We see
the Future Smart water for all
Contents
07
28
41
Message from the President and Chief Executive Officer
Policy Sustainability
Customer Satisfaction Management
• East Water and Sustainable Development
(Disclosure 102-43, 102-44, 418-1)
(Disclosure 102-14)
• Membership in Sustainable Development
• Complaints and Complaint Handling
Networks
10 General Information
• Moving toward Becoming the National Water Management Organization • Sharing Knowledge with the Society
34
(Disclosure 102-6, 102-45)
• Performance and Sustainability Awards in 2018 • Skills matrix in 2018
Responsible Operations • Ensuring stability of Water Grid system
• Employees’ Quality of Life • Employee Complaint
58
• Volume of pumped water
• Key Stakeholder Involvement
Water Management for Mutual Success (Disclosure 303-2)
• Sustainability Materiality Index
• Responsibility for changes to quality
• About this Report
Identification Framework of East Water
of water sources • Responsibility for construction impacts
62
83
98
Building sustainable growth with total water solutions
Employee Information
SDG Index
(Disclosure 102-7, 102-8)
(Disclosure 201-2)
• Management of electricity cost
74 Corporate Governance (Disclosure 205-2)
85 Community Sustainability Projects (Disclosure 203-1) • Community Sustainability Projects • Innovation for Water Conservation
99 GRI Content Index
6
Sustainability Report 2018 Eastern Water Resources Development and Management Public Company Limited
With its potentials and expertise in total water solutions, the Company strives to establish water stability for Thailand’s development towards prosperity and sustainability
Sustainability Report 2018 WE SEE THE FUTURE... Smart water for all
7
Message from the President and Chief Executive Officer (Disclosure 102-14) In 2018, the growth of the industrial and consumption sectors and the climate changes were major factors for water management in the eastern coastal region. Therefore, the Company strived to accommodate a wider range of water supply needs of its customers which are private and governmental organizations in the industrial estates and the consumption sector which includes, among others, the Provincial Waterworks Authority, municipalities and communities. The development of smart water solutions for these customers has been treated as a priority in a bid to provide the industrial and consumption sectors with innovative water management services that help save energy, reduce water loss and cost of operations and maintenance, system maintenance cost, are environmentally friendly, and contribute to the increase of water resources of Thailand. The Company has also attached importance to continuous development of advanced technological capabilities to strengthen is potentials and be poised for growth opportunities amidst the expansion of the industrial sector in the Eastern Economic Corridor (EEC) region. This year, the Company signed 4 sale and purchase agreement to supply raw and industrial water of more than 25 million cbm and the revenue will be recognized from 2019 onwards. With 26 years of experience and expertise in water management for the creation of economic value and sustainable society, the Company aims to serve major industrial zones in the eastern region of Thailand through its water pipeline network which is approximately 491.8 kilometers in length to achieve mutual growth. Guided by its vision of To be the leader in total water solutions of the country, the Company targets to link all major water sources in the Eastern Economic Corridor (EEC) region by 2019. As part of its 2018 strategy implementation, the Company has established the standard raw water pricing structure to be enforced in 2019. A feasibility study of the water management project was conducted to support the model development initiative under the Energy and Water Resources Management System (EWMS) project. Through this project, technology-assisted monitoring of water levels in reservoirs is exercise to maintain water reserve at 25% of the volume of water sold or higher in a bid to achieve effective water management, a proper balance between available water resources and the volume of water sold as well as to ensure the adequacy of water supply in each year in lights of customers’ needs. Further, the Company wil support the crop planning promotion program initiated by the Royal Irrigation Department and local agencies by sharing primary data and information about water situations with relevant parties
at war room meetings, starting from 2019. The 3-year human resources management master plan for 2018 2020 has been developed and the Performance Management System (PMS) was fine-tuned in 2018 for greater efficiency and fairness of performance assessment. The Company has defined core competencies and communicated them to employees across the business group to develop the competencies of employees and embrace the highperformance culture by 2019. Due to the earnest dedication and determination of the Board of Directors, executives and employees, the Company has earned recognition and trust from its stakeholders. This is evident from the Company’s achievement of the “Excellent” rating under the Corporate Governance Report (CGR), the distinction as 1 of 79 listed companies recognized as sustainable stocks on the “Thailand Sustainability Investment” list with outstanding environmental, social and corporate governance performance, and the recognition award in the Sustainability Report Awards 2018. With its potentials and expertise in total water solutions, the Company strives to establish water stability for Thailand’s development towards prosperity and sustainability.
Jirayut Rungsrithong
President & Chief Executive Officer
DRIVING
THE ECONOMIC GROWTH
Driving
the economic growth To provide total water solutions that meets the demand of all users and to create economic stability and sustainability
10
Sustainability Report 2018 Eastern Water Resources Development and Management Public Company Limited
General Information (Disclosure 102-6, 102-45)
Performance and Sustainability Awards in 2018 (Disclosure 102-7, 201-1)
Economic
Revenue
Net profit
3,120.05 million baht
1,044.72 million baht
1
Sales and service revenue
Other revenue
94.64%
588.90
5.36%
12.75
Million baht2 Revenue contribution to the government
337.21
Million baht Community development investment
0.20
Baht / Share3 Dividend to shareholders
Million baht OPEX
241.93
Million baht Salary and employee benefits
Remark: 1 Based on the Company’s separate financial statements. 2 Refers to taxes on income and dividends. 3 The 2018 interim dividend was paid from the first-half operating results in accordance with the resolution passed by the Board of Directors at its Meeting No. 9 on 9 August 2018 at the rate of Baht 0.20 per share. The final dividend from the operating results during July - December 2018 will be proposed by the Board of Directors to the 2018 Annual General Meeting of Shareholders on 22 April 2019.
Sustainability Report 2018 WE SEE THE FUTURE... Smart water for all
Social and Environmental
Care for the communities along the water grid of
491.8 km.
in length across 18 districts 34 municipalities 50 subdistrict administrative organizations
Provide clean water to communities totaling
4.71 Million liters
(drinking water supplied by trucks, packaged water cups, bottled water, tube water supply, and water distribution to communal waterworks system).
12 schools
Corporate Governance and Sustainability Award
13,830 34.58 trees
rai of land
(based on the ratio of 400 trees per rai of land)
80.20% on average
The amount of dissolved oxygen (DO) in treated water is improved to above 4 mg/L.
4
Covering
Employee engagement is
Wastewater treatment project for cafeterias in
Governance and Sustainability
Grow
(higher than the previous year)
1 2 3 4
1 of 79
listed companies recognized as
sustainable stocks (Thailand Sustainability Investment 2018: THSI), marking the 4th consecutive year of this achievement
Excellent
rating under the Corporate Governance Reporting of Thai Listed Companies (CGR)
RECOGNITION
award in the Sustainability Report Awards 2018 organized by the Thai Listed Companies Association
Achievement of a score of 95 score in the 2017 AGM assessment conducted by the Thai Investors Association
11
12
Sustainability Report 2018 Eastern Water Resources Development and Management Public Company Limited
East Water - Professional Expert in Total Water Solution Services through Water Pipeline Network System (Disclosure 102-1)
Raw water
Industrial water
Recycled water
Eastern Water Resources Development and Management Public Company Limited (East Water)
Tap water
Wastewater treatment
Ticker symbol:
Drinking water
EASTW Registered capital: Bath
1,663.73
• Million
The Company is a provider of total water management solutions services which include: (Disclosure 102-2) • Raw water: Procurement of raw water, investment and installation of pipelines, as well as ensuring sufficient raw water to satisfy demands year-round. • Industrial water: Installation of production system of water for industrial use, ensuring that the quality matches customers’ requirements, be it by clarification, reverse osmosis, demineralization, or sea water reverse osmosis desalination.
P
Thairath Newspaper
Soi Vibhavadi Rangsit 5 Eastern Water Resource Manage and Development PCL. Soi Vibhavadi Rangsit 3
Don Muang Tollway
o hah
oad
in R
oth nY
Soi Sukhumvit 3
5 Lat Phrao Intersection
Chatuchak Park
Lat
Tap water: Comprehensive management solutions and engineering services for both surface and desalinated sea water with state-of-the-art technologies in production maintenance and distribution • Drinking water: Production of clean, safe, alkaline drinking water. • Wastewater treatment: To service tailor-made for each business, controlling wastewater effluent quality using technologies such as activated sludge and membrane bioreactor. • Recycled water: Providing service and installation of water recycling system for reuse in industrial operation.
Sukhumvit Road R. M. S. Industrial Service Company Limited Workshop Line House
Phr
ao
Roa
Eastern Water Resource Manage and Development PCL.
d
Thai Airways International Public Company Limited
Soi Vibhavadi Rangsit 16
Securities and Exchange Commission
Industrial Estate Authority of Thailand
Klong Bang Sue
Head Office (Disclosure 102-3, 102-4)
East Water Building 1 Vipavadeerangsit 5, Vipavadeerangsit Road, Jomphol, Jatujak, Bangkok 10900 (Thailand)
Rayong Operations Center
477 Sukhumvit Road, KM. 201, Huay Pong, Amphur Muang, Rayong 21150 (Thailand)
Sustainability Report 2018 WE SEE THE FUTURE... Smart water for all
Vision
for Sustainable Growth
“To be the leader in total water solutions of the country”
13
Missions
towards stakeholders
1
To develop the security and maintain stability of water resources in response to the long-term water demand
2
To expand the investment in water related business for continuous and sustainable growth.
3 4 5
To increase competitive advantages through technologies and innovations.
To develop human resources and improve management efficiency
To be socially and environmentally responsible and establish good relationships with all stakeholders in accordance with corporate governance principles.
SMART WATER SOLUTIONS SMART WATER SMART SMART SOLUTIONS WATER SMART WATER SOLUTIONS SMART WATER SOLUTIONS WATER SOLUTIONS SOLUTIONS Tap Industrial DrinkingWastewater Wastewater Recycled Tap Industrial Tap Tap Wastewater Tap Drinking Raw Raw Industrial Raw Industrial Raw Industrial RawTapIndustrial Raw Drinking Drinking Drinking Drinking Wastewater Wastewater Wastewater Recycled Recycled Recycled Recycled Recycled water water water water water water treatment watertreatment water waterwater water treatment waterwater water water water water water water waterwater water water water water treatment treatment water water treatment water water water
14
Sustainability Report 2018 Eastern Water Resources Development and Management Public Company Limited
Business Structure of the East Water Group (Disclosure 102-5)
The Company’s core business is the total water solution services while the tap water supply business and related business are operated under concession licenses by Universal Utilities Pcl. (UU) which is the Company’s subsidiary. The group’s business consists of 3 clusters as follows: • 9 tap water supply business units: Sattahip Waterworks, Koh Lan Waterworks, Bowin Waterworks, Nong Kham Waterworks, Koh Samui Waterworks, Rayong Waterworks, Chonburi Waterworks, Lakchai Muang Yang Industrial Estate Waterworks, and Hua Ro Waterworks.
•
2 wastewater treatment and recycled water supply business units: Wastewater management facilities at Lakchai Muang Yang Industrial Estate and at Ratchaburi Glass Industry Company Limited. • 4 subsidiaries: Nakornsawan Water Supply Company Limited, Bangpakong Water Supply Company Limited, Chachoengsao Water Supply Company Limited, and Egcom Tara Company Limited.
Raw Water Business
Eastern Water Resources Development and Management PCL
100%
Tap Water Supply Business Universal Utilities PCL
Tap Water Supply
100%
• Sattahip Waterworks • Rayong Waterworks Nakornsawan • Koh Lan Waterworks • Chonburi Waterworks • Bowin Waterworks • Lakchai Muang Yang Water Supply Co., Ltd. • Nong Kham Waterworks Industrial Estate • Koh Samui Waterworks Waterworks • Hua Ro Waterworks
100% Bangpakong Water Supply Co., Ltd.
100%
90%
Chachoengsao Egcom Tara Water Supply Co., Ltd. Co., Ltd.
Wastewater Treatment and Water Recycling
• Wastewater management facility at Lakchai Muang Yang Industrial Estate • Wastewater management facility at Ratchaburi Glass Industry Company Limited
Service Areas, Customer Segments and Raw Water Distribution Channels (Disclosure 102-6) The Company is the largest business operator in developing water pipeline systems and supplying raw water to industrial and general consumption users in the eastern seaboard areas of Thailand. The Company’s key strengths include its comprehensive, modern and efficient water grid and pumping systems that link key water sources in the eastern region and cover the eastern coastal areas in the 3 provinces. The Company has the capacity to supply raw water to sufficiently meet current and future demands of the local business operators in a sustainable manner while other business operators still have limitations in terms of service areas, water source volumes and stability, and water distribution systems. In 2018, the Company segmented its industrial and general consumption users according to service areas, i.e. 1. Mab Ta Phud, 2. Ban Chang - Sattahip, 3. Bo Win - Pluak Daeng 4. Chonburi, and 5. Chachoengsao, in a bid to develop an effective and appropriate water management plan based on local demands both at present and in the future.
Sustainability Report 2018 WE SEE THE FUTURE... Smart water for all
15
Corporate Governance Structure
(Disclosure 102-7, 102-18, 102-20, 102-22, 102-23) In 2018, the Board of Directors reviewed the structures of the subcommittees with a view to achieving a balanced segregation of duties and responsibilities among the subcommittees while simultaneously pursuing its sustainable development goal. The Governance and Nomination Committee has been re-established by the Board of Directors as the Corporate Governance and Sustainability Development Committee which is chiefly responsible for ensuring the sustainability development and the compliance with the 2017 Corporate Governance Code of the
Office of the Securities and Exchange Commission (SEC) while the responsibilities regarding the nomination have been transferred to the Nomination and Remuneration Committee to promote agility. Presently, the Company has 5 subcommittees as follows: 1) Audit Committee, 2) Investment Committee, 3) Risk Management Committee, 4) Corporate Governance and Sustainability Development Committee and 5) Nomination and Remuneration Committee.
Board of Directors
Eastern Water Resources Development and Management Public Company Limited
Audit Committee
Investment Committee
Risk Management Committee
Corporate Governance and Sustainability Development Committee
Nomination and Remuneration Committee
President and Chief Executive Officer President and Chief executive officer office
Company Secretary Office
Internal Audit Department
Corporate Strategy Office
Business Development Office
Operations Office
Business Supporting Office
Finance and Accounting Office
Corporate Strategy Department
Business Development Department
Operations & Customer Service Department
Human Resources Department
Finance Department
Corporate Communication
Engineering Department
Facility & Maintenance Department
Business Administration Department
Accounting Department
Construction Project Management Department
Information Technology Department
AS OF December 2018
16
Sustainability Report 2018 Eastern Water Resources Development and Management Public Company Limited
1. Mr. Veerasak Kositpaisal (Independent Director)
✓ ✓ ✓ ✓
2. Mr. Amorn Laohamontri (Independent Director)
✓
Information Technology
Public Policy, Corporate Governance and CSR
Audit
Laws
Economics/Finance/Accounting
Engineering
Water Management
Names of Directors
Private Organization Management Public Organization Management
Board Skills matrix in 2018
✓ ✓
Position on the Board and Subcommittees
- Chairman of the Board of Directors - Board of Directors
3. Pol. Maj. Gen. Vichai Sangprapai ✓ ✓ ✓ - Chairman of the Audit Committee (Independent Director) - Chairman of the Nomination and Remuneration Committee - Member of the Corporate Governance and Sustainability Development Committee 4. Mrs. Tatchada Jitmahawong ✓ ✓ ✓ - Chairman of the Corporate Governance (Independent Director) and Sustainability Development Committee - Member of the Audit Committee 5. Col. Premjiras Tanathaipakdee ✓ ✓ - Member of the Nomination (Independent Director) and Remuneration Committee - Member of the Corporate Governance and Sustainability Development Committee 6. Mr. Surachai Kanasa ✓ ✓ - Chairman of the Investment Committee (Independent Director) - Member of the Nomination and Remuneration Committee 7. Mr. Oran Vongsuraphichet ✓ - Member of the Investment Committee (Independent Director) - Member of the Nomination and Remuneration Committee 8. Mr. Kritsada Sunkhamani ✓ ✓ ✓ - Member of the Risk Management (Director) Committee - Member of the Investment Committee 9. Mr. Virgilio Jr.Cervantes Rivera (Director)
✓ ✓ ✓ ✓
- Member of the Investment Committee
10. Mrs. Asvini Tailanga ✓ ✓ ✓ - Chairman of the Risk Management (Independent Director) Committee - Member of the Audit Committee 11. Miss Somchint Pilouk (Director)
✓ ✓
- Board of Directors
12. Mr. Jirayut Rungsrithong ✓ ✓ ✓ ✓ ✓ ✓ - Member of the Investment Committee (Director and Chief Executive Officer) - Member of the Risk Management Committee Advisors 1. Mr. Vicha Nilpetploy ✓ ✓ - Advisor to the Investment Committee 2. Gen. Trairat Rangaratna ✓ - Advisor to the Audit Committee 3. Mr. Siwa Sangmanee ✓ ✓ - Advisor to the Risk Management Committee
Sustainability Report 2018 WE SEE THE FUTURE... Smart water for all
Subcommittees having key roles in the Company’s corporate governance are: 1. Corporate Governance and Sustainability Development Committee (Disclosure 102-32) The Corporate Governance and Sustainability Development Committee consists of 3 independent directors and has 2 main duties as follows: 1) Corporate Governance: To consider policies and practices regarding corporate governance, anti-corruption and business ethics of the group to ensure alignment with requirements of the Stock Exchange of Thailand (SET) and the Office of the Securities and Exchange Commission (SEC) or supervisory bodies concerned. The Committee shall review such policies and practices at least annually and exercise supervision and monitoring to ensure consistent and proper compliance therewith. 2) Sustainability Development: To determine sustainability-related policies, strategies and action plans through effective water management that is anchored around the aims of sharing water source with communities and maintaining balances in ecosystems. To build confidence among its stakeholders through transparent and auditable work processes according to the framework of the Global Reporting Initiative (GRI). To ensure that the management operates business with the concept of social and environmental responsibility to promote enterprise-wide alignment with the Company’s key objectives, goals and strategies. The Corporate Governance Division which reports to the Company Secretary Office is responsible for monitoring the groupwide compliance and developing and communicating a compliance checklist across the organization to support the supervision of compliance with applicable rules, regulations, requirements and laws. The Coporate Governance Division also in charge of liaising with the Office of Securities and Exchange Commission (SEC) and the Stock Exchange of Thailand (SET) to make required disclosures according to applicable timeline. In 2018, the Company reviewed the corporate governance principles of the group by applying the 2017 Corporate Governance Code of the Office of Securities and Exchange Commission (SEC) within the scope appropriate to the Company’s business context as well as updated Code of Conduct of the group for alignment with the reviewed corporate governance principles of the Company. In addition, the Compliance Division, in collaboration with relevant teams and the Legal Division, reviewed 3 regulations of the Company, namely the procurement
17
and hiring regulation, the budgeting, accounting and finance regulation, and the contract management regulation, as well as worked with an external consultant on the internal control adequacy assessment in accordance with requirements stipulated by the Office of Securities and Exchange Commission (SEC) and the law compliance assessment in support of the non-compliance risk mitigation and prevention. Performance of the Compliance Division is regularly reported to the Corporate Governance and Sustainability Development Committee. (Disclosure 102-17) the Company has the Business Relations & CSR Division which is directly responsible for promoting CSR in process to ensure that the Company’s business is operated with responsibility towards communities, society and environment. 2. Risk Management Committee The Risk Management Committee consists of 3 members and is chiefly responsible for the formulation and review of the Risk Management Policy for alignment with the objectives, goals, strategies and risk appetites. The Risk Management Committee also supervises and supports risk management activities according to the Risk Management Policy, gives recommendations, endorses the risk management plan, monitors and review risks, and communicates and advises about risk management to align the enterprise-wide risk management practices. The Risk Management Division and every functional unit of the Company are jointly responsible for the analysis and review of risk factors and their implications for the Company’ successful business plan execution as well as the proposal of appropriate risk management approaches which will form part of the Company’s risk management plan. The division is also in charge of tracking the progress of enterprise-wide risk management implemented by all functional units and presenting the progress updates to the Risk Management Committee. 3. Audit Committee The Audit Committee consists of 3 independent directors and is responsible for reviewing the Company’s financial reports, the internal control and risk management systems, and the compliance with laws, rules and regulations governing business activities and transactions with connected interest or potential conflicts of interest. The Audit Committee is also empowered to select auditors and determine audit fees. In 2018, the Charter of the Audit Committee was updated to additionally include the review of the anticorruption process and the review of the internal processes relating to corporate governance, the whistle blowing program and the complaint handling procedures.
18
Sustainability Report 2018 Eastern Water Resources Development and Management Public Company Limited
“EASTW” Shareholders (Disclosure 102-5)
The Company’s top 10 major shareholders as at the book-closing date 28 December 2018 is listed below. No.
Shareholder
No. of Shares
1 Provincial Waterworks Authority 2 MANILA WATER (THAILAND) COMPANY LIMITED 3 Industrial Estate Authority of Thailand 4 Mr. Min Tieanworn 5 Aberdeen Standard Small Cap Fund 6 BNP PARIBAS SECURITIES SERVICES, LONDON BRANCH 7 Aberdeen Standard Long Term Equity Fund 8 Thanachart Low Beta Fund 9 Aberdeen Standard Growth Fund 10 Thanachart Prime Low Beta Fund Other shareholders ToTal
Percentage (%)
668,800,000 311,443,190 76,000,000 34,500,000 30,226,600 29,812,100 27,465,700 25,181,300 25,159,500 23,728,200 411,408,559 1,663,725,149
40.20% 18.72% 4.57% 2.07% 1.82% 1.79% 1.65% 1.51% 1.51% 1.43% 24.73% 100%
Source: Thailand Securities Depository Company Limited Remark: The first and the third shareholders were the major shareholders from the government sector while the second shareholder was a juristic person. All these 3 shareholders had a role in determining management policies and their representatives were proposed for appointment as directors at the Company’s shareholders’ meeting.
About this Report
(Disclosure 102-10, 102-45, 102-46, 102-48, 102-49, 102-50, 102-51, 102-52, 102-53, 102-54) This 2018 Sustainability Report is the 8th in a series of the Company’s annual sustainability reports and is intended as a means to disclose policies, strategies, impact management, and corporate performance which reflect the Company’s economic, social and environmental responsibility towards stakeholders that is material to the Company’s sustainability development. The contents are categorized based on 6 sustainability approaches which are intended for the management of impact on stakeholders in all key processes of the Company’s business operation. This report is developed in accordance with the core option of the sustainability reporting framework of the Global Reporting Initiative (GRI) at the limited assurance level. Information contained herein is for the reporting period of 1 January to 31 December 2018. This report covers only the Company’s total water solution business, particularly raw water pumping and distribution through its water grid of 491.8 kilometers in 3 eastern provinces, i.e. Rayong, Chonburi and
Chachoengsao, as well as the Company’s business operations at the Bangkok head office. This report does not include Universal Utilities PCL. which operates tap water business under concession licenses and drinking water supply business. This report contains material changes from 2017 as follows: 1. The Business Sustainability Policy which has been approved by the Company’s Corporate Governance and Sustainability Development Committee 2. The calculation of employee injury rates is based on the Human Resources Department’s formula for calculating working hours per person per annum. 3. The Bangpakong pressure booster station was discontinued. Thus, the Company has 15 primary stations in total, decreasing by 1 from 2017. This Sustainability Report is certified in accordance with the limited assurance procedure by a third-party assurance practitioner with expertise in validating and
Sustainability Report 2018 WE SEE THE FUTURE... Smart water for all
assuring the accuracy and reliability of information disclosed according to the Global Reporting Initiative Standard (GRI Standard) at the core option and limited assurance levels. Top executives have been involved in the selection process which is compliant with the Company’s procurement and hiring regulations. Process for Defining Report Content: The 2018 Sustainability Report Working Team consists of representatives from all departments of the Company and is appointed by the President & Chief Executive Officer. The working team arranged brainstorming sessions and meetings to jointly consider, review and analyze material sustainability topics and the conclusions were proposed to the President and Chief Executive Officer for approval and to the Corporate Governance and Sustainability Development Committee for acknowledgment before disclosure in the Sustainability Report.
19
In case of inquiry, please contact:
Miss Chatkaew Poomarin, Acting Vice President, Corporate Communication Department Eastern Water Resources Development and Management Pcl. East Water Building 1 Vipavadeerangsit 5, Vipavadeerangsit Road, Jomphol, Jatujak, Bangkok 10900 (Thailand) Telephone : 02-272-1600 Ext. 2326 E-mail : pr@eastwater.com This Sustainability Report and the sustainability reports of previous years are available for download on the East Water’s website at www.eastwater.com
Key Stakeholder Involvement (Disclosure 102-40, 102-42, 102-43, 102-44)
A sustainability report working team has been established by the Company and is tasked with the key stakeholder identification and review which are conducted annually. The identification and review are based on the levels of the stakeholders’ influence and impact on the Company’s business operations as well as the influence and impact of the Company’s current and future business operations on the stakeholders. Information gained through these processes is applied to the improvement of the strategy planning for greater alignment with the needs of stakeholders and sustainable mutual value. The Company’s stakeholders are classified into 8 groups as follows: Stakeholder
Expectation
Engagement Approach
Frequency
- Stability of the water pumping system in terms of the quantity and quality of water sources - Regular calibration of water meters for metering accuracy and reliability - Punctual completion of construction projects punctually as planned - Business expansion plan and identification of long-term water reserve sources - Availability of clear and timely information and updates about water situation and quality - Personnel development - Relations activities
- Water war room meetings - Meetings between executives and major customers - Satisfaction survey - Project progress monitoring - Customer complaint channels
- 12 times/year - 1 time/year
2. Potential customers
- Total water solutions that match the needs of each Customer at reasonable prices
- Meeting on special days/ occasions - Meetings with the top management
- 4 times/year
3. Local government agencies and communities
- Road rehabilitation according to applicable standards - Commuter safety and fast problem-solving - Punctual completion of construction as panned
- Meetings with the users of Bangpakong River Basin - Public relations activities for projects - Follow-up meetings on community-related issues and resolution
- 2 times/year
1. Existing customers
- Communication via group text service of Line application - Meeting on special days/ occasions
- 2 times/year - 1 time/year - Throughout the year - Throughout the year - Throughout the year
- Based on the Company’s programs
- Based on project availability - Upon complaints
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Sustainability Report 2018 Eastern Water Resources Development and Management Public Company Limited
Stakeholder
3. Local government agencies and communities (Continued)
4. Investors and shareholders
5. Royal Irrigation Department
6. Executives and employees
7. Business partners 7.1 Trading partners 7.2 Contractors
Expectation
Engagement Approach
- More active roles in the community and environmental development to foster the sustainable development of communities - Water management and CSR activity plans that are mainly based on the problems and needs of communities, particularly the drought issues and crises - Water sharing with communities along the water grid - Compliance with the agreement on the cease of water pumping from Bangpakong River when the salinity level reaches the predetermined trigger points
- Compliance with regulatory rules and regulations - Satisfaction surveys
- Suitable rates of returns and dividends - Timely supply of clear and complete information and news to investors and shareholders in accordance with the SET’s requirements - Positive performance outlook and opportunities for continuous business expansion - Transparent and socially and environmentally responsible organization - Regular IR activities
- Annual General Meeting of Shareholders (AGM) - Site visits - CSR activities - Satisfaction survey
- Water management according to the plan jointly developed with the Royal Irrigation Department - Provision of support beneficial to communities - Exchange of information and technologies
- Water war room meeting - Relations activities - Meetings with non-agricultural water users - Meeting on special days/ occasions - Communication via group text service of Line application
- 12 times/year
- Employee relations activities to promote good work atmosphere - Compensation and benefit packages that are fair and comparable to industry benchmarks - Development of professional knowledge and skills to achieve professionalism - Good quality of life and work environment - Career path and succession plan - Streamlined processes for greater efficiency - Corporate culture that foster sustainable growth
- Employee satisfaction and engagement survey - Meetings of 2 wel f are committees - Meetings of the Occupational Safety, Health and Environment Committee - Multiple suggestion and complaint channels
- 1 time/year
- Transparent and fair procurement and hiring processes - Streamlined procurement and disbursement processes - Easy and fast access to clear information and news - Business expansion plan for growth - Development of project staff
- Meeting to clarify the scope of project worth Baht 1 million or higher - Relations activities - Site visits - Progress follow-up meetings
- Upon each bidding
- Life quality and environmental development activities for communities - Climate forecasts based on different climate models (climate change preparedness and response plan)
- Release of financial performance (MD&A) - Inquiry response via telephone and e-mail
- Satisfaction survey
Frequency
- On going - Once every 2 years - Monthly - 1 time/year
- 1 time/year - 2 times/year - 1 time/year - Once every 2 years - 4 times/year - Throughout the year
- 5 times/year - 2 times/year - Throughout the year
- 4 times/year - 12 times/year - 12 times/year
- 1 time/year - 2 times/year - Upon each bidding - 2 times/year
Sustainability Report 2018 WE SEE THE FUTURE... Smart water for all
21
Stakeholder
Expectation
Engagement Approach
Frequency
8. Regulators 8.1 Government agencies regulating construction works and permits
- Constructions that do not have impact on communities - Post-construction road rehabilitation according to applicable standards - Timely and fast problem-solving
- Meeting on special days/ occasions - Follow-up and coordination with relevant officials - Study of requirements specified in permit applications
- 3 times/year
8.2 Department of Labour Protection and Welfare
- Compliance with the labor laws and the Occupational Safety, Health and Environment Act - Compliance with the Empowerment of Persons with Disabilities Act
- Study of the provisions of laws - Complaints from relevant government agencies - Meeting with responsible officers on various occasions
- 1 time/year
8.3 SEC and SET
- Implementation of anti-corruption initiatives - Compliance with applicable laws and corporate governance principles
- Study of rules, regulations, requirements, notification and laws enforced by SEC and SET - CSR Club meetings - Participation in training courses and seminars arranged by SEC and SET
- 60 times/year
- Upon each construction project
- 1-2 times/year
- 4 times/year - Based on courses arranged by SEC and SET
Sustainability Materiality Index Identification Framework of East Water (Disclosure 102-47) In 2018, the Company identified sustainability materiality indices based on internal and external factors that have influence or are key variables for the Company’s achievement of strategic goals and sustainability. Such assessment was collectively conducted by the 2018 Sustainability Report Working Team based on the Global Reporting Initiative Standard (GRI Standard) using the following procedures. Materiality Assessment Process 1. Identification Consideration is given to sustainability topics relating to internal and external factors, i.e. the Company’s strategy, risk factors and business opportunities, audit matters (high importance), risk issues (high importance), news that are in public attention, complaint topics, and the needs and expectation of stakeholders. 2. Prioritization Materiality topics are prioritized according to their influence on the achievement of the Company’s strategic goals in economic, social and environmental dimensions. The prioritization is also based on their relevance to the materiality
topics defined from the perspective of stakeholders, issues that are considered important by more than one group of stakeholders, and compliance with applicable legal requirements. 3. Validation The validation is conducted by the working team and proposed to the President and Chief Executive Officer for consideration and subsequently the Corporate Governance and Sustainability Development Committee for acknowledgment prior to disclosure. 4. Conclusion 5. Review This Sustainability Report is reviewed by an independent third-party assurance practitioner with expertise in validation and assurance under the Global Reporting Initiative Standard (GRI Standard) at the core option and limited assurance levels. This provides reasonable assurance that this Sustainability Report is complete, valid, reliable, in accordance with the GRI Standards as shown in the Appendix.
22
Sustainability Report 2018 Eastern Water Resources Development and Management Public Company Limited
Sustainability Materiality Matrix 19 issues and 18 indicators are identified per the below summary. Sustainability Topics
Internal and External Factors
1. Continuous Corporate Strategy 1. Implementation of projects growth that provide long-term returns immediately 2. Development of a standard pricing structure Business Policies based on 2018 Corporate KPIs 1. Sustained growth rate of total revenue (consolidated net profit and EBITDA Margin) 2. Contractual volume of industrial water supply 3. Control of operating expenses (disbursement of annual investment budget, water tariff structure management, and control of per-unit cost) Risk Factors 1. Business interruption 2. Enforcement of the Water Resources Act 2. Alliance management for mutual success
Corporate Strategy 1. Enhancement of customer satisfaction through service quality and efficiency 2. Provision of total water solutions at appropriate prices and with quality assurance 3. Development of good relationship with major stakeholders Business Policies based on 2018 Corporate KPIs 1. Satisfaction of customers towards services delivered at operating sites 2. Implementation of the IT development master plan
Stakeholder Expectations
Existing Customers 1. Business expansion plan and identification of long-term water reserve sources Investors 1. Suitable rates of returns and dividends 2. Business expansion plan for sustainable growth 3. Being an organization that contributes to Thailand’s energy-saving development through the reduction of electricity expenses, which are the major cost of water pumping, by 5% Suppliers 1. Business expansion plan for growth
EWG Sustainability Aspects
• Cost management (electricity expense/water tariff structure management) • Climate change and business opportunities • Profit and growth
• Water grid Current Customers stability 1. Stability of the water pumping system in terms • Customer satisfaction of quantity and quality management of water sources • Complaint 2. Regular calibration management of water meters for metering accuracy and reliability 3. Access to clear and accurate information and updates about water situation and quality in a timely manner to facilitate proper preparations 4. Punctual completion of construction projects punctually as planned 5. Adequate sources of water reserve in light of consumption needs 6. Public relations activities on different occasions to survey opinions on services
GRI Standard Title
Energy (302-4) Emissions (305-2) Economic Performance (201-2) Economic Performance (201-1)
Water (303-1) General Disclosures (102-43, 102-44) Customer Privacy (418-1)
Sustainability Report 2018 WE SEE THE FUTURE... Smart water for all
Sustainability Topics
2. Alliance management for mutual success (Continued)
Internal and External Factors
Risk Factors 1. Satisfaction of customer/ users 2. Rigid pricing policy 3. Impact of natural disaster on the Company’s water sources (quantity and quality) 4. Weaknesses in work processes and practices Complaint Topics 1. Poor quality of tap water 2. Tap water outage 3. Unusually high water bills
Stakeholder Expectations
7. Proper balance between administrative costs and pricing 8. Measures to prevent air backflow after water pipe repair Investors 1. Higher frequency of investor relations activities, company/ site visits, and meetings between executives and investors as well as provide investors with useful knowledge and information in a timely manner to support decision-making Suppliers 1. Streamlined procurement, hiring and financial processes for greater speed and agility Royal Irrigation Department 1. Implementation of the water usage plan jointly developed with the Royal Irrigation Department 2. Exchange of information and technologies Executives and Employees 1. Employee relations activities to promote good work atmosphere Tenants 1. Higher frequency of the inspection and maintenance of common areas and building utility system of East Water Building to ensure service availability 2. Regular improvement of the maintenance and repair system Local Government Agencies and Communities 1. Climate forecasts based on different climate models (climate change preparedness and response plan)
EWG Sustainability Aspects
23
GRI Standard Title
24
Sustainability Report 2018 Eastern Water Resources Development and Management Public Company Limited
Sustainability Topics
Internal and External Factors
Complaint Topics 3. Holistic 1. Impact from pipework and impact construction (road damage, mitigation inconvenient traffic for water conditions, and accidents) manageRisk Factors ment 1. Impact from operations on communities, the society and environment
Corporate Strategy 4. Adding 1. Implementation of the value to human resources master quality plan personnel Risk Factors 1. Occupational safety 2. Adequacy and quality of personnel 3. Inefficient project management
Stakeholder Expectations
EWG Sustainability Aspects
GRI Standard Title
Communities and government agencies 1. Rehabilitation of roads to original or better conditions/ensure safety of commuters/solve problems quickly/ complete construction as planned 2. Compliance with the agreement on the cease of water pumping from Bangpakong River when the salinity level reaches the predetermined trigger points Investors 1. Being a socially and environmentally responsible organization
• Responsibility towards changes in the quality of water sources • Responsibility towards impact from construction activities • Postconstruction rehabilitation
Water (303-2)
Current Customers 1. Development of personnel’s technical knowledge about water and its properties to facilitate effective problem-solving Suppliers 1. Development of service capabilities and communication effectiveness to support effective decision-making and fast problem-solving/ inquiry response 2. Development of knowledge and skills of project personnel and staff for effective inquiry handling Tenants 1. Close supervision of and training for janitorial service staff and security guards Executives and employees 1. Compensation and benefit packages that are fair and comparable to industry benchmarks 2. Development of professional knowledge and skills to achieve professionalism 3. Good quality of life and work environment 4. Career path and succession plan
• Corporate values • Employee data • Life quality of employees • Complaint management
Employment (401-1)
• Development towards becoming a national water service provider • Employee satisfaction and engagement
Management Approach (103-2, 413-2) Local Community (413-2)
General Disclosures (102-43, 102-44) Training and Education (404-1, 404-2) Occupational Health and Safety (403-1, 403-2)
Sustainability Report 2018 WE SEE THE FUTURE... Smart water for all
Sustainability Topics
Internal and External Factors
Stakeholder Expectations
New Customers 5. Innovative Corporate Strategy 1. Water solutions at water 1. Promotion of customer solutions awareness about corporate reasonable prices products and services in terms of total water solutions 2. Cost reduction in production, pumping and distribution, and internal processes Risk Factors 1. IT threats and network security 6. Business integrity
Corporate Strategy 1. Responsibility for society, communities and the environment as well as corporate image 2. Systematic risk management and business operations in compliance with rules and regulations Business Policies based on 2018 Corporate KPIs 1. Compliance with the 2018 CG Code of SET Risk Factors 1. Compliance with internal and external rules and regulations, including laws 2. Corruption
Communities and government agencies 1. More active roles in the community and environmental development to foster the sustainable development of communities 2. Water management and CSR activity plans that are mainly based on the problems and needs of communities 3. Water sharing with communities along the water grid Investors 1. Transparent operation and management Suppliers 1. Transparent and auditable operations Royal Irrigation Department 1. Continuous, consistent and timely support for activities that benefit communities SEC and SET 1. Anti-corruption initiatives 2. Compliance with applicable laws and adherence to corporate governance principles
EWG Sustainability Aspects
25
GRI Standard Title
• SMART WATER SOLUTIONS
Water (303-1)
• Corporate governance • Anti corruption • Economic value for community and environmental development
AntiCorruption (205-2) Economic Performance (201-1, 203-1)
PAY INTENSIVE
RESPONSIBILITY TO SOCIETY
Create stability
to society and community To provide sustainable water solution with responsibility for society and community and encourage good quality of living for sustainability development
28
Sustainability Report 2018 Eastern Water Resources Development and Management Public Company Limited
Policy
Sustainability The Company believes that the development of professional capabilities alone is not enough. It also takes ethical conduct, transparency, integrity, responsibility, and competitiveness to achieve desired stability and sustainability. The word “responsibility” in this context refers to responsibility towards oneself, the organization and the stakeholders. As an operator of natural resource business, the Company’s operational foundations and all processes are built around the goal of satisfying the needs of stakeholders and the considerations of economic, social and environmental impact, and are guided by the strategic framework referred to as “3 creations and 3 developments” to strengthen and drive the Company towards solid growth.
Strategic framework of
creations
developments
Creating acceptance
Creating stability
Creating mutual value
Developing water and environment campaign
Developing Promotion of quality of life in communities
Developing Encouraging lifelong learnings
Sustainability Report 2018 WE SEE THE FUTURE... Smart water for all
29
East Water and Sustainable Development In 2018, the Company embarked on business expansion into “total water solutions” to provide integrated services of raw water, industrial water, tap water, drinking water, wastewater treatment and recycled water services to clients in its operating areas (Chachoengsao, Chonburi and Rayong) and the Eastern Economic Corridor (EEC) zones in the eastern region of Thailand. The Company also renewed its vision, mission and strategy and defined its business direction and the Sustainability Policy for greater clarity.
The Company’s Sustainability Policy was approved by the Corporate Governance and Sustainability Development Committee on 28 November 2018 and addresses the following dimension: 1. Corporate governance 2. Responsibility towards water quality change 3. Innovation management 4. Human rights and employment for sustainable economic growth 5. Involvement in community and social development and learning advocacy
To strengthen its internal management foundation, the Company changed the structure of the Board and established the Corporate Governance and Sustainability Development Committee which is chiefly responsible for the formulation of sustainability-related policies, strategies and plans that are in alignment with the Company’s business operations in economic, social and environmental aspects. The Corporate Governance and Sustainability Development Committee also supports and promotes the Company’s activities that contribute to the goals of sustainability and are connected with corporate strategy that is executed by management and addresses social and environmental responsibility, positive relationships with stakeholders, transparency, and compliance with corporate governance principles.
Sustainability Report 2018
30
Eastern Water Resources Development and Management Public Company Limited
8 Key Operation Guidelines (Disclosure 102-9)
1. Identify and analyze target industry The Company aims to provide services to domestic customers, i.e. industrial estates, factories, district administration organizations. In parallel, total water solutions ranging from raw water, industrial water, tap water, drinking water, wastewater treatment and recycled water services are provided to customers in operation areas and other locations with strong investment potentials in Thailand.
•
2. System design and development In designing and developing systems, advanced water management technologies and innovations are employed for greater effectiveness in terms of speed, accuracy, water loss and cost reduction, and to cater to the needs of each customer.
•
3. Water source and pipe network development The water source databases of the Company and the Royal Irrigation Department are linked and integrated to enable accurate analysis and assessment of water resources in different scenarios, and improve the effectiveness of water resource and cost management.
•
4. Project management (construction projects) Construction is a major phase of each project and exerts impact on almost the entire spectrum of stakeholders. To alleviate unfavorable impact, operating standards are jointly established and agreed upon between contractors and local communities
•
5. Community management Effective water management is practiced to accommodate business needs and, at the same time, upgrade the quality of life of residents in communities along the 491.8 km water grid under the 3-pronged development framework focusing on water and environment campaign, promotion of quality of life in communities, and encouraging lifelong learnings
•
6. Contract and Customer Relationship Management In an effort to maintain customer satisfaction, multiple measures are implemented and regularly assessed in support of continuous improvement of the service quality and standards to meet customers’ needs.
•
7. Financial management Emphasis is placed on effective internal control systems, continuous financial risk management, and preparation of an annual financial report using appropriate accounting policies and information management systems of recognized standards. The report is certified by an auditor to ensure transparency and accuracy, reflecting solid credit rating and credibility.
•
8. Governance Honesty, transparency, and auditability are central to the Company’s Code of Business Conduct and are the principles by which all employees abide in their operation. Risk assessment and Business Continuity Planning (BCP) are conducted annually.
•
The Company applies international regulations and standards as its guiding framework for business management to enhance its operations and drive towards sustainability (Disclosure 102-12) as described below. 1. Sustainability reporting standards of the Global Reporting Initiative (GRI) 2. Securities and Exchange Act 3. 2017 Corporate Governance Code of the SEC 4. The Company’s Sustainability Policy 5. The Anti-Corruption Policy of the Thai Institute of Directors Association 6. International Standards for the Professional Practice of Internal Auditing 7. Notifications of the National Environment Board 8. Ministerial Regulation on Standard for Administration and Management of Occupational Safety, Health and Environment B.E. 2549 9. Building Control Act
Sustainability Report 2018 WE SEE THE FUTURE... Smart water for all
10. ISO 9001:2015 (Quality Management Systems) and ISO 14001:2015 (Environmental Management Systems) 11. Professional practice standards applicable to holders of license for professional practice under the Engineer Act B.E. 2542 and the Engineering Profession Act B.E. 2505 12. Sustainable Development Goals (SDGs) of the United Nations 13. Greenhouse gas inventory according to the World Resource Institute’s guidelines and the estimation
31
of emission factors according to the standard of the Energy Policy and Planning Office, Ministry of Energy 14. Labor laws and other laws applicable to human resources management In addition to the adoption of the aforementioned regulations and standards, the Company joins various networks to create synergy, strength and sustainability through collaboration.
Membership in Sustainable Development Networks (Disclosure 102-13) Agency/Organization
Benefits
1. Thailand’s Private Sector Collective Action Coalition Against Corruption (CAC) By Thai Institute of Directors Association, Thai Chamber of Commers, International Chamber of Commerce Thailand, Thai Listed Companies Association, Thai Bankers’ Association, Federation of Thai Capital Market Organizations, Federation of Thai Industries, and Tourism Council of Thailand
Building trust and confidence in transparency of business operations, which is a vital issue for all sectors
2. Public-Private Partnership Committee on Water Resources Management in Western Region
Networking with business operators who are the Company’s customers in the industry.
Established by Federation of Thai Industries 3. Eastern Region Water War Room Working Group Members are business operators in the industrial sector, Industrial Estate Authority of Thailand, Water Institute for Sustainability, and Irrigation Department 4. Member of CSR CLUB By Thai Listed Companies Association 5. Committee Member and Technical Member By Thai Waterwork Association 6. Member of Advisory Panel of the Eastern Forest Complex Conservation Committee By National Park Innovation Institute, National Park Office, National Park, Wildlife and Plant Conservation Department
Closely monitoring and solving water issues in the Eastern region.
Building networks and gaining access to news updates about the CSR that the Stock Exchange of Thailand considers important Academic networking in water management at national level Joining forces in the preservation of forests which are the origins of major water sources for the Company.
KEEP THE
ENVIRONMENT CLEAN AND SAFE
Keep the environment
clean and safe
To provide efficiency water solution by paying intensive responsibility to environment and pollution control to maintain ecological balance
34
Sustainability Report 2018 Eastern Water Resources Development and Management Public Company Limited
Responsible Operations
Ensuring stability of Water Grid system (Disclosure 303-1)
Continuous industrial expansion in Eastern Thailand makes the region a key strategic point for investment in Thailand. Furthermore, the government’s Eastern Economic Corridor (EEC) Project has led a significant development and transformation in the 3 provinces of the eastern region, i.e. Rayong, Chonburi, and Chachoengsao, especially in “Water” resources which are essential for strengthening economic security. With this foreseen transformation, East Water has estimated an increase in water demand in the eastern region by over 200 million cbm per year in the next 10 years, increasing challenge for the Company as a government mechanism for developing water system for industrial and domestic use in Eastern Thailand.
To ensure adequate raw water supplies for the current and future customer demand, we have urgently enhanced the stability of our raw water transmission network (Water Grid). Therefore, in 2018, to support the growth and investment of the industrial sector, East Water introduced the state-of-the-art innovation and technology in water management to further improve our service from the provider of “raw water” to the provider of “Total Water Solutions” with the customized system for each group of water users including raw water, industrial water, tap water, drinking water, wastewater management, and recycled water, and covering 4 service areas in 3 provinces.
BANGKOK New City
CHACHOENSAO
MOTORWAY
Laem Chabang Port
(EEC area and service areas of EW with illustration of water transmission network of 491.8 kilometers that connect main water sources in Eastern Thailand)
New City
Industrial Estate
CHONBURI
ATTRACTIONS
RAYONG
Double Track Rail
New City
High-Speed Rail East Water Grid U-Tapao International Airport
Map Ta Phut Port
Sustainability Report 2018 WE SEE THE FUTURE... Smart water for all
The water sources and usage in each of our service areas could be analyzed as follows: Rayong Most water users are those in industrial sector who use water from 3 major reservoirs, i.e. Dok Krai, Nong Plalai, and Prasae reservoirs. Chonburi and Bo Win - Pluak Daeng The area is the country’s new strategic line. Most water users in the area are those in the household consumption sector. However, according to the geographical condition, the area has only two water reservoirs, Nong Kho and Bang Phra, causing the area to rely on raw water from Nong Plalai and Prasae reservoirs in Rayong through EastWater’s transmission network. Chachoengsao Most water users in the area are those in the household consumption sector with the Bang Pakong River as the main source of water. However, as Chachoengsao faces saltwater intrusion, some areas suffer from freshwater shortage in the dry season. To ensure yearround water supply, raw water must be purchased from private water sources during the dry season while, during the rainy season, water must be pumped from the Bang Pakong River for temporary storage at our water reserve pond, Samnak Bok pond, for use during the dry season. The water sources that East Water manages are surface water that can be pumped up from water sources which can be divided into two categories according to the usage, i.e. main water source and reserved water source. Main water source
means water sources that are allocated by the Royal Irrigation Department including Nong Kho, Dok Krai, Nong Plalai, Prasae and Bang Phra reservoirs (from 1 February - 30 September 2018). This also includes other sources of water that can be pumped out for use each year. The water supply comes from the seasonal runoff at sources like the Bang Pakong River and other private water sources.
35
Reserved water means the water sources that provide source backup for the main water sources. The water must be reserved beforehand for use upon low water level in the main sources or water shortage. The reserved water sources are Samnak Bok pond, Chachoengsao pond, and Bang Phra reservoir. Regarding water sources allocated by the Royal Irrigation Department, each year the Irrigation Office 9 holds a meeting of non-agricultural water users (household and industrial consumers) to agree on water allocation for permitted users. Annual water allocation round starts in November and lasts until October of the following year. During the water allocation period, meetings will be held to monitor water consumption, which varies with the water situation, and make additional water allocation when there is additional inflow of water to the reservoirs. As for water pumping from the Bang Pakong River, East Water will only pump water in the rainy season. During the past year, water pumping was carried out from July - December 2018 and the water was distributed mainly to household and industrial consumers in Chachoengsao with part of it being diverted to Bang Phra reservoir and Samnak Bok pond as reserved supply for water users in Chachoengsao and Chonburi areas in the dry season. Regarding water management in 2018, water pumping at all sources was carried out in accordance with a water allocation permit, and additional raw water was purchased from private sources to ensure security of water supply in Chachoengsao during the dry season. However, most of the water used was from water sources in the area to reduce the electricity cost for water pumping. The total amount of water pumped up for management during 2018 (for use in 2018-2019) was 243.00 million cbm, lower than the previous year’s volume, due to the self-reliance of some tap water users who used alternative sources of water in Chonburi during the rainy season. Total volume of water pumped from main water sources could be categorized as follows:
36
Sustainability Report 2018 Eastern Water Resources Development and Management Public Company Limited
Table showing volume of water from main water sources managed by East Water in 2017 - 2018 Total volume of water for management Water Source
Storage Capacity
Allocated Water (as per the water allocation permit)
Pumped Water (2017)
Pumped Water (2018)
Remark
Million cbm Million cbm Million cbm Million cbm
Rayong 1. Prasae Reservoir 248.00 88.00 41.20 38.77 In 2018, the Company used 15.83 million cbm of water from Prasae-Khlong Yai Pipeline and 22.94 million cbm of water from Prasae-Nong Plalai Pipeline. 2. Nong Plalai 163.75 120.00 102.35 115.49 3. Dok Krai Reservoir 79.41 116.00 81.39 77.11 Allocated water of 116 million cbm was higher than the reservoir capacity as the volume of possible water inflow to the reservoir was also taken into account. Chonburi 4. Bang Phra Reservoir 117.0 10.00 - 5.88 The Company got a water consumption permit (temporary) to use 10.00 million cbm of water in (temporary) Bang Phra Reservoir (between 1 February 30 September 2018). In January 2018, the Company used the remaining reserved water of 2.16 million cbm and the allocated water of 5.88 million cbm. 5. Nong Kho Reservoir 21.40 16.70 20.02 10.81 In 2018 (January - December 2018), the Company used 10.81 million cbm of water from Nong Kho Reservoir. Considering the water allocation round of 2017 - 2018 (November 2017 - October 2018), the Company used 11.22 million cbm of water from Nong Kho Reservoir, the volume of which is under the permitted volume of 16.70 million cbm Chachoengsao 6. Bang Pakong River - 27.00 7.31 6.05 Water pumping was carried out only in the rainy season and in accordance with the agreement made with Chachoengsao Province. Part of the water was diverted to store at Bang Phra Reservoir and Samnak Bok Pond as reserved water for Chachoengsao and Chonburi in the dry season. 7. Private Water Sources - - 0.25 8.00 8. Rainwater from - - 0.26 0.26 Samnak Bok Pond Total - 377.70 252.78 262.37
In 2018, the Company pumped water from the Bang Pakong River to supply Chachoengsao area, with the remaining 0.74 million cbm of the pumped water being kept at Samnak Bok Pond as reserved water. Water from private water sources was distributed to Chachoengsao area in the dry season and 2.98 million cbm from private water sources was stored at Samnak Bok Pond as reserved water. Accounting for 5.59% of the total volume of water in the pond calculated from average monthly rainfall x surface area (according to the average volume of rainfall in the report on study of suitability and survey on design of raw water pipeline for Prasae - Nong kho - Bang Phra Reservoirs, Faculty of Engineering, Kasetsart University, February 2018).
Sustainability Report 2018 WE SEE THE FUTURE... Smart water for all
In creating stability of the Water Grid to ensure sufficient water supply in the long term, East Water has referred to the study on climate forecast in the eastern region by the Office of Natural Resources and Environmental Policy and Planning (ONEP) using the MRI GCM model developed by the Meteorological Research Institute of Japan and the climate change data sets obtained from the climate change model. The historical data of daily rainfall and temperature from the Thai Meteorological Department and the Royal Irrigation Department (1979 - 2006) and the daily rainfall, temperature, and wind speed from the model (1979 - 2006, 2015 - 2039, 2075 - 2099) were used to analyze the hotspots. According to the study: • The risk of flood in the near future is less than the base year while the risk in the far future is higher than that in the near future. • The risk of drought in the near future is higher than the base year and the risk in the far future is higher than that in the near future
37
(Source: http://www.onep.go.th/climatechange/ index.php/about-east-5) To cope with the potential drought in the eastern region, the Company has established a plan to enhance stability of the water transmission network which consists of 3 components: • Raising water capital capability • Developing Water Grid • Collaborating with various agencies involved and making weather forecast I Raising Water Capital Capability: The Company has established short-term, medium-term, and long-term development plans for sources of water capital to ensure stability of raw water sources to build customer confidence in the next 20 years. Adjustments were made to the previous year’s plans to keep up with the current situation and to ensure that water users would not be affected. Details of the plans are as shown below.
Demand & Supply Forecast 20 yrs. 900 850 800 750
1. Raising the 3. Klong Luang efficiency of 40 Million cbm Bang Pakong River 4. Thab Ma pond by 20 Million cbm 27 Million cbm 2. Klong Phan Thong 5. Private ponds 20 Million cbm 4 Million cbm
6. Prasae additional water 7. Thab Ma pond allocation 50 Million cbm 20 Million cbm (Klong sapan-PS-NK-BP)
8. Prasae additional water allocation 70 Million cbm (Klong Wang Ta Not-PS-NK-BP)
9. Water diversion Klaeng district 70 Million cbm
719
700
Water volume (million cbm)
650
649
600 550 509
450 400 350 300
579
559
500
Forecast water capital 719 Million cbm
438 Current water capital 398 Million cbm 279 278 282
296
282
250
256 251 260
200 150 100
2037
2036
2035
2034
2033
2032
2031
2030
2029
2028
2027
2026
2025
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
0
2012
50
II Developing Water Grid: The Company has continuously enhanced the capability of Water Grid. In 2018, the Company continued its attempt in the 5 projects carried on from 2017 and the progress is as follows: (1) Energy and Water Resources Management System Project Phase II (EWMS Phase II) To study and install necessary measuring equipment to support EWMS in water management and link data of water sources from the Royal Irrigation Department to the Company’s data in order to monitor and more accurately forecast the water situations in the eastern region. The project was completed in 2018.
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Sustainability Report 2018 Eastern Water Resources Development and Management Public Company Limited
(2) Construction of the 2 nd Nong Plalai Nong Kho raw water pipeline To respond to water demand in Chonburi and Bo Win - Pluak Daeng areas and prepare for possible water shortage in the future. The pipeline has a transmission capacity of 60 million cbm of water per year. The raw water pipeline installation was completed in 2018 and the water transmission could not be underken through the network. As for 2019, the pump station improvement program is under discussion and is expected to complete in 2020. (3) Enhancement of pumping capacity from the Bang Pakong river To raise efficiency of the water pumping system to pump water from the Bang Pakong river to Bang Phra reservoir by 20 million cbm per year to prepare for future water demand in Chachoengsao and Chonburi. The project is expected to complete in 2020. III Collaboration and weather forecast: To ensure that the Company’s water management plan is appropriate and in line with the current situations, East Water has worked closely with relevant agencies such as the Royal Irrigation Department, Water War Room, Eastern Economic Corridor Office
% NRW =
Availability of Water Grid Water loss control is always one of the priorities of East Water as we are committed to obtaining maximum benefits from the water pumping that requires both energy and water resources in order to efficiently deliver water to our customers. With that goal in mind, the Company has initiated the Pipeline Risk Prioritization, details of which are shown under “Innovative Water Conservation Solutions” (Page 97), to assess potential risks from pipeline leaks throughout the 491.8 kilometers stretch of the Water Grid and to identify appropriate methods and technologies for maintenance and prevention as well as estimate the future maintenance cost to extend the life of the water pipeline and achieve maximum cost effectiveness. This is due to the increasing trend of the volume of non-revenue water (NRW), with 3.50% reported in 2018, caused by the leaks in the Bang Pakong-Chonburi pipeline and the 2nd Nong PlalaiNong Kho pipeline.
(Pumped Volume - Customer’s Consumption - Reserved Volume) Pumped Volume
X 100
Non Revenue Water
4.00% 3.50%
(EEC), the Thai Meteorological Department, the Department of Royal Rainmaking and Agricultural Aviation.
3.50%
3.43%
3.00%
3.28% 2.69%
2.50%
2.90% 2.44%
2.23%
2.00%
1.94%
1.50% 1.00% 0.50% 0.00%
2011
2012
2013
2014
2015
2016
2017
2018
Remark: In October 2018, some water was pumped and supplied to Bang Pakong Provincial Waterworks Authority but no charge was recorded in accounting.
Sustainability Report 2018 WE SEE THE FUTURE... Smart water for all
39
Table showing volume of pumped water in 2018 Month
Volume of water pumped (cbm)
January February March April May June July August September October November December Â
Volume of water distributed (cbm)
22,265,657 19,752,438 22,423,929 21,998,281 21,432,147 22,050,268 23,161,049 22,965,383 21,462,817 20,945,041 21,135,022 23,115,719 262,707,751
Volume of stored water measured (cbm)
21,600,185 19,174,562 21,154,031 20,452,850 20,598,681 20,588,698 21,533,008 22,111,385 20,915,420 20,174,058 19,763,909 21,730,097 249,796,884
Water Loss (cbm)
%NRW
0 665,472 0 577,876 0 1,269,898 381,086 1,164,345 522,391 311,075 919,856 541,714 1,157,954 470,087 494,380 359,618 0 547,397 81,536 689,447 139,092 1,232,021 20,733 1,364,889 3,717,028 9,193,839
2.99% 2.93% 5.66% 5.29% 1.45% 2.46% 2.03% 1.57% 2.55% 3.29% 5.83% 5.90% 3.50%
Remark: Out of the pumped water from Samnak Bok Pond, 3.72 million cbm was reserved water from the Bang Pakong River and private water sources in 2018.
The Company has continued its commitment to establish stability and reliability of the water pumping and distribution system and set the target that there shall be no damage to the machinery and equipment to the level that causes disruption to the system and there shall be no suspension of water distribution from the Water Grid. Also, the temporary shutdown for maintenance is capped at 8 hours each time provided that Class A machinery or equipment must not experience a shutdown.
50%
Water volume is at average yearly level ; 50% probability
10%
Drought as in 2004-2005; 10% probability (water to be pumped and diverted from Prasae - KhlongYai pipeline and Prasae Nong Plalai pipeline)
Medium-term water shortage prevention plan in the event of drought Despite no drought in 2018, the Company still implemented the systematic water shortage prevention plan in order to prepare for any potential water shortage problem in the next 1 - 2 years. In so doing, the Company ran the simulation of water situation to study water shortage of the major reservoirs, namely Dok Krai, Nong plalai, and Khlong Yai reservoirs, by constructing 4 scenarios as follows:
5%
Drought as in 1997; 5% probability (Water to be pumped and diverted from Prasae - KhlongYai pipeline and Prasae NongPlalai pipeline)
2.5%
Severest drought in 20 years; 2.5% probability (Water to be pumped and diverted from Prasae - KhlongYai pipeline and Prasae NongPlalai pipeline)
Sustainability Report 2018
40
Eastern Water Resources Development and Management Public Company Limited
Simulation of Water Situation in Dokkrai, Nong Plalai and Khlong Yai Reservoirs from 2017-2019 with 3 years’ water reserve Year 2017
400
Year 2018
Year 2019 Scenarios: Water inflow to the reservoirs at yearly average level Water inflow to the reservoirs at the lowest level in 20 years (2.5%) Water inflow to the reservoirs at Year 1997 level (5%) Water inflow to the reservoirs at the same level as in 2004-2005 (10%)
380 360 340 320
Water storage of 283.36 million cbm
300 280 260 240 220 200 180 160 140 120 100 80 60 40 20
Minimum Storage of 19.50 million cbm
Dec 19
Oct 19
Nov 19
Sep 19
July 19
Aug 19
May 19
June 19
April 19
March 19
Jan 19
Feb 19
Dec 18
Oct 18
Nov 18
Sep 18
July 18
Aug 18
May 18
The operations undertaken in 2018 according to the water shortage prevention measures could be summarized as follows: 1. Pumping and diverting water from Prasae reservoir through the pipeline to Khlong Yai reservoir 2. Pumping and diverting water from Prasae reservoir through the pipeline to Nong Plalai reservoir 3. Pumping water from the Bang Pakong river to be reserved at Samnak Bok Pond using the Company’s pumping system at the Bang Pakong River Pump Station 4. Pumping and diverting water from Nong Plalai reservoir for distributing to Chonburi and Bo Win-Pluak Daeng areas 5. Acquiring additional private water sources
June 18
April 18
March 18
Jan 18
Feb 18
Dec 17
Nov 17
Oct 17
Sep 17
July 17
Aug 17
May 17
June 17
April 17
March 17
Jan 17
Feb 17
0
Tap Water Consumption at East Water (Disclosure 303-1) In addition to the attempts to create security of water capital to support the country’s economic growth, the Company also attaches importance to the economical use of water in the office building through the 3R Principles, i.e. Reduce, Reuse, and Recycle. Recycled water was used for toilet flushing and water saving campaigns were launched to promote economical use and conservation of water among employees. In 2018, the Company’s average monthly consumption of tap water was 2,806.41 cbm. The main sources of water supply were the Metropolitan Waterworks Authority (MWA) and the Provincial Waterworks Authority (PWA). Details of the water consumption by area are as follows:
Sustainability Report 2018 WE SEE THE FUTURE... Smart water for all
Location
Average Water Usage (cbm / month)
Water Supplier
East Water Head Office1 MWA PWA Operations Office2 PWA 20 Water Pump Stations3 PWA Staff residence4 Total
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Total Water Usage (cbm)
2,542.25 30,507.00 65.25 783.00 194.16 2,330.00 4.75 57.00 2,806.41 33,677.00
Remark: Data 1 shows water usage in the Head Office (22nd–26th Floors) and all common areas. water usage at Rayong Operations Center and Laem Chabang Office. The water meter at Chachoengsao Office Data2 shows is combined with the water meters of Chachoengsao Pump Station and other offices in the area. water usage of 6 pump stations supplied by PWA. The Company produced tap water for use at 7 pump stations Data3 shows by using raw water considered NRW. These pump stations are Nong Plalai Stations 1-3, Nong Plalai Pressure Booster Station, Bang Pakong River Station, Nong Kho Station, and Prasae 2 Station. The remaining stations do not have tap water supply. water usage at Executive Residence at Rayong Operations Center. The residence at Chachoengsao Lift Station shares Data4 shows the water meter with Chachoengsao Pump Station. For other residences, the Company produced tap water by using raw water considered NRW.
Customer Satisfaction Management (Disclosure 102-43, 102-44, 418-1) To live up our corporate value that focuses on service delivery and customer care as well as to maintain the desired customer satisfaction level, the Company has continuously improved our service provision by hearing customer complaints and suggestions (Voice of Customer) through various channels including telephone, email, the Company’s website, site visit during major festivals, and annual satisfaction survey. The data will be compiled, analyzed and subsequently brought to the consideration at the meetings of the Operations & Customer Service Department as well as the management meetings in order to continuously improve our service delivery to efficiently respond to needs and requirements of each group of customers. In 2018, the proportion of raw water distribution by service area was as follows: Chonburi area
14.20%
Chachoengsao area
4.40%
The result of customer satisfaction survey in each service area revealed that the outstanding corporate image in customers’ view was due to the stability and trustworthiness of the organization and its expertise in water management. Regarding service expectations, the areas that customers had the highest expectation were the quality of water distribution service and control center service as well as the quality of repair and maintenance service, followed by the disclosure of news and information and the ability to meet customers’ needs respectively. Relevant management therefore attaches importance to the Control Center which is the center of receiving and notifying information relating to quality and water distribution. Focus is given to accuracy and speed of information disclosure. Also, in 2018, the Company improved the water quality information disclosure by adding another data access channel through the Company’s website to facilitate more convenience to water users. Overall Customer Satisfaction Score: 2016-2018
Bo WinPluakDaeng area
11.50%
4.34
4.23
Year 2016
Year 2017
4.49
Maptaphut area Ban Chang and Sattahip area
9.20%
60.70%
Year 2018
42
Sustainability Report 2018 Eastern Water Resources Development and Management Public Company Limited
According to the 2018 customer satisfaction survey, the satisfaction level is higher than the average satisfaction level of the past 3 years by 3.62%. The Company and parties involved realize the importance of maintaining the satisfaction level and focuses on continuous improvement to data provision service. Complaint Handling Process When a customer complaint is received, an Account Executive (AE) will keep a log of the complaint specifying details, complaint category, contact details
of the customer, and coordinate with persons involved to identify the causes, solutions, and preventive measures to avoid recurrences. The AE then takes responsibility for following up on the matter and providing updates to the customer until the complaint is resolved. Also, the AE will obtain the customer satisfaction result for the complaint handling and prepare a complaint summary report on complaints for submission to the parties involved and the management on a monthly basis.
Request additional information
Not pass
Person ďŹ ling a complaint
Account Executive (AE)
Resolve the complaint
Pass
Assess result
Prepare summary report
Report to the management
Keep complaint log - Complaint details - Contact information
Complaints and Complaint Handling Although the Company received No. complaints in 2018, the Company realizes the importance of complaint handling and prevention. Complaint receipt and cbmhandling processes have been established whereby cbmcomplaints and service requests would be cbmcategorized and forwarded to the respective cbmresponsible persons for root cause analysis, cbmidentification and implementation of solutions
and prevention measures within the specified time frame according to the internal control system relating to complaint handling and prevention. Once the cbmcomplaint is solved, the customer would be asked to rate their satisfaction level and the results would be compiled for further reporting to the management on a monthly basis to support continuous improvement to the complaint handling process.
Complaints received by the Company in the past: Date/Month /Year
Issue
Complaint Heading
20 April 2016 Water volume and pressure were insufficient from 20-21 April 2016.
1. Due to the drought, the water capital in the area was lower than the average. 2. Adjusted the pumping system to get supplement water from Nong Kho Pump Station to increase water supply and pressure in the area, making the water pressure and distributed volume rise to the normal level.
12 May 2016
Raw water looked cloudy and had unpleasant smell.
1. Due to the drought, raw water must also be pumped from private sources to supplement the water distribution in the area. 2. Gave clarification of the cloudy and smelly raw water to the customer and discussed the plan to change water sources and improve blow-off.
11 October 2017
Water was very cloudy, and the customer requested that examination be made
Removed sediments before the water distribution point.
Sustainability Report 2018 WE SEE THE FUTURE... Smart water for all
In addition to paying visits to customers to survey their satisfaction level and listen to complaints, each year the Company also invites customers to the meetings to share updates and useful information as well as give comments and suggestions for the purpose of service improvement. Activity
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To continuously enhance understanding and confidence among customers, the Company organized the following events with the customers:
Target Group
Objective / Details of the Project
East Water Open House
• New accounts • Potential customers (new opportunities) • Existing customers who are interested • Customers in the industrial estates (End Users)
To introduce the Company to new and future water users as well as interested persons and give knowledge and understanding of water management and distribution with modern technology to build confidence and support decision making to become water users in the future.
Education Seminar
• Existing customers • Customers in the industrial estates (End Users)
To report the current situation of water sources and the future outlook as well as the update on quality of water sources and management and prevention measures to boost confidence among water users.
Based on the Company’s capabilities and business opportunities, the Company has determined its business direction to achieve long term sustainability by building on its raw water and tap water business with the aim of enabling industrial entrepreneurs an access to smart water solutions. With the wastewater treatment initiatives, wastewater has been treated to meet the regulatory standards for effluent and to be suitable for reuse in the manufacturing process, resulting in water cost saving for the industrial entrepreneurs as well as environmental-friendly and economical use of water resources.
In 2018, the Company carried out the stakeholder satisfaction survey in the service areas (Chachoengsao, Chonburi, Rayong) under the topic of Future Business Opportunities. According to the survey on water recycling process, 38.90% of the customers have already installed water recycling system while 61.10% have not yet had any. The data obtained from the survey would be further applied to identify business development opportunities with the customers to achieve sustainable business relationships.
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Sustainability Report 2018 Eastern Water Resources Development and Management Public Company Limited
Adding Value to Quality Personnel 1. Corporate Cores Value (Disclosure 102-16) In 2018, the Company’s Vision and Mission were revisited and revised. To ensure alignment and common direction, a brainstorming session was organized to identify a set of the Company’s Core Competency that
reflects the underlying objective of creating sustainable and stable business. As a water business operator, the Company attaches importance and has responsibility to our stakeholders. Such priorities have led to the East Water Group’s Core Competency of “SHARP” which would be continuously reinforced and translated into the behaviors exhibited by our employees.
EWG’s Core Competency
S
H
A
R
P
Stakeholder Focus
Holistic Thinking
Adaptability
Result Acceleration
Proactive & Creative Thinking
The East Water Group’s Core Competency consists of: Stakeholder Focus Strong determination and attempts to deliver service that fulfill the needs of all stakeholders (both internal and external) including staff, government agencies, private sector, business alliances, the community and the public Holistic Thinking Ability to see things as a whole and look at the problems or challenges from every angle as well as ability to clearly connect correlated data and all components of the matter including impact to the organization to arrive at the concept of the matter
Adaptability Ability to work efficiently despite changes and ability to adjust work plans and work methods that are flexible and suitable for the situations or persons to achieve the goals Result Acceleration Commitment and dedicated effort to achieve success for the assigned tasks and meet the goals and expectations in a timely, efficient and appropriate manner, resulting in the maximum achievement for the operations and the organization as a whole Proactive and Creative Thinking Ability to be proactive and creative to come up with new ideas, methods or innovations for improvement and development of work systems to enhance efficiency at individual, team and organization levels
Sustainability Report 2018 WE SEE THE FUTURE... Smart water for all
2. Moving toward Becoming the National Water Management Organization (Disclosure 404-1 ,404-2) Human Resource Development East Water aims to develop the capabilities of our staff to realize our new vision and mission, and to prepare for our entrant in the total water solutions business. Moreover, the Company is committed to addressing the age and gender diversity which is one of the workplace challenges of the organization. To achieve that, the Company has established HR Master Plan to enhance capabilities of staff in different areas and to pass on knowledge throughout the organization with the aim of becoming a High-Performance Organization & Learning Organization in the future. Thee pillars of the HR Master Plan are New Employee Onboarding, Personnel Capability Development and Evaluation, and Organizational Knowledge Management. New Employee Onboarding The Company’s employee orientation program features the integrated approach of lectures and knowledge-based activities to provide new employees information on key policies and standards for business operation of the Group as well as the basic knowledge about total water solutions. New employees will join site visits to learn about raw water, tap water production and wastewater treatment. Lectures given by senior executives demonstrate “Priority” and “Attention” given to new employee onboarding as it is considered that the onboarding program would lay strong foundation for new employees and make them clearly understand the business operation and able to deliver the desired performance. Topics of the lectures on basic knowledge include: • Raw Water Management • Tap Water Business Management • Total Water Solutions Topics of the lectures on key policies and standards include: • Safety, Occupational Health and Working Environment • Anti-Corruption Policy and Employee Code of Conduct • Human Resource Management Policy • Sustainability Policy and CSR Framework In addition to building strong foundation of business knowledge, a number of activities have been designed to instill corporate culture and foster positive relationship among new employees to prepare them to work together in the future. Events are organized to allow new employees an opportunity to meet with and listen to the Company’s policies from senior executives with the purpose of creating the sense of
45
belonging and encouraging new employees to exhibit and strengthen their Core Competencies. Post-activity evaluation : Everyone passed the test with the average score of 85% Satisfaction level : 92% Personnel Capability Development and Evaluation In 2018, the Company focused on enhancing employee capabilities to ensure alignment with the corporate strategies and promote career advancement of the employees. Human Resource Department worked closely with line managers of each function in developing Individual Development Plan (IDP) and Annual Training Calendar in addition to other formats of development such as self-learning, work assignments, coaching. Training courses facilitated in 2018 could be categorized as follows: 1. Core Course courses are compulsory courses that must • These be taken by all levels of employees to ensure compliance with the provisions of laws and the policies stipulated by the Stock Exchange of Thailand, the Securities and Exchange Commission, and the Thai Listed Companies Association as well as the Company’s policies. The Annual Training Calendar has been drawn up with the collaboration of all parties involved.
2018, focus was given to organization • Indevelopment to achieve sustainability. Work
processes have been improved. Adjustment was made to the roles and responsibilities of the Corporate Governance and Nomination Committee to cover sustainability development and the Committee name was changed to Corporate Governance and Sustainability Development Committee. Quality management, risk management and internal IT systems have been revisited to enhance work efficiency. Thus, in addition to the regulatory requirements such as Energy Conservation Course or Safety, Occupational Health and Working Environment Course, another 38 training courses that support the aforesaid operation were organized to ensure that relevant employees at all levels have adequate knowledge and understanding to efficiently and correctly perform their tasks. Key courses in 2018 included: • Sustainability Course, GRI Standard • CG Code, Corporate Governance Principle and Code of Conduct • ISO 9001, 14001, 45001: 2018 • Microsoft 365, IT Security Awareness
2. Managerial Course courses focus on building positive • These relationship with government and private
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Sustainability Report 2018 Eastern Water Resources Development and Management Public Company Limited
sectors, promoting knowledge on government policies related to the Company’s business operation, developing leadership among executives at all levels, and grooming talent to take on supervisory role in the future. There was a total of 19 courses under this category. Key courses in 2018 included: • The 4 Essential Roles of Leadership • PPPs for Executive Program • Water Management Leader • Driving Performance by OKRs • Executive Management Development Program • Thailand National Defence College (TNDC) 3. Functional Course courses focus on developing functional • These competencies of employees to be able to efficiently carry out their current and future responsibilities as well as exhibit professionalism. The courses provide knowledge and skills necessary for business growth and sustainability. The training plan in 2018 highlighted proactive marketing strategies, product development, and operational efficiency. The courses have been designed by Human Resource Department in collaboration with executives of each function and include both technical skills and soft skills to improve all relevant skills. Also, DISC theory was applied in some development courses. There was a total of 313 courses under this category. Key courses in 2018 included: • Project Feasibility Study, Laws on Investment Course
Core Course Managerial Course Functional Course Elective Course Total The Company conducts annual performance evaluation against KPIs on employees at all levels as well as competency assessment and work quality assessment by supervisors to make employees realize their capabilities and improvement as well as to encourage continuous learning. In 2018, the Company was developing performance evaluation system that is aligned with and reflects the Company’s Goals and Vision. Also, adjustment was made to the Company’s Core Competency and Managerial Competency. As a result, the 2018 corporate performance assessment was undertaken based on KPIs and quality of work only, and the overall performance was higher than that of the previous year.
• Water Management Model • Project Management and Construction Control • Engineering and Maintenance Management • Water Transmission System Control • Effective Sales & Marketing • Powerful mindset & Emotional Quotient 4. Elective Course Company also arranges other training • The courses to promote employees’ self-development. Highlighted courses available in 2018 included English proficiency courses specifically designed based on nature of tasks of each group of employees such as English for Law and International Express Pre-Intermediate, English for E-mail and International Express Pre-Intermediate, and Enhancing English Communication. Retirement planning courses included Provident Fund Investment for SMART Retirement, and “Happy PVD Company” Project. Results of Personnel Capability Development Average training hours were 76 hours per person per year. • Male employees: An average of 87 hours per person per year; Female employees: An average of 66 hours per person per year • Executive level: An average of 129 hours per person per year; Supervisory level: An average of 94 hours per person per year • Operating officer level: An average of 67 hours per person per year Number of Courses
38 21 177 17 253
(%)
15% 8% 70% 7% 100%
Cost (million baht)
(%)
1.25 2.35 2.04 0.18 5.82
21% 41% 35% 3% 100%
Organizational Knowledge Management As the society is experiencing changes due to technological disruption, the aging of the workforce or generation disruption poses the risk of losing workforce knowledge and experience from retirement of aging experts or resignation of younger talents. Therefore, Knowledge Management becomes another challenging and significant strategy for organizational development and capability development of personnel in various fields as well as the tool for retention of critical knowledge in the organization.
Sustainability Report 2018 WE SEE THE FUTURE... Smart water for all
In 2018, the Company initiated the Knowledge Sharing Contest 2018 to promote knowledge sharing and transfer as well as systematically gather and store workforce knowledge and experience in the internal knowledge warehouse (Internal Web). Contest winners were given an opportunity to attend the “2018 IWA World Water Congress & Exhibition in Tokyo” to obtain global water management business perspective. Post-contest activities were held for knowledge and experience sharing among relevant parties between group companies to build on the idea and apply the knowledge to problem solving and system improvement of the group companies in 2 issues. The project was a pilot project for enhancing and integrating knowledge for system improvement in order to achieve continuous quality improvement and successfully implement best practices. Moreover, the Company organized knowledge sharing from 148 employees and 1 executive retiring in 2018. Courses included: • Presentation & Infographic • Advance Excel • Budgeting and SAP Budget Report • Workflow System • Introductory PLC Programming • Security Awareness Training materials and contents would be stored in the Company’s Internal Web to serve as main source of knowledge for interesting employees to access at any time. Besides internal knowledge sharing, in 2018, the Company also arranged for continuous exchange of information and experience in accounting and finance system and investor relations system with Manila Water (Thailand) Co., Ltd., the Company’s shareholder. In addition, a field trip was organized to study work systems at Manila Water (MWC),
Philippines, and bring back the knowledge to further improve our work systems. The human resource development budget of Baht 6.10 million (or an average of Baht 0.03 million per person) could be divided into: • Budget for New Employee On Boarding: Baht 0.10 million • Budget for Personnel Capability Development and Evaluation: Baht 5.82 million • Budget for Organizational Knowledge Management: Baht 0.18 million Talent Management and Succession Plan To support the business growth and to increase the number of talents with competencies necessary for successful implementation of the Company’s business strategies and outstanding performance, the Talent Management and Succession Plan was under formulation process according to the framework laid out in the HR Master Plan and is expected to completely formulated in the following year. In 2018, the Company engaged the service of HR management development consultant to revisit relevant criteria and guidelines covering Performance Management System (PMS), Career Path Development, Talent Identification and Succession Plan, with the key purpose of aligning and connecting all the systems to deliver sustainable performance for the organization and to lead the organization toward the goal of becoming High Performance Organization. Also, in developing the succession plan, critical jobs in the group companies were identified to support further successor preparation. Upon completion of the succession plan development process, the individual development plan would be created to prepare employees for future career advancement.
Talent Succession Planning Framework Succession Planning Framework and Overview Identify core positions that require succession planning
Identify potential successors with suitable qualifications and potential
Design training courses to develop and groom successors
Successor Identification Process
Successor Development Plan and Assessment
POSITION
Identification of Core Positions
• Identify strategic core positions (Mission Critical Position: MCP) according to the criteria. • Create Success Profile of each core position to determine qualifications and expectations.
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• Identify successors from various sources such as Talent Pool, qualified personnel, or external recruitment. • Establish Personal Profile of the selected successors.
• Establish IDP for successor development. • Give significant and challenging assignments to successors. • Apply various development approaches such as Job Shadowing or Job Rotation. • Carry out regular assessment.
48
Sustainability Report 2018 Eastern Water Resources Development and Management Public Company Limited
Sharing Knowledge with the Society As an organization with expertise in water management for the eastern coast area, one of the areas with complex water management issues, the Company organized knowledge sharing activities to various groups through a variety of approaches: 1. Public Service Executive Development Program (PSED) by Institute for Good Governance Promotion, Office of the Public Sector Development Commission (OPDC) The Company has been selected by the Institute for Good Governance Promotion, Office of the Public Sector Development Commission (OPDC), to join the Public Service Executive Development Program for 8 consecutive years since 2011 with a total of 8 government officers received training at East Water to date. With the Company’s senior executives serving as mentors, the government officers in the younger generation were given opportunity to learn about work processes in the private sector as part of the cooperative program to create and develop new generation of government officers as change leaders in the public sector and the strong workforce for country development in the future. During the program, learning plan was developed by the Company, the mentors, and the participating
government officers. The learning plan included learning approaches and methods, time frame, details of the training and assessment, and covered knowledge, competencies, skills and experiences in the various areas such as: • Leadership and Management in the Private Sector • Organizational Management • Formulation and Implementation of Strategies and Action Plans The training program included not only the experience sharing by the President & Chief Executive Officer. Other executives were also assigned to facilitate the knowledge sharing session about the Company’s business. Furthermore, the participants were given opportunities to share their views beneficial to the organization to further enhance efficiency. 2. Student Internship Program The Company arranges a student internship program to provide work experiences in the real-world context to university students to develop their competencies and prepare them for their future career life. Number of students joining the program could be summarized as follows:
Student Internship Program Year 2015
6
persons
Bachelor’s Degree
Year 2016
5
persons
Year 2017
4
persons
Year 2018
4
persons
Diploma
In addition to the opportunity to develop new skills and get hands-on experience provided to the participating students during the internship program, the Company also arranged for mentors to provide coaching throughout the internship period, accident and life insurance coverage, daily allowance for internship as stipulated by laws (in accordance with the Notification of the Ministry of Labour prescribing the rules regarding protection for interns, Section 2, Items 10 and 11 which stipulates that the Company is required to pay allowance at the rate not less than
50% of the prevailing highest minimum wage rate to the interns at least once a month). Employees’ Quality of Life Compensation Management, Pay Structure, Compensation & Benefits (Remuneration Policy) The Company has a policy to determine remuneration appropriate for employees at all levels and, on a short-term basis, reflecting the Company’s operating results each year as well as comparable to companies in the same industry. (Disclosure 401-1)
Sustainability Report 2018 WE SEE THE FUTURE... Smart water for all
In determining remuneration, the Company adopts the Pay for Performance approach by using Key Performance Indicators (KPIs) in annual performance assessment of employees at all levels. Individual KPIs are aligned with the team and organizational KPIs to set common direction toward the goals and achievement of the Company’s vision and mission. In the long term, performance evaluation and capability assessment are carried out to determine remuneration that is commensurate with the employees’ competencies and capabilities. Priority is also given to talent development for career advancement. In addition to compensation review, East Water regularly revisits the Company’s welfare benefits review through the Welfare Committee Meeting that comprises representatives of employees who give opinions and suggestions on the organization’s welfare benefits to ensure that the benefits offered are suitable for the changing economic and social situations. In 2018, the Company carried out several human resource development initiatives according to the HR Master Plan including Performance Management System (PMS), Career Path, and Succession Plan, and would continue developing the processes with the purpose of becoming High Performance Organization.
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Employee welfare management attempts include: Welfare Committee (Disclosure 102-41) The Company does not have a labor union, but the Welfare Committee has been established pursuant to Section 97 of the Labour Protection Act B.E. 2541 whereby Committee Members are elected to serve on the Committee with a 2 years’ term of office. All full-time employees are entitled to apply as candidate and cast vote to elect the Committee Members. For this purpose, the Election Committee would be set up to oversee the election to ensure transparency. In the past, the Company had only one Welfare Committee. However, in 2018, with the growing number of employees and employee diversity, the Company additionally organized an election of the Welfare Committee for Rayong operating site. As a result, the Company currently has 2 Welfare Committees, one at the Head Office and another at the Rayong operating site, comprising a total of 10 members (accounting for 4.52%) who are representatives of employees at all levels of the Head Office and Rayong operating site. The Welfare Committees are responsible for overseeing and supervising the provision of welfare benefits as well as holding discussions and providing suggestions beneficial to the Company and the employees. The Welfare Committee at the Head Office would complete its term in May 2019 while the Welfare Committee at Rayong operating site would complete its term in May 2020.
The Welfare Committee Members
by corporate level
by gender
by region
supervisory level
1
person
male employees
4
persons
Central Region
5
persons
operating officer level
9
persons
female employees
6
persons
Eastern Region
5
persons
Performance of the Welfare Committee in 2018 (1) Considered the list of employees with appropriate qualifications for loan interest support (2) Held consultations for employees to be entitled to receive medical examination and treatment at desired accredited hospitals (3) Obtained and communicated welfare and benefits data such as provident fund to employees (4) Listened to employees’ suggestions and feedback and escalated the matter to the management, for example, flexible benefits, Internet speed, etc.
Employee Welfare and Benefits (Disclosure 401-2) The Company provides welfare benefits to alleviate burden on employees on an equal basis. These benefits could be classified as follows: (1) Basic welfare benefits that are provided to all employees on an equal basis: - Annual physical checkup - Childbirth cost - Health insurance - Group life insurance - Compensation for loss of income due to sickness / disability / death - Disaster relief
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Sustainability Report 2018 Eastern Water Resources Development and Management Public Company Limited
(2) Flexible welfare benefit that is available for employees based on their necessity within the specified limit. New employees will be entitled to this benefit on pro rata basis. (3) Maternity leave (4) Provident fund (5) Retirement benefit (N/A) (6) Employee stock options (N/A) Workplace environment In 2018, some of the area in the Head Office was allocated for a canteen and a fitness center to promote employee health and wellness and thus enhance the quality of working life. Respect for Human Rights Realizing that the Company is part of the society that
can take part in creating opportunities and improving quality of life for the disabled to the same level as normal persons, the Company has hired the disabled as full-time employee since 2017 (under Section 33). In so doing, the Company gives the disabled equal opportunity as other employees in terms of task assignments based on knowledge and expertise as well as compensation and benefits in accordance with the Empowerment of Persons with Disabilities Act B.E. 2550. To uphold the basic human rights, in 2018, the Company posted a job announcement to recruit the disabled from outside to work for the group companies to give a chance for disabled persons to work full-time and live a normal life as well as support development of the organization.
Actions taken to ensure compliance with the Empowerment of Persons with Disabilities Act, B.E. 2550 (2007)
Number of disabled persons supported by East Water (persons)
2016
2017
2018
Section 33
Hiring persons with disabilities
1
1
1
Section 34
Remitting contributions to the Fund for Empowerment of Persons with Disabilities
1
1
-
-
-
1
2
2
2
Section 35
Granting concessions and arranging a place for the disabled persons to sell goods or services, employing under a temporary employment contract, providing training, aids or equipment, sign language interpreters or any other assistance to the disabled persons or their caregivers.
Safety, Occupational Health and Working Environment The Company attaches importance to safety, occupational health and working environment management with the “Zero Workplace Accident� target. In addition to carrying out operation in accordance with the laws, the Company adopts relevant standards to create safe workplace environment and enhance the quality of life of employees, business partners, and contractors. The Company is determined to apply behavior-based safety (BBS) approach to employees at all levels as BBS is one of the widely acceptable techniques that could reduce accidents and injuries as well as instill safety culture in the organization when all employees
thoroughly understand and seriously implement the behavior-based safety (BBS) principles. With that in mind, the Company organized workshops for target employees at operating level who are working in the operating sites and exposed to various risk factors as well as operating officers at the Head Office with up to 3 years of service in order to encourage employee participation and involvement in workplace safety. In 2018, one minor accident occurred to 2 employees and 1 contractor who fainted after working in the confined space. All of them were taken to the hospital for medical treatment immediately after the accident. Seriousness of the accident as specified in the Company’s Safety Manual could be categorized into 3 levels as follows:
Sustainability Report 2018
51
WE SEE THE FUTURE... Smart water for all
1. Minor accident means: The employee has minor injuries and could resume work after receiving first aid or medical treatment or must be absent from work no longer than 3 days or the accident results in the damage of not more than Baht 100,000 while causing no interruption to the production process and/or no impact to the Company’s internal environment. 2. Moderate accident means: The employee is injured to the level that the doctor requires him/her to be off from work for more than 3 days but not more than 30 days, or the cost of damage to properties ranges between Baht 100,000 – 700,000 and/or the production process is interrupted for up to 8 hours and/or the Company’s internal environment is impacted.
3. Severe accident means: The employee suffers severe injuries (and required to be off for longer than 30 days), loss of limb, disability, or loss of life. The damage to properties costs Baht 700,000 or higher and/or the production process is interrupted for more than 8 hours and/or the external environment is impacted. In response to the aforementioned accident, the Company set up an investigation committee to analyze the root cause and identify preventive measures to avoid recurrences. The urgent measures taken by the Company were organizing training for employees working in the confined space and arranging for oxygen meters and additional ventilation system. Work-related illness rate, injury rate and fatality rate (Disclosure 403-2) are as shown in the table below.
Number of total work-related injuries - Employees (Injury Frequency Rate: IFR) (Table1) Year
Total work-related injury Employee Number of casualties (persons)
Total - Head Office (Bangkok) - Minor injury - Moderate injury - Severe injury Total - Operating Sites - Minor injury - Moderate injury - Severe injury Injury Frequency Rate (IFR) Head Office (person per one million hours worked) Injury Frequency Rate (IFR) Operating Sites (person per one million hours worked) Injury Frequency Rate (IFR) Total Employees (person per one million hours worked)
2014 M
2015 F
M
2016 F
M
2017 F
M
2018 F
M
F
0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 0 0 0 0 0 0 0 0 0 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0.00
0.00
0.00
0.00
00.00
0.00
0.00
0.00
0.00
16.01
0.00
0.00
0.00
0.00
4.64
Number of lost time injuries - Employees (Injury Severity Rate: ISR) (Table 2) Year
Lost time injury Employee Number of casualties (persons)
Head Office (Bangkok) Operating sites Injury Severity Rate (ISR) Head Office (person per one million hours worked) Injury Severity Rate (ISR) Operating Sites (person per one million hours worked) Injury Severity Rate (ISR) - Total Employees (person per one million hours worked)
2014 M
2015 F
M
2016 F
M
2017 F
M
2018 F
M
F
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
8.00
0.00
0.00
0.00
0.00
2.32
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Sustainability Report 2018 Eastern Water Resources Development and Management Public Company Limited
Lost Time Injury Rate (LTIR) = (Number of lost time injuries X 1,000,000)/Number of hours worked by gender Male = 4.79 Female = 0.00 Lost Day Injury Rate (LDIR) = (Number of lost work day X 1,000,000)/Number of hours worked by gender Male = 4.79 Female = 0.00 Injury Rate (IR) = (Total injuries X 1,000,000)/Number of hours worked by gender Male = 9.58 Female = 0.00 A minor accident occurred to one contractor. The accident statistics could be summarized as per the table below. Number and Severity of accidents-Contactor (Table 3) 2017
2018
ตารางสรุปจำ�นวนและความรุนแรงในการเกิดอุบัติเหตุ- ผู้รับเหมา(ตารางที่3) Project / Subcontract work
Total casualties (persons
M
F
Injury Injury Total Frequency Severity casualties Rate Rate (persons
Severity of injuries
Minors
Moderat
Severe
M
M
M
F
F
F
IFR
ISR
M
F
Injury Injury Frequency Severity Rate Rate
Severity of injuries
Minors
Moderat
Severe
M
M
M
F
F
F
IFR
Improvement of electricity 0 0 0 0 0 0 0 0 0.00 0.00 0 0 0 0 0 0 0 0 0.00 system 115/22-3.3 kV at Chachoengsao and Bang Pakong Pump Stations Construction of the 2nd 1 0 1 0 0 0 0 0 0.00 6.88 0 0 0 0 0 0 0 0 0.00 Nong Plalai Nong Kho Pipeline Improvement of 0 0 0 0 0 0 0 0 0.00 0.00 0 0 0 0 0 0 0 0 0.00 Chachoengsao Pump Station Acquisition and installation 0 0 0 0 0 0 0 0 0.00 0.00 0 0 0 0 0 0 0 0 0.00 of the 7th set of pumpmotor with power system at Bang Pakong Pump Station Pipeline maintenance 0 0 0 0 0 0 0 0 0.00 0.00 1 0 1 0 0 0 0 0 2.63 Total statistics on safety and work-related accidents of subcontractors for big projects (only for projects with contract, pipeline maintenance, security service, cleaning service, gardening service and assistant mechanics, totaling 130 persons), excluding Head Office * Number of hours worked per person per year (Contractors) = 365 days x 8 hours = 2,920 hours
Lost Time Injury Rate (LTIR) = (Number of lost time injuries X 1,000,000)/Total number of hours worked = 2.63 Lost Day Injury Rate (LDIR) = (Number of lost work day X 1,000,000)/Total number of hours worked = 2.63 Injury Rate (IR) = (Total injuries X 1,000,000)/Total number of hours worked = 2.63
ISR
0.00
0.00 0.00 0.00
2.63
Sustainability Report 2018 WE SEE THE FUTURE... Smart water for all
Based on the statistics of the past work-related accidents, most of the accidents occurred at operating sites. To ensure flexibility as well as fast and efficient incident management, the Company has established two working teams to work on safety, occupational health, and working environment, i.e. one at the Bangkok Head Office and another at the operating sites, to thoroughly oversee the operations in the respective
area under responsibility. The number of working team members is as stipulated by the Ministerial Regulation of the Ministry of Labour on the Prescribing of standard for administration and management of occupational safety, health and environment B.E. 2549, Chapter 2, concerning Committee on Occupational Safety, Health and Environment of the Workplace. Members of both working teams (Disclosure 403-1) are as follows: Bangkok Office
Operating Sites
Chairman
1 person
1 person
Committee member at supervisory level representing the employer
2 persons
4 persons
Committee member representing employees
3 persons
5 persons
Occupational safety officer at professional level
1 person
1 persons
(Also serve as commitee secretary)
Roles and responsibilities of the 2 committees cover: 1. Occupational health management 2. Working environment 3. Fire prevention and fire fighting 4. Working with machines 5. Confined spaces 6. Electrical safety 7. Health examination of employees 8. Workplace welfare 9. Safe weight limit 10. Work-related illness 11. Smoke-free area 12. Building control 13. Construction site safety Activities undertaken in 2018 1. The safety manual for controlling operations associated with risks was formulated to give occupational safety guidelines for main contractors and sub-contractors working in the Company’s premises to follow to ensure their compliance as required by law. Key information in the manual includes safety guidelines for hazardous tasks and tasks associated with fire risk, do’s and don’ts for safe operation, and accident reporting.
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2. The manual on requesting permission to work in the Company’s premises was formulated as a tool for systematic operation control of highly hazardous tasks as well as the monitoring and controlling of contractors’ operations to ensure that safety check procedures are carried out before, during and after operations, and to prevent any loss due to accidents and incidents arising from highly hazardous tasks. 3. The Contractor Management Manual was formulated by trainings on safety and quality management system (ISO) that were provided to contractors prior to entering the operating sites to ensure that the Company’s related parties and contractors perform their duties under the agreement to support the Company’s safety, occupational health and environment management system and the Thai laws. The manual specifies operating framework related to health and environment as well as safety management for contractors and will be applied to all contractors working for the Company. 4. The operating processes were examined, and advice and trainings were given to all outsourced companies responsible for the Company’s projects. Monthly follow-ups were conducted to reiterate safety concerns and prevent outsourced staff from any accidents.
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Sustainability Report 2018 Eastern Water Resources Development and Management Public Company Limited
Safety Activities The Company has continuously organized safety activities for employees including: 1. Safety communication: A monthly journal on safety, health, and environment (SHE News) is issued to share news and create awareness of safety, good health, and environmental consciousness among employees. 2. Safety training: The training plan on safety, occupational health and working environment has been established for each group of employees. Examples of the 6 courses facilitated in the past year are: Risk Assessment Course: Hazard identification and work risk assessment - Methods and steps to identify the degree of risk of all work-related hazards covering work processes, work premises, equipment, personnel that may cause injury, illness, or damage to properties and environment or all of them combined. The course also addresses the principle and approaches for safety and occupational health risk assessment, the necessity of risk assessment, estimation of risk level taken into consideration the severity and probability of the hazards in order to determine if the risk is acceptable or not, and unacceptable risk control planning. First Aid and Cardio Pulmonary Resuscitation (CPR) Training: First aid training is critical and necessary for all employees in order to be able to provide first aids to the injured or sick persons to keep them safe until they can get medical treatment at the hospital. The participants were taught how to examine the injured/ sick person to identify any life-threatening injuries, how to provide basic to advanced first aid including CPR, bleeding control, first aid for all types of wounds, shock, poisoning, broken bones and fractures, and mental health emergency, and how to move the injured/sick person to the hospital. The training was extremely useful for all operating officers and was particularly designed to provide first aid knowledge and practices that correspond to the frequent work-related accidents while also including first aid for other emergencies to ensure that the participants obtain the maximum benefit.
Emergency Management The Company gives priority to emergency management to prepare for any incident and reduce any potential impact to the Company’s employees and properties. Measures implemented by the Company in 2018 were: 1. The Business Continuity Management Manual and the Business Continuity Plan were formulated and tested at East Water’s Head Office and Rayong Operations Center to review and revise the BCP. The critical situations covered by the BCP are: • Fire • Earthquake • Flood • Pipeline break / leak • Political unrest The test was conducted on completeness of the Business Continuity Plan and knowledge/ understanding of various functional units, preparedness of alternate sites, communication and coordination between internal functions and external entities 2. Annual fire drill was held at East Water’s Head Office and all operating sites (Chachoengsao, Chonburi and Rayong provinces) to prepare for evacuation and test the fire prevention system. In so doing, cooperation was obtained from all parties involved such as the local authorities, fire stations, police stations, hospitals, training centers, and neighboring buildings, and the desired results were achieved. 3. Training sessions were organized to provide knowledge and understanding to employees at all levels at the operating sites who work in the confined space. A total of 44 employees completed the training for approvers, controllers, operators, and rescuers. 4. Training sessions were organized to provide knowledge and understanding about safety techniques such as electricity-related tasks, etc. to employees at operating and supervisory levels. 5. Work-related prevention and reduction measures were implemented in the office premises and operating sites. All sub-contractors were required to attend the safety training before commencing their tasks. In 2018, a total of 428 sub-contractors received the training.
Sustainability Report 2018 WE SEE THE FUTURE... Smart water for all
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Communication and Engagement Activity
1. Internal communication activities were carried out through 3 main activities: - “CEO Town Hall Meeting” was held on 12 March 2018, with 216 employees attending the meeting. During the meeting, the management reported the Company’s performance and shared the SMART WATER 4.0 business direction, the Company’s strategies in 2018, customer relationship management as well as internal organization capability management and improvement to work standards and safety. - “MOVE#1 Activity” was arranged on 9 April 2018, with 168 participating employees, to communicate 2018 business direction that focuses the Company’s progress under “MOVE” concept. MOVE : Coworker relationship development MOVE : Work standards / safety / maintenance task / project contract management / technology systems / cost management system to enhance cost efficiency MOVE : East Water to connect closer to water users to make a more precise forecast and anticipation of changes and market demand - “EWG Day” was held on 14 September 2018 with 250 employees participating in the event. During the event, the President and Chief Executive Officer shared key news and information as follows: (1) The Company has revisited and created new vision and mission to build on the success of raw water and tap water and move toward becoming a To be the leader in total water solutions of the country. (2) To support the Smart Water Solution, the total water solution business, the Company changed the corporate identity by adding green color to represents life and sustainable environment to achieve stronger corporate image. - “CEO Town Hall Meeting and CG Day” was held on 8 October 2018 with a total of 186 employees joining the event. The President and Chief Executive Officer communicated
about the New Core Competency “SHARP” and explained the expected employee competencies including “Sharp”, Stakeholder Focus, Holistic Thinking, Adaptability, Result Acceleration, Proactive & Creative Thinking. Moreover, Mr. Veerasak Kositpaisal, Chairman, gave a lecture on the topic of “Employees and CG” focusing on transparent business operation, and adoption of the late King Bhumibol Adulyadej’s philosophy of “sufficiency economy” consisting of 3 pillars, i.e. Moderation, Reasonableness and Self- immunity that would lead to sustainability. - “Conversation with the Management” was held on 14 December 2018 with 298 employees participating in the event. The event was held to share the 2018 operating results of the group companies, project achievements and challenges in the year 2019 2. Employee activity clubs - To encourage employees to engage in leisure-time activities and build good coworker relationships. At present, the Company has 9 activity clubs including 1) EWG Badminton Club with weekly sessions for member employees and badminton competitions between the Company, tenants and related companies, 2) Healthy make Beauty Club (Yoga Club) with weekly yoga classes, 3) East Water Group Golf Club, 4) Variety Volunteering Club, 5) EWG Football & Sports Club, 6) Sport Area Club, 7) EW Running Fun Club, 8) EW Photo Club, and 9) EWG Cycling Club. Total number of members of all clubs is 251 employees.
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Sustainability Report 2018 Eastern Water Resources Development and Management Public Company Limited
3. CSR Activities - Blood donation: East Water has worked with Phramongkutklao Medical Center in arranging blood donation activities for 12 consecutive years since 2007. In 2018, 4 blood donation activities were arranged, resulting in a total of 98,850 cc of blood which can be of use to approximately 282 patients (approximately 350 cc used per one patient). - Collaboration with Corporate Communication Department to promote employee participation in CSR activities such as 1) Planting trees for the community forest of Ban Nong Muang in honor of H. M. King Maha Vajiralongkorn, 2) Model School Project - Canteen wastewater treatment, 3) Building temporary check dam and planting trees for the community forest of Ban Sam Phran, 4) Releasing crabs for ecosystem rehabilitation, 5) Kathin Ceremony 2018, etc. All the CSR activities, which were joined by more than 100 employees of the group companies, aimed to promote employee understanding and involvement in CSR activities for the environment and the community that are beneficial to the society in order for the Company to gain the trust, reliability and acceptance as part of the society. 4. Happy PVD Company Initiative: In 2018, the Company joined the “Happy PVD Company” Initiative of the Securities and Exchange Commission (SEC) and the Stock Exchange of Thailand (SET) to promote employee savings for a good quality of life after retirement through Provident Fund. The Company’s Provident Fund Committee attended the training and subsequently shared the knowledge to the Provident Fund Members who have been encouraged to save at the highest rate of 15%. The savings rates of employees during the past 3 years from 2016 - 2018 were as follows: Savings rate (%)
Number of members (%)
2016
2017
2018
2-4
-
-
0.50
5-8
23.70
27.40
32.60
9-12
29.00
28.30
29.00
13-15
37.90
32.10
26.70
Non-member*
9.40
12.20
11.20
Total
100.00
100.00
100.00
Remark: * Non-member includes new employees, contract staff, and employees resigning from the Fund.
Sustainability Report 2018 WE SEE THE FUTURE... Smart water for all
According to the 2018 data, the top 3 savings rates chosen by the employees were 8% (60 persons or 31%), followed by 15% (59 persons or 30%) and 10% (55 persons or 28%). The Provident Fund Committee and the Human Resource Department would organize more activities to encourage employees to give priority to long-term savings and choose to save at the highest rate for a financially secure retirement. Employee Complaint The Company has the Whistle Blowing Policy that allows board members, executives, employees and all stakeholders to file complaints, blow the whistle, or make suggestions. Also, mechanisms and procedures are in place to ensure the confidentiality of identity and protection of the whistleblowers/the persons filing complaints. Channels for filing complaints, blow the whistle or make suggestions are: Company’s website Email to the President & CEO and the Audit Committee Suggestion box
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In 2018, no complaint was received through the suggestion box while 3 complaints related to employee misconduct were received through other channels. There was no labor or human right issue. For all the complaints received, the Company has already taken actions according to the complaint handling process. Employee Satisfaction and Engagement In 2018, the level of employee satisfaction with the work was 77.75%, an increase of 1.29%, and the employee engagement level is 80.20%, an increase of 2.98%. The higher scores could be attributable to the improvement in internal communication channels through development of a more variety of channels that are easily accessible, more instant and available in interesting formats. With increasing communication frequency through a variety of channels such as CEO Town Hall Meeting, email, social media platforms such as Facebook, LINE group, and internal web portal, etc., the score of the 2018 employee satisfaction survey on the topic of Internal Communication was 82.38%, an increase of 1.41% from the previous year.
Letter Results of Employee Satisfaction and Engagement Survey from 2015 - 2018 81.00%
80.20%
80.00% 79.00% 78.00% 77.00% 76.00%
77.22% 75.60%
75.25%
77.75%
76.46%
75.00% 74.00% 73.00%
72.60%
73.97%
72.00% 71.00% 70.00% 69.00% 68.00%
2015
2016
Employee Satisfaction
2017
Employee Engagemnet
2018
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Sustainability Report 2018 Eastern Water Resources Development and Management Public Company Limited
Water Management for Mutual Success Responsibility for changes to quality of water sources (Disclosure 303-2) “Water” normally has its natural cycle. However, when the cycle is interrupted or when a balance could not be sustained, a change will start. The change may be caused by the volume of river water or evaporation, which will consequently affect the ecological system. The change of water flow and volume of rain water could also affect the quality of water. According to the monitoring of water parameters, it was found that the quality of water in various water basins including water sources in the eastern region such as reservoirs and natural paths of water started to decline and such trend would continue further. This issue has captured high attention of the customers. The reservoirs in the eastern region are of larger sizes and are important to agricultural activities in the irrigation areas. These water sources are also areas for fish breeding, tourism and recreational purposes. They help prevent flooding. Apart from the said benefits, the reservoirs also help supply water to the consumer and industrial sectors for country development. The water volumes in the reservoirs pumped by the Company are based on the allocation permits granted by the Royal Irrigation Department which is a government agency responsible for allocating water to each sector by taking into consideration the availability of water supply in that particular year. 16%
37% Agricultural Sector Industrial Sector
20%
General Consumption Ecological System Conservation
27%
Criteria for allocating water in reservoirs in the eastern region (Source: Royal Irrigation Department’s information on agriculture and water capacity in Chachoengsao, Chonburi, Rayong, Chanthaburi and Trad) Details of the importance of each water source used by the Company are as follows: The Prasae Reservoir was located in Pa Yoob Nai Subdistrict, Wang Chan District, Rayong. Its storage capacity was 248 million cbm. The volume of the water flow into the reservoir was 266.90 million cbm
(Source: The Water Source Management project by Kasetsart University). The reservoir supplies water into the newly emerged irrigation areas and for the general consumption and industrial sectors. It also helps prevent and mitigate damage from the floods in the areas, pushes the saltwater into the Prasae River during the drought season, and serves as a major center of tourism and a water source to accommodate future economic growth in Rayong. In 2018, the Company pumped a total of 38.77 million cbm of water (within the water allocation limit of 88 million cbm by the RID.) The Nong Pla Lai Reservoir is situated in Pluak Daeng Subdistrict, Pluak Daeng District, Rayong. Its storage capacity was 163.75 million cbm. The volume of the water flow into the reservoir was 202.79 million cbm (Source: The Water Source Management project by Kasetsart University). The reservoir supplies water into the irrigation areas in Baan Kai District. It helps prevent and mitigate damage from the floods and supplies water to the producers of tap water in Rayong, namely Rayong Waterworks and Ban Chang Waterworks. It is a major water source for the industrial sector. In 2018, the Company pumped a total of 115.49 million cbm of water (within the water allocation limit of 120 million cbm by the RID.) The Dok Krai Reservoir is located in Mae Nam Khu Subdistrict, Pluak Daeng District, Rayong. Its storage capacity was 79.41 million cbm. The volume of the water flow into the reservoir was 160.94 million cbm (Source: The Water Source Management project by Kasetsart University). The reservoir supplies water into the irrigation areas in Baan Kai District. It helps prevent floods in the Rayong Basin areas and serves as fish breeding grounds and recreational spots. It is a major water source for the industrial sector. In 2018, the Company pumped a total of 77.11 million cbm of water (within the water allocation limit of 116 million cbm by the RID.) The Bang Phra Reservoir is located in Bang Phra Subdistrict, Sriracha District, Chonburi. Its storage capacity was 117 million cbm. The volume of the water flow into the reservoir was 53.61 million cbm (Source: The Water Source Management project by Kasetsart University). The reservoir supplies water into the irrigation areas in Chonburi. It serves as an area for fish breeding and recreational purposes. It also supplies water to the producers of tap water in Chonburi,
Sustainability Report 2018 WE SEE THE FUTURE... Smart water for all
namely Chonburi Waterworks and Pattaya Waterworks. It is a major water source for the industrial sector. In 2018, the Company pumped a total of 5.88 million cbm of water (within the water allocation limit of 10 million cbm by the RID.) The Nong Kho Reservoir is situated in Nong Kham Subdistrict, Sriracha District, Chonburi. Its storage capacity was 21.40 million cbm. The volume of the water flow into the reservoir was 20.93 million cbm (Source: The Water Source Management project by Kasetsart University). The reservoir supplies water into the irrigation areas in Chonburi. It serves as an area for fish breeding and recreational purposes. It also supplies water to a producer of tap water in Chonburi, namely Sriracha Waterworks. It is a major water source for the industrial sector. In 2018, the Company pumped a total of 10.81 million cbm of water (based on the water allocation limit of 10 million cbm by the RID.) The Bang Pakong River is an important, large source of water of the Chao Phraya River. Its average volume
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of natural raw water per year was 3,344 million cbm (Source: The Office of Large Scale Water Resources Development by the Royal Irrigation Department). The river is vital to the ecological system, helping deter the flow of saltwater and serving as a water source for general consumption, agricultural and other activity purposes. It also helps support the industrial sector. In 2018, the Company pumped a total of 6.05 million cbm of water. Since The Company’s operations involve pumping water directly from the water sources; this could may changes to the volume of water, evaporation, and the flow of water even though there was no release of contaminated waste from the system. However, as the water sources used by the Company are mostly reservoirs and natural water sources which are shared by more than 1 user; it is impossible to clearly evaluate impacts incurred directly as a result of the Company’s operations. However, the Company continues to use water according to the mutually agreed upon rules to minimize any possible impacts to such water sources.
Summary Table of Water Sources Utilized by the Company and Their Importance to Local Communities Water Sources
Storage Capacity
million cbm
Total Volume of Water for Management Volume of allocated water Pumpted water (as per water (2018) allocation permit) million cbm
Importance of water sources to local communities
million cbm
Rayong areas 1. Prasae Reservoir 248.00 88.00 38.77 • To supply water to plantation areas in the Prasae project. • To prevent saltwater intrusion. • To prevent flooding in Klaeng District, Rayong. • To reserve raw water for eastern seaboard industrial estates. 2. Nong Pla Lai Reservoir 163.75 120.00 115.49 • To supply water to plantation areas in the Baan Kai Agricultural project • To prevent floods in Rayong • To supply water for general and industrial consumption with a future plan to supply water to Sattahip areas for industrial project expansion • To be fish breeding grounds and areas for tourism and recreation 3. Dok Krai Reservoir 79.41 116.00 77.11 • To supply water to plantation areas in the Baan Kai Agricultural project • To prevent floods in Rayong • To supply water for general and industrial consumption • To be fish breeding grounds and areas for tourism and recreation Chonburi and Bo Win - Pluak Daeng areas 4. Bang Phra Reservoir 117.0 10.00 5.88 • To support agriculture in 8,500 rai of land (temporary) (temporary) • To supply water for general and industrial consumption • To be fish breeding grounds and areas for tourism and recreation
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Sustainability Report 2018 Eastern Water Resources Development and Management Public Company Limited
Water Sources
Storage Capacity
million cbm
Total Volume of Water for Management Volume of allocated water Pumpted water (as per water (2018) allocation permit) million cbm
Importance of water sources to local communities
million cbm
5. Nong Kho Reservoir 21.40 16.70 10.81 • To supply water to current creeks to support agriculture in 7,500 rai of land • To supply water for general and industrial consumption • To be fish breeding grounds and areas for tourism and recreation Chachoengsao areas 6. Bang Pakong River - 27.00 6.05 • To maintain the ecological system • To deter the flow of saltwater • To be a water source for general, agricultural and industrial consumption 7. Private water sources - - 8.00 8. Rainwater from 0.26 Samnak Bok Pond Total 377.70 262.37
The Company realizes its responsibility for the quality of water and keeps monitoring and checking the water quality on a monthly basis. It was found that the quality of water in certain reservoirs has been changing. The Company therefore presented information of results of the reservoir water quality surveys at the Meeting of the Eastern Water Operations Center (Water Warroom). The meeting deemed that there should be a study of root causes of the changing quality of water in Dok Krai Reservoir and Nong Pla Lai Reservoir. The Company then hired an advisor from Kasetsart University to conduct the study and identify the root causes of the changing quality of water in both reservoirs which affected the Company’s use of water. The study was to identify the values of electrical conductivity (EC) in soil, surface water, and underground water in order to determine the root causes of the changing water quality. It was found that the EC values of the surface water flowing into the reservoirs were high. Consequently, the Total Dissolved Solid (TDS) values in the reservoirs were high and the solid materials were accumulated at the bottom of the reservoirs. Thus, the quality of the Company’s water supply to the customers has reduced and may exceed the maximum level specified in the contracts with the customers. Hence, in order to mitigate any possible impacts from the changing water quality, the EC values in both reservoirs must be controlled as follows: 1. Dok Krai Reservoir: The RID must manage water levels according to the Upper Rule Curve and follow up on EC values in the reservoir on an ongoing basis. 2. Nong Pla Lai Reservoir: The good quality water must be diverted from the Khlong Yai Reservoir to dilute
the water content in the Nong Pla Lai Reservoir. In the Nong Pla Lai Reservoir, water levels must be managed according to the Upper Rule Curve and EC values must be monitored on a continuous basis. Nonetheless, the Company submitted its study results to the Royal Irrigation Office 9 which is responsible for managing water in such reservoirs as it would be beneficial to all sectors’ consideration of reservoir water management (Source: A Full Report on the Project on Study of Water Quality in Dok Krai Reservoir and Nong Pla Lai Reservoir, the Department of Earth Sciences, Faculty of Science, Kasetsart University, June 2018). As for the Bang Pakong River which is a natural water source, based on the studies of the environmental changes among different agencies, it was found that the problem of saltwater intrusion was experienced in certain areas which led to a lack of water in the drought season. Realizing such impacts, it was the Company’s policy to pump water from the Bang Pakong River only during the rainy season. In 2018, the Company pumped a total of 6.05 million cbm of water from the Bang Pakong River from July 2018 to December 2018 or 0.18% (not more than 5%) of the average volume of natural raw water per year. The Company also provided collaboration to the government and its neighboring communities in strictly complying with the agreement to stop pumping water whenever the saltwater level reaches a specified limit. This is to encourage all sectors to access public water sources in a comprehensive manner according to their priorities and necessities in life.
Sustainability Report 2018 WE SEE THE FUTURE... Smart water for all
Responsibility for construction impacts (Disclosure 413-2) In 2018, most of the construction projects took place across the areas of the Company. Nevertheless, to prevent any possible impacts on neighboring communities and the environment, the Company strictly enforced the compliance with standards of work control and safety of relevant regulatory bodies as well as enhanced its operational procedures as compared to 2017 as follows:
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1. Prepared an additional standard checklist for project management to cover concrete measures to prevent pollution and minimize construction impacts. 2. Determined a set of standards for inspecting road restoration works along pipelines. The representative of the local authority that approved the construction shall also join the work inspection and certification. 3. Held meetings with contractors and representatives of local authorities to jointly determine problems, root causes, and solutions to the problems as well as closely monitor progress updates on a weekly basis. 4. Enhanced efficiency of the complaint handling process.
Diagram showing the complaint handling process from the Company’s construction project operations Petitioner
Complaint receiving channels E-mail Website Social Media Letter
A copy sent to departments concerned
Recording compliant Parties concerned
Monitoring problem solving progress
Holding department meetings to follow-up work
Meeting with contractors Taking actions
Reporting results
Collecting data Making summary report - Monthly report (for the management) - Annual report (for Corporate Governance and Sustainable Development Committee)
NO
Monitoring / follow-up
If exceeding limit
YES
Report to all concerned Collecting information / Finding ways to prevent the problem to recur Construction Management Department making monthly report
Complaints about impacts on neighboring communities In 2018, the Company applied the results of Chulalongkorn University’s “Project to study guidelines to improve project management services for enhanced efficiency” to its operations with a view to increasing its construction project management efficiency and solve the problem of project delays in the future. The Company’s improvement and development efforts were for the whole construction process encompassing pre-construction operations (PreConstruction Phase), construction work control procedures and follow-up of work progress to ensure meeting completion deadlines (Construction Phase), and guidelines for evaluation of construction project results (Post-Construction Phase). Based on the collection of all complaints from various channels concerning the Company’s construction
projects, it was found that in 2018 there was one complaint in 2017 for which relevant actions had not yet been completed. The complaint was about the return of traffic surface in the construction area of raw water pipeline from a private water pond in Chonburi (the pipeline laying work and construction of a low-pressure water pump station). The Company together with the community continuously joined the efforts to discuss and solve related problems as well as survey and design road repair work plans to prevent a repeat of the related problems. This is to ensure that the road repair work meets standards and requirements of the community and results in normal traffic flows. The Company completed its repair work in December 2018. In January 2019, the Company and the community conducted an onsite visit to check the road condition and the finished work was handed over to the community.
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Sustainability Report 2018 Eastern Water Resources Development and Management Public Company Limited
Building sustainable growth with total water solutions
(Disclosure 201-2) Climate change impacts have been witnessed globally. The average global temperature has increased by approximately 1 degree Celsius over the past 100 years. Thailand has also been affected by the climate change. For example, in 2011, Thailand experienced the great flooding crisis that affected the areas of the Chao Phraya River and the Mekong River. In 2015, the drought crisis hit the areas of the Chao Phraya River and the Maeklong River. These natural disasters created extensive damage to all sectors. The Company realized the importance of the problem and thus provided water management solutions to the water users in the said areas such that they could overcome the problem successfully. [Source: Climate Change from World Meteorological Organization (WMO)] However, the aforesaid actions are based on short-term and medium-term plans. To be prepared for weather condition fluctuations in the long-run and to ensure security of water volume and quality, the Company has established water quality improvement plans for natural raw water, industrial wastewater, and recycled water in order to ensure maximum benefits of water use. The Company considers its customers’ needs including the needs for consistent quality water as well as business growth opportunities
based on the key factors including eco-business trends and, most importantly, the government policy on the East Economic Corridor (EEC) Development Plan. This EEC project is an extension of the existing eastern seaboard areas with a view to increasing Thailand’s competitiveness. As a result, the demand for water with quality standards has been increasing. From the above factors, the Company started expanding its footprint to the total water solutions field which covers raw water, industrial water, tap water, drinking water, wastewater treatment and recycled water for use by various industrial customers. This helps reduce the burden of investments and expenses of the customers in an efficient manner as well as ensures security in terms of water volume and quality. The water standard is consistent and does not change according to fluctuations in weather conditions and seasons. The Company also has advantages in terms of funding and experts because the business of supplying water through pipelines requires a high amount of investment funds for the construction and installation of water pipelines, the construction of pump stations, the sourcing of water capital, and the expertise in sending requests to relevant agencies.
Sustainability Report 2018 WE SEE THE FUTURE... Smart water for all
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With the present marketing opportunities and corporate capability, the total water solutions business is expected to continue to grow. It is the Company’s policy to drive its total water solutions business towards sustainability by expanding its raw water business under the concept of supporting industrial operators to access a full range of water services according to their needs and providing solutions to water volume and quality problems as well as cost management in terms of prices and cost-effectiveness. The guidelines are as follows:
“Industrial Water” services that suits the needs of the Company’s water users. This helps solve the quality problem of natural raw water, allows the operators to have sufficient clean water for use, and reduces the waste of raw water resources. Also, the industrial water can be used in the production or work of the water users immediately so that the business operators do not need to have their own water treatment process or clean water production system at their premises.
1. Total water solutions: To expand the current raw water business customer base by offering additional services such as raw water management, tap water, reverse osmosis seawater, wastewater treatment and water recycling. New water users inside and outside of the eastern region will be the Company’s main focus. The Company has a plan to establish a team of professionals to provide consultation services for total water solutions to both new and current water users.
3. Industrial estate water management (Operation and Maintenance) and wastewater treatment services: To focus on water quality assurance services according to laws and regulations and reuse of water in the production process. This helps reduce expenses relating to clean water purchases for business operators and encourages optimal use of water resources with less environmental impacts.
2. Industrial water services to solve quality problems: To move from the provision of raw water services to the provision of treated water or
1. Raw water Procurement of raw water, investment and installation of pipelines, as well as ensuring sufficient raw water to satisfy demands year-round. 2. Industrial water Installation of production system of water for industrial use, ensuring that the quality matches customers’ requirements, be it by clarification, reverse osmosis, demineralization, or sea water reverse osmosis desalination. 3. Tap water Comprehensive management solutions and engineering services for both surface and
In providing total water solutions services, we always focus on customizing our services to meet the needs of different water users both in the consumer and industrial sectors as follows:
desalinated sea water with state-of-the-art technologies in production maintenance and distribution. 4. Drinking water Production of clean, safe, alkaline drinking water. 5. Wastewater treatment To service tailor-made for each business, controlling wastewater effluent quality using technologies such as activated sludge and membrane bioreactor. 6. Recycled water Providing service and installation of water recycling system for reuse in industrial operation.
Sustainability Report 2018
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Eastern Water Resources Development and Management Public Company Limited
All services are based on different types of contracts which are customized to cater to the needs of each industrial estate as follows:
1
Short-term contracts
Engineering Procurement Construction: EPC are to provide services relating to the construction of systems or
installation of pipelines where as customers are managers of the systems and owners of
2
the assets after their construction completion.
Long-term contracts:
BOT
BTO
The Company provides services relating to the construction of systems or installation of pipelines and management of the systems after the construction completion. Ownership of the assets will be transferred to the customers upon contract expiry.
The Company constructs systems or installs pipelines and transfers ownership of the assets to the customers immediately after the construction completion. The Company will manage the systems until contract expiry.
(Build-Operate-Transfer)
(Build-Transfer-Operate)
BOO
(Build-Operate-Own) The Company constructs systems or installs pipelines and manages the systems. Upon contract expiry, the Company still owns the assets.
In 2018, the Company successfully conducted its total water solutions business by entering into contracts with Thailand’s leading companies as follows: Number of projects Type of service
Eastern region
Outside of eastern region
Total
Tap water/Industrial water 2 - 2 Wastewater treatment /Water recycling - 1 1
Sustainability Report 2018 WE SEE THE FUTURE... Smart water for all
• Tap Water and Industrial Water Businesses
The Company entered into agreements to buy/sell industrial water with the following 2 parties: - Amata Water Public Company Limited: The agreement is to distribute industrial water to the Amata City Industrial Estate areas in Rayong with the objectives to increase its capacity to provide relevant services to the customers within the industrial estate and to ensure water source stability as well as create confidence among the customers in the long-run. The volume of water usage is estimated at around 15,000 cbm/day and the contract tenor is 30 years. The water supply will begin in 2021. - Gulf PD Company Limited: The agreement is to provide industrial water to the Gulf Power Plant in Pluak Daeng, Rayong. The power plant is part of the business group of Gulf PD Company Limited. The production capacity is 2,500 megawatts. It is located in the Rojana Industrial Park Rayong 2 project areas. The agreement objectives are to increase security and stability of the water utility system as it is considered
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a key driver of electricity production and distribution business development. The volume of water usage is estimated at 60,000 cbm/day and the contract tenor is 25 years. The water supply will begin in 2022.
• Wastewater Treatment/Water Recycling
The Company entered into a contract to construct a water recycling system with Ratchaburi Glass Industry Company Limited. The company is an affiliated company of Bangkok Glass Public Company Limited which is mainly engaged in the business of glass container production. The objective of the contract is to recycle treated wastewater. The maximum volume of water usage is 1,000 cbm per day. The contract tenor is 15 years. Currently, the construction was completed and the operation already commenced in 2018.
In this regard, accumulated consumption of each type of water and consumption volume in each geographical area under the plan for new customers during 2019-2023 can be summarized below.
1. Forecast of accumulated water consumption among new customers by type of service Forecast of accumulated water consumption
Water volume (million cbm)
70,000,000.00 60,000,000.00 50,000,000.00 40,000,000.00 30,000,000.00 20,000,000.00 10,000,000.00 -
2018
2019
2020
Wastewater treatment / Water recycling
2021
2022
2023
Tap water / Industrial water
Remark: This is the forecast of customers’ demand for water in the future which may be subject to changes according to customers’ investment plans.
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Sustainability Report 2018 Eastern Water Resources Development and Management Public Company Limited
2. Forecast of proportions of demand for tap water, industrial water and treated/recycled wastewater by geographical area Proportion of demand for tap water/industiral water in each area (during 2018-2023)
Rayong Area Bo Win - Pluak Daeng Area Chonburi Area Chachoengsao Area Outside Eastern Region
Proportion of wastewater treatment/wastewater recycling in each area (during 2018-2023)
Chonburi Area Outside Eastern Region
Sustainability Report 2018 WE SEE THE FUTURE... Smart water for all
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3. Forecast of revenue growth from total water solutions business (Disclosure 201-1, 201-2) Forecast of revenue growth from total water solutions business 30.00%
26.30%
25.00%
20.85%
20.00%
17.25%
15.00%
13.29%
10.00% 5.00% 0.00&
0.01%
2018
0.14%
2019
2020
2021
2022
2023
Remark: This is the forecast of future performance which may be subject to changes according to customers’ water consumption plan.
Based on the graph above, it is found that the revenue growth rate of total water solutions business will hit the highest level in 2021 because it is the year in which the projects in the EEC areas will be implemented and start using water services. The average revenue growth rate over the next 5 years (2019-2023) will be at around 13% per annum. Management of electricity cost The main operating costs of the Company were depreciation and electricity costs accounting for 38% and 29.59%, respectively. Diagram showing elements of operating costs (Disclosure 201-1, 302-4)
Raw Water Electricity Depreciation Maintenance Others
Energy consumption is directly related to the volume of water pumped through the water grid which comprises 15 main pump stations and 59 power sub-stations/water gauge stations along the 491.8 kilometre stretch.
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Sustainability Report 2018 Eastern Water Resources Development and Management Public Company Limited
ขอมูล มกราคม 2562
Connecting All Main Water Sources in Eastern Thailand with over
Kilometers
LIMIT WATER LOSS TO LOWER THAN
PUMPING
LIMIT WATER LOSS TO LOWER THAN
ขอมูล มกราคม 2562
PUMPING
LIMIT WATER LOSS TO LOWER THAN
Sustainability Report 2018 WE SEE THE FUTURE... Smart water for all
Private Pond Private Pond Water Pumping Station As of January 2019
Water Pumping Station
Prasae Water Pumping Station
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Sustainability Report 2018 Eastern Water Resources Development and Management Public Company Limited
The Company has continuously studied the application of technological and innovative solutions in its water management to reduce energy demand for water pumping. Examples are as follows: 1. Pump Audit Project: A project to determine energy saving solutions by collecting information from various pump stations to analyze their performance. Each individual pump will be considered to identify ways to reduce energy consumption. Please refer to additional details in the section of “Innovative Water Conservation Solutions” (Page 97) 2. Electricity Cost Reduction Project Through Use of Solar Energy: More details are available in the section of “Innovative Water Conservation Solutions” (Page 97) Furthermore, the Company continuously implemented energy conservation projects for its core and supporting operations to reduce energy consumption and improve energy efficiency organization-wide through its energy management working group. The project objectives are to manage costs and expenses of the organization and to help fight against “global warming”. Although the Company’s core business process may not directly result in the emission of greenhouse gases, its other activities may be indirectly contributing factors such as use of electricity, paper, or coolants in air-conditioning systems. The Company’s energy conservation activities covered the following operating areas: 1. Eight water pump stations were registered as controlled factories, namely Nong Pla Lai Pump Station, Dok Krai Pump Station, Pressure Boosting Station, Bang Pakong Pump Station, Chachoengsao Pump Station, Bang Phra Pump Station, Mab Ta Phut Pump Station and Samnak Bok Pressure Boosting Station. (In 2018, the last three stations were registered as controlled factories.) 2. Controlled building - one building which is East Water’s headquarters. Each year’s targets of energy consumption reduction will be based on the prior year’s energy saving performance results. The targets are set at organizational, product and service, and equipment levels taking into consideration energy loss and energy efficiency improvement opportunities. 3. Power sub-stations - 59 stations
Summary of the Company’s energy efficiency improvement projects for 2018 (Disclosure 302-4): 1. Chiller Maintenance Project: The project took place in the area of the Chiller Room on the 9th floor of the East Water Building with the purpose to reduce electricity consumption. As the chiller had been used on an ongoing basis and sediments had been deposited in the chiller duct system, the cooling performance had dropped leading to less energy consumption efficiency. The Company then cleaned the chiller system and it was found that the level of electricity consumption declined. Before the project took place, the level of electricity consumption was at 1,308,395 kWh/year. After the implementation of the project for two months (March-April 2018), the level of electricity consumption in April 2018 decreased by 58,652.61 kWh/year. 2. New High Performance Air Conditioning System Project: The current air conditioning system consumed high electricity energy and after it was used for long hours, its cooling performance dropped. Thus, the Company decided to replace the current system with 10 new high efficiency air conditioning units in order to improve air cooling performance. Before the maintenance of the air conditioning system, the electricity consumption level of the system was at 110,520.34 kWh/year and the replacement with the new air conditioning system with high performance, the electricity consumption level dropped by 49,759.40 kWh/year. The installation of the new high performance air conditioning system was completed on 31 January 2018. 3. Water Management Measures: Efficient water source management led to reduction in energy consumption per unit of 0.35 kWh/cbm or 8% compared to that of 2017. The total energy saving was 7,751,612 kWh/year. The Company has developed its energy conservation and innovation plan to be carried out in 2019, details of which are as follows: 1. The project to establish a floating solar farm in potential areas of the Company such as the Mab Ta Phut Raw Water Reserve Pond. 2. The project to improve performance of pumps according to the results of the Pump Audit project in order to reduce energy consumption. For example, new pumps may be bought to replace old ones in broken, improper or low performance condition.
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Energy consumption of 2018 (kWh)
Water Pumping Station Head Office Power sub-station
The Company’s energy consumption in 2018 included only the electricity consumption which totaled 104,544,871 kWh. This was calculated based on the energy used by the pump stations, the head office at the East Water Building, and power sub-stations along pipelines of the Company. The energy reduction of 16,500,784 kWh which is equivalent to 59,402,822.40 MJ or 14% compared to 2017 was achieved. The energy reduction was attributable to the 2 energy efficiency improvement projects (108,412 kWh or 390,283.20 MJ)
and the water management measures (7,751,612 kWh or 27,905,803.20 MJ). (Energy reduction (kWh) * 3.6 = Energy reduction (MJ). Source: http://www.eppo.go.th/ info/cd-2015/index.html) The said energy consumption was comparable to the emission of carbon dioxide of 52,795 tons in 2018 which was lower than that in 2017 by 15%. The Company achieved the reduction in energy consumption per unit of 0.35 kWh/cbm or 8% compared to that of 2017.
0.39 0.38
0.38
0.37 0.36 0.35
0.35 0.34 0.33
2017
2018
*This was calculated based on the levels of energy consumption at pump stations as compared to the total amount of water pumped for the whole year.
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Sustainability Report 2018 Eastern Water Resources Development and Management Public Company Limited
Comparison of energy consumption and greenhouse gas emission (2015 - 2018) 160,010,000 140,010,000
143,958,534
151,037,404
121,045,655
130,010,000
104,544,871
120,010,000 100,010,000 60,010,000 40,010,000 20,010,000 10,000
2015
90,000 80,000
79,512
2016
2017
2018
83,373
70,000 62,823
60,000
52,795
50,000 40,000 30,000 20,000 10,000
2015
2016
2017
2018
Sustainability Report 2018 WE SEE THE FUTURE... Smart water for all
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Calculation method for greenhouse gas emission (Disclosure 305-2) **GHG emissions
= Activity Data (kWh) X Emission Factor
Electricity emission factor
= 0.505 kg-CO2/kWh
Energy used for water pumping + energy used at headquarters during 2018 + energy used at power sub-stations
GHG = [(water pumping station) 100,745,771 kWh + (pumping stations with separate meters) 256,100 kWh + (headquarters) 3,543,000 kWh] x 0.505 kg-CO2/kWh = 52,795,160 kg-CO2 = 52,795 TonCO2
Source: This is based on the Emission Factor Calculation by the Office of Energy Poliicy and Planning (EPPO), Ministry of Energy at http://www.eppo.go.th/index.php/en/en-energystatistics/co2-statistic?orders[publishUp] =publishUp&issearch=1
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Sustainability Report 2018 Eastern Water Resources Development and Management Public Company Limited
Corporate Governance (Disclosure 205-2)
The Board of Directors formulated the corporate governance policy in writing on 1 August 2003 and assigned the Corporate Governance and Sustainability Committee to review the policy and guidelines on good corporate governance at least once per year to ensure compliance with requirements of the Stock Exchange of Thailand (SET) and the Office of the Securities and Exchange Commission (SEC). Results of the review must be submitted to the Board of Directors for consideration and approval. In 2018, the Company conducted the 12th review of the corporate governance principles for its business group by referring to the SET’s 2012 Corporate Governance Code for Listed Companies and the SEC’s 2017 Corporate Governance Code for Listed Companies. After due consideration, the Board of Directors opined that the Company should be able to implement all of the corporate governance principles. Thus, the Corporate Governance and Sustainability Development Committee proposed the Company’s Corporate Governance (CG) Code to the Board of Directors for consideration and approval at the Board of Directors’ Meeting No. 14/2018 held on 11 December 2018. The Company’s CG Code shall be used as a guideline for and strictly complied with by the directors, executives and employees at all levels of the business group. The Company prepared and disseminated its CG Code and Code of Conduct of the East Water Group through electronic media at www.eastwater.com and the Company’s internal web for easy access and learning. New employees are also required to sign and acknowledge the Code of Conduct document on the date of orientation to affirm a commitment to comply with the Code of Conduct. The Code of Conduct is one of the topics under the good corporate governance principles which must be complied with. Also, new directors are required to sign and acknowledge the Company’s CG Code on the date of orientation. In order to ensure that all employees have knowledge and understanding about rules, regulations and business ethics of the East Water Group and are able to perform duties correctly and properly, the Company requires that all employees conduct a test regarding the good corporate governance principles and the anti-corruption policy through the Company’s intranet system on an annual basis. The test results shall be used to evaluate the level of knowledge and understanding of the employees to further enhance communications and improve their knowledge and understanding such that they truly realize their duty to promote the good corporate governance practices within the organization. The Company shall always review and update such test to keep up with changing laws and regulations.
The Company always complies with the CG Code of the Group which contains the following 8 principles: Principle 1: To realize the roles and responsibilities of the Board of Directors as a leader to create the long-term value for the organization The Board of Directors is appointed by the shareholders to be responsible for the overall operations of the Company, to have authority to give instructions, grant approval and monitor the implementation of the Company’s strategies, and to oversee business operations, risks, financial stability and the organizational structure. Please refer to details of the scope of authority, duties and responsibilities of the Board of Directors in the section of “Management Structure.” in the 2018 Annual Report (Page 45). The Board of Directors’ Meeting No. 10/2561 held on 17 August 2018 resolved to approve the vision, mission and strategies of the business group for 2019-2021 (the 3-year plan) as proposed by the management. The said vision, mission and strategies are aimed at strengthening the Company’s competitiveness and operating results while taking into consideration any long-term impacts. The Company shall operate business with professional ethics, respect shareholders’ rights, take responsibility for shareholders and other stakeholders, contribute benefits to society, improve or reduce negative effects on the environment, and be able to adapt to changing business factors. Please refer to details of the vision, mission and strategies in the section of “Policy and Business Overview.” in the 2018 Annual Report (Page 32). Principle 2: To define key objectives and goals in support of business sustainability The Board of Directors shall oversee and ensure that the Company has key objectives and goals in support of its sustainability. The Company’s vision is to be a leading provider of total water solutions in Thailand. Its objectives are to secure security and stability of water sources, to grow its investment in the total water solutions business, and to achieve ongoing and sustainable growth while taking responsibility for communities, society and the environment as well as establishing good relationships with its stakeholders. Please refer to additional details in the section of “Policy and Business Overview” in the 2018 Annual Report (Page 32).
Sustainability Report 2018 WE SEE THE FUTURE... Smart water for all
Principle 3: To enhance effectiveness of the Board of Directors The Company established the structure of its Board of Directors in alignment with the public limited company law and the 2017 CG Code of the SEC, especially in terms of size, composition and proportion of independent directors. That is, the Board of Directors of the Company consists of at least 5 members but not more than 12 members and independent directors must represent at least one-third of the Board members. In 2018, the Board of Directors consisted of 12 qualified members. Of this, 8 members or two-thirds of the total members were independent directors. The independent directors shall not be involved in the management and shall not be shareholders of the Company. In addition, 3 out of 8 independent directors served as members of the Audit Committee. The Chairman of the Board of Directors was also an independent director and did not serve as chairman or member of any subcommittee. He shall be responsible for supervising, monitoring and ensuring that the duty performance of the Board of Directors is efficient and meets the key objectives and goals of the organization. The Board of Directors assigned the Nomination and Remuneration Committee to determine criteria and method for nominating persons as directors in line with relevant requirements and to consider remuneration of the Board of Directors and respective subcommittees before submission to the Board of Directors for endorsement and to a shareholders’ meeting for approval. Remuneration payments shall be appropriate, adequate, fair, rewarding and able to retain qualitative directors as well as in line with interests of the shareholders and not too high that the directors cannot perform work independently. (Please refer to details of the duties and responsibilities of the Nomination and Remuneration Committee according to its Charter at www.eastwater.com.) The Company laid down a set of practices to enhance effectiveness of the Board of Directors. For example, the Board of Directors’ meeting schedule shall be determined in advance for the entire year so that all directors can allocate time to attend the meetings together. The performances of the Board of Directors, the subcommittees and each individual director/ committee member shall be evaluated and evaluation results shall be used for improving each individual director/committee member’s performance accordingly. The Company has the policy to support its directors to attend trainings and knowledge development courses continuously in various fields such as corporate governance, risk management, internal control, water technology and relevant laws in order to help them efficiently perform duties and oversee business operations. The directors are encouraged to attend useful training courses hosted
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by the Thai Institute of Directors (IOD) and other reputable institutes. Principle 4: To recruit and develop high-level executives and manage human resources The Board of Directors assigned the Nomination and Remuneration Committee to be responsible for determining the criteria and method for nominating persons to the positions of President and Chief Executive Officer, top executives of affiliated companies, and chief officers of different functions. This is to ensure that high-level executives have knowledge, skills, experiences and characteristics that are required for driving the organization towards its goals. Please see additional details in the section of “Nomination and Appointment of Directors and Top Executives” in the 2018 Annual Report (Page 65). The executives are encouraged to attend training courses with the Institute of Research and Development for Public Enterprises (IRDP) and the Executive Development Program (EDP) hosted by the Thai Listed Companies Association (Thai LCA). The employees also have their individual development plans (IDP). Principle 5: To promote innovation and operate as a responsible business The Board of Directors realizes the importance of and provides support for the creation of innovation to add value to the Company’s business. Therefore, one of the Company’s missions is to enhance its competitiveness through modern technology and innovation. In addition, the Company has stipulated its work philosophy based on the concepts of accountability and equal treatment that will gain trust from its stakeholders as follows: (1) Shareholders The Company realizes it shareholders’ basic rights and always facilitates convenience to their exercising their rights, for example, the rights as stipulated in laws or the articles of association of the Company, the rights to attend shareholders’ meetings and vote, and the rights to express opinions freely, and the rights to give suggestions and comments on the Company’s business operations as the real owners of the Company. The Company shall maintain its stable financial status and treat all shareholders equally irrespective of whether they are major or retail, individual or institutional, or Thai or foreign shareholders. (2) Employees The Company respects legal rights of all employees and provides a positive and safe
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Sustainability Report 2018 Eastern Water Resources Development and Management Public Company Limited
work atmosphere for them. It also provides good welfare schemes and fair employment conditions comparable to market situations. At the Company, the efficient use of human resources is encouraged. The Company is regarded an equal opportunity employer, supporting its employees to take part in the operations and to have a strong commitment to performing duties. The Company laid down work guidelines for directors, executives and employees of the group companies in the Code of Conduct of the East Water Group. (The details of the Code of Conduct of the East Water Group are available at http://investor.eastwater.com/ th/corporate-overview/corporate-governance) (3) Customers The Company strives to meet customer expectations by providing water management services to satisfy the needs of all customers with due care and equitable treatment and solving problems relating to the services in a timely manner to ensure quality standards of services in all areas. (4) Trading partners and creditors The Company complies with contract conditions and provisions and discloses the true financial status of itself and its subsidiaries. The Company has never used the funds from its loans for other purposes than those specified in the loan agreements. The Company also laid down the policy to treat creditors with fairness and responsibility, containing practical guidelines on guarantee conditions, capital management, and default payments in a clear and concrete manner. (5) Society and the environment The Company operates business as a socially responsible organization. It respects and complies with laws, rules and regulations concerned. It also realizes the importance of complying with standards relating to occupational health, safety and environment to prevent any possible impact or damage to lives and properties of people, communities and the environment. (6) Competitors The Company complies with the principles of fair and legal competition. It shall not seek confidential information of its competitors through the use of fraudulent or inappropriate methods. The Company has a number of communications channels through which its stakeholders can send their opinions, complaints or other matters as follows:
1. The Company’s website: www.eastwater.com 2. E-mails: • Audit Committee: AC_EW@eastwater.com • President &CEO: CEO@eastwater.com • Corporate Secretary: Corporate_secretary@eastwater.com 3. Regular mails: • Audit Committee Eastern Water Resources Development and Management Public Company Limited East Water Building, 25th Floor, 1, Soi Vibhavadi Rangsit 5, Vibhavadi Rangsit Road Chom Phon Subdistrict, Chatuchak District, Bangkok 10900 4. Opinion Box: Human Resources Department Apart from the aforesaid channels, the Company established the investor relations function to receive opinions and complaints from its stakeholders and investors. The guidelines and procedures for handling complaints of stakeholders were clearly written in the Code of Conduct of the East Water Group. To preserve the rights and privacy of the complainants, the complainants will be protected and their personal information will be kept confidential. Principle 6: To ensure that appropriate risk management systems and internal controls are in place (Disclosure 102-11) The Company’s risk management function is under the supervision of the Corporate Strategy Department. The risk management function will coordinate with the internal audit function which performs work independently in developing and reviewing the effectiveness and adequacy of the risk management systems and internal controls and submitting review reports to the Audit Committee. Such reports are also disclosed in the Annual Report. Please refer to additional details in the section of “Internal Control and Risk Management” in the Annual Report (Page 72). Principle 7: To ensure reliability of financial information and disclosure The Company places importance to the disclosure of correct information according to requirements of relevant supervisory bodies. Also, it has developed various information disclosure channels that are easily
Sustainability Report 2018 WE SEE THE FUTURE... Smart water for all
accessible to all stakeholders. It emphasizes the importance of information disclosure and transparency of operations to its directors, executives and employees; and creates a mechanism to handle complaints appropriately and fairly for both complainants and subjects of complaints in the Code of Conduct of the East Water Group. The boards of directors of the Company and its subsidiaries shall ensure that the management disseminates key information in a comprehensive and timely manner. Such key information includes financial reports or other non-financial explanations and analysis whether it is required by law or based on a voluntary basis. All information will be published through the system of the Stock Exchange of Thailand and via www.eastwater.com and www.uu.co.th in both Thai and English. The management always presents most up-to-date information and also provides contents to the investor relations function of the Company. Types of activities
• • • • • •
Press Meeting Credit Rating Review Company Visit Conference Call “SET meets retail investors” (Opportunity Day) Site Visit
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The Company assigned the compliance function and the financial analysis and investor relations function to disseminate its financial and general information to its shareholders, investors, securities analysts, investment credit rating agencies, and supervisory bodies concerned through various channels. For example, relevant reports are submitted to the SET and the SEC and are published in the Company’s website in the topic of “Investor Relations Information” for ease of access by interested persons. If shareholders, investors and relevant parties have any inquiries, they can contact the financial analysis and investor relations function at Tel. 0 2272 1600, Ext. 2438, 2411 or Email: IR@eastwater.com or the Company’s website at www.eastwater.com. In 2018, the financial analysis and investor relations function held a number of activities to disseminate and explain information and allow participants to ask questions. The activities were also joined by the high-level executives to help answer the questions. The details can be summarized as follows: Unit: Time
1 1 11 14 1 2
Principle 8: To support engagement and communication with the shareholders The Company realizes its shareholders’ basic rights and always facilitates convenience to their exercising rights, for example, the rights to buy, sell or transfer shares, the rights to the Company’s share of profits, the rights to receive sufficient news and information through available channels and at proper times, the rights to attend and vote at shareholders’ meetings, the rights to elect or remove directors, and the rights to receive updates of changes in the Company to support decision making.
In 2018, the Company held the 2017 Annual General Meeting of Shareholders on Monday 23 April 2018 at the Vibhavadi Ball Room A-B, Centara Grand at Central Plaza Ladprao. The Company had not convened any extraordinary general meeting. To facilitate convenience, the Company checked meeting documents in advance as well as provided information and answered inquiries.
The Company has the policy to encourage all shareholders to attend shareholders’ meetings to equally exercise their rights at the meetings. The Company requires that an annual general meeting of shareholders be held once per year within 4 months from the last day of the accounting period of the Company. In the case where it is urgent to propose a meeting agenda item which is affecting or relevant to shareholders’ interests or any conditions or rules or regulations or laws where it is mandatory to seek approval from the shareholders; the Company may convene an extraordinary general meeting of shareholders on a case by case basis.
• Allowing the shareholders to propose meeting agenda items to the shareholders’ meeting and propose candidates for directors 3 months in advance from 1 October to 31 December 2017 through the SET’s information system and the Company’s website. • Providing information of the meeting date and the meeting agenda for the 2017 AGM to the shareholders through the SET’s information system and the Company’s website at least 30 days prior to the meeting date. • Submitting meeting invitation letters and meeting agenda details to the shareholders together with
The Company gave due care to the shareholders’ meeting and facilitated convenience to the shareholders prior to the meeting date, for example:
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Sustainability Report 2018 Eastern Water Resources Development and Management Public Company Limited
proxy forms for those unable to attend the meeting in Thai and English; as well as providing meeting documents to the shareholders at least 28 days prior to the meeting date and publishing relevant information in the newspaper for 3 consecutive days at least 3 days before the meeting date. The Company disclosed its meeting invitation letter and meeting supporting documents in its website 30 days before the meeting date. On the date of the 2017 AGM, the Company facilitated convenience to its shareholders as follows: • The e-voting program was adopted and the barcode system was used for the vote counting process. • Three representatives from the legal firm and the shareholders at the meeting were asked to inspect the vote counting process at the meeting. • Before the Meeting started, the Chairman of the Meeting informed about the voting and counting procedures for each agenda item. Before the Meeting passed a resolution for any agenda item, the Chairman would allow all shareholders to ask any question or give any comment about the Company’s operations and advise the shareholders to discuss the particular matter within an appropriate time frame. The shareholders also had the equal rights to provide suggestions. The directors and executives gave clear answers to all questions before the meeting was asked to vote. For the election of directors, the Chairman asked the shareholders to vote in a separate ballot for each individual director. • The Chairman informed the meeting of the voting results for each agenda item before proceeding with the next agenda item and before the end of the meeting. The Chairman conducted the meeting according to the Company’s articles of association and in accordance with the order of the agenda items specified in the invitation letter. An exception applies in the case where the meeting resolves to change the order of the agenda items with a vote of not less than two-thirds of the number of the shareholders present at the meeting. There was no change in the order of the agenda items as specified in the AGM invitation letter. The meeting considered all agenda items and the Chairman informed the shareholders that the shareholders with at least one third of the total shares issued may ask the meeting to consider other business. After the end of the 2017 AGM, the Company published the AGM resolutions through the SET’s information system immediately within the same day of the meeting. The Company also prepared minutes of the meeting with important and comprehensive contents including resolutions of the meeting and clearly specified voting results as approval, disapproval and abstention. The said meeting minutes were posted in the Company’s website and submitted to the SET within 14 days from the meeting date.
As for measures to prevent a conflict of interest, the Company stipulated operating guidelines for its employees to comply with. According to the guidelines, the employees shall perform duties with honesty and integrity, comply with laws and regulations, and put their own interest second to the interest of the Company. The employees shall not use internal information of the Company for personal gains. The directors, the high-level executives or the first 4 executives next to the top executive, and the holders of the positions equivalent to the fourthranking executive positions shall report the shareholding status of themselves and related parties at the time of assuming the positions to the SEC within 30 days from the dates of first assuming the positions. They shall also report any change to the shareholding status within 3 days from the date of such change. Furthermore, directors, executives and permanent employees of the Company and their spouses and minor children are not allowed to buy and sell the Company’s securities during the 1-month period prior to the disclosure of financial statements to the SET and during the 3-day period after the disclosure of financial statements to the SET. The Company prepared and announced the adoption of the “Code of Conduct of the East Water Group in 2003. The current version has been updated to ensure alignment with the Anti-corruption policy of the organization and the guidelines for evaluation of Thailand’s Private Sector Collective Action Coalition Against Corruption (CAC) and renewal of the CAC’s membership certificate. In 2018, the new name “Code of Conduct of the East Water Group” was approved by the Board of Directors’ Meeting No. 14/2018 held on 11 December 2018. The recent Code of Conduct contained the following 14 topics. 1) Human rights and labor 2) Occupational health, environment, wellness, and safety 3) Anti-corruption 4) Giving or receiving of gifts or assets or other kinds of benefits 5) Ethics regarding procurement and treatment of trading partners 6) Conflicts of interest 7) Related party transactions 8) Political actions 9) Treatment of information and assets 10) Information disclosure and communication 11) Transactions undertaken by the East Water Group (EWG) 12) Conducting businesses in other countries 13) Trading competition 14) Anti-money laundering The Company disseminated the Code of Conduct of the East Water Group through electronic media at
Sustainability Report 2018 WE SEE THE FUTURE... Smart water for all
www.eastwater.com and the Company’s internal web for easy access and learning. New employees are also required to sign and acknowledge the Code of Conduct document on the date of orientation to affirm a commitment to comply with the Company’s Code of Conduct. The Code of Conduct is one of the topics under the good corporate governance principles which must be complied with. Also, new directors are required to sign and acknowledge the Company’s CG Code on the date of orientation. The Company’s AGM held in 2018 obtained a score of 95 from the Thai Investors Association. The Company also got an “Excellent” rating according to the 2018 Corporate Governance Report of Thai Listed Companies assessment by the Thai Institute of Directors. The rating was based on consideration of the corporate information published through the communications channel of the SET and other documents of the Company. Moreover, the Company was granted 2018 Sustainability Report award in the category of Recognition.
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Activities to Promote Morality in 2018 Anti-Corruption On 3 April 2015, the Company was certified as a member of Thailand’s Private Sector Collective Action Coalition Against Corruption (CAC). The project was originated by the Thai Institute of Directors (IOD) and received support from the government and the Office of the National Anti-Corruption Commission (NACC). In 2018, the Company’s CAC membership certificate was renewed according to the resolution of the CAC’s meeting to endorse the matter in Q3/2018 on 5 November 2018. The said certificate shall be valid for 3 years from the date of the resolution. The Company stipulated best practices regarding internal fraud and corruption for its directors, executives and employees in the Anti-corruption policy. The policy has been revised every year and is disseminated to the exuctives, employees and related parties through the Company’s website. Please refer to more details of the policy at http:// investor.eastwater.com/storage/company-subsidiary/ corporate-governance/20180925-eastw-anticorruption-policy-2018-th.pdf. In 2018, the Company organized and attended a number of seminars and activities relating to good corporate governance and Anti-corruption to raise awareness among its directors, executives and employees about the importance of corporate governance and anti-corruption practices within the organization as follows:
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Sustainability Report 2018 Eastern Water Resources Development and Management Public Company Limited
- On 15 June 2018, the Company facilitated the “New Era of Governance & Internal Controls” training course for its executives and employees. The instructor of the course was an advisor from EV Corporate Services Co., Ltd. There were a total of 50 executives/employees attending the course as follows: By
Total
50 Total 22.62% 50
persons
5.43 Employee 10.86
By
By
Employment Agreement
19.91 Geographical
2.71
22.17 Employment
7.69 6.33 Remark: The number3.62 of the Company’s employees at 15.83 the end of 2018 was 221 5.43Employee 10.86 6.33 19.91 Geographical By By
1.81 2.71
17.19 22.17 Employment By
By Level Executives
6.33
Geographical Location
By Location Central Region
0.45
By Agreement Permanent employees
12 persons 44 persons 49 persons 24 persons Eastern Region 6 persons Contractual employee 1 persons 6.33 19.91 2.71 22.17 0.45 14 persons persons By Geographical By Employment Region employees 49 persons 12 persons Central 44 persons Permanent Level Location Agreement Total Remark: The number of the Company’s employees at the end of 2018 was 221 accounting for Supervisors 24 persons Eastern Region 6 persons Contractual employee 1 persons 22.62% Operating officers 14 persons 5.43 10.86 6.33 19.91 2.71 22.17 0.45 persons On 9 August 2018, the Company facilitated the “New CG Code 2017 and New Laws” training course for its Executives Permanent employees 49 persons 12 persons Remark: The number of the Company’s employees atCentral the end ofRegion 2018 was 221 44 persons accounting for directors, executives andBy employees. The instructor of the course was an advisor from EY Corporate Services By Supervisors Eastern Region Contractual employee 6 persons By 1 persons Employee 24 persons Geographical Employment By Employee By Geographical By Employment Level Location Agreement 22.62% Co., Ltd. There were a total of 39 directors/executives/employees as follows: Level Location attending the course Agreement Total Operating officers 14 persons accounting for
-
Employee Level
Supervisors 5.43 10.86 Operating officers By Employee Executives
50
39 50 Total 17.64% 22.62% 39
persons
accounting for persons
Total accounting for
39
17.64%
persons
accounting for
17.64% Total
16 39 16
Location 17 35 persons Central Region persons Central Region persons 12 persons 44 8 4 persons Eastern persons Eastern Region Region persons 24 persons 6 6.33 15.83 1.81 14 persons 14 persons By Geographical 17 35 persons Central Region persons Level Location Remark: The employees Remark: The number number of of the the Company’s Company’s employees at at the the end end of of 2018 2018 was was 221 221 8 persons 4 persons Supervisors Eastern Region 14 Operating officers persons 7.69 3.62 6.33 15.83 1.81 17 35 Executives persons Central Region persons Remark: The number of the Company’s employees at the end of 2018 was 221 By 8 persons By 4 persons Supervisors Eastern Region By Employee By Geographical Levelofficers 14 persons Location Operating Level Executives Executives Supervisors Supervisors 7.69 3.62 Operating officers Operating officers By Employee Executives
Agreement 38 Permanent employees Permanent employees 49 Contractual Contractual employee employee 11 17.19 By Employment 38 Permanent employees Agreement
1
Contractual employee 17.19
38 Permanent employees Employment By 1 Contractual employee By Agreement
0.45 0.45
persons persons persons persons 0.45 persons persons 0.45
persons persons
- On 6 September 2018, the employees joined a seminar on the National Anti-Corruption Day 2018 under0.45 the 0.45 6.79 7.24 7.24 7.69Employee 3.62 6.33 15.83 1.81 17.19 Geographical Employment By By By persons persons topic of “Thai People Know and Fight 1against Corruption” hosted by the Anti-Corruption Organization of Level Location Agreement 16 Executives Central Region Permanent employees 17 persons 35 persons 38 persons Executives persons Central Region persons Permanent employees 16 persons Total Thailand.There were a total of 16 executives/employees attending the seminar as follows: accounting for 0 08 persons 04 persons Supervisors Eastern Contractual 1 persons Supervisors persons Eastern Region Region persons Contractual employee employee persons 0.45 6.79 7.24 7.24 7.24% 17.64% 15 Operating officers persons persons 14 Operating officers persons Employee Geographical Employment By By By Remark: The number of the Company’s employees at the end of 2018 was 221
Total accounting for
16
7.24%
persons
accounting for
7.24% Total
1 persons Central 16 Region Location 0 0 15 Operating officers persons 0.45 6.79 7.24 1 16 Executives persons Central Region Remark: The number of the Company’s employees at the end of 2018 was 221 0 0 Supervisors persons Eastern Region Employee Geographical By By Level Location 15 persons Operating officers Executives
persons
Permanent employees
Remark: The employees Remark: The number number of of the the Company’s Company’s employees at at the the end end of of 2018 2018 was was 221 221 Supervisors persons Eastern Region
persons
Contractual employee
Level
16 0
Agreement
7.24
persons persons
Permanent employees
Contractual employee Employment By
Agreement
16 0
persons
persons
persons persons
185 16 16 1 16 182 15 130 Total 0 0 30 27 55 83.71% 7.24% - 185 On 8 October 2018, the Company organized 15 a number of activities on the occasion of the 26 Anniversary 143 15with Mr. Veerasak Kositpaisal, 130Chairman of the Board of182 of the East Water Group and the CG Day Directors persons persons
accounting for
persons
Total accounting for
6.78 12.22 64.71 Remark: The number of the Company’s employees at 58.82 the end of 2018 was 221 0.45Employee 6.79 7.24 Geographical By By
Level Executives
persons
Supervisors 6.78 12.22 Operating officers By Employee Executives
persons 64.71 persons persons
Level
24.89
82.35 7.24Employment By
1.36
Location Central Region
persons
Agreement Permanent employees
persons
Eastern Region 58.82
persons 24.89
Contractual employee 82.35 th
Location
persons
By Employment Permanent employees
persons 1.36
24.89
82.35
By Geographical Central Region
Agreement
persons
persons Eastern Region Contractual employee executives 3 persons giving a keynote address on “EWG and 27 Sustainable Development” to55thepersons Company’s directors, 83.71% Operating officers 14364.71 persons 6.78 12.22 58.82 24.89 82.35 1.36 and employees. persons There were a total of 185 directors/executives/employees joining the event as follows: Executives Permanent employees 182 persons 15 persons Remark: The number of the Company’s employees atCentral the end ofRegion 2018 was 221 130 persons accounting for Supervisors Region employee 3 persons 27 persons Eastern 55 persons Contractual By Employee By Geographical By Employment 83.71% Levelofficers 143 persons Location Agreement Operating Total
185
185
persons
accounting for
83.71%
Remark: Remark: The The number number of of the the Company’s Company’s employees employees at at the the end end of of 2018 2018 was was 221 221
Supervisors
Remark: The number of the Company’s employees at the end of 2018 was 221 6.78 12.22 64.71 58.82
Executives Supervisors Operating officers
15 persons 27 persons 143 persons
Central Region Eastern Region
Remark: The number of the Company’s employees at the end of 2018 was 221
130 persons 55 persons
Permanent employees Contractual employee
1.36
182 3
persons persons
Sustainability Report 2018 WE SEE THE FUTURE... Smart water for all
81
- On 7 November 2018, the Company facilitated the “Fighting against Corruption” training course for its directors, executives and employees. The lecturer of the course was Dr. Mana Nimitmongkol, Secretary-General of the Anti-Corruption Organization of Thailand. There were a total of 66 directors/executives/employees attending the course as follows: By
Total
66
persons
Employee Level
5.88
By
12.67
11.31
By Employee Executives Level
Geographical Location
By
25.34
4.52
By Geographical Central Region 56 persons Location
Employment Agreement
29.86
By Employment Permanent employees Agreement 66 persons
13 persons 28 persons Eastern Region 10 persons Contractual employee 0 persons 29.86% 5.88 12.67 11.31 25.34 4.52 29.86 Operating officers 25 persons By Employee By Geographical By Employment persons Level Location Agreement Executives Region employees 13 persons Central 66 persons 56 persons Permanent Total Remark: The number of the Company’s employees at the end of 2018 was 221 accounting for Supervisors 28 persons Eastern Region 10 persons Contractual employee 0 persons 5.88 12.67 11.31 25.34 4.52 29.86 29.86% Operating officers 2018, 25 persons From 19persons November - 14 the Company asked its executives andByemployees to conduct Employee Employment By December By Geographical Executives Central Region Permanent employees 13 persons 56 persons aTotal knowledge test about corporate governance principles and anti-corruption measures. The results of66thepersons test Level Location Agreement Remark: The number of the Company’s employees at the end of 2018 was 221 accounting for Employee 28 persons Geographical Employment By By Supervisors Eastern Region Contractual employee 0 persons 10 persons By would be used to improve knowledge and practice communication in the following year. There were a total 29.86% Level Location Agreement Total Operating officers 25 persons 5.88 12.67 11.31 25.34 4.52 29.86
Total
accounting for
66 - 66
66 213
Supervisors
of 213 employees conducting the test as follows: persons accountingpersons for
29.86% Total 96.38%
accounting for
213 Total 96.38% 213
persons
accounting for persons
Total for accounting 96.38% Total
Executives persons Remark: The number of the13 Company’s employees atCentral the end ofRegion 2018 was 221 56 7.69 14.03 74.66 66.06 Employee 28 persons Geographical By By Supervisors Eastern Region 10 17 persons Central 146 Executives Region Level Location Operating officers 25 persons 31 persons Eastern Region 67 Supervisors
persons 30.32 persons persons persons
165 Operating officers persons 7.69 14.03 74.66 30.32 Remark: The number of the Company’s employees at 66.06 the end of 2018 was 221 Employee Geographical By By Level Location 17 persons Central 146 persons Executives Region Remark: The number of the Company’s employees at the end of 2018 was 221
31 persons Eastern Region 67 74.66 66.06 165 persons By Geographical 17 persons Central Region 146 Level Location Remark: The number of the Company’s employees at the end of 2018 was 221 Employee 31 persons Geographical 67 By By Supervisors Eastern Region Levelofficers 165 persons Location Operating 7.69 14.03 74.66 66.06 Supervisors 7.69 14.03 Operating officers By Employee Executives
persons 30.32 persons persons
Permanent 66 persons 95.48 employees 0.90 Employment By Contractual employee persons 0 Permanent employees 211 persons Agreement Contractual employee
2
95.48
persons
0.90
By Employment Agreement Permanent employees 211 persons
2 persons Contractual employee 95.48 0.90 By Employment Permanent employees 211 persons Agreement
Employment 2 By Contractual employee
persons
213 211course 17 the “Anti-Corruption the 146 - The Company assigned two people to attend Practical Guide (ACPG)” training 2 22 31 67 1 2 as follows: persons
personsfor accounting
96.38% Total accounting for 0.90%
2 Total 0.90% 2
persons
accounting for persons
Total for accounting 0.90% Total
2 20
persons
persons accounting for
Executives persons Remark: The number of the Company’s employees atCentral the end ofRegion 2018 was 221 0.45 0.45 0.90 Employee Geographical By By Supervisors persons Eastern Region Executives persons Central Region Level Location Operating officers 165 persons 1 persons Eastern Region Supervisors
0 persons Operating officers 0.45 0.45 0.90 Remark: The number of the Company’s employees atBy the end of 2018 was 221 Employee Geographical By Level Location 1 Executives persons Central Region Remark: The number of the Company’s employees at the end of 2018 was 221
0
2 0
1 persons Eastern Region 0.45 0.90 0 persons By Geographical 1 persons Central 2 Region Level Location Remark: The number of the Company’s employees at the end of 2018 was 221 1 persons By 0 Supervisors Eastern Region Employee Geographical By 0 persons Operating 0.45Levelofficers 0.45 0.90Location Supervisors 0.45 Operating officers By Employee Executives
30.32
persons
1 persons 2 Executives Remark: The number of the Company’s employees atCentral the end ofRegion 2018 was 221 9.05 5.88 Geographical 1 persons By 0 Eastern Region 0 persons Central 13 Region Location 0 persons 0 persons Eastern Region 7
Employee By Supervisors Executives Levelofficers Operating Supervisors
Agreement
95.48
persons persons
Permanent employees 0.90 Employment By Contractual employee Permanent employees
persons
Contractual employee
persons persons
Agreement
0.90Employment
By Agreement Permanent employees
0.90
persons
0
2 0
persons
Contractual employee 0.90 By Employment Permanent employees
persons
Contractual employee Employment By
2 0
Permanent employees 8.60
2
persons 3.17 persons persons
Agreement
0.90Agreement
persons persons persons
persons persons persons persons
persons 0.45
Employment By 0 persons Contractual employee Permanent employees Agreement 19 persons
0.90% Total 1 persons persons Contractual employee 9.05% 9.05 5.88 3.17 8.60 0.45 Operating officers 20 persons By Employee By Geographical By Employment persons - The Company communicated its anti-corruption policy to its new 20 employees through their orientation 19 persons 0 persons Central 13 persons Permanent Level Location Agreement Executives Region employees Total accounting as follows:for 0 persons Eastern Region 7 persons Contractual employee 1 persons Supervisors 9.05 5.88 3.17 8.60 0.45 9.05% Operating officers 20 persons persons accounting for
20 20
Remark: The number of the Company’s employees at the end of 2018 was 221
Remark: The number of the Company’s employees at the end of 2018 was 221
Total accounting for
20
9.05%
persons
accounting for
9.05%
By Employee Executives
Level
0 0 20
persons
By Geographical 13 persons Central Region
By Employment Permanent employees
persons
Eastern Region
Contractual employee
persons
5.88
Location
Remark: The number of the Company’s employees at the end of 2018 was 221
Supervisors
Operating officers 9.05
0 persons Executives Remark: The number of the Company’s employees atCentral the end ofRegion 2018 was 221 Supervisors
Operating officers
0 20
persons
Eastern Region
persons
Remark: The number of the Company’s employees at the end of 2018 was 221
7
persons 3.17
13 7
Agreement
8.60
persons
Permanent employees
persons
Contractual employee
19 1 19 1
persons
persons 0.45
persons persons
82
Sustainability Report 2018 Eastern Water Resources Development and Management Public Company Limited
- The Company assigned 1 person to attend the “CG Code Disclosure Guidelines Based on the Concept of Apply or Explain” seminar as follows: Total
1 Total Total 0.45% 1 1
person
accounting for person person accounting for accounting for
By
Employee Level
By
0.45Employee By Executives Employee Level By
Geographical Location
0.45Geographical By
Central Region 0 persons By 1 Geographical Location Level Location Supervisors Region 0 persons Eastern 0 Operating officers persons 1 0.45 0.45 0.45 0.45 Region Executives 0 persons Central 1 Remark: The number of the Company’s employees atCentral the end of 2018 was 221 1 Executives persons Region 0 Supervisors persons Eastern Region 0 Supervisorsofficers persons Eastern Region 0 0 Operating 1 persons Operating officers 1 persons
By
persons persons
Employment Agreement
0.45Employment By Permanent employees Employment Agreement By
Agreement Contractual employee
persons persons persons
0.45 0.45 Permanent employees Permanent Contractualemployees employee
persons
0.90Employment By Permanent employees Employment Agreement By
1 0 1 1 0 0
persons persons persons persons persons
persons Contractual employee persons 0.45% 0.45% Employment Measures” By Geographical - The Company assignedBytheEmployee 2 employees to attend the “Creating a Worksheet for By Anti-Corruption Level Location Agreement training Totalcourse as follows: Remark: The number of the Company’s employees at the end of 2018 was 221 Remark: The number of the Company’s employees at the end of 2018 was 221
2 Total Total 0.90% 2 2
persons
accounting for persons persons accounting for accounting for
0.90% 0.90% Total
4 Total Total 1.80% 4 4
0.90Employee By Executives Employee Level By
0.90Geographical By
0 persons By 2 Central Region Geographical Location Level Location 0 persons Eastern 0 Supervisors Region 2 persons Operating officers 0.90 0.90 0.90 0.90 Region 0 persons Central 2 Executives 0 persons Remark: The number of the Company’s employees atCentral the end of 2018 was 221 2 Executives persons Region 0 Supervisors Eastern Region 0 0 Supervisorsofficers persons Eastern Region 2 persons Operating 2 persons Operating officers
persons persons persons persons persons
Remark: The number of the Company’s employees atBy the end of 2018 was 221 Employee Geographical By
Level
Agreement Contractual employee 0.90 0.90 Permanent employees
Permanent Contractualemployees employee Contractual employee
By
Location
Remark: The number of the Company’s employees at the end of 2018 was 221
2 0 2 2 0 0
persons persons persons persons persons persons
Employment Agreement
- The Company assigned the 4 employees to attend the “CG Code Workshop” training course as follows: persons
accounting for persons persons accounting for accounting for
1.80% 1.80%
0.45Employee 0.45 By Executives Employee Level By Level Supervisors
0.90
1.80Geographical By
1 persons By 4 Central Region Geographical Location Location 1 persons Eastern 0 Region 2 0.90 Operating persons 0.45 0.45 officers 1.80 0.45 0.45 1.80 Region 1 0.90 4 Executives persons Central 1 persons Executives persons Region Remark: The number of the Company’s employees atCentral the end of 2018 was 221 4 0 Supervisors Eastern Region 1 0 Supervisorsofficers persons Eastern Region 2 persons Operating 2 persons Operating officers Remark: The number of the Company’s employees at the end of 2018 was 221 Remark: The number of the Company’s employees at the end of 2018 was 221
persons persons persons persons persons persons
1.80Employment By Permanent employees Employment Agreement By Agreement Contractual employee 1.80 1.80 Permanent employees
Permanent Contractualemployees employee Contractual employee
4 0 4 4 0 0
persons persons persons persons persons persons
Sustainability Report 2018 WE SEE THE FUTURE... Smart water for all
Employee Information (Disclosure 102-7, 102-8) Number of employees
2015
2016
2017
2018
Total employees 169 168 214 221 By Type of Employment Permanent employees 166 165 210 217 Contractual employees 3 3 4 4 By Employment Level Executives 11 13 18 19 Supervisors 23 24 27 31 Operating officers 135 131 169 171 By Age Range Less than 30 years 34 28 33 35 30-50 years 121 122 158 163 More than 50 years 14 18 23 23 By Gender Male 94 93 105 107 Female 75 75 109 114 By Geographical Location Central Region 117 117 148 151 Eastern Region 52 51 66 70 Rates of new hires and resigning employees by gender, age range, and geographical location (Disclosure 401-1) Number of employees
2015
2016
2017
2018
Total new hires 32 19 65 23 By Age Range Less than 30 years 17 8 18 13 30-50 years 15 10 45 10 More than 50 years 0 1 2 Rates of new hires (%) 19% 11% 30% 10% By Gender Male 22 9 19 11 Female 10 10 46 12 By Geographical Location Central Region 8 6 7 12 Eastern Region 24 13 58 11 Total resigning employees 23 20 19 16 By Age Range Less than 30 years 3 6 5 6 30-50 years 19 13 11 10 More than 50 years 1 - 3 Rates of resingning employees (%) 14% 12% 9% 7% By Gender Male 14 10 7 9 Female 9 10 12 7 By Geographical Location Central Region 18 17 15 10 Eastern Region 5 3 4 6
83
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Sustainability Report 2018 Eastern Water Resources Development and Management Public Company Limited
Statistics on employee sick leave by gender and geographical location (Disclosure 403-2) Number of employees
Male Female
107 114
Number of working Number of sick leave Sick leave rate hours hours (%)
208,864.00 222,528.00
4,059.50 5,073.50
1.94 2.28
*Occupational Disease Rate (ODR)
0.00 0.00
Remark: *Occupational Disease Rate: ODR Total number of occopational disease case/1,000,000 hours worksed Number of employees
Male Female
54 97 Number of employees
Male Female
53 17
Number of working hours
Bangkok 105,408.00 189,344.00 Number of working hours
Number of sick leave hours
Sick leave rate (%)
2,297.00 4,700.50
2.18 2.48
Number of sick leave hours
Sick leave rate (%)
Eastern Operation Site 103,456.00 1,762.50 33,184.00 373.00
1.70 1.12
The Company adopted the Human Resources Information System (HRIS) to manage information of its employees, sick leave requests, welfare disbursement requests and other work-related matters. The number of working hours was calculated according to the work rules according to which an employee is required to work 8 hours a day. Thus, the number of working hours per person in 2018 was calculated as follows: Number of working hours per person per year = 8 hours* ((5 days * 52 weeks) - 16 days) = 1,952 hours.
Sustainability Report 2018 WE SEE THE FUTURE... Smart water for all
85
Community Sustainability Projects (Disclosure 203-1) The Company has the policy to conduct business along with community sustainability in all of the Company operating areas and give precedence to the continuous development of community wellbeing based on the mutual consumption of water resources. In addition, the Company determines to arrange for a survey on water demand for communities located along the Company’s new raw water pipeline as part of the suitability study. The survey is clearly included as part of the engineering system. Before the construction starts, the Company and contractors hold a meeting with community leaders and villagers to provide information on the project and gather the community’s needs and problems for improvement or hardship mitigation as well as to help improve villagers’ quality of life. The Company has established the community sustainability projects with the collaboration between
the Company and the communities in the operating areas, and has incorporated the communities to be part of the improvement and development of the projects. Hence, the community sustainability projects have been improved in terms of process and operation practices with the ‘3 creations and 3 developments’ strategy, focusing on creating acceptance, creating stability, and creating mutual values for moving towards sustainable development. The strategy led to the relationship establishment with local government authorities and communities along the Company’s 491.8 km water grid. The attempt is based on the King Bhumibol’s philosophy of ‘Understanding, Reach, and Development’ to achieve sustainable development through the corporate social responsibility activities in 3 dimensions, i.e Developing water and environmental campaign, Developing promotion of quality of life in communities, and Developing encouraging lifelong learnings.
The corporate social responsibility activities dimensions were carried as follows out in
3
I.
Developing water and environmental campaign
• Wastewater treatment project on pilot school cafeterias • Restoration of natural resources and water sources project (including forestation, release of aquatic animals)
• East Water Water Conservation project
(including youth camp, water quality inspection at the Company’s sources of water capital)
• Water for Communities project
(including providing cup water, bottled water, water service mobile unit for community and public services)
• Training on production control and maintenance of community tap water Project (integrated with Fix It Center project)
• CSR activities for communities along the Prasae-Klong Yai raw water pipeline
Developing promotion of quality of life in 2. communities • Occupational training Project
(reducing expense, increasing income as per t he Sufficiency Economy principle)
• Friendship football competition Project • Annual Kathin religious ceremony Project • Support for activities/projects for common benefit of government agencies, communities, and charity organizations • Production of souvenirs for the Company’s CSR activities
Developing encouraging 3. lifelong learnings • Water-air aerator prototype Project • East Water Sufficiency Economy Learning Center, Klong Khuen district Project • Computer training for the disabled Project
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Sustainability Report 2018 Eastern Water Resources Development and Management Public Company Limited
Wastewater treatment project on pilot school cafeterias
During 2011-2013, the Company had established the project by granting fund to the participating schools from the East Water Young Leader Camp, and providing hands-on knowledge and guidance at the site. In practice, wastewater treatment of Chachoengsao Provincial office of Natural Resources and Environment was used as the model for installation of wastewater treatment system at the schools. Then in 2014, the Company evaluated the results from the system operation to learn about problems and made suggestions for project improvement. In 2016, the Company joined the Primary Educational Service in seven education areas (in Chachoengsao, Chonburi, and Rayong provinces) in carrying out the project on wastewater treatment for water released from school cafeterias. The project has been improved
for more sustainability and continued raising awareness of the youth and school personnel on water conservation since water is a vital factor for the living. The project provides the source of knowledge in water management in practice and targets to have one pilot school, diamond level, per each education area, with a total of seven schools by 2019. In 2018, the Company cooperated with the seven education areas for assessment of 12 schools under the project in 5 aspects; namely 1) installation and use of wastewater treatment system, 2) wastewater treatement control, 3) water quality treatment in the final phase, 4) recycling water after treatment, 5) knowledge base sharing on wasterwater treatment inside and outside the school. The schools that passed the evaluation and were awarded are as follows:
Sustainability Report 2018 WE SEE THE FUTURE... Smart water for all
Diamond level
Chum-chon Wat-suwan-rangsan School Rayong Primary Educational Service Area Office 1
Baan Nhong Yai School Chachoengsao Primary Educational Service Area Office 2
Golden level
Chum-chon BorisatNamtal-Tawan-Aok School Rayong Primary Educational Service Area Office 1
Baan Kong Dara School Chonburi Primary Primary Educational Service Area Office 3
Silver level
Baan Nhong Wah School Chachoengsao Primary Educational Service Area Office 2
Bronze level
Wat Juk Cher School Chachoengsao Primary Educational Service Area Office 1
Baan Tup Rang School Chonburi Primary Educational Service Area Office 2
Baan Nhong Sai School Rayong Primary Educational Service Area Office 2
87
Baan Talad Nern Hin School Chonburi Primary Educational Service Area Office 2
Baan Map Lum Bid School Chonburi Primary Educational Service Area Office 1
The Company targeted one pilot school with diamond level in each education area with a total of 7 schools in 2019. From the evaluation, there are 3 education areas remained with no school in a diamond level. Hence, the Company will drive the schools in these areas to achieve the target in 2019 and will announce and award the pilot schools who achieve this target in 2020. From 2021 onwards, for project sustainability, the Company together with the seven education areas will monitor and evaluate the results of the diamond-level pilot schools every year.
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Sustainability Report 2018 Eastern Water Resources Development and Management Public Company Limited
Water-air Aerator Prototype for Knowledge Sharing with Communities
Following the contest on water management innovation using the 3R (Reduce, Reuse, Recycle) principle in 2010, the Company came up with an idea to turn the classroom innovation into tangible community benefit. The Company selected the innovation on construction of water-air aerator by Ubol Ratchathani Technical College (receiving a consolation prize). The innovation was brought for application in a collaboration with the Environment Worrier / Water Inspector Group of Chachoengsao province, Water Quality Monitoring Center of Pluak Daeng District, Rayong Province, and Ubol Ratchathani Technical College.
2013
Ubol Ratchathani Technical College instaled four aerators at some households of Chachoengsao Ua Artorn Community and measured the Dissolved Oxygen (DO) value to test the efficiency.
2014-2016
Company expanded the project to the two technical colleges (Rayong and Chachoengsao) by installing three aertors under the water-air aerators construction workshop
2017
Company expanded the knowledge base by installing aeretors to Pattaya Technical College, and joined the four technical colleges and the Eastern Institute of Vocational Technology in organizing the water-air aerator construction workshop to pass on the knowledge to communities with the course facilitator from the Chaipattana Foundation.
In 2018, the Company, together with the four vocational colleges and the Eastern Institute of Vocational Technology built a water-air aerator prototype, aiming for an even better prototype especially in terms of efficiency, material cost and energy cost saving, as well as easiness and convenience for construction, to pass on the knowledge to the communities. The efficiency of the machine will be tested by the Chaipattana Foundation with further advice acquired to establish the aerator construction course curriculum for knowledge sharing with the communities. The Company sets the goal to join the technical colleges in the operating areas in 3 provinces (Rayong, Chonburi, and Chachoengsao) in 2019 to organize the workshops to pass on the knowledge of construction and maintenance of an aerator to the interested communities and organizations.
Sustainability Report 2018 WE SEE THE FUTURE... Smart water for all
89
Conservation and restoration of Baan Sampran community forest with community participation using the People’s State concept
The first pilot plot of land that the Company selected is Baan Sampran community forest in Klong Takrao subdistrict, Tha Takiap district, Chachoengsao province. The community is located adjacent to Khao Ang Rue Nai Wildlife Sanctuary, which is the watershed forest of Bang Pakong River. Flowing through the community is Klong Si Yat stream which is vital to the ecosystem of the area that connects five provinces in the east. The community forest project covers the area of 32-0-03 rai of land and the villagers were granted permission to take care of the community forest since 15 July 2016. Sampran Village Leader and the Sampran Community Forest Committee jointly take charge of the project. Since 2017, the Company has joined the network of community forests that connect five provinces in the
east in a project to conserve and restore Sampran community forest using the People’s State concept. The project, planned for four years (2017-2020), involves maintaining the existing forests and forestation for planting more 1500 trees a year. Planting 6,000 trees throughout the four-years period will capture as much as 10,440 tons of carbon (Carbon Capture Estimate in Dry Evergreen Forests; Dr. Somsak Sukwong). In 2018, the Company participated with the network of community forests that connect five provinces in the east by organizing activities to conserve and restore Sampran Community Forest, e.g. constructing survey route around the community forest and firebreaks, protecting the forests, as well as planting more 1500 trees.
Conservation and restoration of Baan Nong Muang community forest with community participation using the People’s State concept Baan Nong Muang Community Forest Committee are in charge of the project.
The second area that Company selected as the pilot project is Baan Nong Muang in Chum Saeng subdistrict, Wang Chan district, Rayong Province. The community, lying adjacent to the Prasae Reservoir, has a geographical characteristic of both plains and mountainous areas, which is vital to the ecosystem of the forest area that connects five provinces in the east and Prasae watershed. The community forest project covers the area of 96-0-55 rai of land. The community was granted permission on 25 April 2017. Baan Nong Muang village leader and
Since 2017, the Company has joined the network of community forests that connect five provinces in the east in a project to conserve and restore the community forests using the People’s State concept, covering Baan Nong Muang areas. The project, planned for five years (2017 - 2021), involves maintaining the existing forests and planting more 3,800 trees a year or additional 15,200 trees. Hence, it is expected to capture as much as 30,400 tons of carbon throughout the five-years period (Carbon Capture Estimate in Dry Evergreen Forests; Dr. Somsak Sukwong). In 2018, the Company participated with the network of community forests that connect five provinces in the east by organizing activities to conserve and restore Baan Nong Muang Community Forest, e.g. constructing survey route around the community forest and firebreaks, protecting the forests, as well as planting more 3,800 trees.
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Sustainability Report 2018 Eastern Water Resources Development and Management Public Company Limited
Repair and Construction Center for the Community (Fix It Center)
In 2008, the Company initiated a project on tap water maintenance and training on community tap water management. The project was based on data acquired from a survey on tap water demand of communities along the raw water pipelines with an intent to provide the communities access to clearn water supply for good quality of life. The survey result revealed that tap water system in several communities cannot be used effectively. The Company is determined to elevate the
2012
Company adjusted the training format to be ‘community teaches community’ together with on-the-job training, by the instructor who received training and was able to apply the knowledge into the community’s tap water system to make it more efficient.
quality of life of the communities in water solution. The project received cooperation from Universal Utility Public Company Limited to provide training on tap water maintenance and management of community tap water system for community committees and authorities from local administrative bodies so that these people are able to run an efficient and sustainable community tap water system.
2016-2017
Company, in collaboration with Eastern Insitute of Vocational colleges, and the Metropolitan Waterworks Authority, organized the Production Control and Maintenance of Community Tap Water training, both basic and practical courses.
2018
Company cooperated with the Eastern Institute of Vocational Technology to provide the Community Tap Water Maintenance training course into the Fix It Center program.
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Later in 2018, the Company and the Eastern Institute of Vocational Technology established the Fix It Center and provided repair and maintenance services for the community tap water system in total of 9 locations as shown below. College
Map Ta Phut Technical College Rayong Technical College Pattaya Technical College Chonburi Technical College Chanthaburi Technical College Baan Kai Technical College Thai-Austrian Technical College
Location for Repair of Community Tap Water System
Moo 10, Nhong La Lok Subdistrict, Baan Kai District, Rayong Province Moo 8, Nhong La Lok Subdistrict, Baan Kai District, Rayong Province Nhong Pla Lhai Subdistrict Municipal Office, Bang La Mung District, Chonburi Province Moo 4, Mhon Nang Subdistrict, Panutnikom District, Chonburi Province Moo 10, Mhon Nang Subdistrict, Panutnikom District, Chonburi Province Moo 11, Baan Mab Oon, Khao Bai Sri Subdistrict, Tha Mai District, Chanthaburi Province Moo 6, Baan Nhong Chavi, Khao Bai Sri Subdistrict, Tha Mai District, Chanthaburi Province Moo 9, Nhong La Lok, Baan Kai Subdistrict, Rayong Province Moo 5, Na Chorm Thien Subdistrict, Sattahip District, Chonburi Province
CSR Activities for Communities along Prasae-Klong Yai Raw Water Pipeline (Disclosure 203-1) Regarding the Company’s project on diversion of water from Prasae Reservoir to Klong Yai Basin, the Company organized the meeting to enable an integration of water management among all stakeholders, including government sectors, private sectors, and the people in the communities. The meeting resolution resulted in the improvement of community quality of life for water supply sufficiently and equally and supporting the communities during droughts. The Company delivers water to the community tap water system for 15 communities located along the water pipeline free of charge. The project, generating year-round water supply, benefits water users of over 4,000 households. In 2018, the Company supported the water supply to the communities along this water pipeline for 267,710.10 cbm. In addition, an agreement between the Royal Irrigation Department and East Water was made in 2015 on water management to divert water between Prasae and Klong Yai reservoirs through the pipeline. A water management group to manage irrigation water outside the agricultural sector was established under the
project to divert water from Prasae Reservoir to Klong Yai Reservoir in Rayong Province. The meeting agreed on water supply for the development of community, the society, and the environment taking into consideration the systematic allocation of social and environmental budget in 2016. In parallel, a committee for CSR budget administration, made up of water users, the Royal Irrigation Department, and local government bodies, was established to jointly consider and grant approval for projects and budget. During 2015-2017, the Company sponsored the budget in total of Baht 8,957,783 for 19 development projects along Prasae-Klong Yai water pipeline. In 2018, the Company sponsored the budget in total of Baht 4,048,100 for the development of communities, the society, and the environment along the PrasaeKlong Yai water pipeline in 10 projects. The Company and the CSR committee conducted field verification to monitor the progress and project evaluation of the CSR projects granted during 2015-2017, it is found that the communities completed all projects according to plan.
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Sustainability Report 2018 Eastern Water Resources Development and Management Public Company Limited
Pluak Daeng
Pipeline New water distribution point
10
Klong Nam Daeng (1) Nong Rai *
11
Klong Nam Daeng (2) Nong Rai *
12
Klong Pa Wai (1) Nong Rai
Old water distribution point
Nong Rai Waterworks
Laharn Subdistrict
Klong Yai Reservoirs
Water supply pipeline with
15
Nong Rai Subdistrict
Nong Pla Lhai Reservoirs
(km.30+985) (km.31+900)
(km.41+700)
15
Laharn SAO (2) Laharn
14
Laharn SAO (1) Laharn
13
Nong Bua (1) Nong Bua
Nong Bua Subdistrict
01. April 2015
Subdistrict
Sponsor fuels for solving drought problem
Nhong Rai
Sponsor water pipeline installation connected from Prasae system zone 4 to the Reserviors M.6 and Klong Pai Nuea
Kra Sai Bon
Sponsor water pumps for agriculture
Plong Ta Iam
02. October 2016
Subdistrict
February 2017 Water distribution points connection and pipeline installation of water pumping station zone 3, Km 6+925
Subdistrict
Huay Yang
Water pipeline installation in Klong Pai Nuea Moo 7
Kra Sai Bon
Water pipeline installation in Khao Phak Ghood, M.6
Kra Sai Bon
Water distribution project in the Poh Peang National Park
Chum Saeng
04. April 2017
Repair work of water pipeline, expansion zone (right side), 8 points
Chum Saeng, Pa Yup Nai, Huay Yarng
Repair work of water pipeline, expansion zone (right side), 5 points
Kra Sai Bon
Water pipeline installation for agriculture, Ma Pring Moo 5
Plong Ta Iam
Chum Saeng, Plong Ta Iam, Wang Chan, Pa Yup Nai,
Building extension of the Agricultural Productivity EfďŹ ciency Increasing Learning Center, Wang Chan district
Plong Ta Iam
Repair work of motor and start motor, water pumping station zone 1-4 Water ow rate measuring instruments
Chum Saeng
03. February 2017 Repair work of electric system and equipment of the water pumping station, expansion zone 3 Repair work of electric system and equipment of the water pumping station, expansion zone 4
Subdistrict
Huay Yang
Kra Sai Bon
Repair work of water pipeline, expansion zone 1-3 Staff recruitment for supervising pumping station zone 3 and opening-closing water discharge points to community
(km.30+950)
Klong Pa Wai Waterworks
(km.39+900)
(km. 37+080)
raw water distribution points
Klong Nam Daeng Waterworks
Subdistrict
Chum Saeng, Pa Yup Nai Huay Yang, Plong Ta Iam
Huay Yang, Wang Wah Song Sa Lueng
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Pa Yoob Nai (1) Pa Yoob Nai
04
Pa Yoob Nai (2) Pa Yoob Nai
06
Tha Sao (1) Nong Bua *
Chum Saeng (1) Chum Saeng
Pa Yoob Nai Subdistrict Ban Khlong Wai Som บานแกงหวาย อบต.วังจันทร
Ban Yup Ta Neng
(km.6+400)
Ban Tha Sao Pa Yoob Nai Waterworks Tha Sao Waterworks Nong Kho Waterworks
Khao Chamao
(km.11+600)
(km.2+700)
(km.14+700)
(km.16+900) (km.16+000)
Chum Saeng Subdistrict
Sala Nam Luek Waterworks
(km.22+505) (km.22+000)
Prasae Reservoirs
02
Chum Saeng (2) Chum Saeng
05
Chum Saeng (3) Chum Saeng
(km.20+805)
07
Sala Nam Luek (1) Nong Bua
09
Nong Kho (2) Nong Bua
08
Nong Kho (2) Nong Bua
Prasae Pumping Station
Wang Chan
Ta laeng
05. October 2017
Subdistrict
Water pipeline installation for agriculture, M.4, M.7, M.8
Huay Yang
Repair work of water pump, pumping station, expansion zone 4
Kra Sai Bon
06. April 2018
Subdistrict
Staff recruitment for supervising pumping station zone 3 and opening-closing water discharge points
Huay Yang, Wang Wah, Song Sa Lueng
Water distribution points connection and pipeline installation of water pumping station zone 3, Km 7+050
Huay Yang
Repair work of water pipeline, expansion zone 1-3
Plong Ta Iam, Chum Saeng, Huay Yang, Pa Yup Nai
Repair work of water pipeline, expansion zone 4
Kra Sai Bon,
Repair work for electric system controlling water pump motor of pumping stations, zone 2 section 3, and zone 4 Maintenance work for mild-steel water pipeline, expansion zone (zone 2 section 2 & 3, zone 3)
Wang Chan, Cham Koh
Plong Ta Iam, Wang Chan Huay Yang, Wang Wah
07. September 2018
Subdistrict
Raw water pipeline installation for agriculture
Huay Yang
Weed dredging and sediment removal, M.1 and M.6
Huay Yang
Raw water source improvement for community tap water, Klong Nam Daeng village
Nhong Rai
Bio-organic fertilizer production following the Father’s footprint
Kra Sai Bon
Repair work of the pump unit no. 4’s water gate of the pumping station (right side)
Chum Saeng
Water pipeline construction for agriculture M.5
Wang Chan
93
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Sustainability Report 2018 Eastern Water Resources Development and Management Public Company Limited
Occupational training (Reducing expense, Increase Income, as per the Sufficient Economy Philosophy)
The Company offered vocational courses for housewives, communities and youth from March to November. A total of 1,281 trainees from 30 communities joined the sessions, with the overall satisfaction of 88.75% Friendship Football
The Company organized 4 friendly football matches tightened tie with local communities. The public sectors and local communities from the 4 districts took part in the events - Klong Khuen District, Chachoengsao Province, and Pluak Daeng, Baan Chang, Muang District, Rayong Province. Water for Communities Clean free water of 4,443,581 liters in the form of cup and bottle of water (220 ml and 350 ml respectively), 4 mobile water trucks and 5 water tubes were sponsored to local communities’ activities, in 2018.
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East Water Conservation Network Project
The East Water Conservation Network Project is furthered from the East Water Young Leader Camp which ran from 2007 to 2012 and was executed in integration with the group of environment fighters, water source detectives of Chachoengsao, and surveillance and monitoring center on water quality of Pluak Daeng District, Rayong Province. In collaboration with the two agencies, the Company launched the East Water Conservation Network Project in 2017 with the purpose of exchanging knowledge and experience between the two sites in monitoring and inspecting water quality. The project also encourages youth to care, cherish, maximize water usage, and take care of water resources sustainably. 80 teenagers from 12 schools (40 in Rayong and 40 in Chachoengsao) joined this campaign, who will bring the knowledge from the camp to inspect water quality in the water resources and act as a leader to create collaboration with the community for a better water resource. The project aims to produce 80 young leaders from the conservation project annually. The overall satisfaction from the participated teenagers is 88.22% East Water’s Sufficient Economy Learning Center Project in Klong Khuen, Chachoengsao
On the occasion of the 20th anniversary, the Company established the East Water’s Sufficient Economy Learning Center in 2012 as a practical place for learning according to King Bhumibol’s idea. The site is situated in 22 rai of land in Klong Khuen subdistrict, Klong Khuen district, Chachoengsao province. The compound serves as a learning area for the Sufficient Economy and New Theory Farming. Farmers can learn how to seek more income and reduce costs.
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2012
2013
2017
An MOU was signed to cede the East Water’s Sufficient Economy Learning Center to the Office of the Non-formal and Informal Education in Klong Khuen, with 7 buildings.
Company, in collaboration with Klong Khuen District formulated the Operating Committee for the Sufficient Economy Learning Center.
Company and the Operating Committee improved the Learning Center 's landscape for readiness preparation to serve the community in 2018.
In 2018, East Water’s Sufficient Economy Learning Center, Klong Khuen, were ready and opened for service to the interested people. There are learning bases on offer such as organic rice, insecticide-free vegetable, poultry farming, waste water management, bio-organic fertilizer production to reduce agricultural cost. Meanwhile, a field demonstration allows farmers to gain greater learning and career skills together through the learning by doing concept. The produces
from the Learning Center are sold in the market, such as dried mango, coconut, rice, vegetables, etc., to generate income to the organization for a sustainable growth. The East Water’s Sufficient Economy Learning Center served the visit and use of the learning center services from the the communities and government agencies in total of 11 groups of 367 people, generating profits of over 200,000 baht sale of products and entrance fees.
Computer Course for Disabled Students Project, Class No.6, 2018 Disabled Students Project to enable the disabled to apply the knowledge to their occupation and job application. The project was trained by the local officers from the Office of the District Non-formal and Informal Education in 11 districts in Chachoengsao. The Company aims that the traineers are able to apply the knowledge for pratical occupation at least 10% of the total participants. In 2018, there were 175 trainees.
Since 2011, in collaboration with the Office of the Nonformal and Informal Education in Chachoengsao, the Company has offered the Computer Short Course for
Based on the result monitoring of the trainees, it is found that certain number of trainees are able to be employed as follows: Class No.3 (2015): 18 out of 110 trainees, or 16.36%; Class No.4 (2016): 12 out of 105 traineers, or 11.43%; Class No.5 (2017) 28 out of 105, or 26.67%.
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Economic values of the Company’s Community and Environment Development Projects during 2017-2018 (Disclosure 201-1) Budget (Baht)
Project
2017
Developing Water Infrastructure and Environmental Conservation (temporary wages, repair and maintenance costs, car rental, activity costs, quality of life improvement) Developing quality of life for communities Developing Lifelong Learning Total
10,907,115
2018
8,816,138
5,842,978 3,634,100 1,470,547 299,019 18,220,640 12,749,257
Innovation for Water Conservation (Disclosure 102-9, 303-1) 1. Pipeline Risk Prioritization For over 26 years of the business in raw water pumping through a large water grid, the Company realized the efficiency of the raw water pipeline is one of the key risks and has started the Pipeline Risk Prioritization Project to assess risks possibly occur from pipeline leaks throughout the 491.8 kilometres stretch. The study includes the likelihood and consequence of failures from the water pipelines categorized in 5 risk levels based on the factors affecting raw water supply deterioration. The factors include material, years in service, corrosion, fracture history, and the consequence after pipe leak or fracture. The study revealed that the raw water pipeline with medium risk level is 20.83 km long and the one with high risk level is 22.41 km long. Major factors are contributed from the materials of the pipeline, corrosion, and the pressure from the traffic above the pipeline. In 2019, the Company will conduct the field survey for the raw water pipelines with medium and higher risk levels.
2. Pump Audit The Company has the policy on energy consumption reduction for environmental conservation and indirect carbon dioxide emission reduction. The Company has electricity as the major capital with 15 pumping stations. Dok Krai, the oldest pumping station, has been used since 1984. Pump Audit Project is initiatied to study an individual pump efficiency for the associated energy use performance, and energy cost for running the system, including new pump replacement opportunities to reduce the energy cost and payback period. From the inspection of 56 pumps in 13 pumping stations in 2018, it is found that replacing the pumps in line with the usage enables energy cost reduction and increase the efficiency of the pumps. In 2019, Company will use the study result to improve and develop further work processes.
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Sustainability Report 2018 Eastern Water Resources Development and Management Public Company Limited
SDG Index SDG GOALS
GRI Indicators
SR Page
Goal 1 End poverty in all forms everywhere
201- 1, 203-1
10, 11, 67, 85, 91, 97
Goal 2 End hunger, achieve food security and improved nutrition and promote sustainable agriculture
201-1, 203-1
10, 11, 67, 85, 91, 97
Goal 3 Ensure healthy lives and promote well-being for all at all ages
403-2
51, 84
Goal 4 Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all
404-1, 404-2
45
Goal 5 Achieve gender equality and empower all women and girls
102-7, 102-8, 401-1
10, 15, 83
Goal 6 Ensure availability and sustainable management of water and sanitation for all
201-2, 303-1, 303-2
34, 40, 58, 62, 67, 97
Goal 7 Ensure access to affordable, reliable, sustainable and modern energy for all
302-4, 305-2
67, 70, 73
Goal 8 Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
201-1, 401-1
10, 11, 48, 67, 83, 97
Goal 9 Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation
201-2
62, 67
Goal 10 Reduce inequality within and among countries
401-1
48, 83
Goal 11 Make cities and human settlements inclusive, safe, resilient and sustainable
201-1, 203-1
10, 11, 67, 85, 91, 97
Goal 12 Ensure sustainable consumption and production patterns
N/A
N/A
Goal 13 Take urgent action to combat climate change and its impacts
302-4, 305-2
67, 70, 73
Goal 14 Conserve and sustainably use the oceans, seas and marine resources for sustainable development
N/A
N/A
Goal 15 Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss
201-1, 303-2
10, 11, 58, 67, 97
Goal 16 Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels
205-2
74
Goal 17 Strengthen the means of implementation and revitalize the global partnership for sustainable development
201-1
10, 11, 67, 97
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GRI Content INDEX GRI Standard
Disclosure
Page number AR
SR
GRI 101: Foundation 2016 General Disclosures ORGANIZATIONAL PROFILE
GRI Disclosure 2016
102-1
Name of the organization
12
102-2
Activities, brands, products and services
12
102-3
Location of headquarters
12
102-4
Location of operations
12
102-5
Ownership and legal form
14, 18
102-6
Markets served
12, 14
102-7
Scale of the organization
10, 15, 83
102-8
Information on employees and other workers
83
102-9
Supply chain
30, 97
102-10 Significant changes to the organization and its supply chain
18
102-11 Precautionary Principle or approach
76
102-12 External initiatives
30
102-13 Membership of associations
31
STRATEGY 102-14 Statement from senior decisionmaker 102-15 Key impacts, risks and opportunities
7 38, 40
ETHICS AND INTEGRITY 102-16 Values, principles, standards and norms of behavior
44
102-17 Mechanisms for advice and concerns about ethics
17
GOVERNANCE 102-18 Governance structure
15
102-20 Executive-level responsibility for economic, environmental and social topics
15
102-22 Composition of the highest governance body and its committees
15
102-23 Chair of the highest governance body
15
102-24 Nominating and selecting the highest governance body
16
102-32 Highest governance body’s role in sustainability reporting
17
Scope of Report
Omission Note
External Assurance
100
Sustainability Report 2018 Eastern Water Resources Development and Management Public Company Limited
GRI Standard
Disclosure
Page number AR
SR
Scope of Report
STAKEHOLDER ENGAGEMENT 102-40 List of stakeholder groups
19
102-41 Collective bargaining agreements
49
102-42 Identifying and selecting stakeholders
19
102-43 Approach to stakeholder engagement
19, 41
102-44 Key topics and concerns raised
19, 41
(Direct) users of raw water
REPORTING PRACTICE
GRI Disclosure 2016
102-45 Entities included in the consolidated financial statements
12, 18
102-46 Defining report content and topic Boundaries
18
102-47 List of material topics
21
102-48 Restatements of information
18
102-49 Changes in reporting
18
102-50 Reporting period
18
102-51 Date of most recent report
18
102-52 Reporting cycle
18
102-53 Contact point for questions regarding the report
18
102-54 Claims of reporting in accordance with the GRI Standards
18
102-55 GRI content index
99
102-56 External assurance
104
Material Topics GRI 200: Economic Standard Series ECONOMIC PERFORMANCE 103-1 Explanation of the material topic GRI 103 and its Boundary Management Approach 103-2 The management approach and its components 2016 103-3 Evaluation of the management approach
10, 11, 14, 97
201-1 Direct economic value generated and distributed
10, 11, 67, 97
Revenue and operating expenses of the Company
62, 67
Operations in relation to the Company’s total water solution business only
GRI 201 Economic Performance 201-2 Financial implications and other risks and opportunities due to 2016 climate change INDIRECT ECONOMIC IMPACTS
103-1 Explanation of the material topic and its Boundary
GRI 103 Management 103-2 The management approach and its components Approach 2016 103-3 Evaluation of the management approach
85
Omission Note
External Assurance
Sustainability Report 2018 WE SEE THE FUTURE... Smart water for all
GRI Standard
Disclosure
203-1 Infrastructure investments and services supported
GRI 203 Indirect Economic Impacts 2016
Page number AR
SR
85, 91
Scope of Report
Omission Note
Activities that benefit the society, communities, and environment and are in connection with the Company’s business
ANTI-CORRUPTION 103-1 Explanation of the material topic and its Boundary
GRI 103 Management 103-2 The management approach and its components Approach 2016 103-3 Evaluation of the management approach 205-2 Communication and training about anti-corruption policies and procedures
74
74
GRI 205 AntiCorruption 2016
Permament employees and contractual employees of the Company who are considered the implementers of the Company’s policies as well as business partners of East Water as this is considered important by more than one group of stakeholders.
Material Topics GRI 300: Environmental Standard Series ENERGY 103-1 Explanation of the material topic and its Boundary
GRI 103 Management 103-2 The management approach and its components Approach 2016 103-3 Evaluation of the management approach
302-4 Reduction of energy consumption
70
67, 70
GRI 302 Energy 2016
WATER 103-1 Explanation of the material topic and its Boundary
GRI 103 Management 103-2 The management approach and Approach its components 2016 103-3 Evaluation of the management approach
34, 40, 97
Operating sites in 3 provinces, namely Rayong, Chonburi and Chachoengsao, where the Company’s key operations are conducted as well as the energy consumption of the head office (East Water Building).
Omission of the oil consumption in business operation because the oil consumption rate is very low and considered immaterial if compared to the total annual energy consumption rate
101
External Assurance
102
Sustainability Report 2018 Eastern Water Resources Development and Management Public Company Limited
GRI Standard
Disclosure
303-1 Water withdrawal by source
GRI 303 Water 2016
303-2 Water sources significantly affected by withdrawal of water
Page number AR
SR
Scope of Report
34, 40, 97
This includes the use of tap water of operating sites at the head office (East Water Building) and the operating sites in 3 provinces.
58
The report covers only the operating sites in 3 provinces where the Company’s key operations are conducted.
Omission Note
EMISSIONS 103-1 Explanation of the material topic and its Boundary
GRI 103 Management 103-2 The management approach and its components Approach 2016 103-3 Evaluation of the management approach 305-2 Energy indirect (Scope 2) GHG emissions
73
73
GRI 305 Emissions 2016
Operating sites in 3 provinces, namely Rayong, Chonburi and Chachoengsao, where the Company’s key operations are conducted as well as the energy consumption of the head office (East Water Building).
Material Topics GRI 400: Social Standard Series EMPLOYMENT 103-1 Explanation of the material topic and its Boundary
GRI 103 Management 103-2 The management approach and its components Approach 2016 103-3 Evaluation of the management approach GRI 401 Employment 2016
401-1 New employee hires and employee turnover
48
48, 83
Employees of East Water as they are major drivers of the Company’s business operations.
OCCUPATIONAL HEALTH AND SAFETY 103-1 Explanation of the material topic and its Boundary
GRI 103 Management 103-2 The management approach and its components Approach 2016 103-3 Evaluation of the management approach
50
External Assurance
Sustainability Report 2018 WE SEE THE FUTURE... Smart water for all
GRI Standard
Disclosure
403-1 Workers representation in formal joint management–worker health and safety committees 403-2 Types of injury and rates of injury, GRI 403 occupational diseases, lost days Occupational and absenteeism and number of health work-related fatalities and safety 2016
Page number AR
SR
Scope of Report
Omission Note
Permanent employees and contractual employees including, in case of largesize construction projects, subcontractors.
Omission of the absentee rate of all subcontractors because such figures are not material to the Company’s operations.
53 51, 84
TRAINING AND EDUCATION 103-1 Explanation of the material topic and its Boundary
GRI 103 Management 103-2 The management approach and its components Approach 2016 103-3 Evaluation of the management approach
404-1 Average hours of training per year per employee
GRI 404 Training and 404-2 Programs for upgrading employee Education skills and transition assistance 2016 programs
45
45 45
Employees of East Water as they are major drivers of the Company’s business operations.
LOCAL COMMUNITIES 103-1 Explanation of the material topic GRI 103 Management and its Boundary Approach 103-2 The management approach and 2016 its components
61
103-3 Evaluation of the management approach GRI 413 413-2 Operations with significant actual Local and potential negative impacts on Communities local communities 2016
61
CUSTOMER PRIVACY GRI 103 103-1 Explanation of the material topic and its Boundary Management Approach 103-2 The management approach and 2016 its components
41, 42
103-3 Evaluation of the management approach GRI 418 Customer Privacy 2016
418-1 Substantiated complaints concerning breaches of customer privacy and losses of customer data
41, 42
Implementation of the Company’s construction projects.
103
External Assurance
104
Sustainability Report 2018 Eastern Water Resources Development and Management Public Company Limited
LRQA Independent Assurance Statement Relating to Eastern Water Resources Development and Management Public Company Limited’s Sustainability Report for the calendar year 2018 This Assurance Statement has been prepared for Eastern Water Resources Development and Management Public Company Limited (EASTW) in accordance with our contract but is intended for the readers of this Report.
Terms of engagement Lloyd’s Register Quality Assurance (LRQA) was commissioned by Eastern Water Resources Development and Management Public Company Limited (EASTW) to provide independent assurance on its Sustainability Report 2018 (“the Report”) against the assurance criteria below to a limited level of assurance and materiality of the professional judgement of the verifier using LRQA’s verification procedure. LRQA’s verification procedure is based on current best practise, is in accordance with ISAE 3000 and uses the principles of AA1000AS (2008) inclusivity, materiality, responsiveness and reliability of performance data. Our assurance engagement covered EASTW’s operations and activities of water pumping and pipeline system in the Eastern region of Thailand, excluded its subsidiary companies. Our engagement specifically covered the following requirements: Confirming that the Report is in accordance with GRI G4’s reporting guidelines and core option Evaluating the accuracy and reliability of data and information for only the selected indicators listed below: - Environment: Reduction of energy consumption (GRI 302-4), Water Withdrawal by source (GRI 303-1), Water sources significantly affected by withdrawal of water (GRI 303-2) - Social: Type of injury and rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities (GRI 403-2) Our assurance engagement excluded the data and information of EASTW’s suppliers, contractors and any thirdparties mentioned in the Report. LRQA’s responsibility is only to EASTW. LRQA disclaims any liability or responsibility to others as explained in the end footnote. EASTW’s responsibility is for collecting, aggregating, analysing and presenting all the data and information within the Report and for maintaining effective internal controls over the systems from which the Report is derived. Ultimately, the Report has been approved by, and remains the responsibility of EASTW.
LRQA’s opinion Based on LRQA’s approach nothing has come to our attention that would cause us to believe that EASTW has not, in all material respects: Met the requirements above Disclosed accurate and reliable performance data and information as no errors or omissions were detected Covered all the issues that are important to the stakeholders and readers of this Report. The opinion expressed is formed on the basis of a limited level of assurance and at the materiality of the professional judgement of the verifier. Note: The extent of evidence-gathering for a limited assurance engagement is less than for a reasonable assurance engagement. Limited assurance engagements focus on aggregated data rather than physically checking source data at sites. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been performed.
LRQA’s approach LRQA’s assurance engagements are carried out in accordance with our verification procedure. The following tasks though were undertaken as part of the evidence gathering process for this assurance engagement: Assessing EASTW’s approach to stakeholder engagement to confirm that issues raised by stakeholders were captured correctly. We did this through reviewing the stakeholders’ engagement process and its associated documented information and records. Reviewing EASTW’s process for identifying and determining material issues to confirm that the right issues were included in their Report. We did this by benchmarking reports written by EASTW and its peers to ensure that sector specific issues were included for comparability. We also tested the filters used in determining material issues to evaluate whether EASTW makes informed business decisions that may create opportunities that contribute towards sustainable development. Auditing EASTW’s data management systems to confirm that there were no significant errors, omissions or mis-statements in the Report. We did this by reviewing the effectiveness of data handling procedures, instructions and systems, including those for internal verification. We also spoke with those key people responsible for compiling the data and drafting the Report.
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Observations Further observations and findings, made during the assurance engagement, are: Stakeholder inclusive and Responsiveness: We are not aware of any key stakeholder groups that have been excluded from EASTW’s stakeholder engagement process as defined in our Terms of Engagement. However, the context of the Report, as well as EASTW’s approach for addressing sustainability development, has not considered the views and expectations of these stakeholders. Materiality: We are not aware of any material issues concerning EASTW’s sustainability performance that have been excluded from the Report. It should be noted that EASTW has established extensive criteria for determining which issue/aspect is material and that these criteria are not biased to the company’s management. Accuracy and Reliability: EASTW should consider improving: data management systems for collecting and calculating the data and information associated with the selected specific standard disclosures listed above. For example, the management approach for data collection and evaluation of work-hours and OH&S statistics for subcontractors at the Head Office, was incomplete (i.e. some data was omitted), as defined in the GRI Content Index. processes for internally verifying their data to ensure its accuracy before it is reported. We believe that more systematic and periodic implementation of internal verification will improve the reliability of its data and information and would prevent those errors identified at corporate level.
LRQA’s standards, competence and independence LRQA ensures the selection of appropriately qualified individuals based on their qualifications, training and experience. The outcome of all verification and certification assessments is then internally reviewed by senior management to ensure that the approach applied is rigorous and transparent. The verification is the only work undertaken by LRQA for EASTW and as such does not compromise our independence or impartiality.
Signed
Dated: 20 March 2019
Wiriya Rattanasuwan LRQA Lead Verifier On behalf of Lloyd’s Register Quality Assurance Limited. Represented by Lloyd’s Register International (Thailand) Limited, 22nd Floor, Sirinrat Building, 3388/78 Rama IV Road, Klongton, Klongtoey, Bangkok 10110 THAILAND. LRQA reference: BGK00000307
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