business Eastern Water Resources Development and Management PCL.
Related Business
Business Structure
(as of 2015)
Tap Water Business Universal Utilities PCL.
Business Units Water supply Sattahip Water supply Koh Larn Water supply Bowin-Nongkham Water supply Koh Samui
Water supply Rayong Water supply Chon Buri Water supply Industrial Estate Water supply Lak Chai Mung Yang
99%
99%
Water Company Nakhong Sawan
Water Company Bang Pakong
99%
90%
Water EGCOM TARA Company Co., Ltd. Chaserngsao
Top 10 Major Shareholders The top 10 major shareholders of Eastern Water Resources Development and Management Public Company Limited as of the book closing date of 30 December 2015 are as follows: No.
Shareholders
No. of Shares
Proportion (%)
1
Provincial Waterworks Authority
668,800,000
40.20
2
Electricity Generating Public Company Limited
311,443,190
18.72
3
NORBAX INC.,13
106,165,400
6.38
4
Industrial Estate Authority of Thailand
76,000,000
4.57
5
NORTRUST NOMINEES LTD.
42,184,575
2.54
6
BNP PARIBAS SECURITIES SERVICES, LONDON BRANCH
29,812,100
1.79
7
Thai NVDR Company Limited
28,346,620
1.70
8
Aberdeen Long Term Equity Fund
27,465,700
1.65
9
Aberdeen Growth Fund
25,598,900
1.54
10
Aberdeen Small Cap Fund
25,133,300
1.51
322,775,364
19.40
1,663,725,149
100.00
Other Shareholders
Source: Thailand Securities Depository Co., Ltd. (TSD) Note: Shareholder No. 1 and 4 are major shareholders that are representatives of the government. Shareholder No. 2 is a juristic person. All 3 major shareholders take part in determining the Company’s management policies by nominating a representative who will be appointed as a director by the general meeting of shareholders. SUSTAINABILITY REPORT 2015
11
Accomplishments in 2015
BEST AWARD 2015
April The Company was certified as a member of Thailand’s Private Sector Collective Action Coalition Against Corruption (CAC) by the Thai Institute of Directors Association (IOD).
June The Company received a score of “100” from the AGM Assessment Project to rate the quality of the 2014 annual general meeting of shareholders by the Thai Investors Association.
TRIS Rating affirmed the company rating of East Water at “A+” with “stable” outlook for 2015.
October The Company was awarded Level 4 (out of 5 levels) from the Anti-Corruption Progress Indicator by the Thaipat Institute. East Water was selected to be included in Thailand Sustainability Investment 2015, or list of “sustainable stocks” by the Stock Exchange of Thailand, to recognize listed companies’ performance on environmental, social and governance (ESG) aspects.
The Company received a score of 94 (increasing from the previous year’s score of 87) from the Corporate Governance Report (CGR) of Thai Listed Companies 2015 conducted by the Thai Institute of Directors Association (IOD).
November The Company was awarded TOP 50 ASEAN PLCs and Top 2 Outstanding Achievement Awards from the ASEAN CG Scorecard 2015 developed by the ASEAN Capital Markets Forum in the Philippines.
12
Eastern Water Resources Development and Management Public Company Limited
Committees (G4-14, G4-17) The Board of Directors has appointed committees to preliminarily study and screen particular assigned work to ensure their accuracy, clearness and consistency with the Company’s missions and policies, before submitting to the Board of Directors for approval, acknowledgement, or recommendations on a case-by-case basis. As of 31 December 2015, there were 5 committees as follows: No.
Committee
Roles, Duties and Responsibilities
1.
Audit Committee consisting of 3 independent directors
Ensuring accuracy and credibility of the Company’s financial statements in compliance with Thai Financial Reporting Standards (TFRS) and Thai Accounting Standards (TAS) announced by the Federation of Accounting Professions, before presenting to the Board of Directors. Establishing an effective, independent, and transparent audit procedure among the Board of Directors, the Internal Audit Department, administrative department, and the external auditor to allow them to revise and provide appropriate recommendations with regard to assessment of the efficiency and effectiveness of the Company’s internal control system, so that it abides by related laws and regulations. Furthermore, related-party transactions or conflict of interest transactions must be considered and assured by the Audit Committee that they are lawfully performed with reasonable implementation, for the utmost benefits of the Company. With regard to its duty pertaining to information disclosure, the Audit Committee must include its report in the Company’s annual report. Providing initial approval of the appointment, remuneration, and contract termination of external auditors, which will later be presented for consideration by the Board of Directors and shareholders. The Audit Committee is also in charge of approving the appointment, relocation, and dismissal of the Head of the Audit Department. To ensure independence of the Audit Department, this department is overseen by the Audit Committee.
2.
Management and Investment Committee consisting of 4 directors and 3 advisors (2 directorship positions are in the process of appointing replacements)
Overseeing the Company’s business operations to ensure efficiency and business strength in accordance with the Board of Directors’ policies. Screening and reviewing the Company’s business plans, operation plans, annual budgets, and the procurement of investment projects under the budget allocated from the Board of Directors. Determining the procedures and criteria of all investment projects, considering the feasibility of the investment projects, giving counsel or recommendations. Supporting the administrative department in order to achieve the Company’s goals and objectives and regularly reporting its work to the Board of Directors for consideration and acknowledgement. SUSTAINABILITY REPORT 2015
13
No.
Committee
Roles, Duties and Responsibilities
3.
Corporate Governance and Nomination Committee consisting of 4 independent directors
Corporate Governance Supporting the work of the Board of Directors to ensure correctness, transparency and protection of shareholders’ and stakeholders’ benefits. Examining the Board of Directors Handbook, Business Ethics, and Employee Code of Conduct and monitoring the Company’s operations to ensure that the Company follows effective and appropriate corporate governance procedures that are consistent with the Stock Exchange of Thailand’s regulations and the ASEAN CG Scorecard. Nomination Selecting and nominating suitable persons to be appointed as Directors of the Company and its subsidiaries, members of committees, and CEO. The Nomination Committee is responsible for verifying the qualifications of suitable candidates and presenting to the Board of Directors for consideration and appointment. Providing recommendations to the Board of Directors and committees on their management structure and submitting a proposal to the Board for consideration and approval of the adjustment.
4.
Risk Management Committee consisting of 4 directors (2 directorship positions are in the process of appointing replacements)
Overseeing and presenting the overall risk management policy to the Board of Directors for acknowledgement and consideration. The risk management policy covers major types of risks such as strategic risks, operational risks, investment risks, compliance risks, and risks that may affect business reputation. Reviewing risk assessment practices, approving risk management plans, and determining standard practices, strategies and risk assessment. In addition, the Risk Management Committee provides recommendations to the administrative department as well as supervises, reviews and monitors risk management plans to ensure that risk management is implemented appropriately and can efficiently and effectively control the risks at acceptable levels.
5.
Evaluation and Remuneration Committee consisting of 4 directors and 1 advisor (2 directorship positions are in the process of appointing replacements)
Evaluation of Company Performance Determining and reviewing the annual Corporate KPIs to correspond with the Company’s business policies. Monitoring and assessing the Company’s performance on a quarterly basis and providing recommendations to the administrative department in regard to its operations. In addition, the Evaluation Committee is required to prepare a report to be approved by the Board of Directors at the end of the year.
14
Eastern Water Resources Development and Management Public Company Limited
No.
Committee
Roles, Duties and Responsibilities Remuneration Providing recommendations to the Board of Directors for considering annual remunerations of directors, members of all committees, advisors to the Board of Directors, advisors to all committees, CEO, executives, and employees. Proposing policies pertaining to remunerations and other financial and non-financial benefits of the employees of all levels to the Board of Directors for approval. The administrative department then establishes regulations and guidelines for the East Water Group in line with the policies.
Highlights of the Year Statement of income
2011
2012
2013
2014
2015
Raw water revenue Tap water revenue Total revenue EBITDA Net profit (loss) Net profit attributable to owners of the parent
2,261.02 765.85 3,310.04 1,868.57 1,008.02 1,007.55
2,612.22 841.60 3,725.95 2,079.04 1,240.17 1,239.74
2,694.30 876.38 3,816.141 2,196.13 1,312.85 1,312.94
2,768.38 988.74 4,035.841 2,288.42 1,334.45 1,334.21
2,898.67 1,160.24 4,563.141 2,444.71 1,591.24 1,584.94
Statement of financial position
2011
2012
2013
2014
2015
10,784.47 3,848.27 6,936.20 6,933.08
12,440.09 5,119.62 7,320.46 7,316.94
13,480.45 5,578.52 7,901.93 7,872.13
15,243.45 6,726.37 8,517.07 8,487.56
19,627.46 10,127.90 9,499.56 9,294.69
2011
2012
2013
2014
2015
(Million Baht)
(Million Baht)
Total assets Total liabilities Total shareholders equity Equity attributable to owners of the parent Financial ratios Book value (per share) Earning per share Dividend (per share) Net profit margin Return on Equity (ROE) Return on Assets (ROA) Debt to Equity ratio (D/E)
(Baht) (Baht) (Baht) (%) (%) (%) (Times)
4.17 0.61 0.42 30.44 14.91 9.75 0.56
4.40 0.75 0.44 33.27 17.40 10.68 0.70
4.73 0.79 0.42 34.40 17.31 10.13 0.71
5.10 0.80 0.45 33.06 16.31 9.29 0.79
5.59 0.95 0.222 34.73 17.83 9.09 1.09
Notes: 1 Total Revenues in 2013 - 2015 exclude “construction revenue under concession agreement”, which is a newly classified revenue as a result of a new interpretation of financial reporting standards TFRIC12 (revised 2014) under the topic of “Service concession arrangements”. 2 In 2015, interim dividends approved by the Board of Directors Meeting No. 12/2015 held on 21 August 2015 was 0.22 Baht per share. On 25 April 2016, the Board of Directors will propose to the annual general meeting of shareholders for the year 2015 to approve dividends on the operating results for the July - December 2015 period in the amount of 0.25 Baht per share. SUSTAINABILITY REPORT 2015
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(G4-15)
** Reference to details in the 2015 Annual Report
Good Corporate Governance Page 55-87 Anti-corruption Page 58-59 Business Ethics Page 64 Assessment of the Adequacy of the Internal Control System Page 88-90 Statement of Financial Position of East Water Page 12-13, 93-94
East Water uses principles and guidelines from external organizations for implementation within the organization for social, economic and environmental development as follows: 1. Complies with the Public Limited Companies Act B.E. 2535 2. Complies with rules, regulations and notifications of the Stock Exchange of Thailand and the Securities and Exchange Commission 3. Supports freedom of association and collective bargaining in the form of Welfare Committee 4. Practices non-discrimination in employment or occupation 5. Supports operations that do not adversely impact society and the environment 6. Promotes development and dissemination of environmentally friendly innovations and technology 7. Implements measures against all forms of corruption, extortion and bribery
Membership in Networks for Sustainable Development (G4-16)
Agency / Organization
Benefits of Membership
1. Member of Thailand’s Private Sector Collective Action Coalition Against Corruption (CAC)
Build trust and confidence in business operations that is transparent, an important issue that is of interest to every sector Build networks with industrial operators which are the Company’s customers
2. Member of the working group between the government and private sectors for managing water resources in the Eastern region of Thailand organized by the Federation of Thai Industries 3. Member of the Water War Room Working Group, consisting of industrial operators, the Industrial Estate Authority of Thailand, the Federation of Thai Industries, the Water Institute for Sustainability, and the Royal Irrigation Department 4. Committee Member of CSR Club of the Thai Listed Companies Association 5. Committee Member and Technical Member of the Thai Waterworks Association (TWA) 6. Committee Member of the Thai Hydrologist Association 7. Advisory Committee Member of forest protected areas in the Eastern region of the National Park Innovation Institute, National Park Office, the Department of National Parks, Wildlife and Plant Conservation
16
Eastern Water Resources Development and Management Public Company Limited
Jointly, closely monitor and solve the water scarcity situation in the Eastern region
Build networks and be informed of CSR news and movement that the Stock Exchange of Thailand places importance on Build technical networks relating to water at the national level Build technical networks relating to water at the national level Join in conservation of forests which are the water source of the Company’s important sources of water
Report Profile (G4-13, G4-18, G4-22, G4-23, G4-28, G4-29, G4-30, G4-31, G4-32, G4-33) Objective: To show East Water’s performance on environmental, social and governance aspects which the organization’s stakeholders place high significance on, as well as future directions leading to the Company’s sustainability and readiness to expand the business to the ASEAN region. Reporting Standards: Following the reporting framework of the Global Reporting Initiative (GRI): G4 Guidelines in accordance with Core Option Reporting Period: The 2015 Sustainability Report is the fifth issue, covering the information between 1 January - 31 December 2015. East Water has prepared the Sustainability Report on an annual basis since 2011. Reporting Boundaries: The 2015 Sustainability Report uses information of the Company’s overall performance reflecting economic, social and environmental dimensions in 2015. The report covers East Water’s operations at its Bangkok Head Office and operations in 3 provinces - Rayong, Chonburi and Chachoengsao. The report excludes the operations of its subsidiaries engaged in the tap water supply business, which has different operational processes from East Water’s raw water business in which it has applied for certification. In addition, its subsidiary has plans to list on the Stock Exchange of Thailand in 2016. This report has material change from 2014 with regard to operations concerning 3 issues. 1) Business structure - In 2015, East Water sold all of its shares in EGCOM Tara Company Limited totaling 5,479,140 shares, equivalent to 15.88%, to Universal Utilities Public Company Limited (UU), which is a subsidiary company. There was a resolution approving UU to purchase EGCOM Tara shares from EGCO Engineering and Service Company Limited (ESCO), totaling 25,597,096 shares, equivalent to 74.19%. As a result, the East Water Group became the major shareholder in EGCOM Tara Company Limited with 90.08% holding. Present business structure is shown on page 5. 2) Change in organizational structure - In 2015, the Project Planning Department was separated into 2 units, that is the Engineering Department and the project planning division. 3) Suppliers registered with East Water - In 2015, 141 suppliers registered with East Water, an increase of 21 suppliers from the previous year.
This Sustainability Report is in was certificately (Limited Assurance) an Independent Third Party with expertise in conformity assessment, to ensure correctness and creditability according to GRI G4 reporting guidelines. The Company’s executives were involved in the selection of the Independent Third Party according to the Company’s procurement procedures. Process for Defining Report Content: The Sustainability Report Working Group consists of representatives from all departments of the Company. The Working Group is appointed by the CEO. It works jointly with external experts and holds a number of meetings to review and analyze information from internal and external stakeholders, positive and negative impacts from the Company’s news that is of interest to the media, and business information that is closely related to the Company. These information are prioritized according to importance level of material aspects that will affect the Company’s sustainability. Material aspects are summarizes and presented to the CEO for consideration and approval before disclosure in the Sustainability Report.
For more information, please contact: Ms. Kanyanart Viraphandu
Vice President, Corporate Communications Department 24th Floor East Water Building, 1 Soi Vibhavadi Rangsit 5, Vibhavadi Rangsit Road, Jomphol, Chatuchak, Bangkok 10900 Telephone: 02-272-1600 ext. 2510 Fax: 02-272-1602 E-mail: pr@eastwater.com
This Sustainability Report as well as prior publications can be downloaded from East Water’s website. SUSTAINABILITY REPORT 2015
17
Critical Impacts, Risks and Opportunities (G4-2) Amid the severe drought that affected almost every region of the country this past year and is expected to worsen in 2016, East Water, responsible for water management in the Eastern region which is the country’s main industrial zone, prepared measures to prevent water scarcity problems in its responsible area. East Water is well aware that if industries and the tourism sector do not have water to use, this will immensely affect the country’s economy. Therefore, the Company has speed up implementation of its short-term and long-term plans to develop water sources in order to create security for the Eastern region’s water system. These include diverting water from Prasae Reservoir to Nong Pla Lai Reservoir; speeding up the Nong Pla Lai - Nong Kho water pipeline No.2 construction; developing the Thap Ma Raw Water Reserve Pond; and purchasing raw water from private ponds. The objective of the last 2 projects is to have reserve sources of water during the dry season. The Thap Ma Raw Water Reserve Pond Development Project will be like a “monkey cheek” water retention area covering 300 rai of land. The pond will be able to store 12 million cubic meters of water and help increase the amount of water supply at least 47 million cubic meters per year. At the same time, it can be used as a flood way, by pumping water which might cause damage into Thap Ma Raw Water Reserve Pond and relieving the suffering of communities along Khlong Thap Ma and Rayong River which experience repeated flooding every year. The Thap Ma Raw Water Reserve Pond Development Project is expected to be completed in mid 2016. However, in 2015, the construction area experienced severe flooding that Rayong Province had to announce it as an emergency flood area 3 times. The project had to change its plans and raise the flou level of the water pumping station. As a result, the project has been delayed.
The project to procure water from private ponds in Chonburi province originated because Chonburi is an area that lach of water sources. However, the demand for water is high as it is an industrial city as well as a tourist city. Thus, East Water has plans to purchase water from deserted private ponds to add water to its pipeline system since 2009. The advantage is that water can be added into the pipeline system immediately without having to wait for construction. Most importantly, it helps manage costs since the cost is lower. In addition, water quality and volume can be controlled. It also reduces water used from the Royal Irrigation Department’s reservoirs. In the past year, East Water purchased an additional 15 million cubic meters of water per year from private ponds. With regard to cooperation with the government sector concerning integrated water management and to fulfill the Ministry of Interior’s policy, East Water has signed an MOU among 3 agencies, namely the Royal Irrigation Department, the Provincial Waterworks Authority, and East Water. The MOU concerns diversion of water between Prasae Reservoir – Khlong Yai Reservoir to solve flooding problems during the rainy season and to add sufficient water during the dry season. The MOU also involves taking care of communities along the pipeline route to ensure that they have sufficient water supply by connecting pipes to distribute water to communities’ storage ponds in 15 locations.
18
Eastern Water Resources Development and Management Public Company Limited
Climate change is the major challenge affecting East Water’s water management. However, as the Company was prepared by procuring reserve water sources from private ponds and speeding up the construction of the last 20 km of the Prasae Reservoir - Nong Pla Lai Reservoir pipeline in time, the Company was able to continuously supply water to users in Rayong and Chonburi area without affecting the industrial and consumption sectors. Not only managing raw water in 2015, East Water topped up on its business with the concept of using water in a worthwhile manner through its subsidiaries. The objective is to create sustainable and secure water sources by reducing water used from natural sources, reducing the amount of waste water released into the
ocean, and using water resources in the most worthwhile and beneficial manner. The Company studied the appropriateness of the integrated water management system, including the raw water system, tap water system, and water treatment and recycling system for Pattaya City and Lakchai Muang Yang Industrial Estate. Another issue that East Water has given continued importance to is support for anti-corruption. East Water was certified as a member of Thailand’s Private Sector Collective Action Coalition Against Corruption (CAC) by the Thai Institute of Directors Association (IOD) in mid 2015. In addition, the Company improved its procurement rules for greater transparency and fairness.
Defining Material Aspects East Water is committed to operating its business following sustainable development, in line with its vision and satisfying the demands of both internal and external stakeholders. Various aspects have been gathered and assessed for its importance to the organization, according to GRI G4 guidelines for defining content for the sustainability report. Consideration is given to expectations, interest, and internal and external factors that affect business operations including: 1) stakeholder engagement process, 2) survey results of stakeholder satisfaction, 3) Company news of interest to the media, 4) important issues relating to water business abroad that closely resembles East Water’s business, and 5) opinions and policies of the administrative department. Issues that are Important to East Water’s Sustainability 1. Water management 2. Creating stability of raw water sources 3. Effects from Water Pumping Process 4. Application of water management technologies to reduce pipeline leakages 5. Weather fluctuations and releases of electric energy
GRI Evaluation Criteria Environmental aspect EN9 WATER SOURCES SIGNIFICANTLY AFFECTED BY WITHDRAWAL OF WATER EN8 TOTAL WATER WITHDRAWAL BY SOURCE EN16 ENERGY INDIRECT GREENHOUSE GAS (GHG) EMISSIONS (SCOPE 2)
Reporting Boundaries
Operations in 3 provinces Rayong, Chonburi and Chachoengsao - as the main process in the raw water business covers these areas. Excludes the operations of its subsidiaries engaged in the tap water supply business, which has different operational processes. In addition, its subsidiary has plans to list on the Stock Exchange of Thailand in 2016.
SUSTAINABILITY REPORT 2015
19
Issues that are Important to East Water’s Sustainability 6. Waste water treatment at the Head Office
7. Social investment and implementation of CSR activities
GRI Evaluation Criteria Environmental aspect EN10 PERCENTAGE AND TOTAL VOLUME OF WATER RECYCLED AND REUSED Economic aspect EC1 DIRECT ECONOMIC VALUE GENERATED AND DISTRIBUTED
Reporting Boundaries
Head Office Building
Activities beneficial to society, communities and the environment which relate to the Company’s business operations
8. Water-related Businesses 9. Policy on Anti-Corruption in the Organization 10. Improving employee’s quality of life, workplace environment, occupational health and safety
11. Developing employee’s skills to be ready for business expansion and determining path for growth
12. Paying attention to and maintaining customer satisfaction
20
Social aspect SO4 COMMUNICATION AND TRAINING ON ANTI-CORRUPTION POLICIES AND PROCEDURES LA6 TYPE OF INJURY AND RATES OF INJURY, OCCUPATIONAL DISEASES, LOST DAYS, AND ABSENTEEISM, AND TOTAL NUMBER OF WORK-RELATED FATALITIES, BY REGION AND BY GENDER LA9 & LA10 AVERAGE HOURS OF TRAINING PER YEAR PER EMPLOYEE BY GENDER, AND BY EMPLOYEE CATEGORY PROGRAMS FOR SKILLS MANAGEMENT AND LIFELONG LEARNING THAT SUPPORT THE CONTINUED EMPLOYABILITY OF EMPLOYEES AND ASSIST THEM IN MANAGING CAREER ENDINGS PR5 RESULTS OF SURVEYS MEASURING CUSTOMER SATISFACTION
Eastern Water Resources Development and Management Public Company Limited
East Water’s suppliers as it is an important issue that suppliers are interested in Full-time employees and contract staff, including East Water’s construction project
East Water’s employees as they are important drivers of the Company’s operations
Customers using raw water from East Water
SUSTAINABILITY REPORT 2015
21
1. Current customers
Stakeholder group
CRM activities (Customer Relationship Management) War Room Meeting with business operators Customer survey Corporate website and Facebook Customer visits according to plan
Engagement method
According to action plan
2 times/year 1 time/month
1 time/month
According to action plan
Activity frequency per year Constant quality services relating to water distribution and water pressure Quick information / news services and advance warning in case of abnormalities in water supply / water source Prices of raw water Maintenance services / water meter assessment Activities promoting customer relationships Satisfying customer needs
Expectations
Negative impacts: Customers attempt to find cheaper alternative water sources, negatively affecting water sales Changes in the quality of raw water lead to more complaints and service requests Untimely reporting of information / news might affect satisfaction levels and lead to future complaints
Positive impacts: Positively affecting satisfaction of the Company’s services Building good relationships with each other Creating customer confidence in the Company’s services Accuracy of water meters reduces water leakages and protects benefits of customers and the organization
Impacts (positive / negative)
The workshop on strategic planning and the meetings of the Sustainability Report Working Group brainstormed ideas and analyzed the survey results of stakeholders’ satisfaction and opinions towards the Company’s operations in order to set an appropriate action plan in line with the demands and expectations of each group. The action plan can be summarized as follows:
Stakeholder Engagement Development and Engagement, Together with East Water
22
Eastern Water Resources Development and Management Public Company Limited
Involved in every activity at least 12 times/year
Involved in every activity at least 12 times/year
War Room Meeting with business operators Company visit Relationship building activities
Meeting with executives of state agencies to report on operations and to acknowledge state policies War Room Meeting with business operators
3. Royal Irrigation Department
4. State agencies such as Ministry of Interior, Ministry of Industry, and Ministry of Agriculture and Cooperatives
According to action plan
1 time/month
Activity frequency per year
Corporate website and Facebook Customer visits according to plan
Engagement method
2. New customers
Stakeholder group
East Water Group is able to sufficiently supply water to every sector, as a supporting mechanism for economic growth Industries: Able to sufficiently procure and deliver raw water with stable volume and quality to support the growth of the industrial sector and power plants, without having to worry about the drought situation each year
Allocating sufficient water for each sector according to allocated quota Developing sufficient cost water sources to meet future demand for water Providing support to the budget for construction / increasing efficiency in water storage and other infrastructures
Providing attention and advice regarding engineering and investments Providing recommendations regarding installation of comprehensive systems that meet water needs (raw water / water for industrial use / water treatment systems) Reasonable prices of raw water and supplied water
Expectations
Positive impacts: Public sector has confidence in East Water Group and entrusts the Group with the right to continue managing main water distribution pipelines in the Eastern region Industrial operators have continued confidence in the Company’s water management and do not invest to acquire raw water by themselves Other parties have confidence in East Water Group and entrust the Group with the right to continue managing main water distribution pipelines in the Eastern region
Negative impact: Allowing others to use more water, creating limited water availability for East Water
Positive impact: Affecting the allocation of raw water
Negative impacts: If customers don’t use the service, there will be loss of time and money Customers must invest in the pipeline connection system; in case of high investment costs, this might affect decision making
Positive impacts: Having more customers, positively affecting water sales Creating customer confidence in the Company’s services, increasing opportunity for word of mouth advertising, increasing the number of future customers
Impacts (positive / negative)
SUSTAINABILITY REPORT 2015
23
6. Two regulatory agencies: Stock Exchange of Thailand (SET) and Securities and Exchange Commission (SEC)
5. Board of Directors
Stakeholder group
Participating in activities / training programs organized by the Stock Exchange of Thailand (SET) and the Securities and Exchange Commission (SEC)
Organizing the Board of Directors Meetings and other committee meetings Organizing meetings of independent directors with no involvement from the executives Organizing domestic and foreign company visits
Engagement method
Sending these 6 reports within the Positive impacts: appropriate timeframe Investors trust the Company’s overall 1. Quarterly financial statements (reviewed) operating results 2. Periodic financial statements (audited) Receiving “Excellent” ratings for 3. Annual Registration Statement (Form corporate governance and transparency 56-1) and Annual Report (Form 56-2) On average 1 time/quarter
1 trip/year
1 time/year
Receiving complete and sufficient information for making effective business decisions Appropriately preparing and sending sufficient documents to the Board of Directors in advance to allow sufficient time for consideration before the meeting Preparing the minutes of the meeting with important matters in a correct, clear and complete manner Directors with potential conflicts of interest: protecting the interests of major shareholders Independent directors: protecting the interests of small independent shareholders to ensure that they are not taken advantage of Understanding of the Company’s business and increasing knowledge in various areas in order to provide recommendations to the administrative department
Board of Directors Meeting on average 1 time/month
Negative impact: Incomplete information may result in wrong decisions made by the Board of Directors
Positive impacts: The Board of Directors can make correct business decisions and can effectively help solve problems and obstacles that prevent the overall operations from meeting its goals Providing beneficial recommendations that will lead to continued business growth
Negative impact: The Company must bear part of water pumping and diversion costs, which might cause the Company not to reach its target profits
Impacts (positive / negative)
Expectations
Activity frequency per year
24
Eastern Water Resources Development and Management Public Company Limited
7. Shareholders / Investors
Stakeholder group
Receiving information such as financial statements, operating results, direction of business growth, investment plans, risks, and management’s vision, for use in stock valuation, dividend forecasts, and investment decisions in the Company’s stocks and bonds Making inquiries with and providing recommendations to the Company’s personnel Directly seeing and experiencing the Company’s assets and business operations
2 times 2 times 2 times 20 times 13 times 2 times 2 times 57 times 1 time
4. Interim analysis and explanation provided by the management when changes in earnings or net profits are greater than 20% 5. Summary Results of the Business Operations (F45) 6. Report of Securities Holding and Report of Changes in Securities Holding (Forms 59-1 and 59-2 respectively) Correctly following the SET and SEC rules regarding information disclosure
According to new regulations
Liaising with the Compliance unit to monitor new regulations of the Stock Exchange of Thailand and coordinating with various departments to improve operations in order to comply with such regulations
Opportunity Day Annual general meeting (AGM) or extraordinary general meeting (EGM) IR meeting investors Company visit Conference call Site visit Satisfaction survey Telephone / email CSR activity Corporate Website
Expectations
Activity frequency per year
Engagement method
Positive impacts: Shareholders / investors receive correct, complete and timely information The Company and shareholders / investors interact and exchange opinions, making the Company aware of shareholders’ / investors’ views towards the Company. At the same time, shareholders / investors will understand the Company better Increasing company recognition and receiving increased investor confidence. If the Company needs to raise funds through secondary offerings or issuing bonds, it will be easier Shareholders / investors know how the Company invests funds to develop its operations
Negative impacts: Delays in sending reports No. 1, 2, and 5 may result in trading suspension (SP), which might jeopardize the Company’s image Negatively affecting the Company’s share price
Impacts (positive / negative)
SUSTAINABILITY REPORT 2015
25
CSR activities with government agencies and communities along the Company’s raw water pipeline route Project public relations Joining activities of local institutes, schools, government agencies, etc. Studying community water supply needs along the Nong Pla Lai Reservoir - Nong Kho Reservoir pipeline No. 2 route
8. Communities
9. Media (local and Visiting the media on special occasions central) Media-relations activities Corporate website Interview & site visit
Engagement method
Stakeholder group
At least 2 times
At least 2 times
At least 1time/quarter
When there is company project construction
Providing accurate, timely and reliable information Able to easily access information and contact focal person Regular visits and attention Friendly contact and communication for problem solving or emergencies
Communities have water for consumption Portioning out water along the Company’s pipeline routes to nearby communities Providing water assistance in times of drought CSR activities in exchange for using water resources in areas with water sources
Every month Every month Every month
Expectations
Activity frequency per year
Positive impacts: Receiving space to publicize organization, able to create good corporate image The media trusts the Company and directly asks information from the Company before disseminating news about the Company
Negative impacts: Resistance or protests may occur, which may disrupt the Company’s business East Water takes advantage of communities by pumping water, but communities cannot use the water
Positive impacts: Seeing the Company as a water expert that is able to solve the problem of water scarcity for communities Local communities and government agencies understand the Company’s mission, enabling smooth business operations and joint use of water resources between communities and the Company Studying opportunities and feasibility in developing new businesses such as joint businesses or community businesses
Negative impacts: Investors may request information or action that the Company is unable to disclose or follow, which may cause dissatisfaction and negative attitude towards the Company The Company may be unable to accommodate all shareholders / investors to participate in some activities, such as site visits, which receive great interest from shareholders / investors
Impacts (positive / negative)
26
Eastern Water Resources Development and Management Public Company Limited
Employee satisfaction and engagement survey Workplace Welfare Committee Opinion box
Corporate Website Visit suppliers Supplier meeting Meeting to inform regarding work Invitation / quotation Satisfaction survey
11. Suppliers Small Large
Engagement method
10. Employees
Stakeholder group
12 times 1 time
5 times 2 times 1 time 12 times
Fair price in line with the market Transparent and fair selection
Receiving accurate and timely information that is easily accessible anytime, anywhere Having quick access to the Company’s database with accurate information disclosures Organizing activities that build good rapport between employees Career growth Reducing procedures for flexibility and convenience in working Using technology and software for maximum productivity Increasing flexibility with regard to welfare
1 time 4 times Result summary at least once every quarter
Expectations
Activity frequency per year
Negative impact: The Company loses creditability
Positive impact: Transparency and fairness in supplier selection
Negative impact: Misunderstandings and rumors may arise, which may cause performance to be inconsistent with the organization’s policies Increase in resignation / turnover rate of quality employees Internal rumors arise
Positive impacts: Working in line with policies and achieving the organization’s goals Employees understand the organization’s goals and direction and are prepared to be an important contribution Employees have job satisfaction and loyalty towards the Company
Negative impact: Information may be distorted, affecting corporate image and causing misunderstanding of the Company’s operations
Impacts (positive / negative)
Water Security SUSTAINABILITY REPORT 2015
27
Water Management (EN8, EN9) Water resources are a vital part of everyday life, the agricultural sector, and the industrial sector. Current fluctuations in the natural water supply due to unpredictable weather conditions have affected the amount of annual rainfall and runoff. East Water realizes the importance of water management and that “Water Security” has a direct impact on the sustainability of organizations and the country. This is especially true in the highly populated Eastern region of Thailand, an important tourism and industrial area, where water security has led to increased personal income. The Eastern region has the second highest per capita income in the country only after that of the Bangkok Metropolitan Region. East Water’s mission and responsibility is to integrate the management of raw water through its major water distribution pipelines for both consumption and the industrial sector. The aim is to satisfy the water needs of current customers and expected water needs of the industrial sector for the next 10 years. Water services are provided in 4 regions, covering 3 provinces (Rayong, Chonburi, and Chachoengsao). The regions which include 1) Rayong area, 2) Pluak Daeng - Bowin area, 3) Chonburi area, and 4) Chachoengsao area are covered by a 394.50 kilometer water distribution network. The connection of important water resources in the Eastern region or the “Water Grid” is the most extensive and modern in Thailand.
Rayong Province
is the Company’s main service area. The main reservoirs in this area include Dok Krai Reservoir, Nong Pla Lai Reservoir, Klong Yai Reservoir, and Prasae Reservoir.
Chonburi Province’s
main reservoirs include Bang Phra Reservoir and Nong Kho Reservoir. Samnak Bok Raw Water Reserve Pond is also located here.
28
Eastern Water Resources Development and Management Public Company Limited
Chachoengsao Province
has lower volume of water distribution than the aforementioned provinces. Water is pumped from the Bang Pakong River while the Chachoengsao Raw Water Reserve Pond and the Samnak Bok Raw Water Reserve Pond provide operational support.
The following diagram depicts East Water’s supply chain. Upstream
Intermediate
Downstream
Royal Irrigation Department
East Water
Customers
Monitors reservoirs, provides permits, and assigns the volume of water resources allocated to 1) Agricultural Sector 2) Consumption Sector 3) Industrial Sector 4) Environmental Conservation
Raw water distribution through 4 main pipelines 1) Nong Pla Lai - Dok Drai - Map Ta Phut - Sattahip 2) Nong Pla Lai - Nong Kho 3) Nong Kho - Laem Chabang - Pattaya - Bang Phra 4) Chachoengsao pipeline route
Industrial Estate Authority of Thailand Provincial Waterworks Authority Private industrial estates General manufacturing plants and other business groups
The following diagram depicts East Water’s pumping system Operation Framework Agricultures and others
RID Reservoirs
40%
60% Head Tank
Pumping Station
Customer Industrial Estates
Air Chamber
Customer Other Factories
Customer Wateworks SUSTAINABILITY REPORT 2015
29
Water Sources Managed by East Water Water management by Eastern Water Resources and Development Public Company Limited covers 3 provinces, Chachoengsao, Chonburi, and Rayong, and is mainly distributed for consumption and the industrial sector. Water sources are divided into main water sources and reserve water sources. Main water sources from reservoirs such as Nong Kho Reservoir, Dok Krai Reservoir, Nong Pla Lai Reservoir, and Prasae Reservoir are assigned by the Office of Regional Irrigation 9. In addition, water is pumped from Bang Pakong River and private water resources. Reserve water sources include Samnak Bok Raw Water Reserve Pond and Bang Phra Reservoir. The Office of Regional Irrigation 9 schedules an annual meeting with those parties who are licensed to the water usage, excluding the agricultural sector, to allocate water. The annual water allocation period begins in November and ends in August. A review meeting is held every 3 months to reallocate additional water inflow to the reservoirs. Through close cooperation with the Royal Irrigation Department in monitoring water levels and in preventing and solving water shortage, the Company was able to efficiently allocate water for 2014 and 2015. Some measures taken include diverting water from Prasae Reservoir to Klong Yai Reservoir and pumping water from Ban Kai Weir to Nong Pla Lai Reservoir for additional storage. This joint cooperation for water management has led to overall maximum benefit for the Eastern region. The main purpose of pumping water from the Bang Pakong River is to distribute water for the consumption and industrial sectors in Chachoengsao Province. Other than that, water is diverted to the Bang Phra Reservoir as reserve for Chachoengsao Province and Chonburi Province during the dry season. Reserve water sources enhance water security for the Company and are only used when the volume of water at main water sources is low and insufficient. The following table depicts the Company’s volume of water allocated and pumped for consumption in 2014 and 2015.
30
Eastern Water Resources Development and Management Public Company Limited
Volume of Water from Water Sources Used by East Water in 2015 Water Volume Volume of Volume of Storage Water Water Water Capacity Allocation Pumped Pumped 2015 2014 2015 Million cubic Million cubic Million cubic Million cubic meters meters meters meters
Water Source
1. Dok Krai Reservoir
79.41
116.0
88.70
73.9
During 2014, water inflow was greater than reservoir storage capacity. Therefore, the volume of water pumped for use was greater than storage capacity.
2. Nong Pla Lai Reservoir
163.75
120.0
133.9
139.21
During 2014 and 2015, water inflow was greater than reservoir storage capacity. Therefore, the volume of water pumped for use was greater than storage capacity.
3. Nong Kho Reservoir
21.4
16.7
15.3
19.62
During 2014 and 2015, water inflow was greater than reservoir storage capacity. Therefore, the volume of water pumped for use was greater than storage capacity.
4. Prasae Reservoir
295.0
40.04
20.3
45.6
5. Bang Pakong River3
-
-
17.4
10.9
6. Private water sources
-
-
2.3
4.7
292.7
277.9
293.9
Total Note:
Notes
The Company pumped water only during the rainy season in accordance with regulations of Chachoengsao Province. Some water was diverted to Bang Phra Reservoir and Samnak Bok Raw Water Reserve Pond as reserve for the drought season in Chachoengsao and Chonburi. 5 In 2014, water reserved for the drought season was 17.9 million cubic meters. In 2015, water reserved for the drought season 14.5 million cubic meters.ŕ¸
Additional water received from the allocation from Nong Pla Lai Reservoir was 19.2 million cubic meters in 2015 and from Nong Kho Reservoir was 2.9 million cubic meters in 2015. This was in consultation with the Royal Irrigation Department in the meeting of water users (outside of the agricultural sector), which meets for discussion and monitoring of water usage every 3 months. 3 Bang Pakong River is a public river. In pumping water from Bang Pakong River, the Company will pump water from Bang Pakong River when the water in front of Ban Pho District Office has salt level lower than 1 microgram/liter. (Quality of water is measured by Chachoengsao Royal Irrigation Project.) The Company will stop pumping water at the end of the rainy season when water in Bang Pakong River has salt level higher than 1 microgram/liter. This is according to regulations jointly established with Chachoengsao Province and the Royal Irrigation Department. 4 This is the minimum volume of water that must be used during year 2-5, according to the Prasae - Khlong Yai MOU, in the management of water diversion between Prasae Reservoir - Khlong Yai Reservoir. 5 To be sufficient for water demand in 2015 and for the most worthwhile use of water, 14.5 million cubic meters of water was pumped from reserve water sources for distribution to water users. 1-2
SUSTAINABILITY REPORT 2015
31
Sustainability of Raw Water Sources To create customer confidence, East Water has implemented an action plan to sustain raw water sources for the next 20 years as follows:
The progress of the 3 projects that were implemented in 2015 to ensure water sustainability for the Eastern region is as follows:
1) A project to build a water distribution pipeline from Prasae Reservoir to Nong Pla Lai Reservoir is scheduled for completion in September 2016. The diversion capacity of raw water will be increased by up to 70 million cubic meters, thus increasing customers’ confidence in the water management system. 82.16 percent of the project has been completed as of 31 December 2015. Even though the project is 7.84% behind schedule, it is expected to be finished on time.
2) The development of the Tab Ma Raw Water Reserve Pond was scheduled for completion in December 2015, but delays were caused by flooding. As of 31 December 2015 only 73.20% of the project was completed. Once the project is completed in July 2016, the reserve will be able to store 47 million cubic meters of raw water per year.
3) The Nong Pla Lai - Nong Kho raw water distribution pipeline No. 2 is being built to meet future water demands in the Chonburi area and in the Pluak Daeng - Bowin area. The project began on 3 December 2015 and is scheduled for final completion in 2017. In the meantime, East Water is trying to speed up the installation of the pipeline system before May 2016 to alleviate the upcoming water scarcity problem. Once complete, the pipeline will be able to distribute 50 million cubic meters of water per year.
4) East Water continues to work with the Royal Irrigation Department and other relevant organizations to develop up-to-date plans for efficient water distribution. For instance, attending the Water War Room Meeting for the Eastern region and coordinating efforts with the Department of Royal Rainmaking and Agricultural Aviation.
32
Eastern Water Resources Development and Management Public Company Limited
Action plan against water scarcity in case of drought From risk management of water which may be insufficient, East Water has taken additional steps to prevent against water scarcity in 2015 and 2016 in a systematic manner. The Company has done a simulation to study water scarcity at three main water reservoirs, Dok Krai Reservoir, Nong Pla Lai Reservoir, and Khlong Yai Reservoir. The 4 scenarios are depicted in the diagram below.
50%
2.5%
5%
10%
1. Volume of water is within annual estimation, 50% chance of occurrence
2. Drought like 2004-2005, 2.5% chance of occurrence
3. Worst drought in 20 years, 5% chance of occurrence
4. Worst drought in 1997, 10% chance of occurrence
2014 360 340 320 300 Maximum water storage 280 volume 275.25 MCM 260 240 220 200 180 160 140 120 100 80 60 40 20 Lowest water volume 19.5 MCM 0
2015
1. 2. 3. 4.
2016
Scenarios (Scenarios 2-4 continuous water diversion 2015-2016) Volume of water inflow is within annual estimation Volume of water inflow like 2004+2005 (2.5%) Volume of water inflow lowest in 20 years (5%) Volume of water inflow like 1997 (10%)
1 2
4 3
Water shortage monitoring line year end 245 MCM Oct - Dec 2015 water diversion 10.6 MCM
Jan - Aug 2016 planned water diversion 77.5 MCM
Apr - Aug 180 MCM
Feb 2014 Mar 2014 Apr 2014 May 2014 Jun 2014 Jul 2014 Aug 2014 Sep 2014 Oct 2014 Nov 2014 Dec 2014 Jan 2015 Feb 2015 Mar 2015 Apr 2015 May 2015 Jun 2015 Jul 2015 Aug 2015 Sep 2015 Oct 2015 Nov 2015 Dec 2015 Jan 2016 Feb 2016 Mar 2016 Apr 2016 May 2016 Jun 2016 Jul 2016 Aug 2016 Sep 2016 Oct 2016 Nov 2016 Dec 2016
Total water storage volume (MCM)
2015-2016 simulation of water situation in Dok Krai, Nong Pla Lai, and Khlong Yai Reservoirs with water reserve for both years
SUSTAINABILITY REPORT 2015
33
East Water has plans to deal with water scarcity as follows: 1. Coordinated with the Royal Rainmaking Operation Agency in the Eastern region through its operation center in Rayong Province during May to September 2015. 2. Diverted water from Prasae Reservoir to Khlong Yai Reservoir and to Nong Pla Yai Reservoir. 3. Re-diverted water from Ban Kai Weir to Nong Pla Lai Reservoir. 4. Increased water reserves in the Bang Phra Reservoir by pumping water from East Water’s pumping station at Bang Pakong River. 5. Reduced water distribution from Rayong to Chonburi, and utilizing water in the Chonburi area to its full capacity. 6. Diverted water from Rayong River to support the Map Ta Phut area during crisis. 7. Procured additional private water sources.
At the end of the rainy season in 2015, the water storage levels at Bang Phra Reservoir and Nong Kho Reservoir were much lower than average water levels. Therefore, during the dry season in 2016 there is the risk of water scarcity. The Company has the following supportive measures to prevent and solve water scarcity: speed up the construction of the Nong Pla Lai - Nong Kho pipeline No. 2 and search for alternative sources of raw water from ponds in the Chonburi area.
Application of Technology in Water Management to Reduce Water Loss in Pipeline (EN8, EN1) East Water uses the modern Supervisory Control and Data Acquisition (SCADA) technology to control water distribution. The integrated control system at the Rayong Operations Center distributes water to 15 pumping stations, covering 3 provinces. This real time control system helps reduce manpower and solve water distribution problems in a timely manner. (This does not include the pumping station at Prasae which belongs to the Royal Irrigation Department and private water ponds which is temporary usage of electricity.)
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Eastern Water Resources Development and Management Public Company Limited
Reduction of Non-Revenue Water East Water has a policy to monitor and control the volume of non-revenue water in the whole system. Non-revenue water is considered water loss and cannot be brought back for reuse. The volume of non-revenue water can be calculated using the equation below.
pumped % NRW = Volume and distributed
volume used by customers
volume of water reserves
x 100
Volume pumped and distributed A standard has been set for the volume of non-revenue water at ≤2.50 %. Since 2012, East Water has gained better control of pipeline leakage during water transmission, with the volume of NRW continually decreasing as shown in the diagram below:
Non Revenue Water 4.5% 4.0% 3.5% 3.0% 2.5% 2.0% 1.5%
3.43% 2.69%
1.0%
2.44%
2.23%
2013
2014
1.94%
0.5% 0.0%
2011
2012
2015
SUSTAINABILITY REPORT 2015
35
Data of Water Pumped and Distributed in 2015, Water Distribution Division Month
Volume of reserve water measured 0 0 0 0 0 0 0 2,075,738 3,802,900 6,435,880 1,034,700 1,107,498 14,456,716
Volume pumped Volume distributed
January February March April May June July August September October November December
25,212,829 24,378,044 27,368,285 25,642,890 29,082,874 26,855,216 29,229,385 27,153,938 26,582,762 27,956,935 23,281,605 24,412,212 317,156,975
24,605,468 24,039,935 27,275,862 25,963,886 27,963,304 26,296,623 28,735,811 24,414,490 22,096,202 20,868,165 21,620,266 22,671,047 296,551,059*
Water loss
NRW
607,361 338,109 92,423 -320,996 1,119,570 558,593 493,574 663,710 683,660 652,890 626,639 633,667 6,149,200
2.41% 1.39% 0.34% -1.25% 3.85% 2.08% 1.69% 2.44% 2.57% 2.34% 2.69% 2.60% 1.94%
Note: *Financial reporting period and water pumping reporting period are different.
Thousands
Volume of Water Loss in 2015 1,200
5%
1,000
4%
800
3%
600
2%
400
1%
200 0
0%
Se gust pte mb e Oc r tob No er ve m De ber cem be r
y
Eastern Water Resources Development and Management Public Company Limited
Au
Jul
Jun
Ma
Ap
Jan
36
e
-2%
y
-400
ril
-1% ua Fe ry bru ary Ma rch
-200
During the past year, East Water has implemented the following projects to reduce the volume of non-revenue water: 1. Improve the efficiency of the Bang Pakong – Chonburi pipeline by using Catholic Protection to prevent rust and reduce water leakage in the 1,400 millimeter steel pipe. 2. Employ plumbers whom are available 24 hours to fix emergencies. This helps reduce the volume of water loss from pipeline leakage and shortens the duration of water loss. 3. Plan and execute the calibration of main water meters, including those at water sources and water origins, and those of customers. Calibrations are conducted regularly to increase accuracy in the monitoring of water loss. Also, employing an Automatic Billing System that is directly linked to the SCADA system. This allows control room officers to closely monitor customer’s water usage and to solve problems instantaneously as they arise. 4. Monitor and maintain equipments used in the water distribution system. Implementation of an annual checkup plan has reduced the volume of non-revenue water in the pipelines and readies the system for year round operation.
As per quality of service which includes water pressure, water volume as specified in the agreement, and service quality, the standards of service are considered according to customer area. Customers in the Pluak Daeng-Bowin area receive higher water pressure levels than other areas due to their close proximity to point of origin at Nong Kho Reservoir pumping station. Even though some customers may receive higher water pressure levels, the average pressure level of the pipeline route is 3.0 bars. The high pressure does not affect the customers’ production line. However, the Company will immediately notify customers in case of changes in water pressure levels along the pipeline. Information is gathered by the Customer Service Improvement Team to ensure the serviceability of the pipeline system. This information is used to monitor the pipeline system and equipment in order to improve the efficiency of operations. East Water is continually committed to maintaining the reliability of water pumping and distribution systems. Targets have been set to prevent damages to machines and equipment which will lead to disruptions or closures in main water distribution pipelines. In addition, stopping water distribution for maintenance is set to be no longer than 8 hours. Class A machines which are of great importance must never stop functioning.
Possible Effects from Water Pumping Process (EN9) East Water’s business operations involve pumping and diverting water from various sources in the three Eastern provinces, namely Dok Krai Reservoir, Nong Pla Lai Reservoir, Prasae Reservoir, and Rayong River located in Rayong; Bang Phra and Nong Kho Reservoir located in Chonburi; Bang Pakong River located in Chachoengsao; and private water ponds. This mostly involves direct water distribution from water sources to customers. The only exception is the Bang Pakong River where during the rainy season water is distributed to customers and pumped as reserves to the Bang Phra Reservoir and the Samnak Bok Raw Water Reserve Pond in Chonburi because during the dry season the salt water content in the Bang Pakong River is too high for useage. In 1972, the Royal Irrigation Department expropriated land from the people to construct the Bang Phra Reservoir. Once completed in 1975, the water stored was used to the benefit SUSTAINABILITY REPORT 2015
37
of the industrial sector and to process water for consumption. The reservoir can store 117 million cubic meters. With increased water levels from the Bang Phra Reservoir, the ecosystem in the area changed. Numerous bird species such as different kinds of wild duck, egret, and jacana inhabited the area around the reservoir. In addition, birds such as the white breasted waterhen, quail, red-wattled lapwing, and Indian roller fed along nearby grasslands and forest edges. Villagers traveling by the Bang Phra Reservoir saw the chance to shoot these birds for food, while some even hunted these birds for trade. In 1976, complaints were lodged by people living around the reservoir to the Wildlife Conservation Division, Department of Forestry. Officers were dispatched to survey the area and discovered the need to declare a non-hunting zone. Afterwards on 19 April 1976 the Ministry of Agriculture and Cooperatives declared the Bang Phra Reservoir a non-hunting zone, which was published in the Royal Thai Government Gazette Volume 93, Section 82 dated 8 June 1976. The pumping of water from the Bang Pakong River for storage in the Bang Phra Reservoir is a diversion of water from the Bang Pakong river basin to the East coast water basin. The water diversion may have an environmental impact on the Bang Phra Reservoir preservation. However, this is unlikely because the reservoir itself doesn’t naturally belong here. Instead, the area was developed as a reservoir where perennial plants and aquatic plants were grown to serve as habitats for the wild animals that were released after the completion of the reservoir. Other activities also contributed to ecological changes in the area such as planting trees and releasing water species as sources of food for local villagers. These activities were organized by both the public and private sector. In addition, water was diverted across the water basin by other agencies. Thus, making it very difficult for the Company to evaluate how its activities have impacted the ecosystem. Therefore, a report will not be provided on the issue of biodiversity for the year 2015. In 2016, studies will be conducted to determine how East Water’s water diversion from the various resources has affected the ecosystem. This will be used as a database for later years.
Weather Fluctuations and Electricity Consumption (EN16) Human activities which cause greenhouse gas emissions have unarguably caused the current deterioration of the environment as well as weather fluctuations. East Water’s main process is pumping water through 394.50 kilometers of its water distribution system with 15 main pumping stations. Therefore, electricity consumption represents the Company’s main energy consumption. The realization of this problem has made East Water attentive in reducing energy consumption. Projects have been implemented to conserve energy by improving its main water pumping and distribution system and by executing projects to support management efficiency. In addition, energy conservation practices are in accordance with the legal guidelines for the establishment of the energy management system. Five pumping stations are registered as regulated factories. These are Nong Pla Lai pumping station 1, 2, 3, Dok Krai pumping station, booster pumping station, Bang Pakong pumping station, and Chachoengsao pumping station. Also, one control center building, namely the head office, is registered as a regulated building. Results from the assessment of potential energy conservation are used to set targets for reducing energy consumption at the organization, production, service, and the equipment levels. Consideration is given to levels of energy loss incurred and the opportunity to implement improvements.
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Eastern Water Resources Development and Management Public Company Limited
Moreover, the Energy Management Working Group was established to set up a policy and operational guidelines for energy conservation and to promote the efficient and maximum utilization of energy. In 2015, the following projects were implemented to improve the efficiency of energy consumption. 1. A project to install Variable Speed Drive (VSD) equipment at the Bang Phra and Nong Kho pumping stations in Chonburi. Controlling the appropriate variable speed to be consistent with the volume of water used reduces electricity consumption and eases the burden on the pump. Thus, increasing the working efficiency of the pump. As of December 2015, the equipment has been installed and the process is being tested. 2. A project to install a Capacitor Bank at Dok Krai pumping station to improve the Power Factor (PF). This reduces energy loss and improves the efficiency of the electrical system in accordance with regulations set by the Provincial Electricity Authority. Thus, lowering the cost of electrical energy in terms of electric units and avoiding fines that may incur due to PF values lower than 0.85. The project was completed as scheduled. 3. A project to install booster pumps for customers located at the point of origin of the water lift station. This reduces energy consumption used in pumping stations in the Rayong area. 4. A project to increase the pump pressure for Sattahip Provincial Waterworks Authority reduces electrical consumption for Map Ta Phut pumping station by 6%. 5. A project to turn off lights during lunch breaks at all pumping stations and at Map Ta Phut office, continually implemented since 2014.
The following projects are planned for 2016 to conserve energy. 1. A project to reduce water levels of elevated water tanks to be in balance with reserve ponds. This will reduce energy consumption in the Rayong area by 8% based on monthly electricity costs in this area. 2. A project to study the use of water pressure to generate and distribute electricity using the alternative of the Mini-Hydro Power system. 3. A project to reduce electricity consumption from the diversion of water from Prasae Reservoir to the Chonburi area. Water will be diverted into the Booster Pump and directly sent to the Chonburi area. This will reduce steps and the cost of electricity from pumping water from Nong Pla Lai Reservoir into the Booster Pump and then to the Chonburi area. (Inline Booster, NPL-NK) 4. A project to install a Mobile Diesel Engine to increase the efficiency of pumping water from various sources where there is no electricity. This will reduce the time period in applying for electricity. It will make electricity readily available especially in the Chachoengsao and Chonburi areas where there are projects to purchase water from private ponds.
SUSTAINABILITY REPORT 2015
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Greenhouse Gas Emissions in 2014 and 2015 Pumping station 121,564,283 kWh, 98%
Tons of Carbon Dioxide
Pumping station 163,978,311 kWh, 98%
90,378.85
100,000
67,451.58
Office 2,747,508 kWh, 2%
Office 2,587,944 kWh, 2%
Ton Carbon
80,000 60,000 40,000 20,000 0
2014
2014
2015
2015
Efficient Energy Consumption East Water emitted 90,378.85 tons of carbon dioxide from its electricity consumption in 2015. This data was calculated based on electricity consumption at East Water’s 15 pumping stations, electricity consumption for the pumping station at Prasae Reservoir, and electricity consumption at the Head Office building. In 2015, cost of electricity was calculated for the first time for water pumping and diversion at Prasae Reservoir. Therefore, data from 2015 will be used as the basis for calculating greenhouse gas emissions. (In 2015, East Water must pay the full cost of electricity because the PWA did not use any water from Prasae Reservoir. Next year the cost of electricity will be equally divided with the Provincial Waterworks Authority (PWA) as stipulated in the MOU.)
Calculation of Greenhouse Gas Emissions
**Formula for calculating GHG emissions = Activity Data (kWh) x Emission Factor Emission Factor of Electricity = 0.5426 kgCO2e/kWh Energy Consumption at Pumping Stations + Head Office in 2015 GHG = [(Pumping Stations) 163,978,311 kWh + (Head Office) 2,587,944 kWh] X 0.5426 kgCO2e = 90,378,850 kgCO2e = 90,378.85 TonCO2e Reference: Emission Factor from the Approval and Monitoring Office, Thailand Greenhouse Gas Management Organization (Public Organization) 2014 http://tver.tgo.or.th/2015/file/download/Grid_Emission_Factor_124.pdf # page 10
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Eastern Water Resources Development and Management Public Company Limited
Water for Excellent SUSTAINABILITY REPORT 2015
41
Management of Wastewater Treatment System (EN10) East Water’s main business process is pumping and distributing raw water. Thus, wastewater during this process can be considered as zero. Wastewater is released from end users such as industrial plants and customers. Therefore, wastewater treatment does not depend only on East Water, but also involves water users that are its customers. In 2015, East Water did not implement any procedures to collect data from customers. There has only been an introduction to the concept of worthwhile use of water through the Water Complex. Collaboration with customers to collect data will begin in 2016. Therefore, there is still no process to reuse wastewater in East Water’s water distribution pipeline network.
volume of water consumption in the building and is in accordance with the organization’s policy of environmental management system.
The main components of the water recycling system are dissolved air flotation (DAF), automatic sand filter, automatic carbon filter, chemical dosing unit using powdered active carbon (PAC), polymer, and sodium hypochlorite. The quality of water produced from the system is in accordance with tap water standards, pH between 6.5-8.5 and turbidity 2-3 NTU (tap water standard must be lower than 5 NTU). Therefore, the quality of water is deemed suitable for use in place of tap water.
As a result of the drought crisis in Thailand, the government has issued a policy requesting cooperation from all sectors in conserving water and utilizing water to its full benefit. East Water has decided to contribute to this policy by introducing the water recycling system in its building. The water recycling system at East Water’s office building has a production capacity of 90 cubic meters per day. The purpose is to treat the wastewater and reuse the water instead of using tap water. Non-portable uses include water for flushing toilets and adding water to the pond in front of East Water’s office building. The recycling system treats water from 8.00-18.00 hrs. This reduces the
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Eastern Water Resources Development and Management Public Company Limited
Water-related Businesses
Through continuous development, East Water is ready to become the leader in providing services and management of complete water management systems in the Southeast Asian region. In 2015, East Water introduced the concept of sustainable development in operating its business. For example, the Water Complex Project focuses on utilizing every drop of water in a worthwhile manner and is environmentally friendly. The project provides a service to manage the integrated water system and to install the appropriate water system for each industry whether it is raw water, tap water, clarified water, demineralized water, reverse osmosis, or recycled water. Water is used to its full worth and thus contributes to environmental conservation. In 2015, East Water has laid the foundation for a sustainable water system by creating business alliances through its subsidiary companies. For example, the project for sustainable infrastructure with Global Power Xin Synergy Plc. or GPSC to study the feasibility of a project to manage the complete water system for Pattaya City; and to service and maintain the tap water production system and wastewater treatment for Lakchai Muang Yang Industrial Estate, Rayong Province.
Customer Care and Maintaining Customer Satisfaction / Responsibility to Customers In line with the corporate value of focusing on customer service and customer care and to maintain customer satisfaction within set standards, the Company has established guidelines to continuously improve customer service. The Company listens to customer complaints and recommendations (Voice of Customer) through channels such as telephone, e-mail, company website, site visits for important occasions and annual customer satisfaction surveys. Data is collected, analyzed, and assessed in the Operations and Customer Services Department Meeting and in the Management Meeting. Information obtained is then used to formulate plans to improve customer service for all customer groups.
SUSTAINABILITY REPORT 2015
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Water Consumption by Customer Group in 2015 61.15%
Industrial Estate Household Customer Private Industrial Park Others Internal Use
27.64%
8.69%
1.07%
1.45%
In 2015, East Water made improvements to the Customer Management Relation System by including data on volume of water consumption from the Online Metering System to increase the efficiency in planning CRM activities. Customer satisfaction surveys were conducted to determine the level of customer satisfaction towards products and services. Survey results were analyzed and incorporated into an action plan to improve products and services so that they can effectively meet customer satisfaction. Based on data analyzed in 2014, the main issue customers want improvement in faster notification of information and news, especially when there are changes in water quality at the water source. East Water has appointed the Control Center as the central hub for receiving and transferring information related to water quality and the pumping and distribution of water. This point will be added to the customer satisfaction survey in 2015 so that information obtained can be used to develop and improve services in all areas.
Scores for customer satisfaction survey
Overall Customer Satisfaction Score 2013-2015
44
5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0
4.39
4.35
4.48
2013
2014
2015
Eastern Water Resources Development and Management Public Company Limited
Satisfaction Score in Each Category Category 1. Water distribution service 2. Maintenance service 3. Sales service 4. Control Room service 5. Information service Average Score
2013 4.35 4.30 4.51 ND 4.41 4.39
Satisfaction Level 2014 4.30 4.32 4.46 ND 4.35 4.35
2015 4.42 4.54 4.57 4.40 4.48 4.48*
Note: Reference from the Company’s Internal Survey in 2013-2015 1. ND: (Not Determine) No survey was conducted 2. *Survey results as of Q1/2015
Compared to 2014, the results of the customer satisfaction survey in 2015 show improvements in customer satisfaction for each service category. Most noteworthy were the employees who provided services. Employees were commended as friendly, caring, and enthusiastic in providing services. After a detailed assessment, the topic with the lowest score compared to other topics is advance warning of unusual occurrences and being unprepared to answer questions. Information from the survey are reported in the Management Meeting (MM) and presented in the Operations and Customer Services Department Meeting to review whether operations in different departments are sufficient. If not, preventive action and continual improvements of procedures of related parties are implemented.
Information Pertaining to Complaints and Dealing with Complaints From statistical data of complaints in 2013-2015, findings show that 80% of complaints are about the quality of raw water. To address these complaints, the Company will specify the types of complaints and the services requested in order to assign the team responsible for analyzing, providing solutions and preventions within a specific timeframe. This follows the internal control system in solving and preventing complaints. Assessment of customer satisfaction after the complaint has been dealt with is required every time. Also, a monthly report must be presented to executives in order to constantly improve the efficiency of the complaint process.
Complaints in 2013-2015 are as follows: Day/month/ year
Water user
27 Feb 2014 Map Ta Phut Industrial Estate
Topic
Solving complaints
Customers in the industrial estate notified that bubbles were in the clarifier supporting sludge RW, causing sludge to float to the water surface
1. Draining off dregs in the pipeline system 2. Changing the level of the sluice gate valve 3. Performing additional analysis of water quality at different water levels (water quality returns to normal on 28 Feb 2014)
SUSTAINABILITY REPORT 2015
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Day/month/ year
Water user
Topic
Solving complaints
27 Feb 2014 RIL 1996
Customers in the industrial estate notified that water in the sedimentation tank contains dregs, like what happened at the beginning of 2012
1. Draining off dregs in the pipeline system 2. Changing the level of the sluice gate valve 3. Performing additional analysis of water quality at different water levels (water quality returns to normal on 28 Feb 2014)
8 Jun 2014
Map Kha Sub-district Municipality
Adverse effect on volume of water distributed due to repair of Gate Valve at Nong Pla Lai Reservoir
Water was provided for the SM to transport to relieve problems at Dok Krai pipeline. Operations were monitored when repairs were carried out again. It was found that there was no impact on SM receiving water.
6 Aug 2014
TFD
Raw water had a turbid yellow color
Draining off the turbid yellow water from the distribution pipeline until the water quality returned to normal
7 Sep 2015
Win Coast Industrial Park
Adverse effect on receiving water for production and distribution within the industrial park due to the repair of an emergency rupture in the raw water distribution pipeline
Visited the industrial park to clarify the results of the repair and to set preventive measures for future reoccurrence. Clear management measures are to be set with the relay of interval progress reports. The Control Center is the central hub for transferring information (SMS/Call). In case of emergency, there must be a contingency plan in which the customer must always be informed.
Note: No customer complaints in 2013
Apart from going to the field to conduct satisfaction surveys and hearing complaints, East Water organizes and invites customers to annual customer meetings to listen and express their opinions. This is beneficial to improving customer service.
Information on Customer Meetings
The key customer meetings in 2015 are as follows: Meeting East Water Open House
Technical Seminar
Target group
Objective / Project details
New customer accounts Groups expected to be future customers (new opportunities) Current customer groups who are interested
To introduce the Company to new/future customers and to create understanding of the management and control of water distribution through modern technology. The objective is to create confidence in deciding to become future customers.
Current customers
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Eastern Water Resources Development and Management Public Company Limited
To report on the current situation and future trend of water sources; the progress of construction projects to prevent drought and to enhance the capability of the water distribution system; and readiness to service customers in order to provide knowledge and create understanding about water sources and the water distribution system. This is for the purpose of building customer confidence.
Developing Employees’ Skills in Preparation for Business Expansion and Determining Growth Path East Water realizes the value of employees as important stakeholders because they join in driving the organization forward to attain its goals and mission. Therefore, East Water places great emphasis on human resource management and development. In 2015, East Water continued to train and develop employees’ potential.
Development of Employee Potential East Water designed an annual training and development plan with various courses for employees to support the development of the organization’s core capacity and in accordance with employee position. Employees receive training in courses that conform to the goals of the individual development plan (IDP). In 2015, plans for developing employees at all levels of the organization were designed according to the guidelines of the Human Resource Department. The results of personnel development according to the IDP was 92.61%.
As for the curriculum, institute and lecturer, East Water considers only prestigious and high caliber institutes and/ or lecturers. Courses for top management focus on development related to business management, corporate governance, and building good relations between the public and private sector. Courses include those of the King Prajadhipok’s Institute, Thai Institute of Directors Association (IOD), and Thailand Securities Institute (TSI). Courses for mid-level management and supervisors focus on the development of management skills in various areas. These courses include The Manager, The Supervisor, Productivity Excellence, Rolling Corporate Plan, courses in finance, and courses to develop skills according to job position. Courses for the operational level focus on the development of both soft skills and technical skills according to position. These courses include project management and contract management, efficient and effective communication, problem-solving and decision making, and courses in strategic thinking.
SUSTAINABILITY REPORT 2015
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Other courses/programs such as Train the Trainer to develop employees with potential, knowledge and expertise to become lecturer / trainer and to transfer knowledge to employees within the organization. The English proficiency program from the original classroom setting to online learning was developed to support business growth in the ASEAN region. The Company also has a program to measure business management potential for employees at the management level as well as the supervisory level or for positions of similar level. The test results are used to create an Individual Development Plan (IDP).
In 2015, apart from the training courses related to their main duties, East Water provided opportunities for employees to develop managerial skills and foreign language skills (online). The Company also provided opportunities for overseas learning trips such as field trips to study the management of water for consumption and households and the field trip to Russia to learn about flood prevention plans. Recognizing the importance of worthwhile and sustainable use of resources, East Water organizes courses on energy and environmental conservation for new employees every year. The three courses which provide knowledge on safe workplace environment and energy conservation are as follows: 1. Occupational health and safety and workplace environment for current and new employees 2. Energy conservation consciousness (Bangkok office) 3. Energy conservation (Rayong office) East Water also develops employee potential through job rotation between departments to enhance all-round skills and abilities. In 2015, East Water’s job rotation was calculated at 21.89 %, higher than other companies, and job promotion was at 2.96 %. (In reference to survey results on human resources in the comparison of the job rotation ratio among companies conducted by the Thailand Management Association, TMA found that job rotation was at 5.53 % and job promotion at 8.63 %.)
Diagram showing the average number of training hours per person per year 2013
2014
2015
100 80 66.83
60 40
54.22 37.84
20 0
Average hours of training per person per year
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Eastern Water Resources Development and Management Public Company Limited
Diagram showing the average number of training hours per person (according to employee level) 100
0
Supervisor 2013
Diagram showing the number of training hours (by sex) 6,408.80, 57%
4,890.55, 43%
2014
30.27
95.50
Management
32.87
20
41.55
48.22
33.44
40
84.59
90.83
60
60.60
80
Operational 2015
Diagram showing the number of training hours (by employee level) 2,292, 20%
761, 7%
8,245, 73%
Male
Operational
Female
Supervisor Management
Collection, Dissemination, and Transfer of Knowledge In 2015, East Water continuously implemented knowledge management by organizing knowledge-sharing activities on various topics. The Company organized a competition called the InnoWAVE Project for the fourth consecutive year. The competition emphasizes innovative ideas which are beneficial to the Company by increasing the efficiency of operational processes through cost and time reduction and improving customer service and satisfaction. Afterwards, there is a review of employee projects to determine which ones to apply for patent or petty patent with the Department of Intellectual Property. The project is in the final round of competition and results should be announced in the first quarter of 2016. The following tables show the number of employees, projects, and the details of selected projects from the Company’s 2015 competition. No. 1 2
Type of Project Front Office Back Office Total
Total Number of Projects Persons 15 40 21 52 36 92 SUSTAINABILITY REPORT 2015
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No.
Project / Front Office Contestant
Project / Back Office Contestant Team
1
Save Water Save World Micro Treatment Plant - treats wastewater for communities before release into rivers and canals
East water sms alert The Company’s Call Center can send water bill through SMS
2
Equipment to clean water inlet pipe in the sedimentation tank Cleaning the inside of the inlet pipe before water is filtered through the sedimentation process
App. East water on mobile Smart phone application which allows customers to conduct water-related transactions through mobile phones
3
Drill to Destroy Earth New design of equipment to wrench open - close surface box for gate valve, minimizing loss, increasing safety, and speeding up the work process
VDO Conferencing Anytime Anywhere Overcoming the limitations of the Company’s current VDO conferencing system, enabling connections with networks outside the Company
4
Syphon Cleaner System that sucks in water and releases out water to clean sediment without using any electrical equipment
Scan Barcode - Assets - Tablet/Smartphone Using tablet or smartphone to store information on list of company assets, location of assets, and pictures of assets
5
Clamp Super Locks for PE Pipes Equipment to easily lock PE pipes, used when the gate valve won’t close, decreases time spent fixing pipes, increases efficient distribution of water
PM Cells Develop Excel program as a tool to help plan, manage, remind, and follow-up on the maintenance of equipment
6
Scrub Brush for Gutter Scrub brush to clean gutter above sedimentation tank in limited workspace
Lunchbox EWG Love Earth Use lunchboxes or food containers instead of foam boxes
From 2013 to 2015, the number of teams which presented their projects is as follows: Year Number of projects
2013 46
2014 43
2015 37
Total 126
In support of East Water’s knowledge management, the Internal Web System was developed in 2014 to store information, news, and important internal and external knowledge. The system also serves as the center for various functions such as purchasing, inventory control, booking meeting rooms, Action Plan, Key Performance Indicators (KPIs), customer service, and Human Resource Information (HRIS). Information available to employees is up to date and can be accessed conveniently and quickly allowing them to efficiently solve problems and to promote self-development. This is an important foundation to achieving
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Eastern Water Resources Development and Management Public Company Limited
Water for Life SUSTAINABILITY REPORT 2015
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Social Investments and CSR Activities (EN10)
East Water realizes the importance of building an understanding and good rapport with the people and various organizations in operational areas. This will result in happy interdependent co-existence, leading to smooth and sustainable business operations alongside communities and the environment. Therefore, East Water’s strategy is to understand, reach out, and develop the community. This is used as a guideline for CSR activities and to set a framework for community development in 3 areas as follows.
Projects for basic water infrastructure and conservation of natural resources
1. Wastewater treatment system in school canteens project 2. Natural resources and environmental restoration project (plant trees, release water species, cultivate seedlings, and dredge canals) 3. East Water Network for Water Conservation project (youth camps, water quality at water sources, and the Company’s raw water costs) 4. Water for Communities project (supports water in cups, bottled water, water vending machine, and mobile drinking water truck)
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Socioeconomic projects for better quality of life
1. Football to promote good relations project 2. Annual Kathin religious ceremony project 3. Occupational training project (reduce expenses and increase income according to the Philosophy of Sufficiency Economy) 4. Supporting activities / public interest projects of government agencies, communities, and non-profit organizations 5. Souvenirs for the Company’s CSR activities
Eastern Water Resources Development and Management Public Company Limited
Projects to support life-long learning
1. Operational training project, course on building water-air aeration pump 2. East Water Study Center on Sufficiency Economy, Khlong Khuean District 3. Computer training for the disabled project
The Company’s CSR Implementation Process
Create understanding
Reach out
Develop quality of life for communities
The Company has organized projects to create understanding and publicize the Company’s information to communities and state agencies located along the raw water distribution pipeline. Occupational training project (reduce expenses and increase income according to the Philosophy of Sufficiency Economy) 30 locations/year Feb-Nov 3 times/month In 2015, a total of 1,234 participants joined the activity. Football to promote good relations project Foster ties with communities 8 locations/year
Community field visits to publicize company information to communities living near the raw water distribution pipeline have shown that many communities still do not have access to water consumption. Clean drinking water project - sponsor drinking water for community activities and provide aid during disasters such as the flood and drought in 2015, supported over 800 cubic meters of clean drinking water Funding to help alleviate drought problems for communities in the area
Besides helping communities have access to clean water, the Company has joined forces with communities located along the raw water distribution pipeline and local government offices in improving quality of life. East Water Network for Water Conservation project Forest cultivation in the Eastern region project in commemoration of HRH Princess Maha Chakri Sirindhorn’s 60th Birthday Anniversary East Water Study Center on Sufficiency Economy, Khlong Khuean District Operational training project, course on building water-air aeration pump Computer training for disabled students project, Class 3, 2015
SUSTAINABILITY REPORT 2015
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East Water implemented a project to build a correct understanding of and to publicize information on the implementation of East Water’s projects to communities and state agencies in areas along the raw water pipeline route through CSR activities. The Company surveyed water needs along the raw water pipeline route before the project construction in order to help solve the problem of shortage of clean water. The survey results were also used to consider which CSR projects to implement with communities along the pipeline route for sustainable joint development.
Important CSR projects in 2015 include:
1. East Water Network for Water Conservation project
East Water expanded on the East Water Young Leader Camp project, which was implemented since 2007. The Company integrated it with the project to protect water sources by the environmental warriors / water detectives group from Chachoengsao Province and the Center for Monitoring and Assessing Water Quality in Pluak Daeng District of Rayong Province, resulting in the East Water Network for Water Conservation project. In 2015, the second year of the project implementation, 12 schools and 80 youths participated in the project.
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Eastern Water Resources Development and Management Public Company Limited
2. Operational training project, course on building water-air aeration pump
From the 3R (Reduce, Reuse, Recycle) water innovation competition organized by the Company for three years (2010-2013), the Company used the ideas from the project inventions to create innovative 3R prototypes which could benefit the community. In 2014, the Company integrated the dissemination of knowledge to communities along the raw water pipeline route by appointing Technical Colleges in 3 provinces (Rayong, Chonburi, and Chachoengsao) as learning centers. Therefore, in 2014 the Company organized an operational training course to build a water-air aeration pump for Chachoengsao Technical College. Lecturers were from Ubon Ratchathani Technical College, an institute that participated in the 3R innovation competition project. Then, the Company worked jointly with Chachoengsao Technical College to build 4 aeration pumps for installation around Khlong Nakhon Nueang Khet at Nakhon Nueang Khet Old Market and the wastewater pond at Chachoengsao Community Housing Project Phase 2 to help alleviate water pollution before release into the Bang Pakong River. In June 2015, the aeration pumps were handed over to Nakhon Nueang Khet Municipality and the Chachoengsao Community Housing Project Committee. In September 2015, the Company organized an operational training course to build water-air aeration pumps for Ban Kai Technical College, Rayong with lecturers coming from Chachoengsao Technical College. In 2016, the Company will organize operational training projects for Technical Colleges in the Chonburi area so that learning centers are present in all the 3 provinces along the Company’s raw water pipeline route. SUSTAINABILITY REPORT 2015
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Budget (Baht)
Budget for CSR Projects 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0
Projects for basic water infrastructure and the conservation of natural resources 2014 4,611,237 2015 3,759,065
Socioeconomic projects for better quality of life
Projects to support life-long learning
6,252,151 6,133,882
1,700,400 2,188,756
Policy on Anti-Corruption in the Organization (SO4) East Water has a policy to manage its business with transparency and gives importance to fighting corruption. In 2015, East Water was certified as a member of Thailand’s Private Sector Collective Action Coalition Against Corruption (CAC) by the Thai Institute of Directors Association (IOD). This reinforces the Company’s mission to fight all forms of corruption in the organization. The Private Sector Collective Action Coalition Against Corruption is a cooperation among leading organizations such as the Thai Institute of Directors Association, the Thai Chamber of Commerce, the International Chamber of Commerce, and the Thai Listed Companies Association, with the aim of pushing for concrete and effective anti-corruption among a wide circle. Presently, 475 companies have declared their intent to join the CAC, with 109 companies already certified.
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Eastern Water Resources Development and Management Public Company Limited
Throughout 2015, East Water organized activities to continuously promote anti-corruption. Starting with the general meeting of shareholders for the year 2014, East Water organized a special activity among the Board of Directors, executives, employees and shareholders to declare their intent to fight corruption. At this event, 11 members of the Board of Directors (equivalent to 100%) all signed their names on the Declaration against Corruption.
At the 2015 National Anti-Corruption Day with the concept “Active Citizen Against Corruption”, East Water joined the activity to show the power of the new Thai generation who will not ignore and will not accept all forms of cheating, and will not ignore the corruption problem, but will find ways to actually do valuable things to the best of their ability.
In addition, on 15 October 2015, the 23rd anniversary of East Water’s operations, a special seminar to promote knowledge for employees under the topic “Leaders and Good Corporate Governance and the Problem of Corruption” was organized. Police Major General Wichai Sangprapai, Chairman of the Corporate Governance and Nomination Committee, was the speaker. 145 out of 168 employees joined the activity, equivalent to 86% attendance. 92 employees were from the Bangkok Head Office while 53 employees were from the Rayong Operations Center. On the same day, Mr. Amorn Laohamontri, Director and Member of the Corporate Governance and Nomination Committee, represented the Company at Thailand’s 6th National Conference on Collective Action against Corruption with the topic “Anti-Corruption in Thailand: Sustaining the Momentum”. The conference was organized by the Thai Institute of Directors Association, the Thai Chamber of Commerce, the Thai Bankers’ Association, the International Chamber of Commerce, the Thai Listed Companies Association, the Federation of Thai Capital Market Organizations, the Federation of Thai Industries, and the Tourism Council of Thailand. SUSTAINABILITY REPORT 2015
57
Anti-Corruption in the Procurement Process The procurement process is in line with East Water’s anti-corruption guidelines. At the bottom of every Request for Tender there is a statement informing that “The Company has an anti-corruption policy”. In the Company’s TOR documents there is a clear definition that the suppliers shall not share any common interests among themselves, whether directly or indirectly, and that the suppliers shall not have any vested interests related to the Company, which impedes fair competition. In addition, appended to every TOR is the “Policy on Anti-Corruption in the Organization” which was announced since 27 August 2014 to show the Company’s intention to fight corruption. Also, there have been improvements in the procurement criteria to ensure greater transparency and fairness. This can be seen from the Approved Vendor List. In 2015, 141 vendors registered with East Water, an increase of 21 vendors from 2014. In 2015, no vendors were removed from the Approved Vendor List. The formulation of the Approved Vendor List is considered by many persons from different departments in the organization to ensure that East Water’s procurement of equipment or services is handled efficiently, prudently, and quickly, and that only those vendors with the right qualifications and expertise to deliver the equipment or services as per the standards set by East Water, and with the highest service standards, are selected. To reinforce the Company’s policy and intention to fight corruption, East Water organized a seminar and thank you party for its vendors. The topic on “Corporate Governance” was presented by Police Major General Wichai Sangprapai, Chairman of the Corporate Governance and Nomination Committee of East Water and the topic on “Anti-Corruption” was presented by Mr. Wasan Paileeklee, Director of Thammasat University’s Anti-Corruption Institute. 109 people, including vendors, building tenants, and company employees, were invited and 78 people participated in the activity, equivalent to 71.56% attendance.
Furthermore, East Water’s website is another channel for vendors to make suggestions, provide tips or lodge complaints on illegal or unethical practices, and report financial discrepancies or malfunctioning control systems. Vendors can file a complaint to the Audit Committee by: E-mail: ac_ew@eastwater.com Post: The Audit Committee Eastern Water Resources Development and Management Public Company Limited 25th Floor East Water Building, 1 Soi Vibhavadi Rangsit 5, Vibhavadi Rangsit Road, Jomphol, Chatuchak, Bangkok 10900 In the case of a complaint regarding the procurement process, the Audit Committee will thoroughly examine all procedures by adhering to the principles of good corporate governance and business ethics, and will provide fairness to all parties involved.
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Eastern Water Resources Development and Management Public Company Limited
Improving Employees’ Quality of Life Remuneration Policy Because East Water realizes that its personnel are an important driving force of the organization, there have been developments and improvements in human resource management policies including the creation of working environments to satisfy the demands of all stakeholders to promote employee commitment and motivation towards achieving excellence. East Water has arranged welfare and benefits for all full-time employees with each employee receiving equal basic welfare such as the same sum insured for life insurance without regard to job level. East Water has organized the election of a Workplace Welfare Committee with a 2 year term according to the Labour Protection Act, B.E. 2541(1998). All full-time employees are eligible to register as a candidate and to cast a vote whereby an Election Committee is responsible for the election process. Currently, the Welfare Committee consists of representatives from the Head Office and the Rayong Operations Center at both the operational and management level, with a total of 8 persons representing 4.5% of the total number of employees. Their responsibility is to monitor and control the management of welfare and to make suggestions that are advantageous to the Company’s management of welfare for all employees within the organization. Also, in 2014 the Welfare Committee along with the Provident Fund Committee conducted a meeting to evaluate the Provident Fund Manager in order to maximize employee returns, resulting in the change of the Provident Fund Manager in 2015. Members of the fund were able to select more flexible investment policies and were provided with a faster and more convenient way of managing their own investment portfolio through the Intranet and Application (originally changes could only be made through a letter to the fund manager).
organization’s vision and missions. From employee satisfaction survey results in 2014, remuneration and a clear career development path are factors that lead to employee satisfaction and engagement with the organization. Therefore, in 2015 East Water studied the wage structure in reference to market conditions and established guidelines for human resource management to be clearer in terms of wage structure, career management, criteria for promotion in the organizational level, criteria for job promotion, and management of remuneration. In addition, the Human Resources Department communicated with employees at the supervisory level that the duty of supervisors is to be a People Manager, taking care of the performance and remuneration of their team members. (Reference to 2014 Survey Results of Wages by the Thailand Management Association: TMA)
East Water’s remuneration for all organizational levels in 2015 was based on pay for performance using the Key Performance Indicator: KPI and behavior assessment. KPIs gauge performance at the organizational, departmental, and personnel level so that working goals are in the same direction as and consistent with the
SUSTAINABILITY REPORT 2015
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Employee Relations Activities
East Water aims to promote employees’ love, unity, and happiness in working, including maintaining good relations among employees and organizing activities for society through projects and activities in the organization. The plan for activities related to good governance is summarized as follows: 1. The Company continuously disseminates the principles of good corporate governance and the employee code of conduct through documents and the Company’s website, including an orientation on the principles of good corporate governance for new employees. Furthermore, the Company has organized communication activities; corporate governance activities; the talk by Police Major General Wichai Sangprapai, Director and Chairman of the Corporate Governance and Nomination Committee, on organizational culture and leaders and corporate governance; and a seminar on CG & Anti-Corruption to promote moral ethics and to encourage employee involvement in applying moral ethics to work and everyday life. 2. The Company organized religious activities with employees and building tenants to promote ethics. These activities included offering dried foods to monks on Makha Bucha Day, Wisakha Bucha Day, Asahna Bucha Day, merit making on the 23rd anniversary of the Company’s establishment, merit making on the King’s birthday, and dharma talks on how to live life and how to work honestly, transparently, and in unity. 3. Discussions on goal-setting and teamwork by Admiral Amornthep Na Bangchang, Advisor to the Board, were organized 4 times in 2015. The objective was to inspire workplace unity, increase awareness of one’s duties and responsibilities, and create an understanding among co-workers in order to achieve the Company’s goals. Employees had the chance to interact with managers and to exchange ideas and suggestions concerning work, life in general, and their opinion of the organization. 4. CSR activities such as blood donations were organized in cooperation with the Phramongkutklao Medical Center for 9 consecutive years since 2007. In 2015, blood donations were organized 4 times; 354 people passed the health check-up for the blood donation and 141,600 cc of blood was donated. In addition, employees participated with communities along the Company’s operational areas in activities to build weirs and plant forests at Khao Chong Kaeb in Chonburi Province and to plant trees for the national forest in Chachoengsao Province. 5. The Company supported club activities to encourage employees to make the best use of their free time and to foster friendly relations among colleagues. Presently, there are 4 clubs: 1) the Badminton Club “organizes activities to invite employees to
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Eastern Water Resources Development and Management Public Company Limited
play badminton every Tuesday and hosts a badminton competition to strengthen relations between the Company and building tenants”; 2) the Healthy Make Beauty (Yoga) Club “organizes yoga activities once a week”; 3) the East Water Group Golf Club “organizes activities to invite employees to play golf”; and 4) the Variety Volunteer Club with 72 members has the “ICARE 4 U project which invites employees to donate money and things to the Universal Foundation for Persons with Disabilities on Mother’s Day”. 6. In 2015, East Water arranged the election of a Welfare Committee within the organization. Four meetings were held whereby the Welfare Committee considered various issues such as 1) recommendations on the details of the employee welfare and benefits manual 2015 and work regulations; 2) presentation of the list of names requesting aid for housing and vehicle interest loans in the year 2015; 3) publicity of the social security card to protect rights to benefits and the compensation fund; 4) consideration regarding the change of the Asset Management Company that manages its provident fund; and 5) preparation to amend the regulations of the provident fund according to the Provident Fund Act (No.4), B.E. 2558 (2015), section 10: “At each payment of wages, the employee shall pay his savings into the fund through the employer’s deduction from wages, and the employer shall pay the contribution into the fund at the rate prescribed in the fund’s article, provided that the rate so prescribed shall not be less than two percent but not more than fifteen percent.” The E-mail Outlook system was used to inform employees about the minutes of meeting. 7. Results of the employee satisfaction survey towards the Company (Full score = 5)
In 2015, the results of the employee satisfaction survey towards the Company (Full score = 5) showed that overall, employees were highly satisfied, with an average score of 3.63. The area with the highest satisfaction score was Company image and knowledge about the organization’s information at 3.84, followed by the area of coworkers at 3.81. Year
Satisfaction score
Relationship score
2013 2014 2015
3.64 3.57 3.63
3.82 3.89 3.78
Diagram showing results of the employee satisfaction survey towards the Company in 2015 (Full score = 5) 5 4 3.77
3
3.74
3.81
3.56
3.72
3.46
3.84
3.63
3.21
2 1 0
Communication Quality of life
Number of employees Total number of employees
2013
Personnel development
Coworkers
2014
155
Supervisor
2015
160
169
Job responsibilities
Image
Number of employees
M.
F.
Total number of employees
Classified by employment status Permanent Contract
Operations
Overview of satisfaction
2013
2014
17
2015
13
32
3
2
22
13
10
10
1
1
0
11%
8%
19%
Classified by age
152
157
166
92
74
3
3
3
2
1
Classified by organizational level
Younger than 30 years 30 - 50 years Older than 50 years
Executive level
9
10
11
4
7
Supervisor level
27
34
23
11
12
Operational level
119
116
135
79
56
Rate of hiring new employees (percentage)
SUSTAINABILITY REPORT 2015
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Number of employees
2013
2014
Number of employees
2015
Classified by age Younger than 30 years
25
23
34
-
-
30 - 50 years
122
127
121
-
-
Over 50 years
8
10
14
-
-
Classified by sex Male
84
86
94
-
-
Female
71
74
75
-
-
Classified by region Central region
113
118
117
50
67
Eastern region
42
42
52
44
8
2013
Total number of employee resignations
2014
33
2015
12
23 (1)
Classified by age Younger than 30 years
-
2
5
30 - 50 years
-
9
17
Over 30 years
-
1
1
21%
8%
14%
Rate of resignation (percentage)
Note (1) Includes 4 employees that were transferred to subsidiary companies
Note: Contractors were not hired for the water distribution process
Statistics of employee sick leave classified by sex and percentage East Water used HRIS to compile data on employee work absence, leave, and tardiness. East Water’s regulation of working hours for 2015 was stipulated at 8 hours per day. Hence, the calculation of the number of working hours per person in 2015 is as follows: Number of working hours per person per year = 8 hours * ((5 days * 52 weeks) - 17 days) = 1,944 hours
Male Female
Number of persons
Number of working hours
Number of hours of sick leave
Sick leave (%)
94 75
182,736 145,800
3,097 3,191
1.69% 2.19%
Number of persons
Number of working hours
Number of hours of sick leave
Sick leave (%)
1,683.5 2,945
1.73% 2.26%
1,413.5 245.5
1.65% 1.58%
Bangkok Male Female
50 65
97,200 130,248 Rayong
Male Female
62
44 8
85,536 15,552
Eastern Water Resources Development and Management Public Company Limited
Improvement of Workplace Environment, Occupational Health and Safety (LA6) East Water and its stakeholders place great importance on the occupational health and safety of employees and business partners because it may affect their morale and motivation. East Water has clearly defined policies on safety, occupational health and workplace environment including a framework for safety management at all levels. Safety officers have been appointed at the vocational level, supervisor level, and the managerial level and they have a clear operational plan and procedures for occupational health and safety. Employees, business partners, and vendors are encouraged to participate in advancing the standards of workplace safety because East Water’s goal is to become an organization free from workplace injury and sickness. In accordance with the law, East Water has established the structure of the committee on safety, occupational health and workplace environment that has an equal number of employees from the executive and operational level to provide the opportunity for constant communication and exchange of ideas on safety, to foster participation in efficiently improving the safety management system, and to implement activities related to safety as follows.
1. Create a work license system
2. Training on safety and environment for business partners
3. Monitoring and promoting employees’ health
Knowledgeable and skillful operators whom understand the risks and dangers involved are needed to perform high-risk work operations such as working at tall heights, electrical tasks, and jobs with poor air ventilation. Accordingly, a standard must be determined for types of jobs that require great expertise and safety training must be provided before commencement of work. Thus, a work license must be obtained for operating that particular job. This approach will prevent the occurrence of dangerous situations. Training employees educates them on the dangers and risks that may occur from improper work procedures and simultaneously provides them with knowledge on environmental conservation. The employees of business partners must attend the training in order for them to understand and realize the importance of workplace safety and to increase their concern for the environment. East Water has continuously given importance to taking care of employees’ health by offering annual health checkups. To reduce the chances of diseases for employees, Occupational Medicine specialists assess work risk factors to design a plan and determine a specific health checkup list which fits employees according to their type of work. East Water has received assistance from occupational medicine specialist teams from Nopparat Ratchathani Hospital in examining East Water’s operational work areas at the Head Office building (Bangkok) and at Rayong (pumping station and office). Research was conducted on occupational risks and preventive health measures for employees to set standards or health checkup plans according to type of work-related risks. Moreover, Occupational Medicine specialists recommended that East Water analyze employees’ health checkup results to make yearly comparisons and that there should be a preventive health monitoring system according to different work processes.
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4. Monitoring workplace environment
East Water places emphasis on employees’ health. At least twice a year, assessments of environmental surroundings in the workplace such as levels of heat, light, noise, and chemicals in work areas are conducted. Evaluation of the levels of exposure to danger, the suitability of current preventive measures, and the results of measurement levels are used in conjunction with health checkup results to make health risk assessments. A report of results is then sent to relevant government agencies as stated by law. The objective of this activity is as follows: 4.1 To comply with the Ministerial Regulation on the Prescribing of Standard for Administration and Management of Occupational Safety, Health and Environment in Relation to Heat, Light and Noise B.E. 2549 (2006) of the Ministry of Labour; Notification of the Ministry of Interior Re: Working Safety in Respect to Environmental Condition (Chemical) B.E. 2520(1977); and Notification of the Department of Health Re: Procedures to Control the Legionella Bacterial Disease in Cooling Towers of Buildings in Thailand. 4.2 To control the direction of assessment results in accordance with legal standard scores and to avoid unusual workplace environments which affect employees and thus cause work-related accidents and diseases.
Parameters 1. Legionella bacteria in cooling towers 2. Air quality in the building 3. Measure the level of noise in work areas 4. Measure the level of chemical concentration in work areas 5. Measure the level of light brightness in work areas 6. Measure the quality of drinking water 7. Measure the quality of wastewater before releasing from buildings to public water sources Measurement results of workplace environment for 2015 are all within set standard scores. Despite this, the Company has protective measures to deal with cases wherein measured scores do not reach standards. Fast improvements will be implemented and afterwards re-measurements will be taken. Results from the implementation of occupational health and safety have resulted in East Water becoming a company with zero accident for 4 consecutive years. The number of minor accidents or accidents where a leave of absence was taken is equal to zero for male and female employees at both the Bangkok Head Office and operational areas in the Eastern region.
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Eastern Water Resources Development and Management Public Company Limited
5. Safety in construction projects
From the structural damage to the raw water tank in 2014 in which 3 people were injured, East Water has improved efficiency in project management and contract management, giving importance to safety which also covers all of East Water’s construction projects. It is stipulated in East Water’s TOR that contractors must follow standard procedures in the management of safety, occupational health and workplace environment pertaining to construction. A safety committee is appointed to outline and evaluate the construction risks for every construction project and to use that information to design a preventive safety plan for seasonal holidays. There is training for supervisors and new employees or other associated employees to provide them with the knowledge and understanding of rules, regulations, restrictions, and workplace safety manual. A Safety Talk activity is held before work operation, a Site Walk activity is held weekly, and a follow-up meeting on safety is held every week and every month. No accidents occurred at any of the past construction projects including the Raw Water Pipeline from Private Sources Project, Chonburi Province; the Regulation Well Project (Bang Pakong - Bang Phra - Chonburi water distribution pipeline); the Prasae Reservoir - Nong Pla Lai Reservoir Raw Water Distribution Pipeline Project; and the Tab Ma Raw Water Reserve Pond Development Project. The number of minor accidents or accidents where a leave of absence was taken is equal to zero for male and female employees.
SUSTAINABILITY REPORT 2015
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6. The prevention and management of emergencies
7. Safety training
6.1 East Water practices a fire fighting drill and fire evacuation drill every year to prepare for emergencies. Fire emergency simulation activities are arranged at operational areas, Rayong Province and at East Water’s Head Office building. Coordination with building tenants, the fire department, the police department, hospitals, training institutions, and nearby housing to request cooperation in the support of training has been successfully executed according to its purpose. 6.2 At East Water’s Head Office building, there was Business Continuity Planning (BCP) training which simulated various emergency situations. In 2015, there was a hypothetical situation of flooding at East Water’s office building and its surrounding areas in which employees could not enter the building to work and thus have to relocate the office and establish a temporary office at the operations center in Rayong Province. There was training for important operations such as the Finance and Accounting Department, Human Resources Department, Information Technology Department, and Corporate Communications Department to prepare for continuous work operations of employees and the Company. In 2015, there was a revision in the plan for operational areas and training will be done in 2016. East Water places importance on building safety awareness among employees and enhancing and supporting safety skills in work operations. Every year, a budget and a training plan on safety, occupational health and workplace environment are determined. In 2015, seven training courses were offered. Training groups were divided according to different levels and key performance indicators that measure the achievement of training objectives were also set. Important training courses include Job Safety Analysis; safety, occupational health and workplace environment for general and new employees; and technical analysis and evaluation to point out potential dangers and problems using Guide Words (None, More, Less).
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Eastern Water Resources Development and Management Public Company Limited
GRI G4 Index SUSTAINABILITY REPORT 2015
67
General Standard Disclosures G4 Indicator
Description
Page AR
Omission/Note SR
STATEGY AND ANALYSIS G4-1
Statement from the most senior decision-maker of the organization
G4-2
Description of key impacts, risks, and opportunities
5 18-19
ORGANIZATIONAL PROFILE G4-3
Name of the organization
6-7
G4-4
Primary brands, products, and services
6-7
G4-5
Location of the organization’s headquarters
6-7
G4-6
Number of countries where the organization operates, and names of countries where either the organization has significant operations or that are specifically relevant to the sustainability topics covered in the report
6-7
G4-7
Nature of ownership and legal form
10-11
G4-8
Markets served (including geographic breakdown, sectors served, and types of customers and beneficiaries) Scale of the organization
8-9
G4-9
Scale of the organization
G4-10
Total number of employees by type
G4-11
Percentage of total employees covered by collective bargaining agreements
G4-12
Describe the organization’s supply chain
G4-13
Significant changes during the reporting period regarding the organization’s size, structure, ownership, or its supply chain
G4-14
Explanation of whether and how the precautionary approach or principle is addressed by the organization
G4-15
List externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or which it endorses
16
G4-16
Membership in associations
16
68
93-94
36, 60-61 60-61 NA 28-29 17
44-48
Eastern Water Resources Development and Management Public Company Limited
External Assurance
G4 Indicator
Description
Page AR
Omission/Note
External Assurance
SR
IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES G4-17
List all entities included in the organization’s consolidated financial statements or equivalent documents
92
G4-18
Process for defining report boundaries and content
G4-19
Material aspects included in the report
19-20
G4-20
Descriptions of material aspect boundaries within the organization
19-20
G4-21
Descriptions of material aspect boundaries outside the organization
19-20
G4-22
Explanation of the effect of any restatements
19-20
note: no restatement in 2014
G4-23
Significant changes from previous reporting periods in the Scope and Aspect Boundaries
19-20
1) There was a change regarding the reporting on the issue of business expansion of the water supply for communities along the pipeline route to be a water-related business as it is an overall report of the business. 2) Reporting on the issue of biodiversity (EN 13) was cancelled as it is not an important issue for East Water. In 2015, reporting will be on the issue of effects of the water pumping process (EN 9) instead. 3) Reporting on the issue of procurement and employment of local labor (EC 9) was cancelled. This was changed to the issue of anti-corruption in the organization (SO 4) as it is an important issue that suppliers are interested in.
17
IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES G4-24
List of stakeholder groups engaged by the organization
21-26
G4-25
Basis for identification and selection of stakeholders with whom to engage
21-26
G4-26
Approach to stakeholder engagement, including frequency of engagement by type and by stakeholder group
21-26
G4-27
Key stakeholder topics and concerns and organization response
21-26
SUSTAINABILITY REPORT 2015
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G4 Indicator
Description
Page AR
Omission/Note SR
REPORT PROFILE G4-28
Reporting period for information provided
17
G4-29
Date of most recent report
17
G4-30
Reporting cycle
17
G4-31
Contact point for questions regarding the report or its contents
17
G4-32
“In accordance” option, GRI Index and report assurance
17
G4-33
Policy regarding report assurance
5,17
GOVERNANCE G4-34
Governance structure of the organization
11, 13, 14-15
ETHICS AND INTEGRITY G4-56
Code of conduct
4, 8-9 SPECIFIC STANDARD DISCLOSURES CATEGORY: ECONOMIC
ASPECT: ECONOMIC PERFORMANCE G4-DMA
Generic Disclosures on Management Approach
G4-EC1
Direct economic value generated and distributed
16 94-95
54-55
CATEGORY: ENVIRONMENTAL ASPECT: WATER G4-DMA
Generic Disclosures on Management Approach
G4-EN8
Total water withdrawal by source
G4-EN9
Water sources significantly affected by withdrawal of water
G4-EN10
Percentage and total volume of water recycled and reused
70
14, 28-29, 33 31 31, 37-38 Note: In 2015, there is no reporting on the issue of possible effects of the water pumping business. In the following year (2016), the Company will conduct studies on the effects of East Water’s water pumping at various water sources that East Water uses for water management. This data will be used as the base for information of following years.
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Eastern Water Resources Development and Management Public Company Limited
Note: In 2015, there is no reporting on the volume of reused and recycle water as no data has been collected yet. It is only presentation of the concept of valuable use of water through the Water Complex. Collaboration with customers and data collection will begin in 2016.
External Assurance
G4 Indicator
Description
Page AR
Omission/Note
External Assurance
SR
ASPECT: EMISSIONS G4-DMA
Generic Disclosures on Management Approach
G4-EN16
Energy indirect greenhouse gas (GHG) emissions (Scope 2)
14, 38-39 38-39 CATEGORY: SOCIAL
SUB-CATEGORY: LABOR PRACTICES AND DECENT WORK ASPECT: OCCUPATIONAL HEALTH AND SAFETY G4-DMA
Generic Disclosures on Management Approach
14, 40
G4-LA6
Type of injury and rates of injury, occupational diseases, lost days,and absenteeism, and total number of work-related fatalities, by region and by gender
63-64
ASPECT: TRAINING AND EDUCATION G4-DMA
Generic Disclosures on Management Approach
14, 47-48
G4-LA9
Average hours of training per year per employee by gender, and by employee category
49-50
G4-LA10
Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings
47-48
SUB-CATEGORY: SOCIETY ASPECT: ANTI-CORRUPTION G4-DMA
Generic Disclosures on Management Approach
G4-SO4
Communication and training on anti-corruption policies and procedures
14, 19-20 56
SUB-CATEGORY: PRODUCT RESPONSIBILITY ASPECT: CUSTOMER HEALTH AND SAFETY G4-DMA
Generic Disclosures on Management Approach
14, 43
G4-PR5
Results of surveys measuring customer satisfaction
6-9, 44
SUSTAINABILITY REPORT 2015
71
II
บริษัท จัดการและพัฒนาทรัพยากรน�้ำภาคตะวันออก จ�ำกัด (มหาชน)
รายงานความอย่างยั่งยืน 2558
II