20170523 eastw sdr 2016 en 02 by Piyanat Kimhamanon

Contents 4 6 8

Message from the President & CEO (G4-1) BEST AWARD 2016 (G4-8, G4-17) Economic Social Governance Corperate Information (G4-3, G4-4, G4-5, G4-6, G4-12) East Water Group Business Structure (G4-7) Organizational Structure (G4-7) Roles, duties, and responsibilities of the sub-committees (G4-34) Major Shareholders â&#x20AC;&#x153;EASTWâ&#x20AC;? (G4-7) Vision To Become a Regional Leader Mission to Stakeholders Enterprise Values (Code of Conduct) (G4-56)

Policy Sustainability 14 Sustainability Policy Quality and environmental policies and code of practice The Community Development Framework East Water with the development of sustainability

Governance in business operations

Impact, risk, and chance management of East water (G4-2) Good Corperate Governace Anti-corruption practices Business Ethics Assessment of the Internal Control System

19 20 24

Membership in Networks for Sustainable Development (G4-16) Stakeholders Engagement for Sustainable Development (G4-24, G4-25, G4-26, G4-27) Significant issues for the sustainability of East Water (G4-19, G4-20, G4-21)

Water for Security 28 Sustainability of Eastern Water System 39 Responsibilies on the impact from the water management (EN 9) 43

Water for Securities (EN 16)

Water for Excellence 48 Sustainable Business Growth (EC 2) 50 The Creating value in of Human Resources (LA 9, LA 10) 54 Delivery of Sustainable Value (PR5) Water for Life 60 Operation following the good governance (SO 4, SO 5)

63 72

Development of Quality for Life, Safety and Occupational Health (LA 6) Investment for the betterment of communities, society, and the environment (EC 1)

ภาคผนวก 78 Report Profile

(G4-13, G4-18, G4-22, G4-23, G4-28, G4-29, G4-30, G4-31, G4-32, G4-33 )

79 80 84

Employee Information (G4-9, G4-10) GRI Index / SDGs Index Assurance Statement

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

SUSTAINABILITY REPORT 2016

Message from the President & CEO (G4-1)

Apart from the short-term plans mentioned above, East Water has also prepared a cost water sources development plan for the next 1-3 years in order to serve the demand for water use over the next years, by increasing the capacity of the existing water pipeline system to be able to pump more water, and negotiating for additional water allocation from the Royal Irrigation Department. East Water’s strong foundation and 24 years of expertise, coupled with the government’s economic stimulation policy under the Eastern Economics Corridor (EEC) project, will help elevate the Eastern Seaboard to Asia’s major economic area as the Gateway into the AEC for investors. These countries will experience high growth in the next 20 years, and will become the gateway to western India and southern China. EEC will become an important transport center in ASEAN, and will be the logistics and distribution

East Water’s operations not only help to create stability in the water supply, but the company also places an emphasis on promoting the prevention and mitigation of global warming through energy conservation projects to reduce the emission of carbon dioxide (CO2), and through tree planting projects to increase green space. Moreover, in 2016, East Water also continued to focus on maintaining ethical standards in the operation with transparency, integrity, responsibility, performance and competitiveness to meet the demands and expectations of stakeholders, both in the economic, social and environmental dimensions. The Codes of Conduct for the employees were updated to conform to the Principles of Corporate Governance of the Stock Exchange of Thailand, 2012, and the principles of corporate governance of the Company in 2016. The Company’s commitment and perseverance has made East Water the recipient of various awards and certifications, such as the award of sustainability report of the year 2016, Recognition Award, and it also ranked first out of 55 sustainable stock companies in 2016. East Water, a Thai organization, is ready to become a major contender in the comprehensive water service industry in the regional level….

Mr. Jirayuth Rungsrithong President & CEO

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

This problem obviously had a direct impact on water management of East Water. also has direct impact on water management of East Water. Therefore, the main forum used by East Water for communicating the water situation, clarifying the measures against drought, and creating understanding among the groups of water users is the Water War Room, which consists of the Royal Irrigation Department, Provincial Waterworks Authority, and industrial operator group as members. The key measure to help the Eastern region withstand the drought crisis is to accelerate the construction of a pumping station and untreated water pipeline from Prasae - Nong Pla Lai reservoir and the construction of untreated water pipeline from Nong Pla Lai - Nong Kho 2 Reservoir to divert water faster than scheduled. Additional water from the Bangpakong River and private ponds in Chonburi Province was also reserved to ensure that there is enough cost water source for all sectors throughout the years 2016 and 2017, although some projects suffered a slight delay from the plan.

point, as well as the location of future industry, the regional aviation hub, and the major tourist destination in Asia. Thus, it is an opportunity for East Water to expand its business scope for long-term growth by becoming the provider of a comprehensive water service; untreated water, clarified water, tap water, wastewater treatment and water recycling, under the Total Water Solutions project with the concept of creating value to every drop of water and being environment-friendly. The emphasis is on large industrial groups and business cooperations by forming a Strategic Partnership to foster sustainable strength and stability of the business. Therefore, in 2016, East Water restructured the organization in order to serve the business expansion and growth of the group of companies in the future. Furthermore, the Shared Service Center project was initiated to ensure the maximum usage of resources in the group of companies.

SUSTAINABILITY REPORT 2016

We have to accept that “Global warming” is the most critical issue of natural disaster worrying the world and Thailand now as it is the major cause of climate change. Some areas turn into deserts with food and water shortage. Some areas experience heavy floods. Some coastal areas are lost permanently. In Thailand, over the past two years (2015-2016), we have suffered a severe drought crisis resulting from the “El Nino” phenomenon, which continuously caused a lower rate of rainfall that posed as a risk of eventually creating a water shortage problem.

BEST AWARD 2016

SUSTAINABILITY REPORT 2016

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

(G4-8, G4-17)

Sales volume of Raw Water classified by area Rayong

158,410,065.00 Million cubic meter

57.62%

Pluak Daeng-Bo Win

Chachoengsao-Chonburi

6.85%

35.53%

Million cubic meter 97,673,359.00 cubic meter 18,846,320.00 Million

2015

274,929,744.00 Million cubic meter

2016

259,239,641.00 Million cubic meter Rayong

cubic meter 156,791,616.00 Million

60.48%

Sales volume of Raw Water classified by customers of East Water

Pluak Daeng-Bo Win

Chachoengsao-Chonburi

6.17%

33.35%

16,001,079.00 Million cubic meter

86,446,946.00 Million cubic meter

Description the water users : IEAT

: Industrial Estate Authority of Thailand

9.4% 11.8%

PWA:

30.4%

8.4% 18.3%

: Provincial Waterworks Authority

Hemaraj

: Industrial Estate Authority of Hemaraj Land And Development Public Company Limited

Private industrial estates

: Industrial Estates Operated by Private Companies

21.7%

Consumption

: Private water companies, government and communities with water shortage

Others

: General manufacturing plants and other business groups

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

SUSTAINABILITY REPORT 2016

(2nd consecutive year)

Corporate Information (G4-3, G4-4, G4-5, G4-6, G4-12)

Station Under Construction

SUSTAINABILITY REPORT 2016

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

ater Pumping Station

As of January 2017

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 491.8 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 provision of water reserves to support expansion of the industrial and tourism sectors , from which the demand has increased.

Head Office

16 Pumping Stations Khlong Khuean Reserve Pond Suan Son Chachoengsao Bangpakong Bangpakong Low Pressure Private water ponds

23rd - 26th Floor East Water Building, 1 Soi Vipavadeerangsit 5, Vipavadeerangsit Road, Jomphol, Jatujak, Bangkok 10900 Thailand

Samnakbok Nong Kho Bang Phra Dok Krai Map Ta Phut

Nong Pla Lai 1 Nong Pla Lai 2 Nong Pla Lai 3 Pressure Pra Sae

Rayong Operations Center

477 Sukhumvit Road, KM. 201, Huai Pong, Amphur Muang, Rayong 21150, Thailand

East Water Group Business Structure (G4-7)

Raw Water Business

Eastern Water Resources Development and Management PCL.

Business

Structure

Related Business

Tap Water Business

100% Universal Utilities PCL • Water supply Chon Buri • Water supply Industrial Estate • Water supply Lak Chai Mung Yang • Water supply Hourow

100% 100% 100% 90%

Water Water Water EGCOM TARA Company Company Company Co., Ltd. NakhonSawan Bang Pakong Chaserngsao

Organizational Structure (G4-7)

Board of Directors

Eastern Water Resources Development and Management Public Company Limited

Executive and Investment Committee

Audit Committee

Risk Management Committee

Corporate Governance and Nomination Committee

Remuneration Committee

President & CEO Audit Department

President & CEO office and Company Secretary

Executive Vice President, Operation

Operation and Customer Services Department

Engineering Department

Project Planning Division

Executive Vice President, Finance and Accounting

Business Development Department

Corporate Communications Department

Corporate Affairs Department

Human Resources Department

Finance and Accounting Department

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

• Water supply Sattahip • Water supply Koh Larn • Water supply Bow in-Nongkham • Water supply Koh Samui • Water supply Rayong

SUSTAINABILITY REPORT 2016

Business Units

Information Technology Department

(G4-14)

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 as illustrated in the Organizational Structure Chart.

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.

SUSTAINABILITY REPORT 2016

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

Roles, duties, and responsibilities of the Sub-Committees (G4-34)

In order to ensure that East Water’s operations are carried out efficiently and scrupulously, the Board of Directors nominates the sub-committees for monitoring and filtering the performance of the No.

Directors

management team before proposing to the Board of Directors. As on 31st December, 2016, there are 5 sub-committees consisting of: Roles, duties, and responsibilities

Audit Committee consisting of 3 independent directors

Reviewing the financial reports, internal control and internal audit system whether they are correct and in accordance with the International Accounting Standard with adequate disclosure of data • Performing the operation according to relevant rules and regulations in case of connected transactions which may have a conflict of interest, or income fom the acquisition or disposition of Assets. • Approving the nomination and the remuneration of the auditors including the nomination or rotation of the top executives of the Audit Department. • Reporting the operational performance to the Board of the Company for acknowledging and / or approving regularly. • Supervising the process in receiving a complaint.

Management and Investment Committee consisting of 4 directors (1 independent director) and 1 advisor

• Considering and filtering investment projects, action plan, and the annual budget before proposing to the Board of Directors for approval. • Approving the acquisition according to the Company’s regulations within the authorized financial amount and notifying the Board for acknowledgment. • Observing the progress of operation, by giving consultations or recommendations regarding

management and investments to the managements team as assigned by the Board of Directors. • Reporting the operational performance to the Board for acknowledgement on a monthly basis. 3.

Corporate Governance and Nomination Committee consisting of 4 independent directors

Governance • Considering, reviewing and proposing the policies, handbook of good corporate governance, handbook of the Board of Directors, and ethics to the Board of Directors for approval, to ensure that they are in line with the requirements of relevant authorities, as well as assigning the management team to publish the policies to all parties of stakeholders. • Approving the performance appraisal of the Board of Directors and the sub-committees.

Directors

No.

Roles, duties, and responsibilities

Risk Management Committee consisting of 4 directors (1 independent directors) and 1 advisor

• Approving the risk management policies covering the major types of risk and reporting to the Board for acknowledgement. • Considering the measures to assess the risk and approving the Company’s Risk Management Plan (RMP) in compliance with risk management policies, as well as compliance with the defined risk management policies as well as supervising, reviewing, and observing the RMP, including giving feedback to the Board of Directors on the risk management.

Remuneration Committee consisting of 4 directors (3 independent directors ) and 1 advisor

Evaluation on the operational performance • Considering and reviewing the criteria and the Company’s operational performance in accordance with the Company’s business policies to propose to the Company’s Board of Directors for the approval. • Considering the criteria for performance evaluation of the Company’s Directors and the CEO for use in the adjustment of the annual remuneration. • Observing and reporting to the Company’s Board of Directors for acknowledgement on the operational performance following the Corporate KPIs of the Company. Consideration on remuneration • Considering the remuneration policy and all of the other benefits of the Board of Directors, sub-committees, advisor, and CEO of the Company and the affiliates before proposing to the Board of Directors or the shareholders for approval. • Considering the frame of annual bonus rate and salary increase of the executives and employees based on the turnovers of the Company.

Major Shareholders “EASTW” (G4-7)

The top 10 major shareholders of Eastern Water Resources Development and Management Public Company Limited as of the book closing date of 30 December 2016 are as follows : No.

Shareholders

Number of shares

1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Provincial Waterworks Authority Electricity Generating Public Company Limited NORBAX INC.,13 Industrial Estate Authority of Thailand NORTRUST NOMINEES LTD - CL AC Thai NVDR Company Limited BNP PARIBAS SECURITIES SERVICES, LONDON BRANCHAberdeen Long Term Equity Fund Aberdeen Growth Fund Aberdeen Small Cap Fund Other Shareholders Total equity

668,800,000 311,443,190 84,949,600 76,000,000 41,932,285 32,826,249 29,812,100 27,465,700 24,419,200 23,699,300 342,377,525 1,663,725,149

Ratio

40.20 18.72 5.11 4.57 2.52 1.97 1.79 1.65 1.47 1.42 20.58 100.00

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 share holders take part in determining the Company’s management policies by nominating a representative who will be appointed as a director by the gener al meeting of shareholders.

SUSTAINABILITY REPORT 2016

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

Selection • Recruiting, examining the qualifications, and selecting the appropriately qualified persons as prescribed by regulations and laws including considering the variety of skills, knowledge and expertise to offer to the Board of Directors for considering and nominating the Board of Directors, sub-committees, advisor, CEO, and CEO of the affiliates prior to proposing to the Board of Directors for appointing. • Considering the structure, criteria, and compositions of the sub-committees. • Supervising and reviewing the succession plan in the top executive level of the Company and its subsidiaries.

12 EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

SUSTAINABILITY REPORT 2016

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

SUSTAINABILITY REPORT 2016

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

Policy Sustainability

Sustainability Policy

“Water management to respond to business needs without reducing the quality of life in the community and society as a whole.” Quality and environmental policies and code of practice

The Company defined the quality and environmental management system in order to enhance the business operation and fulfill the Company’s vision and mission with the following quality and environmental policies:

Provides reliable services with attention to quality and the environment

The code of practice which the Company is determined to conform to consists of:

Providing quality services and stakeholders by developing and improving the process continually.

Using the resources for maximum benefits by taking into considetion the quality of life, society, communities, and the environment for sustainable growth

Regularly controlling the risks and planning for safety to prevent loss from accidents and conserving energy, including constrolling pollution caused by the operation

Operating business following the good corporate governance, international standards, requirements, rules, regulations, and relevant laws.

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

SUSTAINABILITY REPORT 2016

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

Governance in the business operation

Impact, risk, and opportunity management of East Water

(G4-2)

East Water identified and categorized the risks which affect the business operation into 4 types as follows : 1) Strategic risks 2) Operational risks 3) Financial risks and 4) Risks in conforming to relevant rules and regulations

The Company also defined the acceptable risks and the Risk controlling measures in the future with the 6 significant processes as shown in the chart.

Assessing the risks

Defining the objectives

SUSTAINABILITY REPORT 2016

The objectives in risk management must be consistent with the vision, mission, goals, strategies, and / or Key Performance Indicators (KPI) of the organization and bureau and must be clear and achievable

In identifying incidents that may possibly occur and affect East Water’s competence in achieving the Company’s defined objectives, data is collected from interviews of the executives, from the database in the raw water business along with documents relevant to the operation. The major risks of East Water are also compiled and prioritized.

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

Specifying the incidents

The risk assessment of East Water is carried out by arranging a workshop for the executives and managers in all departments, with the advisors and CEO Office as the Facilitators, to give suggestions on the risk assessment process. The criteria used in this risk assessment are the criteria approved by theth Risk Management Committees on 18 April, 2016, and considers both the chances of occurrence and impact of the risks. Risk assessment focuses on Inherent Risks in order to assess whether the activities being carried out at present are sufficient or not in controlling the risks to be at an acceptable level, or whether more measures are needed in managing said risks.

Risks Response When the risks are identified and prioritized, the management team has to define the risk management plan in order to control the Residual Risk to be at an acceptable level, so as to create confidence in the effectiveness of the activities implemented in managing the risks affecting the organization’s objectives.

Control Activities Control Activities are the methods of operation which the departments having the risks conform to, in order to make sure that the risk management plan is carried out on schedule by responsible parties, and that it is implemented by following the risk responding approaches defined by the management team in accordance with East Water’s objectives, strategic plans, and relevant regulations. Risk control can be classified in 4 types as follows: 1) Preventive control, 2) Control by identifying mistakes 3) Corrective control, and 4) Recommendative control.

Reporting and Tracking The management team will reguraly report the results of risk management to the risk assessment committees and the Board of Directors, respectively, on a quarterly basis.Should any operation encounter delays or create an impact on East Water, the Committee can summon the management to clarify, make adjustments accordingly, or discuss with outsourced advisors to solve the identified risk problems.

SUSTAINABILITY REPORT 2016

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

Summary of major risks in 2016: 1. The amount of cost water is inadequate due to the drought

The El Nino phenomena had an impact on the amount of rainfall in 2016, which fell below average and thus impacted the water level in the water sources of East Water, especially in the Chonburi and Chachoengsao areas. East Water closely monitored the water situation in the Eastern region, and arranged meetings in the Water War Room with the Royal Irrigation Department and the industrial sectors in order to plan the water usage and an adequate water supply. The Company also implemented controlling measures to manage the risks as follows: 1) Divert water from Prasae reservoir to Nong Pla Lai reservoir to ensure a sufficient water supply for Rayong, Bo Win, Pluak Daeng, and Chonburi areas. 2) Stimulate the water pipeline project of Nong Pla Lai-Nong Kho Line 2 to divert more water from Nong Pla Lai reservoir to Chonburi area. 3) Purchase additional raw water from private ponds in Chonburi area to supplement the cost water amount in Chonburi and Chachoengsao areas.

2. Amount of cost water is inadequate for business expansion in the future

From the expansion the industry in the East and additional economic stimulus measures, for example, the Eastern Economic Corridor (EEC), it is expected that East Water will have the chance to expand its investment in order to earn income from the raw water and tap water business in the country, especially in the Eastern areas (Chachoengsao, Chonburi, Rayong). East Water estimates that the cost water currently available may not be adequate for the expansion of the country’s economy. Thus, East Water has implemented additional controlling measures to manage such risks as follows: 1) Review the plan for development of water resources and water pumping system in the 10-years period. 2) Improve the efficiency of water diversion from Bangpakong River. 3) Conduct a feasibility study on water pipeline project in Chonburi area. 4) Request for additional water allocation from the Royal Irrigation Department. 5) Monitor the development project of Tab Ma untreated water storage pond in order to increase the cost water in Rayong area by using the reserved water sources of East Water in the future. The contractor is currently in the process of negotiation to resolve the problems and obstacles in the operation. 6) Coordinate with relevant agencies, such as Office of National Economic and Social Development and Provincial Waterworks Authority to support water management as a whole to respond to EEC policy ** Refer to details in the 2015 Annual Report • Good Corporate Governance • Anti-corruption • Business Ethics • Assessment of the Adequacy of the Internal Control System

page 55 page 61 page 61 page 67

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 Agency / Organization

(G4-16)

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.

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

Build networks with industrial operators who are the Company’s customers.

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 Irrication Department.

Closely monitor and solve the water scarcity situation in the Eastern region.

4. Member of the CSR Club of the Thai Listed Companies Association.

Build networks and be informed of CSR news and movements that the Stock Exchange of Thailand places importance on.

5. Committee Member and Technical Member of the Thai Waterworks Association (TWA).

Build technical networks relating to water at the national level.

6. Advisory Committee Member of protected forest areas in the Eastern region of the National Park Innovation Institute, National Park Office and the Department of National Parks, Wildlife and Plant Conservation.

Join in conservation of forests which are the water source of the Company’s important sources of water.

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

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 and related business laws. 2) Complies with rules, regulations and notifications of the Stock Exchange of Thailand, the Securities and Exchange Commission. 3) Supports freedom of association and collective bargaining in the form of a Welfare Committee.

SUSTAINABILITY REPORT 2016

(G4-15)

SUSTAINABILITY REPORT 2016

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

Stakeholders Engagement for Sustainable Development

(G4-24, G4-25, G4-26, G4-27)

Stakeholders Engagement 2016 Stakeholders engagement is fundamental for sustainable business operation because it is the process of communication that results in the acquisition, recognition, acknowledgment of the needs, expectations and the impact of the working process of the organization, both in terms of economic, social and environmental aspects, which allow us to prepare an action plan to reduce the negative impact and amplify the positive impact efficiently and effectively. East Water has established a working group to prepare a sustainability report in order to codefine the group of stakeholders and determine how to foster engagment, which can be carried out both formally and informally, for example, by engaging in discussions on various occasions, at seminars, as well as by conducting polls for inquiry and evaluation. The results are analyzed and operational plans are drawn up to meet the needs and expectations of each group of stakeholders of the organization.

Operational process

• Define and revise the group of stakeholders by • • •

asessing the impact which the stakeholders receive or created to the Company. Use the appropriate methods of engagement through various channels. Listening to and understanding correctly and clearly the needs and expectations of the stakeholders. Respond to the needs and expectations of the stakeholders effectively.

4. Communities and local public agencies

• Survey on the satisfaction • Arrange activities to improve the quality of life and environment in the communities

• Follow-up meetings to resolve the issues of the communities • Complying with the regulations of public sector

• Meeting with the group of water users of Bangpakong River Basin • Engaging in public relations on the project.

• 4 times/year • Meeting on special occasions days • Meeting and discussing with executives in the Top Management. • Following the Company’s project

3. Future customers

• Offer a water provision service that meets customer’s needs at reasonable prices

• Create the stability of the water pumping system both in the cost water amount and water quality • Calibrate the water meter to be stable and standardized at all times and standardized • Implement the construction projects and ensuring they are completed as planned • Have plans to expand the business and find long-term sources of water reserves • Provide prompt and clear information on the water situation and water quality • Develop the potential of staffs • Arrange activities to improve relationships among agencies.

• Conduct a survey of the communities’ ability to have access to water along the route of the Company’s pipeline construction. • Engage in discussions to bring about cooperation in resolving the communities’ problems and grievances. • Carry out projects for the development and betterment of society and the environment according to the community development framework. • Cease pumping water from Bangpakong River when the river’s salinity level reaches the earmarked limit. • The Company is in the process of improving the ability to quickly and effectively resolve problems and complaints.

• Prepare an offer of service provision to satisfy the needs of customers

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

SUSTAINABILITY REPORT 2016

• Recover the road conditions following the standards • Ensure the safety of pedestrians and solve the • When there is problems quickly • The construction project is completed on schedule. a project • When there is • Increase participation in the development of communities and the environment to bring a complaint about sustainable development. • Throughout • Plan the water management and social activities the operation by taking into account the problems and • 2 times/year needs of the communities • Sharing water with the communities along the pipeline • Monthly • Conform to the agreement to cease pumping water from Bangpakong River when the river’s salinity level reaches the earmarked limit.

• 2 times/year

• All year

• All year • All year

• Meeting to clarify the water situation in each area • Meeting with the Key Man group • Meeting between the executives and the major customers • Survey on the satisfaction by osourcing agencies 1 time/ year and by internal agencies 2 times/year • Receive complaints from customers • Communication for exchanging the information through Line Group • Meeting on special occasions days

2. Current customers

• Project planning Group • Operational and Customer Service Department • Corporate Communication Department • Engineering Department

• Project planning Division • Business Development Department

• Investment and development plan on the water supply • Project planning Division system to enhance the stability in the supply and provision • Operation and Customer of reserved water source in order to meet the demand in Service Department water use, both in the short term (5 years) and long term • Engineering Department (20 years). • Attend the calibration according to the working plan and control the implementation according to the standards • Create an internal control process to ensure that the project is executed as planned, while periodically updating customers on the progress through meetings or by sending data through the Line application. • Assign the Control Center to be responsible for providing a prompt service via SMS, as well as updating the water situation via Line. • Develop the staffs continually to focusing on developing the skills and proficiency in their line of work through OJT / Traininig • Improve the relationship with customers by preparing and planning activities that are consistent with each individual customer’s needs and satisfaction.

Relevant Departmet

• 12 times/year • 12 times/year • 1 time/year

Response

• Executing the water management succesfully as • Prepare the water allocation plan • Project planning Division • Arrange the meetings to clarify the water situation and planned with the Royal Irrigation Department • Operational and Customer cooperate with the Provincial Waterworks Authority and • Support the activities that benefit communities Service Department major water users for the Demand Management • Exchange information and knowledge • Corporate Communications • Allocate the budget and join the committee responsible for Department considering projects relating to water that cater to public interests. • Arange the seminar on usage of the water situation program (EWMS)

Expectations

• 12 times/year • 5 times/year • 4 times/year • 2 times/year

Frequency

• Water War Room • Arrangement of relative activities • Meeting with the group of non-agricultural water users • Meeting on special occasions days • Communication for exchanging the information through Line Group

Methods of engagement

1. Royal Irrigation Department

Stakeholders

• Financial and Accounting Department • President & CEO office

• Human Resources Department • Corporate Affairs Department • Corporate Communication Department

• Corporate Affairs Department • Financial and Accounting Department

• Have transparent and auditable operation • Increase dividend payment continually • Implement the energy conserving project • Arrange the CSR activities and lead the shareholders to visit the Prasae project • Reveal the data of MD&A on website

• Arrange the activities to strengthen the ties that meet the satisfaction of employees such as Team Building activity and CEO-employee meeting activity • Increase the options in savings for the employees • Restructuring the salaries to be competitive • Develop the internal communication to be diverse, fast, and easy to access, and to be consistent across the organization.

• Good and more quickly returns and rate of dividend payment • Provide information that is clear, complete, timely • Have policy a business expansion policy • Be a transparent organization with social and environmental responsibility • Improve the efficiency of water management • Reduce energy consumption • Arrange the activities of investor relations • Improve the potential of employees

• Career progress • Receive the accurate information which is fast, easy to access and reachable anywhere and anytime • Have the database for rapid search • Have streamlined process • Fair remuneration and welfares • Have good quality of life and working environment

• Improve the purchasing process by adding the steps of • Have the transparent and fair procurement operation following the recommendations of the process Company’s Board of Directors • Simplify the process of procurement and disbursement • Provide the clear information which is fast and easy to access • Have the plan to expand the business for growth • Improve the potential of responsible project officers

• 1 time/year • 2 times/year • 2 times/year • 2 times/year • 4 times/year • Throughout the year

• 1 time/year • 4 times/year • 12 times/year

• Evey time these is a bidding • 1 time/year • 2 times/year • Eveytime of auction • 2 years/time

• Arrange the Annual General Meeting of Shareholders (AGM) • Arrange site visit • Arrange the CSR activities • Organize satisfaction surveys • Announce the turnovers (MD&A) • Answer the inquiries by telephone and email

• Conduct a survey on employee engagement and satisfaction. • Organize meetings of the Employees’ Welfare Committee. • Arrange meetings of the Committee of Occupational Health, Safety and the Working Environment. • Arrange the channels for receiving the comments and complaints in various forms • Try using the 360 degree assessment

• Invite for the meeting to notify the scope of works with the value of over 1 million baht • Arrange the activities of relations • Arrange the activities of Site Visit • Increase the channels for receiving the data of purchase of the Company • Meeting to observe the progress of operation • Conducing a satisfaction survey

5. Investors and shareholders

6. The executives and employees

7. Business alliance • Trading partner • Deliverer

Relevant Departmet

Response

Expectations

Frequency

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

SUSTAINABILITY REPORT 2016

Methods of engagement

Stakeholders

Methods of engagement

Frequency

• Department of Labour Protection and Welfare

• Study the details of related laws • Complaints of relevant public agencies • Meeting with relevant authorities on various occasions

Response

• Corporate Affairs Department • Engineering Department • Human Resource Department

• Meeting with Safety Commission as prescribed by law • Conformity to the regulations, labor laws, • Submit reports according to the law in periods stipulated and Safety Act • Conformity to the Act to Promote and Improve the by ministerial regulations. • Employ disabled persons as full-time employees Quality of Life for Persons with Disabilities.

• Carry out anti-corruption measures • Adhere to the Public Limited Companies Act

• President & CEO office • Human Resource Department • Corporate Communications Department • Corporate Affairs Department

• Engineering Department

Relevant Departmet

• Prepare the Code of Conduct for the employees in accordance with the principles of good governance of the Stock Exchange of Thailand 2012, and the corporate good governance 2016 • Organize internal communication activities for employees to promote knowledge and understanding of good governance and ethics. • Encourage and support the training on good corporate governance (CG) for the Company’s Board of Directors and executives. • Invite the trading partners to become members of CAC via the Company’s website • Apply the guidelines for anti-corruption in the recruitment and selection process • Prepare the annual report and the Sustainability Report.

• Monitor and resolve problems and impacts caused by • The construction does not cause negative construction activities carried out by the Company. impact on the communities. • Recover the road conditions after construction in compliance with the standards • Resolve the occurring problems quickly and timely

Expectations

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

SUSTAINABILITY REPORT 2016

• 1 time/year • 1-2 times/year

• Meeting on special occasions days 8. Supervising agencies • 3 times/year • Liaison and supervising • Coordinate with relevant officials agencies responsible for • Study the requirements in the requesting construction permission request document permission from public agencies, such as Department of Highways, Sub-district Administrative Organization, Provincial Electricity Authority, etc. • Study the rules, regulations, announcements, and Acts of • 60 times/year • Securities and SEC and SET Exchange Commission • 4 times/year • CSR Club Meeting and Stock Exchange of • Training and seminars in the programs set by SEC and SET Thailand

Stakeholders

SUSTAINABILITY REPORT 2016

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

Determining issues which are of significance to the sustainability of East Water

(G4-19, G4-20, G4-21)

East Water has evaluated issue of significance following the Sustainability Reporting Guideline of GRI G4 by considering factors influencing the organizations’s business operations in the economic, environmental and societal aspects, as well as significant interests and expectations of Stakeholders. Thesen issues are assessed annually in order to review and determine ones that are important to the organization and the stakeholders. (1) Selection of issues This is to consider the aspects of sustainability obtained from both outside and inside the organization in order to indicate the direction of organization sustainability issues, including the context of corporate risk, strategies and policies of operation, isseus of high priority important news that are of public interest, issues of complaints as well as the needs / expectations of the stakeholders complied from the Stakeholder Engagement and Satisfaction Survey.

(2) Prioritizing the significance of sustainability issues (Aspect) This is achieved by assessing the level of importance of issues affecting the organization’s strategic goals in the economic, social and environmental aspects that are consistent with those of the stakeholders’ views, as well as issues deemed important by more than one group of stakeholders, and assessing regulations mandatory by law. (3) Ensuring inclusion of all issues in the report. The Working Group responsible for compiling the report presented issues of sustainability deemed important by the organization and the stakeholders to the CEO for consideration. There were 9 issues and 11 indicators that were found to be of significance to the organization in the economic, social and environmental aspects, as summarized below:

Issues that are Important to East Water’s Sustainability

GRI Evaluation Criteria

Reporting Boundaries

Environmental aspect

EN9 WATER SOURCES SIGNIFICANTLY AFFECTED BY WITHDRAWAL OF WATER * verified by an independent agency.(Third Party Verification)

3. Energy conservation to manage the cost and reduce the greenhouse gas emission

EN16 ENERGY INDIRECT GREENHOUSE GAS (GHG) EMISSIONS (SCOPE 2) * verified by an independent agency.(Third Party Verification) Economic aspect

4. Social investment and implementation of CSR activities 5. Sustainable growth of the business

EC1 DIRECT ECONOMIC VALUE GENERATED AND DISTRIBUTED * verified by an independent agency.(Third Party Verification) EC2 FINANCIAL IMPLICATIONS AND OTHER RISKS AND OPPORTUNITIES FOR THE ORGANIZATIONS ACTIVITIES DUE TO CLIMATE CHANGE

Activities beneficial to society, communities and the environment which relate to the Company’s business operations Groups of future customers and interested investors

Society 6. Operation following the good governance

SO4 COMMUNICATION AND TRAINING ON ANTI-CORRUPTION POLICIES AND PROCEDURES SO5 CONFIRMED INCIDENTS OFCORRUPTION AND ACTIONS TAKEN

East Water’s full-time and contracted employees, as they are persons implementing the policies, and East Water’s group of traders, because this is a major issue that more than one group of stakeholders have placed their interests on.

7. Development on the quality of life, safety, occupational health, and environment in working

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 * verified by an independent agency.(Third Party Verification)

Full-time and contracted employees, and subcontractors of large construction projects and contracted maintenance projects, because this is a major issue that more than one group of stakeholders have placed their interests on. Contractors’ absentee rate in 2016 is not included as is has not yet been compiled.

8. Development on the potential of per sonnel to be well-prepared for the business expansion in the future

East Water’s employees, as they are the major LA9 AVERAGE HOURS OF TRAINING PER YEAR PER EMPLOYEE driving force in the Company’s operations. BY GENDER, AND BY EMPLOYEE CATEGORY * verified by an independent agency.(Third Party Verification) LA10 PROGRAMS FOR SKILLS MANAGEMENT AND LIFELONG LEARNING THAT SUPPORT THE CONTINUED EMPLOYABILITY OF EMPLOYEES AND ASSIST THEM IN MANAGING CAREER ENDINGS

PR5 9. Being attentive to and maintaining stakeholders’ satisfaction and engagement. RESULTS OF SURVEYS MEASURING CUSTOMER SATISFACTION

(4) Giving confidence to the report This Sustainability Report has been reviewed and certified by an outside organization (Independent Third Party) specializing in verifying and giving confidence in the operation for the completeness, accuracy and reliability according to guidelines of Global Reporting Initiative (GRI) version 4. It must be

Customers who use raw water (directly)

filed to be certified following the GRI-4 standard by establishing the completeness of contents in consistence witth the rules in the CORE Option level and the confidence of limited assurance level with the details as shown in the the appendix.

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

2. Responsibility of the impacts caused by the management of water. • Impact possibly caused by the water pumping process • Reduce the impacts caused by the pipeline construction process

3 provinces in the operation areas, namely Rayong, Chonburi and Chachoengsao, because these are the main areas where production of raw water takes place. This excludes the operations of subsidiaries engaged in the tap water supply business, which has different operational processes.

SUSTAINABILITY REPORT 2016

1. Creating the stability of water management EN8 • Supply chain and the water supplying TOTAL WATER WITHDRAWAL BY SOURCE process * verified by an independent agency.(Third Party Verification) • Water sources for managing • Development plan of the cost water sources to create stability in the source untreated water • Plan to prevent the problem of water shortage in case of drought • Applying technology to reduce the amount of water loss in the pipeline.

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

SUSTAINABILITY REPORT 2016

Sustainability of Eastern Water System (EN8)

Water management by Water Grid “Water” resource is the fundamental factor in the stability of life, and is the fundamental factor stabilizing the life and is the key component to the entire production process both in agriculture and the industry. However, at present, the climate variability causes global warming and drought to expand rapidly, affecting rainfall and river water each year. Thus, the water management to be adequate for the use of all sectors is very crucial and necessary. East Water, as a service provider of untreated water through large pipelines with 24 years of expertise, and as one of the government’s mechanisms in developing the water infrastructure in the Eastern region, considers “water” as a “Water Security” that directly impacts the organizations’s stability - one that has a direct link to the development of the nation’s economy, especially in the Eastern region, which is densely populated and is a tourist destination. It is also a major industrial area that boasts one of the country’s highest average income per capita, ranking second only after Bangkok and its perimeters.

anticipating the demand for water use over the next 10 years. There are 4 responsible service areas covering three provinces; Rayong, Chonburi, and Chachoengsao.

SUSTAINABILITY REPORT 2016

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

Therefore, East Water’s core mission and function is to integrate the management of raw water through large pipelines that service the industry as well as public consumption in order to meet customers’ present and future demands by

With a 491.8-kilometer network of raw water pipeline that links the main water sources in the Eastern region, making it one of the first, most modern and comprehensive Water Grid in ASEAN.

30 EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

SUSTAINABILITY REPORT 2016

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

SUSTAINABILITY REPORT 2016

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

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. The main water sources of East Water refer to the water sources that have been allocated by the Royal Irrigation Department (Irrigation Office 9) including the water sources which Eastwater can pump for use each year, with the amount of cost water matching that of the seasonal river water, which come from Nong Kho Reservoir, Dok Krai Reservoir, Nong Pla Lai Reservoir, Prasae Reservoir, as well as water pumped from the Bangpakong river and private water sources. Reserved water sources of East Water refer to the water sources reserved for the purpose of stabilizing the main water sources, and needs to be planned and carried out in advance. They will be used in cases of inadequate water in the main water sources, and during water shortages. Reserved water sources are the Samnak Bok reserved raw water pond, Chachoengsao reserved raw water pond, and Bang Phra Reservoir. The Office of Regional Irrigation 9 schedules an annual meeting to allocate water for those licensed to use water, excluding the agricultural sector.

to allocate water. The annual water allocation period begins in November and ends in October of the following year. A review meeting is held every 3 months to allocate additional water. In the years 2015-2016, East Water was able to efficiently manage the allocated water under an extreme drought crisis due to the El Nino phenomenon that occurred continually, by cooperating with the Royal Irrigation Department to closely monitor the water situation. This joint effort resulted in an overall effective water management for the maximum benefit of the Eastern region, which was able to avoid the drought crisis. East Water will only pump water from the Bangpakong river in the flood season. In 2016, East Water pumped water from the Bangpakong river during July and December with the aim of supplying water to consumers and industrial users mainly in Chachoengsao. Some part of the water was diverted to the Bang Phra reservoir and Samnak Bok reserved water pond in order to reserve the water supply for users in the Chachoengsao and Chonburi areas during the dry season. Details of the amount of water allocated to East Water, and the amount of water pumped for usage in the years 2015-2016 are shown in the table below.

Table of data of water amount from the water sources used by East Water during 2015-2016 Million cubic meters. Storage Capacity

1. Dok Krai Reservoir

79.4

116.0

73.9

65.0

In 2016, as the amount of water in Dok Krai Reservoir extremely reduced due to the drought crisis, Eastwater reduced the water use in order to be able to pump and supply continually.

2. Nong Pla Lai Reservoir

163.8

120.0

126.88

133.41

For the surplus amount of water from the allocation, Eastwater had discussed with the Royal Irrigation Department in the meeting with non-agricultural water users continually.

3. Nong Kho Reservoir

21.4

16.7

19.6

7.85

In 2016, as the amount of water in Nong Kho Reservoir extremely reduced due to the drought crisis, East Water reduced the water use in order to be able to pump and supply continually

4. Prasae Reservoir

248.0

58.02

58.08

66.0

The amount of water pumped out from the pipeline system of Prasae - Khlong Yai was 58.0 million cubic meters and from the pipeline system of Prasae - Nong Pla Lai was 8.0 million m3

5. Bang Pakong River3

27.04

10.9

21.55

East Water pumped water only during the rainy season and in accordance with the criteria established in collaboration with Chachoengsao province. Some part of water was diversed to be stored for reserving in Bang Phra Reservoir and Samnak Bok reserved untreated water pond in order to reserve water in the dry season for Chachoengsao and Chonburi areas. In 2016, East Water brought water from Bangpakong River to be reserved in Samnak Bok reserved water pond in the amout of 5.63 million m3 and Bang Phra Reservoir in the amount of 9.8 million m3 and pumping for irrigation 16 million cubic metres.

6. Private water sources

4.7

9.2

In 2016, East Water had to buy more water from private water sources due to the drought crisis.

337.77

293.9

303.06

Total

Note : 1 In 2016, the Company used the surplus water allocated from Nong Plalai Reservoir in the amount of 16.7 million m3. There was a discussion with the Royal Irrigation Department in the non-agricultural water users meeting, and further discussions and observation of water use will take place every 3 months. 2 In 2016, the water amount permitted following MOU of Prasae-Khlong Yai was 40 million m3 being permitted by the pipeline system of Prasae - Nong Pla Lai from East Water for another 18 million m3 in accordance with MOU. 3 Bangpakong River is a public river. In pumping water from Bangpakong River, East Water will start pumping from the Ban Pho area when the salinity level is less than1g/L, and will stop pumping at the end of the rainy season (water quality monitored by Chachoengsao irrigation project). The water in Bangpakong River has the salinity at the same point higher than 1 g / L which is in accordance with the criteria set with Chachoengsao and the Royal Irrigation Department. 4 The maximum volume of water pumped from Bangpakong River from the evaluation of efficiency of pumping stations at present. 5 Due to the drought in early 2016, Royal Irrigation Department permitted East Water to pump water from Nong Kho Reservoir to manage the crisis in the previous visit in the amount of 1.58 million m3. East Water pumped back to Royal Irrigation Department during September-December in 2016. 6 Water quantity managed by East Water in 2016 is 301.4 million cubic meters in total. 7 Water quantity allocated from the Royal Irrigation Department to East Water in 2016 is 310.7 million cubic meters in total. 8 The calculation on water quantity in 2015 was adjusted to be consistent with the calculation in 2016. Water loss quantity in Prasae-Khlong Yai pipeline and permeability of water from Nong Pla Lai Reservoir were excluded from the calculation.

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

Note

SUSTAINABILITY REPORT 2016

The quantity of water Water Volume Volume Water of Water Allocation of Pumped Pumped 2016 2015 2016

Water Source

Development plan on the cost water sources for stabilizing the Raw water sources East Water has prepared a short term, medium, and long term development plan for the development of cost water sources to stabilize untreated water sources, and thereby reassure customers for the next 20 years. In 2016, the Company has adjusted the water source development plan from the previous year to conform to the current situation due to the delay in the construction project to develop Klong Thab Ma untreated water storage pond, and to avoid any impact on water users, as detailed in the chart below.

As for the progress of the construction project to stabilize East Waterâ&#x20AC;&#x2122;s pipeline network in 2016, the work was a continuation from the year 2015 and consists of 2 projects, which are:

(1) A project to build a water distribution pipeline from Prasae Reservoir to Nong Pla Lai Reservoir is scheduled to be complete on time. The diversion capacity of raw water will be increased by up to 70 million cubic meters, thus increasing customersâ&#x20AC;&#x2122; confidence in the water management system. It has continued to pump water diversion to the present.

SUSTAINABILITY REPORT 2016

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

The operational plan for stabilizing the pipeline network of East Water consists of: 1) Planning to develop the cost water sources 2) Carry out construction projects to increase the efficiency of the water supply system according to the plan. 3) Coordinating with relevant agencies and predicting the weather in advance

(2) 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. 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

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.

Volume of water is within Drought like 2004-2005, Worst drought in 20 years, Worst drought in 1997, annual estimation, 50% 2.5% chance of occurrence 5% chance of occurrence 10% chance of occurrence chance of occurrence 2016-2017 Simulation of Water Situation in Dok Krai, Nong Pla Lai, and Khlong Yai Reservoirs

SUSTAINABILITY REPORT 2016

In the event where the water risk management measures are insufficient, East Water has taken additional steps to prevent against water scarcity in 2015 and 2016 in a systematic manner. The Company

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

Action plan against water scarcity in case of drought

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

SUSTAINABILITY REPORT 2016

The implement of measures to support the water shortage in 2016 1. Coordinated with the Royal Rain Operation Agency in the Eastern region through its operation center in Rayong Province during May and September 2016. 2. Diverting 98.39 million cubic meters of water from Prasae Reservoir to Khong Yai, and diverting 3.91 million cubic meters of water from Prasae Reservoir to Nong Pla Yai Reservoir. 3. Increased water reserves in the Bang Phra Reservoir by pumping water diversion from Bang Pakong River of Eastwater 15.48 million cubic meters. 4. Reduced water distribution from Rayong to Chonburi, and utilized water in the Chonburi area to its full capacity 5. Accelerated the construction of Nong Pla Lai Nong Kho 2 raw water pipeline in order to supply water to Chonburi and Pluak Daeng-Bowin areas faster than scheduled. 6.Procured additional private water sources which added 4.5 million cubic meters of reserve water. At the end of the rainy season in 2016, the water situation of Bang Phra and Nong Kho reservoirs remained in the average, lessening the risk of a water shortage in 2017 in the Chonburi and Chachoengsao areas when compared to 2016. Nonetheless, East Water has prepared measures to prevent and resolve water shortages, which are, to expedite the Nong Pla Lai - Nong Kho 2 raw water pipeline construction project, to find additional sources of untreated raw water from private ponds in the Chonburi area, and to optimize the efficiency of water pumping, mainly from Bangpakong river .

The application of technology in water management The most effective indicator of water management efficiency is water loss quantity that does not create any income or NRW. East Water applies the Surpervisory Control and Data Acquisition (SCADA) system in its water management to control water pumping and distribution from its 16 water stations, while simultaneously carrying out its maintenance plan. It is a Real Time monitoring system with a control center at the Rayong Operation Center. It potentially solves problems, reduces any mistakes from water pumping and distribution immediately, controls management cost and reduces manpower. Importantly, it reduces Non-Performing Asset (NRW) effectively. In 2016, East Water has carried out the project to reduce the Non-Performing Asset (NRW) in addition to the routine operational plan. This included the improvement of anti-rust system of BangpakongChonburi pipeline, hiring maintenance staff for emergency cases, formulating a plan and performing water meter calibration on both main and customer water meters and maintaining equipment in water pumping and distribution system. Leaks in Junction Wells were also fixed after long periods of usage.

Management of Non-Revenue Water East Water has measures to control the volume of Non-Revenue Water (NRW) in the entire system to be at the rate of â&#x2030;¤ 2.50. Since 2012 onwards, East Water has gradually control the lost water in the water supplying system well. The calculation on the Non-Revenue Water volume can be made from the equation as shown below.

Data of Water Pumped and Distributed in 2015, Water Distribution Division Month

January February March April May June July August September October November December

Volume pumped

Volume distributed

24,594,093 24,786,263 26,436,941 26,367,134 27,209,448 25,641,168 24,667,711 25,587,994 26,070,180 26,850,023 25,431,638 24,991,174 308,633,7671

23,448,071 23,992,579 25,188,475 25,340,627 26,377,834 24,355,657 23,022,890 23,224,242 21,919,478 21,713,513 20,494,706 22,939,578 282,017,6502

Volume of reserve

272,439 145,067 3,869 663,279 2,002,367 3,944,709 4,670,924 4,587,153 1,305,201 17,595,0083

Water loss

873,583.00 793,684.00 1,103,399.00 1,022,638.00 855,614.00 1,285,511.00 981,542.00 277,418.00 205,993.00 465,586.00 349,779.00 746,395.00 8,961,142

%NRW

3.55% 3.20% 4.17% 3.88% 3.06% 5.01% 3.98% 1.41% 0.79% 1.73% 1.38% 2.99% 2.92%

1 Quantity of water pumped is collected from water meters at the main East Waterâ&#x20AC;&#x2122;s water pumping stations. The water quantity in Prasae Reservoir is calculated from the water loss in Prasae-Khlong Yai pipeline at 20%, the permeability of water in Nong Pla Lai Reservoir at 7.5% and; 2 the quantity of raw water distributed to Sattahip Irrigation Department and Bowin Irrigation Department which is a direct contract of East Water including; 3 the quantity of water to be returned to the Royal Irrigation Department at 1.6 million cubic meters.

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

because it was required to stop supplying water. As a result, the NRW in 2016 was higher than normal as shown in the picture below. At the end of 2016, the situation returned to normal. East Water fixed the leaks in the Junction Well and completed the repair in December. For the leaks in ChachoensaoBangpakong pipeline, the maintenance team found that it would take longer because the leaks are found in the middle of the pipeline and it is impossible to stop supplying water to the consumers. The maintenance can be performed after the water situation becomes better. It is expected to take place in 2017.

SUSTAINABILITY REPORT 2016

However, the NRW volume in 2016 was 2.76%, a significant increase compared to the previous year, as there are 2 leak points consisting of 1) Junction Well pond at the Booster Pump in Nong Pla Lai which is the water supplying system to the areas of Chonburi-Pluak Daeng-Bo Win and the 2) the Chachoengsao-Bangpakong pipeline. The leaking point is in the middle area of Khlong Bang Wua. However, the leaks could not be fixed immediately due to the drought in 2016, resulting in lower water cost. The maintenance was delayed to avoid any effects to customers in Chonburi and Chachoengsao

Amount of water lost in the water pumping system in 2016

NRW

% NRW

SUSTAINABILITY REPORT 2016

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

The graph shows the amount of water lost in the water pumping system in 2016

In terms of service quality, there are various factors such as pressure, the agreed water flow rate, and service standard to be considered in each area and each group of customers separately. Only the service area of Pluak Daeng - Bo Win has the problem of pressure. As East Water has expanded the pipeline network of Nong Pla Lai - Nong Kho Line No. 2 and the pressure has been increased in that pipeline to be able to supply the water in the long distance, some water users at the upstream of the pumping station are affected. Therefore, East Water has installed the Pressure Relief Valve at the water receiving station of the customers for the safety and quality standard in supplying water to the customers. In terms of the efficiency of the pipeline system, East Water has a maintenance plan for water pipelines and corrosion protection systems to ensure continuation of water delivery, and also plans to deal with changes in the road plan due to urban expansion, which will affect the orientation of the Companyâ&#x20AC;&#x2122;s original pipeline. In this case, the Company will have to reroute the pipeline and at the same time ensure that this causes as little impact as possible to water users.

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 As East Water’s business operation consists of pumping water from water sources which are only ground water sources in 3 three eastern provinces, including the area in Rayong consisting of Dok Krai Reservoir, Nong Pla Lai Reservoir, Prasae Reservoir, in Chonburi and Chachoengsao areas consisting of Bang Phra Reservoir, Nong Kho Reservoir, and private ponds including Bangpakong River and Samnak Bok reserved pond. The amount of water is indicated in the table of water usage by East Water in 2015-2016 on page 33. The water sources are human-made reservoirs. A key factor affecting environmental changes of water sources is human activities. The human activities include deforestation at the watersheds which decreases the water level in the river, destroy plants and soil dams along banks, which creates changes to the waterways, contamination by pollutants that decreases the water’s quality, as well as improper use or overuse of water which endangers the water ecology. East Water is an organization that consumes water, and since its main activity is the distribution of water, it can be guaranteed that the Company’s water pumping system is not contaminated. It is highly certified that East Water’s water pumping system is not contaminated by any waste. As for the changes in biological environment, the impacts created by East Water’s activities cannot be assessed

directly and clearly. This is because the water source is consumed by several sectors and all activities affect the changes in biological environment. Nevertheless, East Water realizes the importance of water quality problem. East Water has continually supported activities to increase more green areas in forest conservation areas along the borders of 5 provinces, in which the Eastern watershed forest is located. The Company has also supported water quality assessment in Water Conservation Network Project. In 2016, East Water began to follow up parameter values of water quality from main water reservoirs. It was found that the parameter values of water quality were significantly changed. Therefore, East Water has formulated a plan to analyze the quality of water in the reservoirs managed by East Water in 2017 to uncover the root causes of the changes and seek guidelines or strategies to solve the problems. This will maintain water quality to meet the standards. Bangpakong River, a natural water resource, may encounter river bank subsiding and erosion due to a rapid increase and decrease of water level and severity of water flow. Therefore, East Water, with the cooperation of the Engineering and Technology Department, The Asian Institute of Technology (AIT), investigated the effects of water pumping from

SUSTAINABILITY REPORT 2016

(EN9)

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

Responsibilities on the impact from the water management

The Company pumps only in the rainy season because in normal conditions during the dry season Bangpakong river contains high salinity. However, when comparing the amount of water pumped by East Water with the river water amount in the rainy season, it is found that the water pumped is only 0.74% of the river water amount. The details are summarized in the table below.

Bangpakong river carried out by East Water on the changes of the water levels of Bangpakong River, Nakhon Nayok River and Prachin Buri River. In terms of pumping water from Bangpakong River, East Water pumpd the water for the water users and reserved some for use during the dry season. DATA

Water amount in Bangpakong River basin 1

Maximum water pumping rate of East Water (2007-2015)

April

May June July

Nov

Dec

Jan

Feb March Total

9.4

73.7 281.6 494.2 744.4 865.3 582.2 166.8

65.2

25.9

11.1

94.9 191.6 128.1

198.6 145.8 205.2 1,235.8 37.15

147.0

2.9

Aug

Sep

Oct

82.9

34.8

2.9

3.7

0.2

5.2

5.4

3.5

2.2

6.3

3,326.1 100.00

24.5

0.74

Source: Water allocation project in Bangpakong river basin and Prachin Buri areas (Department of Water Resources, 2008)

SUSTAINABILITY REPORT 2016

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

Water demand for irrigation (average) 1

Average water amount per month (million cu.m.)

A study of the Division of Engineering, The Asian Institute of Technology (AIT) in 2009 to investigate the water flow in Bangpakong River Basin, using Mathematic Model to indicate the effects of water pumping undertook by East Water shows that, compared to non-pumping, the water level taken from the actual pumping rate by East Waterâ&#x20AC;&#x2122;s pumping station in 2006 decreased by only 0.24 centimeters. Compared to non-pumping, the water level occurring from the maximum water pumping rate (2.68 cubic meters/second) decreased by 0.88 centimeters. Pumping water during water shortage period in 2001 shows that the water level decreased by only 1.65

centimeters, which barely affected the flow of water in Bangpakong River Basin as the volume of water pumped was little when compared to the water flow in the rivers. The volume of water pumped compared to average flow of water in the rivers at the water pumping station was only 0.6%. It can be summarized that water pumping carried out by East Water did not significantly affect subsiding banks above the water pumping station at Khlong Khuean Distirct, Chachoengsao and Kabinburi, Prachin Buri. In past operations, East Water has abided by the rules set by Chachoengsao province in its water pumping activities, and ceased pumping, as notified

In pumping water from Bangpakong River, East Water has coordinated with related agencies such as Chachoengsao irrigation project, government sector of Chachoengsao, Bangpakong River water users, etc., in order to be able to manage the water in Bangpakong River with the water users in different sectors properly and effectively. Moreover, in 2016, East Water began the discussions with the Royal Irrigation Department to carry out the activities to promote knowledge and develop agricultural projects as well as promoting the efficient use of water management to the water users at the water pumping area of East Water, so that the community can have a better understanding of water management and can take advantage of Bangpakong River properly and effectively for sustainability. Such operational plan will begin in 2017.

government agencies, such as the Department of Highways, Department of Rural Roads,

Management and impact from the pipelining process of East Water Another important process of water management of East Water is the construction of pipelines and pumping stations. Typically, the pipes will be placed in the road line under the case of various

And local a authorities. As a result, the construction impacts communities in neighboring areas. Being aware of such issue, East Water has managed its construction projects in ways that minimize their impact on the construction area itself as well as on adjacent areas, by requiring the contractors to comply with safety standards of relevant authorities. In 2016, 3 major construction projects have been launched, including Prasae Reservoir-Nong Pla Lai Reservoir Raw Water Pipeline Project, Nong Pla Lai-Nong Khor Raw Water Pipeline Route 2 Project in Rayong and Raw Water Pumping from Private Water Resources Project in Chonburi. In the case of the Prasae Reservoir-Nong Pla Lai Reservoir Raw Water Pipeline Project, pipelines need to be passed through community areas. Therefore, East Water employed the following strategies to prevent and reduce effects to road users and nearby communities close to the construction site.

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

and will stop pumping at the end of the rainy season and when the water at the same point in the Bangpakong river contains the salinity level that is higher than 1 gram per liter. In 2016, East water pumped water from Bangpakong River during July and December, 2016, as shown in the comparative data of water pumping in relation to the salinity level in front of Ban Pho District Office in 2016 in the table below.

SUSTAINABILITY REPORT 2016

by the province, when saltwater reaches the area in front of Ban Pho District Office, Chachoengsao province. This does not affect water users in other sectors in the Bangpakong River Basin. The guideline on a common practice for many years is that East Water will start pumping water from Bangpakong River when the water in the river at the salinity surveillance point in front of Ban Pho District Office contains the salinity of less than 1 gram per liter,

Before the operation: East Water’s supervisors and contractors, along with local leaders, will engage in public relations activities to clarify the operation procedures, the consequences and prevention thereof to the people concerned. During construction: In case that problems or complaints about the construction are raised, East Water will address the issues immediately. East Water provides complaint centers to receive

complaints through both online and offline channels. This enables those who are affected from East Water’s construction to voice complaints quickly. To communicate among construction supervisors and contractors, an internal communication group is created. The group is participated by representatives of organizations or communities involved so that they may be notified of any problems promptly. A complaint procedure is shown in the picture below.

SUSTAINABILITY REPORT 2016

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

Complaint receiving process

Complaint notification process for correction Process of answering the complaints to the appellant

In 2016, 4 communities that have been affected by East Water’s construction projects sent their complaints via the complaint receiving center on the following issues: 1. Safety during the construction. 2. Inconvenience in transport When East Water was made aware of the problems, supervisors and relevant persons were immediately mobilized to monitor and urgently solve the problem. In addition, in order to prevent impacts from construction projects in the future, East Water has laid out the following guidelines: 1. Improve the scope of employment (TOR) of East Water’s construction projects with the duration for repairing and restoring the road conditions clearly identified, and setting the standard for recovering the road / area along the pipeline with approval from the local represetatives.

2. Make additional adjustments to the Standard Checklist to encompass a concrete plan for pollution prevention and reduction of impact from construction. 3. Have representatives of agencies in charge of permitting the construction of the pipeline in the area inspect and approve the restoration work of areas along the pipeline according to the standards of said agencies. 4. Arrange meetings with contractors and related agencies to acknowledge the detail of the project before starting the operation, and hold additional joint meetings during the operation to acknowledge problems and find solutions together, while also closely monitoring the operations on a weekly basis.

Energy management and reduction of greenhouse gas emission The environmental factors, the variability of the climate, and fluctuating seasons are the signs that indicate the problem of “Global warming” that is causing a huge impact on the world.It is undeniable that the problem is partly caused by human activities that increase green house gasses in the atmosphere, resulting in the rise of temperature on the earth’s surface. Although East Water does not use any type of gas in its operations and therefore does not release greenhouse gases, it does, however, use electricity in pumping water through its 16 pumping stations and a network of pipelines. Therefore, East Water puts its efforts into implementing energy conservation projects continually by improving the water supply system, which is its core operation, and by fostering the maximum efficiency in management, as well as conserving energy as prescribed by law in areas covered by its operations as follows: 1. Five pumping stations registered as control factories, which are Nong Pla Lai Water Pumping Station, Dok Krai Water Pumping Station, Pressureincreasing Water Pumping Station, Bangpakong Water Pumping Station, and Chachoeng-sao Water Pumping Station. 2. One control building which is the main office building.

Evaluation results of the capacity to conserve energy in the preceding year are applied to the following year’s plan for reduction in energy consumption in the organization level, as well as the production, services and equipment levels, by taking into consideration the amount of energy loss and make improvements accordingly. East Water has established a working group on energy management to regulate the policies for energy conservation as the guidelines for the implementation of energy conservation and to promote energy use for maximum efficiency and benefits. In 2016, the projects implemented to improve the efficiency of energy use are as follows: 1. Project to lower the water level from the high tank in order to balance the water level with the reserved water pond by installing pressureincreasing water pumping sub-stations at the water station for users in Nikom Phattana Municipality, Rayong Central Prison, and Ban Khai Technical College. 2. Project to reduce the use of electricity in diverting water from Prasae Reservoir to Chonburi area by diverting the water to the Booster Pump to increase the pressure of water sent from Prasae Nong Pla Lai pipeline for deliver directly to the Chonburi area.

SUSTAINABILITY REPORT 2016

(EN16)

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

Energy consumption of East Water

SUSTAINABILITY REPORT 2016

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

3. Project to install a Mobile Diesel Engine to increase the efficiency in pumping water from various water sources where electricity is not available, and to help save energy by using it only when the water is required to be pumped, so that there is sufficient water to meet users’ demands in the Chachoengsao and Chonburi areas, where water is purchased from private ponds which helps save 36,000 kWh of energy through this Standby system. 4. Energy conservation projects at controlling stations by changing the air-conditioners and electric light bulbs inside the water pumping station, which helped save 80,248 kWh of energy.

5. Project to study the use of water pressure to generate electricity with the Mini-Hydro Power system. In 2017, there are plans for implementing the projects as follows: • Project to lower the water level from the high tank in order to balance the water level with the reserved water. This project can reduce energy use in the Rayong area equivalent to 8% of the monthly electricity cost in Rayong province. • Project to install the Mirco-Hydro Power system to generate hydro electricity. • Energy & Water Management System - Improving SCADA Graphic & DATA to monitor the energy consumption in water pumping efficiently.

Graph comparing the greenhouse gas emission between 2015 and 2016

kWh

Note: Data on energy consumption in the head office in 2015 was changed because electricity charges from the head office building and wastewater treatment room were excluded.

Carbon Emission (tCO2)

Note: Carbon dioxide emission in 2015 was changed because there was an Update Emission Factor of electricity at 0.5520 KgCO2e/kwh in 2016.

Effiiciency in energy consumption of East Water in full. The electricity charge of the head office is calculated from East Water’s office area and the common area only.

The data on electric power consumption

Reference: Emission Factor from Energy Policy and Planing Office Ministry of Energy : EPPO http://www.eppo.go.th/index.php/en/en-energystatistics/ co2-statistic?orders[publishUp]=publishUp&issearch=1

148,534,695 83,372,647

Energy conservation is one of the policies that East Water focuses on and continues to enforce. However, because East Water’s main operation is to pump water which consumes electricity, there is a direct correlation between East Water’s growth and turnover and the country’s economic growth. This growth, in turn, has a direct impact on energy use and thus the increase of greenhouse gas emission. At present, East Water has, to its full capacity,

2,502,709

0.5520 83,373

undertaken projects to reduce energy consumption in its water pumping system, including the study of new technologies and innovations. However, there is currently no technology or innovation appropriate or worth investing in for East Water’s business operations. As a result, in the following year, this point may not be considered a key issue for the sustainability of the organization.

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

The data on electric power consumption of sub-meters for pipeline maintenance and 50 water metering station was not collected in 2016 because the data submitted by the Provincial Waterworks Authority to East Water was not clear. However, East Water will collect the complete data and include it in next year’s report.

SUSTAINABILITY REPORT 2016

East Water’s electricity consumption calculated by operational control in 2016 was equal to carbon dioxide emission at 83,373 tons. This figure was calculated from the electricity consumption of the 16 main water pumping stations of East Water and the head office. The electricity consumption increased considerably compared to 2015. In 2016, electricity cost at Prasae water pumping station will be equally shared between East Water and the Provincial Water Works Authority (PWA) as stated in the MOU, differing from year 2015 when East Water paid for electricity

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

SUSTAINABILITY REPORT 2016

Sustainable Business Growth (EC2)

Measures to serve the climatic variation and business opportunities. The problem of global warming and drought is rapidly expanding and causing many areas in Thailand to suffer from a shortage of drinking water and water for consumption. Unless a plan for water management is put into place, there is a concern that there will be a severe water shortage for domestic use and industrial use, which may result in a water war in the future. East Water has always been aware of this issue because it directly affects water management and increases operational costs. The cost of water per unit in 2016 was 0.40 baht, or 10% higher than that in 2015, because applying water shortage preventive measures requires close monitoring and surveillance of rain water each year. This information is useful in formulating a plan for diverting water from various water sources, and in developing cost water sources to meet increasing demands.

With its potential and business opportunities, East Water has set the direction for business growth in the long term to ensure sustainability , by further developing its untreated and treated water business with the idea of encouraging industrial operators to be able to access comprehensive water management, which includes: • Producing industrial water with the right quality that can allow the operators to use water adequately without wastage of untreated water • Providing industrial wastewater treatment that yields water suitable for reuse as prescribed by law. This can reduce the cost of buying water for industrial operators and allow a more appreciative use of water resources, while lessening the impact on the environment. In 2016, East Water provided a water service proposal to offer a full range of water services to many industrial operators. The number of proposals made the industrial water amount, and the treatment of wastewater for reuse can be summarized as follows.

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

Direction of East Water’s sustainable growth

SUSTAINABILITY REPORT 2016

Nevertheless, the operations mentioned above are simply short and medium term plans for water management to cope with the climate variability. In the long term, East Water sees several key factors that point towards an opportunity for business growth, namely, the environmental friendly trend in business operations, the increase in the statistics of annual wastewater discharge, and most importantly, the government’s plans to stimulate the economy by pushing forward the Eastern Economics Corridor Development plan (EEC). This will encourage investments in the Eastern region covering the areas in Chachoengsao, Chonburi, and Rayong, which will propel it into a strategic industrial area in the long run. The fact that this region already has a competitive edge in that it contains East Water’s network of pipelines covering an area of 491.8 km. only serves to strengthen its position.

SUSTAINABILITY REPORT 2016

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

The value of human resources

(LA9, LA10)

East Water realizes the value of employees as important stakeholders because they take part in driving the organization forward to attain its goals and missions. 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 continues to have annual training and development plans featuring various programs that serve the organization’s core competency as well as different employee levels by using the Flow Chart Blueprint as a guideline. Employees will be trained in courses consistent with their individual development program, or IDP, both in the form of behavioral skills (Soft Skills) and operational skills (Technical Skills). From the determination and the realization on the importance of employee development, in 2016, employee development was defined as the Department KPI and Individual KPI in order to develop all levels of employees according to the individual development plan (IDP), which the Company was able to carry out according to plan.

In considering the programs, institutes, and lecturers, East Water selects famous institutes and / or lecturers with skills, knowledge and competence as follows: • Courses for management level 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 junior level employees focus on the development of management skills in various areas. These courses include The Manager, HR for Non-HR, Productivity Excellence and courses for finance as well as skills according to positions. • Programs for operating employees focusing on the development of job skills, both in behavioral skills, such as Six Thinking Hats & Lateral Thinking, and operational skilles, such as usage and maintenance of various types of water gates, maintenance of online water measuring device and the Hydraulic Model of Water Pipeline System, etc. • Other programs/projects, such as arranging the Risk Management Workshop and Rolling Corporate Plan for employees in the supervisory level or above, so that a short and long-term strategic plan can be drawn up, as well as sending executives and employees in various levels to attend the Anti-Corruption - The Practical Guide program organized by Thailand Institute of Directors.

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 (Bangkok office / Rayong office)

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

Moreover, in 2016, additional knowledge on earthquake preparedness and response was added to the annual training for employees and tenants on causes and potential of fire hazards. As for the Succession Plan, the Human Resources Department has added it into the master plan for human resources management in 2017-2018.

SUSTAINABILITY REPORT 2016

Apart from programs related to the core functions, East Water also has the policy to promote the development of English language skills for the employees via an online system, as well as organizing study visits, both domestic and abroad, about the operation system and water management, in order to accommodate future business expansions. Moreover, the EW Team Building activity was organized as part of the employee engagement activities held to build teamwork and promote Charismatic Talk among employees under the CEOâ&#x20AC;&#x2122;s communicate for success policy #Teameastwater Recognizing the importance of efficient and sustainable use of resources, East Water organizes courses on energy and environmental conservation for new employees every year. The three courses

Sharing knowledge with the society In recognizing its role and status in the society, East Water is able to share its knowledge and know-how with the society in various forms to attain sustainable development. The Company’s operation focuses on continuously providing knowledge in different ways as stated below:

SUSTAINABILITY REPORT 2016

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

1.Public Service Executive Development Program (PSED), Institute for Good Govenance Promotion, Office of the Public Sector Development Commission (OPDC)

East Water has been selected by the Institute for Good Governance Promotion, Office of the Public Sector Development Commission (OPDC) to play a role in the Public Service Executive Development Program (PSED) for 6 consecutive years, starting in 2011. Six government officials took an internship with the Company’s senior executives, namely the CEO or the Deputy CEO, who acted as mentors to those government officials.This group of government officials consisted of a new generation of officials entering the government sector. The aim was to help them understand and learn about the role of a leader in the private sector for application in their line of work. The Company and the government officials in the program jointly prepare the learning plan by setting guidelines, methods, duration, details of government operations, as well as evaluation methods. This action plan consists of the development plan covering the comprehensive knowledge, skills and experience in various areas, for example,

• In leadership and in being an executive of a private

company by accompanying the executives on various missions. • In Organizational Management • In preparing or implementing the strategic projects and plans, etc. Responsibility in imparting the knowledge mentioned above lies not only with the Company’s CEO, relevant executives are also assigned to be responsible in order to convey knowledge of the organization as a whole. Government officials participating in the program are also encouraged to summarize the overview on learning and propose their viewpoint on the organization to the mentors from East Water as a guideline for development to achieve maximum efficiency. This program is the pride of East Water in promoting the development of a new generation of public service executives, who will become the important new driving force in the public sector to achieve the country’s development.

2. Receiving of intern students East Water recognizes the importance of promoting education by accepting students for internship so that they can have to opportunity to learn about real-life work operations. They can apply this knowledge to work, learn to adapt to the work environment and colleagues. Accepting student interns is a way to give back to society, and to give students from various institutions a chance to have vocational training. This can be considered as a way to develop human resources because these students will receive valuable practical work experience that they can later apply in their future careers.

Table of data on receiving the intern students of East Water of 2014-2016 6 4 2014 2015

3 2016

Bachelor’s Degree

2 2014 2015

2 2016

Diplomas Degree

2014

2015

2016

Total (persons)

The Intern students will receive training by mentors, while accident and life insurance is also provided as well as an allowance in accordance with the law. (Notification of Ministry of Labour regarding the regulations on the protection of the trainees prepared for work, Section 2, Articles 10, 11, the company must pay an allowance of not less than fifty percent of the minimum wage in use at the time and schedule the payment of allowance to the interned for not less than once a month).

domestic study visit. The employees who pass the training will be given a certificate from the CEO. This program is considered as part of the personnel development program to bring about growth in the employee’s career path inside the group of companies.

3. Granting a scholarship

A team of East Water’s staff, led by the Company’s Secretary and the HR Department, gave a lecture on “the implementation of good corporate governance and arrangement of activities to strengthen good governance” to CG Agents of the Metropolitan Electric Authority in May, 2016.

Storing, publicizing, and conveying knowledge In 2016, East Water organized internal training courses in the organization on both Technical Skills and Soft Skills by senior executives from the CEO, Managing Directors of subsidiaries the executives and the employees in the supervisor level to operational employees, who participated as Internal Trainers to impart knowledge and experience in the following programs: 1. In-House Executive Sharing program

Knowledge transfer by the executives to employees who have a good performance and were selected by agencies within the group of companies. All the executives in the group of companies will act as lecturers and impart their knowledge, as well as share their experiences by using real case studies within the organization in strategic, engineering, investment and financial aspects, and organize a

To give knowledge and increase the competence in finance to the employees with the objectives for the employees to apply the obtained knowledge in correctly analyzing projects, including East Water’s financial budget. 3. Maintenance program usage

For operational employees to review the methods in using the maintenance program for machines and equipments, and review the Document Control system used in the organization. 4. Document Management System

For the empolyees to have knowledge and undrestanding in using the document management system and to be able to store the documents effectively to ensure easy tracking, monitoring, and to be the treasury of knowledge. 5. Internal Web usage program

To give knowledge to new employees on using East Water’s Internal Website system, while also being a forum for communication with employees in charge of supervising the system to be able to use it correctly. Information and data on various trainings will be stored in East Water’s Internal Web system for interested employees to study by themselves.

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

4. Giving a lecture on good corporate governance

2. Finance for Non-Finance program

SUSTAINABILITY REPORT 2016

The Company entered an agreement with the Eastern Institute of Vocational Training, which is in East Water’s operating area, to support vocational students who have good academic performance. In 2016, East Water gave 5 scholarships to be continued until completion of program to students in the High Vocational level in the amount of 30,000 Baht per student, totaling 150,000 Baht.

SUSTAINABILITY REPORT 2016

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

Delivery of Sustainable Value (PR5)

Maintaining customer satisfaction and loyalty 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 by paying attention to customer complaints and recommendations (Voice of Customer). Voice of Customer

satisfication serveys are conducted 2 times a year from both internal and external Departments. 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.

•

because in the past there were incidents where notifications on the water situation and water quality were carried out on too short a notice. Publicizing the data of the water situation and the progress of various construction projects via E-mail and Line Application every week.

SUSTAINABILITY REPORT 2016

Note : East Water changed a survey on satisfaction from a yearly survey to an every-other-year survey in 2013. In 2016, Brand Matrix Research Co., Ltd. was hired to do the survey.

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

Improvements on the process of responding to customers’ demands in 2016 • Designating the Control Center as the center for receiving complaints and notifying information on water quality and pumping, with the focus on accuracy and speed in conveying said message,

Note: the average of 4:21 to 5:00 represents the most satisfaction

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

SUSTAINABILITY REPORT 2016

The customer satisfaction in 2016 collected from 57 East Water customers including 42 direct customers and 15 indirect customers. All participants responded to the questionnaires or 100%. The customer satisfaction toward East Water service was defined at “Highly Satisfied” with the average of 4.34, higher than the customer satisfaction in 2014. However, East Water and relevant persons are very aware of maintaining the level of satisfaction together, while focusing on improving the service by prescribing the following measures: • Management of the drought situation The responsible persons will determine the means in finding reserved water sources and find ways to enable the pumping system to operate at maximum capacity, while also continuing to periodically report on the water situation and status quo of various projects to East Water’s executives for acknowledgement and consideration. • Management of the water quality in private ponds East Water stipulates the measures to require relevant persons to implement the quality improvement according to the established criteria without delay. If the operation cannot be performed, the water from such sources will be cancelled. As for other water resources, East Water has been monitoring the parameters for water analysis at main water reservoirs and finding significant changes in water quality. The Company comprehends the gravity of these changes and has, as a result, supported a water assessment program titled East Water Network for Water Conservation. In addition, the Company has joined hands with the

Forest Conservation Foundation to continuously plant trees along the borders of 5 provinces, which are important watersheds for the Eastern region. In 2016, East Water was able to increase more green areas and maintain the balance of the ecology system on over 303.5 rai of land. Nevertheless, East Water formulated a plan to analyze the water quality of main water reservoirs managed by East Water in 2016 to uncover the root causes of the changes and seek guidelines or strategies to solve the problems. These will maintain the water quality to meet the standards and enable water users to pump water for consumption according to plan, as well as allowing living creatures, aquatic animals and plants to thrive.

Complaints and Solutions Statistical data of complaints from 20132015 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 troubleshooting process.

To address these complaints…

01 Define complaint types 02 Responsible persons 03 Cause analysis 04 Plans solutions and prevention 05 Time frame

Corrective action

Evaluation of satisfaction

Present to executives

Complaints in 2013-2015 are as follows: Subject

Solution

27 Feb 2014

Industrial Estate Authority, Mabtaphut

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 returned to normal on 28 Feb 2014)

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

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 PCL

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 Nov 2015

Win Coast Industrial Park

Adverse effect on water distri- Visited the industrial park to clarify the results of the repair and to bution within the industrial park set preventive measures in case of future reoccurrences. due to the repair of an emer- 1. Clear management measures are to be set with the relay of gency rupture in the raw water interval progress reports. The Control Center is the central hub distribution pipeline for transferring information (SMS/Call). 2. In case of emergencies, there must be a contingency plan and the customer must always be informed.

20 April 2016

PWA Sriracha Office

Volume and water pressure was 1. Due to the drought condition factor, it affected the cost water amount in the area to decrease to a level lower than average. inadequate during 20th - 21st 2. Negotiate with relevant authorities to request for adjustments April, 2016 in the amount of supplementary water pumped from the Nong Kho pumping station to an additional 20,000 m3/day, in order to increase the amount of water and pressure in the area. As a result, the pressure and amount supplied to PWA returned to normal.

12 May 2016

TFD PCL

Raw water was turbid and smelly.

1.Due to drought, it has to be managed by pumping untreated water from private soil ponds to supplement the water supply in the area. 2. Clarify the problem with the customer and notify them of a change in the water source as well as the improvements and adjustments made to the blow off area.

Apart from going to the field to conduct satisfaction surveys and hearing complaints, East Water organizes and invites customers to annual customer meetings to discuss, listen, and express their opinions, which will be beneficial to improving customer service. The key customer meetings in 2015 are as follows: Activities

Target

Oproject Objective / Description

East Water Open House

• 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.

Technical Seminar

• Current customers

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.

Education/ Academic

• Current customers

Focus on promoting knowledge in water management in relation to the business through study visits of exhibitions related to water management, such as visits to the 2nd World Irrigation Forum or Singapore Water Week, to strengthen the understanding among water users as well as increase the opportunities in business development together in the future.

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

Customer

SUSTAINABILITY REPORT 2016

Date

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

SUSTAINABILITY REPORT 2016

An operation with good governance (SO4, SO5)

East Water has signed an intention of joining the Private Sector Collective Action Coalition Against Corruption (CAC) on September 1st, 2011, which is the project that the government and Office of the National Anti-Corruption Commission (NACC), in cooperation with 8 organizations, including Thai Chamber of Commerce, Thai Institute of Directors (IOD), International Chamber of Commerce, Thai Listed Companies Association, Thai Bankers Association, Federation of Thai Capital Market Organizations, Federation of Thai Industries, and Tourism Council of Thailand, jointly pushed forward to enforce anti-corruption measures in the private sector.

2. The Corporate Governance and Nomination Committee reviewed the Company’s Corporate Governance and Code of Conduct and approved it on August 9th, 2016. The management published the revised version of the Company’s Corporate Governance and Code of Conduct to inform the employees through a hard copy manual and online manual. The Company officially announced the Company’s Corporate Governance and Code of Conduct on CG Day on October 12th, 2016. On that day, the Company invited a guest speaker from the Thai Institute of Directors (IOD) and the Office of the National Anti-Corruption Commission (NACC) to

share knowledge with the Company’s directors and employees about “Employees and CG” and ”AntiCorruption”. There were 164 East Water employees or 86.90% participating the event. The details are as follows.

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

1. Attending the seminars on the anti-corruption, for example : • Mrs.Tatchada Jitmahawong, a Director, and Mrs. Wirawan Tharanon, Senior Vice President, CEO Office and CompanySecretary, participated in a seminar titled “Corruption in Organizations: Danger that Can be Prevented and Controlled” on August 24th, 2016 (6.67%) • A representative was assigned to participate in a seminar titled “Ethical Leadership : Combating Corruption Together” at Thailand’s 7th National Conference on Collective Action Against Corruption on October 18th, 2016 and 6 representatives were assigned to participate in “Anti-Corruption : The Practical Guide” organized by the Thai Institute of Directors (IOD) (3.57%).

SUSTAINABILITY REPORT 2016

After East Water was accepted as a member of the Private Sector Collective Action Coalition Against Corruption on April 3rd, 2015, the Company has set guidelines in the company’s Anti-Corruption Policy for appropriate conduct towards corruption in the organization for the Board of Directors, the management and employees of East Water to comply with. Their compliance with this policy will be regularly reviewed. The policy is published in East Water’s online media at http://eastw-th.listedcompany.com/anti_corruption. html and on its Internal Web, to allow external persons as well as the Company’s employees to access the data. In addition, all organizations are requested to cooperatively assess the risk of corruption in all processes to improve internal control system and to provide risk assessment database for the future. The operations to promote anti-corruption in 2016 carried out by East Water include:

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

ANNUAL REPORT 2016

In addition, the Company continually organizes an exhibition to promote knowledge and understanding about employee’s Code of Conduct so that the employees are able to learn and understand it better. At the end of the year, the Company organized an online test to evaluate the employees’ knowledge and understanding about the Code of Conduct. The average score met the required standard (80%).

3. Arranging activities to promote good ethics on religious days with the employees and the building tenants

4. Promoting CG to business allies by imparting knowledge on “the operation of good corporate governance and the arrangement of activities to promote the conformity to the good corporate governance” with the CG Agent from MEA in May, 2016 5. Inviting business partners to participate in making a declaration of intent in becoming allies in anticorruption initiatives, with 5 alliances participating representing a total of 4.85%. 6. Setting incidents of corruption and activities in promoting anti-corruption as part of the criteria in assessing East Water’s operational performance. In the Audit Committee’s report for 2016, 1 issue regarding procurement was detected. However, investigation results concluded that the issue did not constitute corruption.

Rewards Management, Wage Structure, Remuneration and Employee Welfare In the short term, East Water’s policy is to pay an appropriate amount of remuneration to employees in all levels in accordance with the payment and remuneration of companies in the same industry. In considering the payment rate of wages and benefits, a survey on the payment of wages and employee benefits in external organizations is conducted, and the consumer price index from government agencies, such as the Ministry of Commerce and the Bank of Thailand, etc., is also taken into account. East Water employs the Pay for Performance method in paying employee benefits by using the Key Performance Indicator in evaluating employee performance in all levels. KPIs are consistent in all levels, from the organizational level to departmental and personal levels, so as to achieve a common goal in line with the organization’s vision and mission. In the long term, East Water evaluates employees’ performances and potential, and sets appropriate remuneration packages for persons with potential, knowledge, and competence. The Company also places importance in developing employees who show a potential to grow in their line of profession.

(G4-11) East Water does not have a trade union but instead organizes an election of the Employees’ Welfare Committee. Each committee has a two-year term according to the Labour Protection Act B.E. 2541. All permanent employees are eligible to apply for this position and to vote to elect the Employee Welfare Committee. The election committee consists of a representative from the head office and 8 representatives from Rayong Operation Center both in the operational and executive levels (4.8% of the total number of employees). The Employees’ Welfare Committee is responsible for monitoring, managing, and discussing employee welfare with the Company, as well as offering suggestions and constructive advice which are beneficial to the Company and the employees. The employees’ welfare allocated for the entire organization is 100%.

Apart from paying the remuneration, East Water also provides other benefits and welfares to the employees on a regular basis by attending meetings with the Employees’ Welfare Committee, who are representatives of the employees, to consult with them on establishing a fair benefits package that is in line with social and economic changes. In 2016, the Employees’ Welfare Committee meeting was held every quarter. East Water has considered the following suggestions made by the committee for implementation:

ANNUAL REPORT 2016

(LA6)

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

Development the Quality of Life, Safety and Occupational Health

SUSTAINABILITY REPORT 2016

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

•

Change the regulations of the provident fund for the employees to choose the contribution rate of up to 15% of their wages which encourages employees to save for the future. • Allow the employees to choose the stakes in the provident fund by themselves (DIY)through an online system that provides a risk assessment form for their consideration, as well as by educating them on financial planning. • Increase the investment policy of the provident fund as another alternative for the employees. • Conduct an agreement with 2 more financial institutions so that the employees will have additional options in credit management. As for East Water’s wage structure, which has been in use since 2007, the Company embarked on a restructuring plan in 2015 with the focus on wage and organizational structures. The Company also applied the findings from a survey of wages in other organizations in its deliberation. The new plan was put into place in 2016. East Water’s policy on salaries is as follows: • Be competitive with regard to the labor market and the country’s economy. with the performance evaluation to mo• Comply tivate the employees to continue to create good work. • Not create an excessive burden to East Water’s ability to pay, by considering the business growth, current economic situation, and future trends.

Furthermore, in order to increase the efficiency in operations, to subject the subsidiaries to the same standards, and to be in accordance with good corporate governance, the Board of Directors has approved the integration of support agencies within the Company to create a Shared Service Center. East Water has hired a consultant to study the reorganization of the Company and its affiliates. This plan is expected to be implemented in 2017, and will be communicated to all staffs within the East Water group of companies by the CEO, to ensure their full and continual understanding. On the promotion of human rights, East Water conforms to the Act on the Promotion and Improvement of Life of the Disabled Persons B.E.2007. In 2016, persons with disabilities were employed to work full time with the Company (Section 33 )by providing them the opportunity to perform to their fullest capacity and knowledge, and giving them equal treatment as other employees in terms of salaries and benefits. In the following years, East Water plans to promote and develop the lives of disabled persons further using the guidelines according to Section 35 of the Promotion and Improvement of Life of the Disabled Persons Act of B.E. 2007 to enable disabled people who cannot work full time to be able to work and gain more income.

Table to compare the operation following the Promotion and Improvement of Life of the Disabled Persons Act of B.E. 2007

Summary of Significant Operations Source

Topic

Significant operation in 2016

A survey on the employee satisfaction and engagement in 2015

1. Establish a clear criteria in making changes/ promotions.

Human resources guidelines approved by the East Water Committee was announced and became effective in 2016. The guidelines include: 1) Salary Structure (Confidential) 2) Career Management 3) Level Promotion Criteria, Promotion Criteria 4) Salary Management The Company’s executives, managers and employees were informed about the criteria to ensure their good understanding. All details were revealed except confidential ones.

3. Activities to promote good relationships and team work among the Company’s employees. 4. Improving work processes to cut down on unnecessary procedures. 5. The first three factors significantly influencing commitment to the organization are quality of life, work responsibilities, and the supervisor.

EW Team Building 2016 was organized for 4 groups and 98% of the employees participated in the training. The participants evaluated the training at 92%.

Diversity of employees

Flexible Time Project

1. The Company carried out a trial on Flexible Time for two months from September 15November 15, 2016. The Company emphasized that if the employees preferred to have Flexible Time, it should not affect their work performance and should prove to be a win-win for both the Company and the employees. 2. After the trial was finished, the Company asked the employees’ opinions and found that: - 73% of the employees thought that this project did not affect work under their responsibilities - 90% of the employees thought that this project did not cause any problems to the executives, the colleagues and the customers from inside and outside the Company. - 78% of the employees thought that the Company should continue to allow Flexible Time. 3. The Management announced the use of Flexible Time as of January 1, 2017 onward to respond to the diverse needs and preferences of the employees without causing any effects to work.

CEO’s policy

Performance evaluation using Peer-to-Peer and Cross Department to develop teamwork.

A trial began with the managers and the executives. The performance evaluation results are adopted for use in employee development.

Human resource management

1. Revision of work regulations, the contents The Company revised work regulations and they have been certified by The Department of which are: of Labour Protection and Welfare Office Area 2. • Enforce that violation against the Company Code of Conduct is considered disciplinary misconduct. • Add religious leave for the Hajj. • Allow the employees to have vacation leaves. If the employees do not take any leaves as they should have due to work, the Company will pay a compensation for the remaining days of annual leaves, which cannot be accrued to the following year. A test is used to recruit new employees in all levels, from staffs to CEO, with clear 2. Using a test to recruit employees. and precise criteria. The test comes with precise criteria. 3. Adopting Anti-Corruption guidelines into recruitment.

There is a clear statement on East Water’s website and job application declaring that “East Water does not have a policy to take bribes in the recruitment of employees. If there are persons asking for money or objects with the claim of securing a job position at East Water, please report the information to CEO@eastwater.com”.

Promotion and Development Disabled persons are recruited and hired as of Quality of Life for Disabled permanent staff. (Section 33) Person Act B.E. 2550

The Company first hired the disabled person to work permanently. They have the same salary, welfares and benefits according to the regulations as other employees do.

Suggestion box

The company sighed a Memorandum of Understanding with more financial institutions.

In 2016, the Company hired persons with disabilities for full-time positions for the first time, with the same salary, welfares and benefits according to company regulations as other employees.

Suggestion box

3 topics

1 complaint and 2 suggestions. All topics have already been addressed.

Revision of Provident Fund Regulations

Provident Fund Act published in the Government Gazette on August 11, 2015.

The Company revised the Provident Fund Regulations, enabling the employees to choose the maximum savings rate of up to 15% (former maximum rate was 10%.) The details are as follows. Savings rate (%) 5 8 10 11 12 15

Number of employees (%) 3.3 18.0 30.0 0.7 4.0 44.0

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

Reduction of steps in the benefits withdrawal procedure in HRIS (Human Resources Information System) The HR for Non_HR Manager program was organized to emphasize the executives’ roles and responsibilities, which are similar to those of the HR Manager in that they must take care of the employees, train them, develop them and support their career advancement, as well as assign suitable and challenging jobs to the employees.

SUSTAINABILITY REPORT 2016

2. Career advancement should be clearly stated.

Data summary of employees choosing flexible working time during the trial period from September 15 - November 15, 2016.

SUSTAINABILITY REPORT 2016

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

Round 1 : 8.00 - 5.00 pm Round 2 : 8.30 - 5.30 pm Round 3 : 9.00 - 6.00 pm Shift Worker s Extra Time

Organizing activities to promote employee engagement In 2016, East Water aimed to encourage employees to have an appreciation of their work, and to have unity and happiness in the workplace by maintaining good relationships among employees, creating a working environment that fosters employee engagement, encouraging them to join activities in social responsibility, as well as arranging activities to promote ethics and good governance as follows:

•

Communication in the policy level through the “CEO meets the employees” activity in April 2016, to communicate the goals and operating direction as well as to give employees assurance and jointly push for teamwork. The CEO gave motivational ideas to the staffs, such as “Let’s make East Water a successful story together”, “Together we can”, or “Good work alone is not enough. You must be reliable, honest, diligent, and work as a team”, and “Lead by example”, etc. There were altogether 128 participants in this activity.

•

Promotion of activities on social responsibility, such as blood drives, by cooperating with King Mongkut Medical Center to organize blood donation activities continuously throughout the past 10 years since 2007. In 2016, there were 4 blood donation activities with 248 donors and 99,200 cc of blood donated, which can help approximately 283 patients (one patient requires approximately 350 cc of blood). On 20th September, 2016, another activity was organized to promote ecological conservation. Titled “Volunteers join in forest and water conservation on occasion of East Water’s 24th Anniversary”, the activity was jointly organized with Prasae Water Supply and Maintenance Project, the Royal Irrigation Department, and the Ministry of Agriculture and Cooperatives to restore fertility to and maintain the balance in the ecosystem of the areas surrounding the Prasae Reservoir, Rayong province.

Club activities to support the employees to make the most of their spare time and create good relationship among them. At present, there are 7 clubs with a total of 72 members, which are: (1) EWG Badminton Club: Employees are invited to play badminton every Tuesday. Badminton competitions are also organized to strengthen the relationship between East Water employees, the building’s tenants and related companies. (2) Healthy make Beauty (yoga) club: Arrange the activity of yoga exercise once a week

•

(3) East Water Group Golf Club (4) Volunteer variety club (5) Na Boon Club (6) EWG Football &Sports Club (7) Sport Area Club “EW Team Building” activity: 4 generations of participants took part in this training activity, which was designed to develop skills that foster understanding of self and others with effective communication methods, be it listening or speaking, as well as skills that create efficiency in teamwork. A total of 167 employees attended (98%), and out of this number, 92% were satisfied with the results. The format of this training and the grouping of the attendants were set in accordance with the results of a survey conducted in 2015 on employee satisfaction and engagement.

• Survey on work satisfaction and employee engagement. In 2016, the results of the survey on work satisfaction was 73.80%, and the result of employee engagement was 75.20%. Overall, it was found that employee satisfaction increased by 1.2%, but employee engagement decreased slightly (0.4%).

Diagram showing work satisfaction and employee engagement.

Work satisfaction (percentage)

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

•

Other volunteering activities, such as filling souvenir “Phor Piang” rice bags at the Prime Minister’s office, which are given to the public after paying their respects to the late King Bhumibhol Adulyadej at the Dusit Maha Prasat Throne Hall.

SUSTAINABILITY REPORT 2016

•

Managing occupational health and safety in the workplace East Water has a clear policy and structure in safety management in all levels. The Company has put the Occupational Health and Safety system in place, and follows the performance report prepared by the Safety Officer Professional Level. The report includes data collection, statistical analysis and report on danger at work, sickness or instances of nuisance, in accordance with the Ministerial Regulation Prescribing the Standard for Administration

and Management of Occupational Safety, Health and Environment of the Workplace Act B.E. 2549. The Company applies the regulations in raising safety awareness and creating a safety conscious culture within the organization, in the hopes that all departments will continuously develop a safety management system so that the employees, hired persons and business partners will have a higher safety standard at the workplace.

Roles, duties, and scope of responsibilities :

SUSTAINABILITY REPORT 2016

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

East Waterâ&#x20AC;&#x2122;s Safety, Occupational Health, and Environmental Committee

Development in Safety, Occupational Health and Environment of the Workplace by East Water in 2016 Statistics on accident from work

â&#x20AC;˘ The rate of accident occurrence that resulted in lost working hours, and sickness caused by work at

East Water was zero (Zero Lost Day), with only 1 minor accident and injury from being hit on the finder by an object, as shown in the table below:

Table of Injury Frequency Rate (IFR)

was also zero, with only 1 minor accident and injury from being pierced on the foot by an object, as shown in the statistics below: (Table 3)

Table summarizing the number and severity of accident – contractor

M F Pressure-increasing water pumping station construction project

Slight Medium Severe IFR M F M F M F

ISR

M F

Severity of injury

Slight Medium Severe IFR M F M F M F

Lost working hours from injury or loss of life

Rate of injury from working

Severity of injury

Total number of the injured (persons)

Project

2016

Rate of injury from working Lost working hours from injury or loss of life

2015

Project

ISR

- -

1 - 1 -

Construction project of Regulating Well Bangpakong-Bang Phra -Chonburi pipeline

- -

Construction project of the untreated water supply pipeline of Prasae Reservoir - Nong Pla Lai Reservoir

- -

Development of the Thap Ma untreated water storage pond

- -

Construction project of Nong Pla Lai - Nong Kho Line 2

- -

SUSTAINABILITY REPORT 2016

• The rate of accident occurrence of the employees of contractors was zero, and sickness caused by work

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

Table of Injury Severity Rate (ISR)

SUSTAINABILITY REPORT 2016

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

Operational standards

The results achieved from the operations mentioned above come from setting clear operational standards and strictly complying with the measures put into place, while also organizing activities that contribute to safety awareness. In 2016, East Water has set the following operational standards: • Create a handbook on safety, occupational health and environment management to be used as a guideline to effectively regulate and supervise the management of safety, occupational health and environment. Through continuous improvements and development, the environmental impact, potential dangers to health, life, property and the working environment can be contained under the scope of a business operation with good conscience and responsibility of employees and stakeholders, thereby ensuring that the management of the safety, occupational health and environment system is consistent with relevant laws. the operational standards in confined • Improve space to ensure that the risky operations carried out in confined spaces are safe, and that no harm shall come to any employee who enters confined spaces. • Produce a handbook on operational standards for employee health checkups according to risk factors for use as a guideline and as a reference in arranging health checkups based on various risk factors.

• Prepare the handbook on the standard of operation, and on the organization of training courses on safety, occupational health, and work environment, in order that our employees can be trained in appropriate programs that is consistent with their line of work, in order to increase the efficiency in working and prevent any harm that may occur while operating under East Water’s control.

Activities on safety

East Water continually arranges activities to promote the operation in safety for the employees. In 2016, the following activities were carried out: • A journal on safety, occupational health and environment titled SHE NEWS is published monthly, and other information is communicated and disseminated to promote the awareness on safety, encourage good health and care for the environment. • Safety inspection: The operators, safety supervisors and management, including the Safety Committee, conducted some fieldwork by surveying operation areas on a regular basis to monitor the working conditions to ensure employees’ safety, as well as to continuously improve the safety in the working environment.

• Activities of 5 Sor: The activities are included in

• Prepare the handbook on the operational standards

for the assessment on the environment and working environment in order to set the standards for the inspection process, or to monitor operations that may possibly affect environmental management. Follow up on measures to help reduce and control environmental pollution, measures to mitigate the risk of hazards that may endanger employees or East Water’s properties, as well as ensure that relevant laws and regulations are conformed to.

the Company’s working plans and have been practiced continually every year. • Planning: In the operation of all projects, preparations are made both in the technical and safety aspects to prevent hazards and accidents. Preparation for emergency

Always being prepared for emergency situations or emergency management is an issue that East Water takes very seriously, in order to reduce the possible impact on employees and company properties. In 2016, the following actions were taken:

•

1) Safety in the construction sites

with the following requirements and code of practice in the construction sites for workers’ safety: 1. Construct a fence around the construction area in order to prevent non-relevant persons from entering the construction area. 2. In the construction sites, the construction area is clearly defined. In the construction area, only the operators and relevant persons are permitted to enter. There is a clear division between areas for residing and the construction areas used for storing equipments, machines, materials and devices, both in use and not in use. 3. All hazardous areas in the construction site are required to have symbols or warning signs, or the code of practice for everyone entering such area. 4. Install debris guards around the building to catch falling objects as well as a net covering for double protection. 5. Install fall protection systems, such as guardrails, in places with fall hazards, such as holes and openings. 2) Personal safety

One of the causes of accidents in the construction site is the operators. East Water has therefore enforced strict control and prevention measures to prevent accidents. The Company is also stringent about the use of safety gear in the construction areas. Basic knowledge on safety is also instilled and a Safety Talk is given every morning before starting work.

•

Organizing annual fire drills and fire evacuation in the operating area at Rayong province and at East Water headquarters to practice evacuation preparedness and test the fire prevention system. Cooperation was given by government agencies, the local fire station, police station, hospital, training unit and neighboring buildings in training support. The training was successful in achieving its goals.

Safety in the construction project

East Water pays attention to safety in all of East Water’s construction projects. As there are precise procedures and processes involved in construction, prevention and control of accidents is a requirement in all steps. Safety management in construction is classified into 3 parts as follows:

3) Safety in using the instruments and machines

Construction work requires use of many types of machines and instruments, from very large ones such as a cranes and piling machines, to small ones such as cutting machines, electric drills, hammers, etc. Thus, there are regulations of practice for the safety in each project which requires practitioners to strictly conform to. The supervisors in each project will cooperate with East Water’s safety officers and those of the contractors.

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

•

Completion on reviewing the business continuity plan and updating the contingency plan for a reserved workplace, and will be testing those reviewed procedures in 2017. Putting the business continuity plan (BCP) into practice at the operating area in Rayong province. The operational procedures and pumping process was tested in preparation for any unforeseen emergencies and risks that may affect operations, in order to ensure continuity and effective recovery of services for customers. The exercises were successful in achieving its goals. Conducted the “Earthquake preparedness and response” training program for employees and tenants at East Water headquarters. The training was conducted by officers from the Department of Disaster Prevention and Mitigation with the aim to create an understanding of earthquakes, and how to react and prepare oneself in the event of an earthquake to minimize the risks of injury.

SUSTAINABILITY REPORT 2016

•

SUSTAINABILITY REPORT 2016

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

Investment on the responsibilities to the communities, society, and the environment (EC1)

As the developer of the water infrastructure for the industrial sector and consumers in the Eastern region, East Water realizes the importance in living together on the basis of understanding and co-dependence, nurturing the growth and strength of the community as well as the Company’s. With that in mind, East Water has established a strategy for sustainability “to create acceptance from the communities, to ensure water security for the country, and to create a co-value between the business and society”, with a community development plan in the following 3 areas:

72 Water infrastructure and environmental conservation, such as the water conservation network by East Water, and the water for communities project. Promotion of the quality of life in communities, such as occupational training projects (reducing expenses and increasing income according to the principles of sufficiency economy). Promotion of continuous learning, such as the East Water sufficiency economy learning center, and computer training for disabled persons.

Implementation of projects designed to ensure the sustainability of East Water’s pipelining process by creating understanding and reaching out to the communities

• Engage in public relations activities to publicize

•

information on East Water’s construction projects to the communities and local authorities along the pipeline areas to promote correct understanding of the Company’s operations. Listen to the public’s opinions and concerns regarding the project and taking them into account when planning CSR programs so that sustainable measures can be drawn up to mitigate the sufferance of communities prior to the commencement of construction projects. Conduct a survey on the community’s demand of, and access to, clean water along with a feasibility study of untreated water pipelining projects. In 2016, the above mentioned survey was conducted on the untreated water pipelining project at Khlong Luang Reservoir - Hub Bon water level controlling station.

• •

•

Clean drinking water project to provide public service to the communities, government agencies and the private sector. In 2016, the Company supplied over 683,000 liters of clean drinking water Moreover, East Water also supplies untreated water from the branch duct into 15 points of the village water supply system to help solve water shortage problems in communities along the Prasae-Nong Pla Lai pipeline. The “water conservation network by East Water” project. An integration of a network of environmental warriors/water detectives for the conservation of water sources in Chachoengsao province, and the center for surveillance and water quality inspection, Pluak Daeng District, Rayong province. In 2016, a total of 12 schools and 80 students participated in the project.

SUSTAINABILITY REPORT 2016

•

The construction project of untreated water pumping station for the village waterwork system in 3 areas in Mae Nam Khu Sub-district, Pluak Daeng District, Rayong province. East Water designed the system and financed the construction of pumping rafts in all 3 areas. The pipelining project linking the Prasae - Nong Pla Lai pipeline with the cost water sources of the waterworks system in Moo 5, Nong Bua Sub-district, Ban Khai District, Rayong province. East Water designed and procured the pipelining and the installation of water pipes to supply water to the cost water source in Moo 5, Nong Bua Sub-district, Ban Khai District, Rayong province. The length of the untreated water pipeline is 3.2 kilometers. Social and environmental projects in areas along the pipeline, in cooperation with the Royal Irrigation Department. A joint committee is set up for project consideration consisting of representatives from the Royal Irrigation Department, local government authorities, East Water, and the local community.

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

Important community projects in 2016

• •

Project of cultivating 50,000 saprings to plant in the forest in the Eastern region for the second consecutive year Computer lessons for disabled students project 2016, 4th generation, by lecturers from the District Office of Non-Formal and Informal Education. A total of 110 disabled students from 11 districts (11 students per district) in Chachoengsao province attended the training. Follow ups conducted after the training found that 18 students were able to apply the knowledge in earning a living, which constitutes 16.36% of all attendants.

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

SUSTAINABILITY REPORT 2016

•

Workshop on building Water-Air Pump Type Aerator. This was to build on the knowledge garnered from the 3R innovative prototype project for community benefit in 2010. That knowledge was then applied in a workshop scenario to build the Water-Air Pump Type Aerator. In 2016, it was

•

Community Water Supply Project. A project in cooperation with Metropolitan Waterworks Authority (MWA) and the Institute for Eastern Studies to organize a training program on production control and maintenance of village water supply in order to create a better understanding and knowledge about the management of waterworks, the process of water production that is up to standard, and the use and maintenance of equipment for water production and pumping. Participants came from 9 educational institutes under the Eastern Institute of Vocational Training, namely, Rayong Technical

extended to 3 Eastern provinces. In August 2016, the Company joined Ban Kai Technical College in delivering 4 mechanical aerators to Wang Chan Sub-district Administrative Organization, Wang Chan District, Rayong province.

College, Ban Khai Technical College, Mab Ta Phut Technical College, Chonburi Technical College, Sattaheeb Technical College, Science Based Technology Vocational College, Chanthaburi Technical College, Trat Technical College, as well as officials from local administrative offices and those responsible in public water works. The goal of this training exercise is to reinforce the network of people responsible for production control and maintenance of village water supply in order to ensure their success and the stability of the community’s water supply.

Budgets in the responsibilities to the communities, society, and environment of 2015-2016 Budget of Year 2016

Projects for water Infrastructure and environmental protection

3,759,065

3,992,804

Project Community Life

*7,283,882

10,744,162

Projects to support life-long learning

2,188,756

544,819

13,231,703

15,281,785

Total

Note: * The budget figures of Quality of Life Promotion Project in 2015 was adjusted because the budget was allocated to support other useful community activities such as education, sports and cultural promotion. It is similar to what happened in 2016. Therefore, the budget figures in 2015 was changed.

Budget for CSR Projects of 2015-2016

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

Budget of Year 2015

SUSTAINABILITY REPORT 2016

Projects

Report Profile (G4-13, G4-18, G4-22, G4-23, G4-28, G4-29, G4-30, G4-31, G4-32, G4-33)

SUSTAINABILITY REPORT 2016

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

Objective : To showcase East Water’s performance on economic, social, and environmental aspects, which aspects which the organization’s stakeholders place high significance on, as well as providing the opportunity for the Company to strengthen its position and expand its business for long-term stability. Report preparation : The Sustainability Report 2016 is prepared in accordance with the Global Reporting Initiative (GRI) Version 4, by specifying that the contents must be complete and consistent with the CORE Option level. Reporting Period : The 2016 Sustainability Report is the sixth issue, covering information between January 1 - December 31, 2016. 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 This report shows significant changes from the 78 year 2015, namely: 1. Construction on the project to develop Khlong Thab Ma untreated water storage pond, which was originally expected to be completed in July 2016, has now slowed down due to legal dispute between the parties. It is currently under negotiation. Therfore, East Water has adjusted the development plan for the new cost water source.

2. The delay in the introduction of Universal Utilities PCL, or UU, stocks to be traded on the Stock Exchange of Thailand by waiting for the right moment. 3. Relinquishing the position of director of Thai Hydrologist Association, as it is the position held by the former CEO. This Sustainability Report was certified as Limited Assurance by a third party with expertise in conformity assessment, to ensure correctness and credibility 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 in the context of corporate risks, important issues raised by the auditors, the Company’s strategies and policies, news that are of interest to the media, and complaints lodged during the year. These information are prioritized, and issues affecting the Company’s stability are given priority. The contents are then presented to the CEO for consideration and approval before disclosure in the Sustainability Report.

Download…

For more information, please contact…

This sustainability report, as well as previous publications can be downloaded from East Water’s website.

Ms. Kanyanart Viraphandu, Vice President, Corporate Communications Department, 24th Floor East Water Building, 1 Soi Vipavadeerangsit 5, Vipavadeerangsit Road, Jomphol, Jatujak, Bangkok 10900 Telephone: 02-272-1600 ext. 2510 Fax: 02-272-1602 E-mail : pr@eastwater.com

www.eastwater.com

Employee Information

(G4-9, G4-10)

Employee Information

2557

2558

2559

Employee Information

2557

2558

2559

Total number of employees

160

169

168

Total number of employees

Executive level Supervisor level Operational level

Classified by organizational level 11 10 23 34 135 116

13 24 131

Younger than 30 years 30 - 50 years Over 50 years Rate of hiring new employee (percentage) Total number of employee resignations

Classified by age Younger than 30 years 30 - 50 years Older than 50 years

23 127 10

34 121 14

28 122 18

Male Female

Classified by gender 86 74

94 75

93 75

Central region Eastern region

Classified by region 118 42

117 52

117 51

Younger than 30 years 30 - 50 years Over 50 years Rate of resignation (percentage)

17 15 0 19% 23(1)

12 Classified by age 2 9 8%

3 19 1 14%

8 10 1 11% 20

6 13 12%

Note (1) Includes 4 employees that were transferred to subsidiary companies

Statistics of employee sick leave classified by gender and region (percentage)

East Water applies HRIS (Human Resources Information System) to help manage employee data which are leaves, welfare requests, and working hours, which are calculated from regulations regarding work that dictates a working day as having 8 hours. Therefore, the total working hours per person in 2016 is calculated as follows: Number of working hours per person per year = 8 hours * 245 days (Number of days in a year - weekend holidays and public holidays) = 1,960 hours Table showing employeesâ&#x20AC;&#x2122; working hours Total working hours Leave hours per year Actual working hours

329,280.00 hrs. 20,780.50 hrs. 308,499.50 hrs.

A table showing the working hours and sick leave hours of employees. Number of persons

Male Female Total

Number of working hours

93 75 168

Male Female Total

51 66 117

Male Female Total

42 9 51

Employees of East Water 182,280 147,000 329,280 Central Region 99,960 129,360 229,320

Number of sick leaves (hrs)

Sick leaves (%)

3,327.5 3,074.5 6,402

1.83% 2.09% 1.94%

1,956 2,721 4,677

1.96% 2.10% 2.04%

1,372 354 1,726

1.67% 2.01% 1.73%

Eastern 82,320 17,640 99,960

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

165 3

Classified by age 0 16 1 11%

SUSTAINABILITY REPORT 2016

Permanent Contract

Classified by employment status 166 157 3 3

Note : (1) The data used is data obtained from the system in 2016 (data as at January 11, 2017, at 9.30 AM) (2) The above information refers only to employees directly hired by East Water, and excludes employees under contractorsâ&#x20AC;&#x2122; responsibility. (3) East Water does not engage in seasonal hiring. The Company only applies permanent and contractual employment with specified work period.

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

SUSTAINABILITY REPORT 2016

GRI G4 Index General Standard Disclosures

G4 Indicator

Description

STATEGY AND ANALYSIS G4-1 Statement from the most senior decision-maker of the organization G4-2 Description of key impacts, risks, and opportunities ORGANIZATIONAL PROFILE G4-3 Name of the organization G4-4 Primary brands, products, and services G4-5 Location of the organization’s headquarters G4-6 Number of countries where the organization operates, and names of countries where either the organization has significant operations or are specifically relevant to the sustainability topics covered in the report G4-7 Nature of ownership and legal form G4-8 Markets served (including geographic breakdown, sectors served, and types of customers and beneficiaries) Scale of the organization 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

Page SDGs Index AR SR SDG

Omission/Note

4 16 8 8 8 8

9, 11 6-7

79 79 63 8

N/A

External Assurance

G4 Indicator

Description

Page SDGs Index AR SR SDG

Omission/Note

External Assurance

G4-23

Significant changes from previous reporting periods in the Scope and Aspect Boundaries

STAKEHOLDER ENGAGEMENT G4-24 List of stakeholder groups engaged by the organization G4-25 Basis for identification and selection of stakeholders with whom to engage G4-26 Approach to stakeholder engagement, including frequency of engagement by type and by stakeholder group G4-27 Key stakeholder topics and concerns and organization response

20-23 20-23 20-23 20-23

Note: The data of energy consumption at the Head Office has changed in 2016 because electricity cost in the Head Office was not calculated in the past year. 1) In 2016, the report on the total volume of recycled and reused water (EN10) was cancelled. In its stead, a report on the financial impact, risk assessment, and the chance for continuation of business due to climate change (EC2) was published. 2) Adding a report on the occurrence of fraud and corruption, and activities organized to address this problem (SO5) because this matter is of utmost importance to the organization.

SUSTAINABILITY REPORT 2016

Significant changes during the reporting 78 period regarding the organizationâ&#x20AC;&#x2122;s size, structure, ownership, or its supply chain G4-14 Explanation of whether and how the 10 precautionary approach or principle is addressed by the organization G4-15 List externally developed economic, 19 environmental, and social charters, principles, or other initiatives to which the organization subscribes or which it endorses G4-16 Membership in associations 19 IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES G4-17 List all entities included in the 6-7 organizationâ&#x20AC;&#x2122;s consolidated financial statements or equivalent documents G4-18 Process for defining report boundaries 78 and content G4-19 Material aspects included in the report 24-25 G4-20 Descriptions of material aspect 24-25 boundaries within the organization G4-21 Descriptions of material aspect 24-25 boundaries outside the organization G4-22 Explanation of the effect of any 78 restatements

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

G4-13

SUSTAINABILITY REPORT 2016

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

G4 Indicator

Description

Page SDGs Index AR SR SDG

Omission/Note

REPORT PROFILE 78 G4-28 Reporting period for information provided G4-29 Date of most recent report 78 78 G4-30 Reporting cycle 78 G4-31 Contact point for questions regarding the report or its contents 78 G4-32 “In accordance” option, GRI Index and report assurance 78 G4-33 Policy regarding report assurance GOVERNANCE 10 G4-34 Governance structure of the organization ETHICS AND INTEGRITY 13 G4-56 Code of conduct 16 SPECIFIC STANDARD DISCLOSURES CATEGORY: ECONOMIC ASPECT: ECONOMIC PERFORMANCE G4-DMA Generic Disclosures on Management 14, 19 Approach G4-ECI Direct economic value generated and 72 2, 5, 7, 8, 9 distributed 48 G4-EC2 Financial implications and other risks 13 and opportunites for the organization’s activities due to climate change CATEGORY: ENVIRONMENTAL ASPECT: WATER G4-DMA Generic Disclosures on Management 12, 21-23 Approach 28 G4-EN8 Total water withdrawal by source 6 39 Note:1) In 2016, the results of a G4-EN9 Water sources significantly affected by 6 study conducted by AIT in 2009 withdrawal of water

on the impact of water pumping on the level in Bangpakong, Nakorn Nayok and Prachinburi rivers was used because no new surveys were conducted. Nevertheless, the Company plans to cooperate with the Royal Irrigation Department in 2017 to conduct a survey on water quality in the main reservoirs. 2) The TOR will be improved in 2017 by specifying the duration of repairs and road restoration, as well as repair standards. In addition, East Water plans to change the project management standard to encompass prevention of pollution and lessening of impact from construction.

External Assurance

ASPECT: EMISSIONS G4-DMA Generic Disclosures on Management Approach G4-EN16 Energy indirect greenhouse gas (GHG) emissions (Scope 2)

Page AR SR

SDGs Index SDG

Omission/Note

3, 12, 13 ,14, 15

Omission: In 2016, no data on electricity use at the auxiliary meter was collected. Data collection will be conducted systematically in 2017.

External Assurance

13, 31 43

CATEGORY: SOCIAL SUB-CATEGORY: LABOR PRACTICES AND DECENT WORK ASPECT: OCCUPATIONAL HEALTH AND SAFETY G4-DMA Generic Disclosures on Management 13, 79 Approach 63 Omission: In 2016, the absentee G4-LA6 Type of injury and rates of injury, 3, 8 rate of subcontractors was not occupational diseases, lost days,and included as they have not been absenteeism, and total number of collected. Data collection will work-related fatalities, by region and begin in 2017. by gender ASPECT: TRAINING AND EDUCATION 13 G4-DMA Generic Disclosures on Management Approach 50 G4-LA9 Average hours of training per year per 4, 5, 8 employee by gender, and by employee category 50 G4-LA10 Programs for skills management and 8 lifelong learning that support the continued employability of employees and assist them in managing career endings SUB-CATEGORY: SOCIETY ASPECT: ANTI-CORRUPTION 10, 13 G4-DMA Generic Disclosures on Management Approach 60 G4-SO4 Communication and training on anti16 corruption policies and procedures 60 G4-SO5 Confirmed incidents of corruption 16 and actions taken SUB-CATEGORY: PRODUCT RESPONSIBILITY ASPECT: CUSTOMER HEALTH AND SAFETY G4-DMA Generic Disclosures on Management 13, 35 Approach 54 G4-PR5 Results of surveys measuring customer satisfaction

EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

Description

SUSTAINABILITY REPORT 2016

G4 Indicator

84 EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED

SUSTAINABILITY REPORT 2016