RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
Contents
04
30
About RATCH
Environmental-Friendly Business Operations UÊ Û À i Ì> ÊÊÊ > >}i i Ì UÊ i iÀ>Ì }ÊÊÊ*À ViÃÃÊÊ «>VÌÊÊÊ > >}i i Ì
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Message from CEO
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RATCH Values and Ethics
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Socially-Responsible Activities UÊ , Ã ÊÊÊ> `ÊÊÊ, Ã ÊÊÊ > >}i i Ì
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UÊ - V > ÊÊÊ > >}i i ÌÊÊÊ-ÌÀ>Ìi} iÃ
Sustainable Development
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CSR Innovation and Innovation Promotion
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Social Responsibility Reporting
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Business Sustainable Development UÊ , Ã ÊÊÊ > >}i i Ì UÊ ÕÃ iÃÃÊÊÊ > >}i i ÌÊÊÊ À> iÜ À UÊ ÕÃ iÃÃÊÊÊ*iÀv À > ViÊÊÊ,iv iVÌ }Ê Ê ÕÃ iÃÃÊÊÊ-ÕÃÌ> >L ÌÞ
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Social & Environment Responsibility Report 2012
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RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
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Social & Environment Responsibility Report 2012
About RATCH
4
Ratchaburi Electricity Generating Holding PCL is a leading private power producer of Thailand, with 14% of the country’s installed capacity. The Company was established on 7 March 2000 with a registered capital of Bt 14,500 million. The Company is listed on the Stock Exchange of Thailand.
Vision
2.
“To be the leading independent power producer in the region trusted by the public”.
Mission “To invest, develop, and operate electricity generation and
3. 4. 5.
Strengthen positive relationships with suppliers, business partners, and networks based on mutual benefits
7.
following priorities;
Consistently maintain relationships with communities near the Company’s power plants and other premises
8.
Strengthen competitive capability and promote employees’ quality of work environment
1.2 To increase overseas production capacity in support of corporate expansion
Ensure financial structure accommodative to sustainable business expansion
6.
1.1 To meet domestic demand
Create attractive returns for shareholders with commitment to the benefits of the society as a whole
Policies Expand electricity generation and distribution with the
Enter into related businesses for new opportunities and increasing returns
related businesses”
1.
Expand renewable and alternative energy, to become a leader in renewable energy
9.
Uphold occupational health & safety standards
10. Adhere to good corporate governance
RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
The Company is committed to be a responsible business organization, and play a key role in fostering long-term national energy security, through the power generation to benefit the economy, society and environment for sustainable business
Total installed capacity as of 31 January 2013
expansion. RATCH is a holding company, engaging in principal investment business, in the core company, subsidiaries and affiliates operating 3 main businesses – electricity generation, renewable energy and related businesses in Thailand and overseas. At
8.1%
present, the Company’s installed capacity, commercially commencing and under development, totals 6,303 MW: 4,587 MW in Thailand and 1,716 MW overseas (Lao PDR and Australia).
Electricity Generation
19.1%
The Company emphasizes on the diversification of fuels:
5
natural gas, coal and hydropower for generating stability which plays a significant role in promoting the country’s infrastructure stability. The Company targets to expand the capacity to 7,800 MW in 2016. With regards to fuel choices, the Company takes into consideration the impacts on the environment and global
72.8%
warming in particular. To date, the Company operates 8 gasfired power plants with a combined capacity of 4,933.32 MW: 5 of which, with 4,477.8 MW, are located in Thailand and the remaining three 3 plants with 455.52 MW in Australia. Also, there are 2 very small power plants in Sukhothai, which generate 6.25 MW from associated gas, a by-product from crude oil production.
Combined capacity:
6,303
MW
Domestic capacity
4,586.5
MW
Capacity in Lao PDR
1,206.5
MW
Capacity in Australia
510
MW
Social & Environment Responsibility Report 2012
The Company also puts emphasis on hydropower, which requires low investment and emits zero CO 2 in the generating process which benefits society and environment. The Company currently runs operates and develops 4 hydropower projects, and another 455.3 MW by investing lao securities market through EDL-Gen.
Divensification of fuel used in power generation Natural gas 4,933.32 MW Coal 751.2 MW Hydropower 455.3 MW
Among the fossil fuels resources for energyin power
Renewable energy 156.45 MW Associated Gas 6.25 MW
2.50%
generation, coal is offered the most attractive solution to the
0.09%
increasing fuel cost. Thanks to its vast reserves and affordable
7.22%
price, which will reduce the adverse environmental impacts and to maintain sustainable development which will lower
11.92%
electricity cost and greater electricity stability will be resulted, in direct benefits to the economy and society. On environmental impacts, today’s technology has shown greater efficiency in
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reducing pollution associated with coal combustion. For instance, the Flue Gas Desulfurization (FGD) system is capable of removing upto 97% of sulfur dioxide from the exhaust, helping minimize environmental impacts.
78.27% Commercially-commenced projects Project
Location
Type
Fuel
Project capacity (megawatt)
Investment Capacity by ratio (%) investment ratio (megawatt)
Ratchaburi
Ratchaburi, Thailand
IPP
natural gas
3,645.00
100
3,645.00
Tri Energy
Ratchaburi, Thailand
IPP
natural gas
700.00
50
350.00
Ratchaburi Power
Ratchaburi, Thailand
IPP
natural gas
1,400.00
25
350.00
Pratu Thao and its expansion phase
Sukhothai, Thailand
VSPP
associated gas
2.65
100
2.65
Sao Thian A
Sukhothai, Thailand
VSPP
associated gas
3.60
100
3.60
Townsville
Queensland, Australia
IPP
natural gas
234.00
80
187.20
Kemerton
Western Australia, Australia
IPP
natural gas
300.00
80
240.00
BP Kwinana
Western Australia, Australia
IPP
natural gas
118.00
24
28.32
Nam Ngum 2
Vientiane, Lao PDR
IPP
hydro
615.00
25
153.75
EDL-Gen
Lao PDR
IPP/SPP
hydro
881.00
10.108
89.05
Note: IPP = Independent Power Producer SPP = Small Power Producer VSPP = Very Small Power Producer
RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
Projects under development/construction
Project
Ratchaburi World
Location
Type
Fuel
Project capacity (megawatt)
Investment ratio (%)
Capacity by investment ratio (megawatt)
Ratchaburi, Thailand
SPP COGEN
natural gas
210.00
40
84.00
Navanakorn Electricity
Pathum Thani,
SPP COGEN
natural gas
122.00
40
48.80
Generating
Thailand
Xe-Pian and
Champasak and Attapue,
IPP
hydro
410.00
25
102.50
Xe-Namnoy
Lao PDR IPP
hydro
440.00
25
110.00
IPP
lignite
1,878.00
40
751.20
Cogeneration
Nam Ngum 3
Vientiane, Lao PDR
Hongsa Power
Xayaburi,
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Lao PDR
Renewable energy The Company sets sights on investing in renewable energy in
Renewable energy investment ratio
Thailand and overseas, to lessen dependence on fossil fuel in electricity generation, in-process CO 2 to mitigate global
2.53%
warming impacts. This is a concert effort which will benefit the environment and respond to the government’s policy to join global community in promoting renewable energy. The
15.33%
Company’s focus is on solar, wind and biomass, which seem to be the most promising
resources in the country. The
Company’s plan is to generate 200 MW from renewable energy in 2016. At present, the Company has been involved in 18 projects with combined capacity of 156.45 MW: 15 projects in Thailand and 3 in Australia.
82.14%
Solar power
23.98
Wind power
128.51
Megawatt
3.96
Megawatt
Biomass
Megawatt
Social & Environment Responsibility Report 2012
Commercially-commenced projects Project
Location
Type
Project
Investment
Capacity by
capacity
ratio (%)
investment ratio (megawatt)
(megawatt)
Solar Farms:
Nakhon Ratchasima
Solar Power Co.,Ltd.
Thailand
VSPP
18.00
40
7.20
VSPP
34.25
49
16.78
SPP
103.50
20
20.70
SPP
103.50
20
20.70
SPP
34.50
80
27.60
SPP
21.00
80
16.80
SPP
12.00
80
9.60
1) Solar Power (Korat 3) 2) Solar Power (Korat 4) 3) Solar Power (Korat 7) Solarta Co.,Ltd. 1)Sai Sena
Ayutthaya Thailand
2) Sai Yoi
Nakhon Pathom Thailand
3) Sai Prapa
Nakhon Pathom Thailand
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4) Sai Thong
Nakhon Pathom Thailand
5) Sai Yai
Nakhon Pathom Thailand
6) Sai Tatong
Suphan Buri Thailand
7) Sai Saphan
Suphan Buri Thailand
Huay Bong 2 Wind Farm
Nakhon Ratchasima Thailand
Huay Bong 3 Wind Farm
Nakhon Ratchasima Thailand
Starfish Hill Wind Farm
South Australia Australia
Toora Wind Farm
Victoria Australia
Windy Hill Wind Farm
Queensland Australia
Projects under development/construction Project
Location
Type
Project
Investment
Capacity by
capacity
ratio (%)
investment ratio (megawatt)
(megawatt)
Khao Kor Wind Farm
Petchaboon
SPP
60.00
55.18
33.11
VSPP
9.90
40
3.96
Thailand Biomass Power Station
Songkhla Thailand
RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
Generation-related business The Company maps out the plan to invest in electricity generation and maintenance system, coal mines, and gas turbine equipment maintenance businesses. To date, the Company has invested in 5 companies worth a total of Bt 133.5 million.
Investment in Thailand Item
Company
Registered capital
Country
(million baht)
Investment
Nature of Business/operation ratio
ratio (%)
1
RATCH O&M Co.,Ltd.
10
Thailand
99.99
Operate and maintain small power plants
2
Sukhothai Energy Co.,Ltd.
80
Thailand
51
Enhance gas quality
3
Chubu Ratchaburi Electric
Thailand
50
Operate Ratchaburi Power Plant in Ratchaburi
623
Thailand
10
Gas turbine equipment maintenance
1
Thailand
40
Supply biomass fuel to Songkhla Biomass
Services Co.,Ltd. 4
Egat Diamond Service Co.,Ltd.
5
Songkhla Biofuel Co.,Ltd.
power plant
Investment in Lao PDR Item
Company
Registered capital
Country
(US$) 1
RATCH-Lao Services
2,500,000
Investment
Lao PDR
99.99
Co.,Ltd. 2
Phu Fai Mining Co.,Ltd.
Nature of Business/operation ratio
ratio (%) Operate Nam Ngum 2 Power Plant and hold 5.081% stake in EDL-Gen
50,000
Lao PDR
37.5
Mining service under concession for Hongsa Power Plant
3
Lao PDR
10.108
RATCH-Lao Services Co.,Ltd and RH
EDL-Generation Public
Bt 2,098.52 million
Company
investment through
International (Singapore) Corporation are the
LAO PDR’s
shareholders of EDL-Gen
securities market
The Company’s strategies also include investment in the securities market, focusing on electricity generating companies, to stabilize the Company’s revenue and cash flow and indirectly increase the Company’s capacity. This strategy was introduced in 2011, starting with the purchase of initial public offering (IPO) shares of EDL-Generation PCL. The Company now holds 10.108% stake in EDL-Gen, allowing it to increase electricity generation capacity by 89.05 MW through the holding.
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Social & Environment Responsibility Report 2012
MESSAGE FROM CEO
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Ratchaburi Electricity Generating Holding PCL is committed to reliable electricity generating in support of the country’s economic and social development, with emphasis on social and ecologically-concerned environmental-friendly generating practices.
Ratchaburi Electricity Generating Holding PCL is committed
Guiding the Company’s activities on social and environmental
to reliable electricity generating in support of the country’s
responsibility is a sustainable development approach, with
economic and social development, with emphasis on social
focus steering towards a well balance of the economy, social
and ecologically-concerned environmental-friendly generating
and environmental balance as much as possible to the fullest
practices. For over a decade, the Company has served the
to achieve sustainable growth. In the past year, the activities
the country’s power electricity demand in full capability
are focused on 4 main areas:
through the installed capacity which accounts for 14% of the
1) Tackle carbon emission waste from power generation, to
country’s. In the past year, the Company’s power plants
reduce the impacts of global warming. This has been
generated 19,461 million kilowatt hours, allowing continued
undertaken under 3 main guidelines to reduce CO 2;
economic development and convenience to general public and
- Gas-fired and hydro power plants are the first investment
the entire society. The Company has closely monitored the
priority, thanks to the nature of the “clean energy”. We
environment quality management throughout the generating-
generate 4,940 MW from natural gas or 78.4% of total
process and emphasized collaborations with communities near
capacity, and 455 MW from hydropower or 7.2%.
our premises, guided by the commitment towards equitable
- Increase a proportion of renewable energy portion. In the
responsibility for all stakeholders and consistent returns to
past 3 years, the Company has taken part in 11 solar
shareholders.
power projects, 6 wind power projects, and 1 biomass
RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
power project, with a combined capacity of 156.5 MW.
quality, treated water, heat and noise and biodiversity as
The 11 domestic solar farms and 2 wind farms, as well
well as waste disposal. All power plants have also adopted
as 3 wind farms in Australia have commenced operations,
world-class environment management practices. In the past
and are able to reducinge CO 2 by 179,000 tones per
year, the Company made it a policy to reduce energy and
annum. The Huay Bong 2 and 3 wind farms in Dan
water usage. Ratchaburi Power Plant accordingly carried
Khunthod District in Nakhon Ratchasima province are the
out a project to release lower volume of treated water to
largest wind farms in Southeast Asia with a combined
public water channels, which reduced the water released by
capacity of 207 MW. Our mission is to increase the
over 50% and cut down energy required for the pumping of
renewable energy capacity to 200 MW in 2016.
raw water. An energy conservation campaign was launched,
- Capture CO 2 waste by applying the Carbon Capture Storage approach. A research project is underway, to
whereby equipment was improved and installed to reduce energy consumption.
feed spirulina with CO 2 waste. The research shows, in
4) Good governance: the Company’s mission is guided by our
favorable condition, spirulina’s capacity to contain CO 2
economic, social and environmental responsibility. Aside
is 9 times higher than those from trees’. The Company
from full respect and compliance to laws, we adhere to
has also collaborated with public and private agencies in
business ethics in all activities involving stakeholders which
utilizing CO 2 waste in growing algae for biodiesel
encompass anti-corruption, human rights, and fair
production. The project is expected to be kicked off within
competition.
this year. 2) Build up community trust: our operations create jobs and
Though Thailand’s entry to the Asean Economic Community in
help grow the rural economy. In the past year, Ratchaburi
2015 offers higher investment opportunities, it represents a
Power Plant, our primary asset, paid Bt 1,800 million in
challenge. Business strategies must be adjusted according to
local taxes and contributed Bt 156 million to the Power
the changing environment to preserve sustainable growth. The
Development Fund which was used to fund economic and
Company is convinced that doing business responsibly under
social development projects of the communities around the
sustainable development guidelines, aimed towards the balance
power plant and in Ratchaburi province for continuous
of 3 growth pillars – economy, society and environment, and
growth. The Company has also taken part in lifting up the
together with the full supports from all stakeholders' engagement
quality of life, reducing expenses and increasing income of
will push the Company forward in a strong and solid manner.
people in surrounding communities, with activities involving education and youth, career development, religious and culture, and campaign on energy conservation. 3) Environmental care: growing power demand is at the expense of more fuel burning for power generating, resulting in higher CO 2 . For a balance, the Company opts for low-carbon fuels in the generating production process. The Company also pays significant attention to cutting edge technology. All power plants have installed an environment quality management system which meets global standards
Sincerely Yours,
and demonstrates high efficiency. At Ratchaburi Power Plant alone, the investment in this regard required Bt 4,000 million and the system has been continuously inspected and maintained to ensure the environmental-friendly electricity
(Noppol Milinthanggoon)
generation. The system encompasses the checks of air
Chief Executive Officer
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Social & Environment Responsibility Report 2012
RATCH Values and Ethics
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Aiming to become a leading independent power producer in the region trusted by the public, Ratchaburi Electricity Generating Holding PCL has followed good governance practices since its establishment in 2000. The Code of Conduct and Ethics have been developed and implemented as a guideline for business and non-business operations.
Aiming to become a leading independent power producer in
The Company’s ethics are targeted to promote good
the region trusted by the public, Ratchaburi Electricity
governance among all business units of Ratchaburi Electricity
Generating Holding PCL has followed good governance
Generating Holding PCL. The Code serves as an ethical
practices since its establishment in 2000. The Code of Conduct
framework for all units’ operations, to ensure greater business
and Ethics have been developed and implemented as a
success of the group and is recognized by all related parties.
guideline for business and non-business operations, and the
With this in mind, the Code of Conduct is based on honesty;
Company has strictly conformed to those rules and regulations.
tra nspa re nc y ; i nte g ri ty ; re spo nsi bi l i ty to w a rd s s o ci et y,
In order to cope with rapid changes in business environment,
environment and all stakeholders; and stricted compliance with
the Company has revised and implemented the new core values
laws. The board of directors, executives and employees of all
or company culture in 2011 conducted by employee engagement
levels are endorsed, committed to and abided by the Code of
at all levels.
Ethics. Corporate values are also upheld as our concrete foundation and commitment from all executives and employees in steering the organization towards the Company’s ultimate goal for a sustainable development.
RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
RATCH Values
Collaboration
Values demonstrate the shared aspiration that executives and
Believing in the power of collaboration
employees must engage in our business operation, to deliver
s
To respect team members
and finally achieve the organizational goals; which are:
s
To be sincere and willing to obtain knowledge from others , share experience, and view as a team
Professionalism
s
To create a trustworthy and supportive working environment.
Fostering proficiency to build trust and credibility
s
To take part in the team’s goal setting and achievement
s
To acknowledge differentiation among others and understand
s
To be responsible for the organization’s success and failure
s
To develop employees with a sense of belonging and engagement
other’s behaviors s
To simultaneously coordinate with all groups at all levels for constructive relationships
s
To be professional and ethical one
s
To inspire others as well as oneself
s
To treat others in friendly and supportive manner
s
To pass on knowledge to others
s
To accept and comply with the majority’s decision, and
s
To follow the business and social etiquette
To prioritize mutual benefits
realize the role as part of the team
s
To be punctual in all occasions
s
s
To be open-minded and adjustable to a change of personnel,
s
To be a considerate one with compassion to others
policies and business environment
s
To voluntarily assist cross functional operation as well as
s
To compromise differontiation and minimize conflict among
s
To possess positive and strong interpersonal skills expressed
s
To be polite : show appreciation and apologetic manner in
To constantly develop and improve the efficiency and work
s
To embrace others’ opinions or suggestions with respect
process
s
To make friends and keep up on a good relations with
s s
other activities of the organization
To get hold of a positive attitude To be proficient in communication and presentation skills
others
Passion for Excellence
with open conversations
Striving towards self-development at its best possible result s s
s
appropriate
To perform their duties with determination and devotion
others in their organization and outside
To develop oneself, striving for obtaining new skills and knowledge
s
To be creative and attain holistic thinking
Good Governance
s
To overcome difficulties with determination
Maintaining integrity and corporate governance
s
To achieve particular assignment within or higher sets of
s
To ensure that duty is performed under the righteousness,
s
To ensure an equitable treatment and keeping word of
s
To avoid any improper actions possibly lead to oneself to
s
To comply with laws, rules, regulations and the company’s
s
To keep the Company’s information with confidentiality
s
To demonstrate voluntarily spirit and devote their time to
transparency, and fairness
standards s
To be able to perform more challenging tasks
s
To set clear plans and goals before implementation
s
To embrace the “Can Do” attitude
s
To envision potential obstacles and plan for resolution in advance
s
honour to others in favor of the organization’s interests harm reputation of the organization policies
To think out of the box and show an imaginative view, in order to create any possible innovation
benefit others and the society Throughout our past 13 years, ethics and values are the heart and significant foundation that have formed our executives and employees towards integrity, ethical standards, honesty, respect and accountability to all stakeholders.
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Social & Environment Responsibility Report 2012
Sustainable Development
14
The Company realizes that solid and sustainable business growth must go hand in hand with the improvement in community quality of life, society and environment. It upholds this commitment and act accordingly since the business was established
Management guidelines
Good corporate governance
As a responsible business organization, the Company realizes
The Company has been operating under good corporate
that solid and sustainable business growth must go hand in
governance practices, business ethics, morals and ethics,
hand with the improvement in community quality of life, society
aside from accountability to society, community, environment
and environment. It upholds this commitment and act
and all stakeholders, to push the organization towards an
accordingly since the business was established. Corporate
international status in a solid and sustainable way. This will
governance underlines the company’s practices and shapes
prepare the company for the Asean Economic Community in
the operating framework, to ensure achievements at all units,
2015 and help it achieve the vision to become a leading
value-added returns to shareholders, and equitable and fair
publicly-trusted independent power producer in the region.
treatment to all stakeholders. These run accordingly to the sustainable development philosophy.
RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
The Company’s Board of Directors has applied good corporate governance practices for listed companies and the Securities and Exchange Commission (SEC)’s guidelines in directing the Company and promoting it as an efficient and ethical business organization, aside from responsibility to society, community and environment. These are the fundamentals of sustainable growth. The “Good Governance Policy” have been enforced throughout the group since 2003, with annual reviews and updates.
All subsidiaries of Ratchaburi Electricity Generating Holding PCL are required to follow the same set of guidelines, as universal practices will establish trust and confidence among shareholders, investors and all stakeholders. This is to stress its business responsibility; honest and equitable treatment to stakeholders; accountability; quality information disclosure; commitment to short-term and long-term added value to the organization; supports on good, moral and ethical practices among executives and employees; and responsibility to society and environment.
The company also puts in place other policies to encompass stakeholders, including Risk Management Policy, Shareholders Policy, Employee Policy, Society and Environment Policy, Information Technology and Networking Policy, Safty Policy, Occupational Health and work environment Policy, and the 5S Policy. All are disclosed on the Company’s website. The Company also commissions a study to accommodate challenges from the AEC, resulting from regional amendments in regulations governing listed companies throughout Southeast Asia.
The Company’s good governance framework is as follows;
>> The Board of Directors and sub-committees The Board of Directors, acting on behalf of shareholders, plays a crucial role in leading the Company towards sustainable success. It is tasked to ensure the Company’s compliance to laws, the Company’s goals, regulations, shareholders’ resolutions and related rules.
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Social & Environment Responsibility Report 2012
As of 31 December 2012, the Board of Directors comprised
s
Supervise human resource management, to ensure
12 experts in areas related to the Company’s operations: 7
transparent and appropriate guidelines, methods and
representing major shareholders (including one member from
procedures for the selection, evaluation, dismissal and termination of directors and high-level executives
the executive) and 5 independent directors. Their role and responsibility can be summarized as follows: s
s
s
Review and supervise process of the internal audit and
Formulate vision, strategies, policies, business plans,
internal control, risk management, control of inside
budgets and work process in accordance with
information used, connected transaction reporting, conflict
competitiveness of the company
of interest, information disclosure and work procedures, to
Regularly examine the performance of the Company and
ensure transparent protection of stakeholders’ interests and
the management in relation to goals and/or forecasts
compliance to related rules
The Company also has 4 sub-committees supervising closely-connected significant matters.
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Sub-committees 1.
Summarized Scope of Duty
Audit Committee
s
Review and ensure accurate and sufficient financial reporting
Appointed by all independent
s
Review internal audit system and ensure efficient and effective internal control,
directors
to prevent corruption or serious malpractices in the work process s
Review connected transactions or transactions that may incur conflict of interest, to ensure compliance to laws and the Stock Exchange of Thailand’s rules and regulations
2.
Human Resources and
s
Monitor and ensure compliance with laws related to the company’s business
s
Set vision and strategies on human resources and executive capability
s
Formulate clear and transparent policies, guidelines, methods and procedures
Remuneration Committee
enhancement plan
involving in selection, dismissal or termination of directors and high-level executives. Set clear, transparent and performance-linced remuneration to attract and retain capable personnel s
Formulate efficient and effective performance appraisal guidelines, criteria and
s
Disclose the remuneration-setting policy for directors and high-level executives
procedures
and the amounts in a transparent manner
RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
Sub-committees 3.
Risk Management Committee
Summarized Scope of Duty s
Review risk management policy and guidelines to cover various risks inclding risks on investment and businesss development, on the development of under-construction projects, on the operations of commercially-commenced power plants, on finances and on the organization’s image and reputation
s
Formulate risk management strategies and conduct quarterly evaluation to maintain risks at controllable level and ensure no significant impacts to the organization
s
Monitor and control risk factors that may affect business operations and the Company’s future capacity expansion
s
Impose measures to mitigate risk impacts and prevent undesirable events, to avoid serious impacts
4.
Investment Screening Committee
s
Thoroughly and comprehensively review investment plans, to ensure the compatibility to the company’s goals, business circumstances and related factors
In 2012, the Company won the “Excellent CG Scoring” from
investment projects. Employees at all levels have also been
the annual Corporate Governance Report of Thai Listed
ordered to strictly honor the policies, rules and regulations,
Companies 2012 for fifth consecutive years. The Company
and all control measures, to show their accountability. The
was also on the “Top Quartile” of listed companies with market
treatment guidelines for major stakeholders are as follows;
capitalization over Bt10,000 million. The Thai Investors Association also assigned “Excellent” rating for the Company’s
Shareholders
annual shareolder meeting in 2012, reflecting the Company’s
s
Bolster business growth for maximum returns to shareholders.
efficient and effective application of good governance practices
s
Respect, protect and ensure basic rights of all shareholders in the disclosure of necessary information for their evaluation
in business management.
of the Company’s performance. Ensure accurate and regular
>> Business ethics
reporting on operating results and financial statements, in
The Company is convinced that underlying the solid and
line with international standards honored in local and
sustainable business development is honesty, integrity and
overseas capital markets.
ethics. The Company has been committed to operating the
s
Fully and comprehensively comply with accounting standards
business with integrity, transparency, ethics and responsibility
as required by laws and ensure systematic examination from
to society, environment and all stakeholders, aside from strict
internal auditors, independent auditors, the audit committee
compliance with laws. This reflects in the application of the
and the Board of Directors.
generally-acccepted accounting standards; appropriate, costefficient and efficient budgeting; and regular evaluation of
17
Social & Environment Responsibility Report 2012
Employees
18
s
s
who put emphasis on quality and value-for-money of
appropriate and fair compensations.
products/services as well as trust upon ethical business
Resort to fair, just and honest principles on knowledge, skills
practices. s
demanding or offering anything from the Company’s
Ensure regular participation in nurturing the environment,
business partners, creditors and/or debtors. s
the Company’s assets, society, and the environment. Thoroughly encourage employees on knowledge and skill
Compete in a good spirit and do not forge groundless accusations against competitors.
s
enhancement. s
Prohibit directors, executives and/or employees from
and punishing employees.
occupational health and safety for the sake of employees,
s
Improve and maintain sustainable relationship with partners
Base employee remuneration on the merit system, to ensure
and appropriateness in appointing, transferring, rewarding
s
s
Do not seek competitors’ secrets via dishonest and improper means.
Strictly follow labor and welfare laws and regulations. Society and Environment
Business partners, competitors, creditors and debtors s
s
Source out products and services in an ethical and fair
operations and ensure strict compliance with environmental
manner under the following guidelines: - Ensure competition among bidders and ensure proper
laws and regulations. s
and fair selection.
Uphold His Majesty the King’s “Understanding, Accessibility and Development” principle in the operations for peaceful
- Put in place the criteria and standards on partnership consideration and selection.
Put society and environment as the priority in business
coexistence with community and mutual benefits. s
Take community as “good neighbors”, to develop and
- Ensure proper and standardized form of contracts.
strengthen community for a better and sustainable quality
- Put in place the contract management and monitoring
of life.
system, to ensure complete and transparent contract
s
Promote community participation in order to access the Company's
fulfillment whch will prevent corruption and malpractices
information disclosure, bolster positive understanding,
throughout the procurement process.
monitor, and review impacts incurring from the Company’s operations.
RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
s
s
Encourage and promote exchange of knowledge and
>> C o m m u n i c a t i o n s , T i p - O f f s , a n d C o m p l a i n t
experience in the individual and cross-organisation levels,
Management
for proper and continued improvement in the environmental
For righteous, transparent, just and accountable business
condition.
doing in line with the well-preserved good governance, the
Respect local traditions and customs of communities where
Company has put in place proper and various communications
the Company operates and regularly support community
channels for stakeholders, from telephone, facsimile, e-mails,
activities.
postal mails to website. They can also reach corporate communications units like the Office of Company Secretary,
>> Compliance with laws and regulations
Public Relations Department, Investor Relations Department,
The Company is determined to grow the organization for
Community Relations Department and Social Activity
mutual benefits of all stakeholders, while upholding integrity,
Department. The Company also assigns the Human Resource
honestry and ethics under the good corporate governance.
Division and the Office of Company Secretary to handle
This culminates into creditability and recognition from relevant
complaints from stakeholders who discovered, acknowledged
parties. Throughout the years, the Company has followed the
or had questions on actions by any units or employees which
following related laws, rules and regulations:
violate laws, policies, rules, regulations, good governance
Laws, regulations, internal control, and every rule related to
practices, or Code of Ethics and may cause the Company
the Company’s business operations.
damage. There are measures to protect complaint filers who
s
The company’s code of ethics, policies, rules, regulations
filed complaints with good intentions.
s
Employees at all levels and relevant parties must recognize
Filing tip-offs or complaints, the persons must specify details,
and strictly follow rules, regulations and work procedures
their names, addresses and contact phone numbers and send
and cooperate with the Company’s internal control.
them to the Human Resource Division or the Office of Company
s
and work process.
Secretary. The Chief Executive Officer, independent directors
>> Information disclosure and Transparency
or the Audit Committee can be notified of this for direct
Information disclosure and transparency is the fundamental of
investigation and reporting to the Board of Directors.
good corporate governance practices, the Company has adopted as a company listed in the Stock Exchange of
The complaint filers’ names, addresses or their information will
Thailand. The Company’s information has been disclosed
be classified and not disclosed to irrelevant persons, unless
accordingly to the policy and guidelines set by the SET and
required by laws. The Company will also limit access to the
the Securities and Exchange Commission, to ensure sufficient,
information to only persons authorised to the investigation. In
fair and timely disclosure through media and communication
the investigation process, the Company will set up an
channels aside from the SET’s electronics network. This is to
investigation committee and jointly with related parties will
ensure maximum access of target groups. The channels
devise remedial measures. Progress must be reported to the
include the company’s website, annual reports, press releases,
management team and remedial measures must be submitted
press conferences, interviews, investor meeting, analyst
for the management’s consideration in due time. The complaint
meetings, and shareholders’ site visits. Besides, shareholders,
filers will be notified of the investigation result, after the
investors, analysts, the media, communities, regulatory
management acknowledges the result and approves the
government units, or all stakeholders can also make direct
remedial measures.
contacts with the Company’s communications departments. (Details of information disclosure are in Annual Report 2012).
19
Social & Environment Responsibility Report 2012
>> Audit Monitoring
Encourage Community Participation
The Company’s audit monitoring has been a key mechanism
The Company has put community participation as first priorities
in preserving good governance and enhancing trust among
in its social and environmental policy. This has been enforced
stakeholders that the Company’s internal control and risk
in all activities and all stages of project management.
management has been enforced properly and sufficiently. The Internal Audit Division reports directly to the Audit Committee, Project development stage
which is the primary unit to audit the following operational system: s
Review the Company’s systems and procedures to ensure compliance, transparency and compatibility with the policy, work plan, code of practices and related laws.
s
Review and assess the sufficiency of all units’ internal control, with emphasis on efficiency and effectiveness of resource allocation and optimal response to the organization’s goals.
s
20
s 3TUDY PRI M A RY DA TA O N TE C HNI C A L A ND C OM M U N I T Y economic/social/and cultural aspects. s #OMPLETE A PLAN ON COMMUNITY PARTIPATION AND THE project communication plan. s (OST ACTIVITIES TO PROMOTE UNDERSTANDING IN THE PROJECT and public meeting to sound out community opinions on different issues as required by related government units and regulators.
Review the accuracy and credibility of financial reports and information, encompassing reliability and asset protection
Construction stage
and assessment of the sufficiency of internal control, to ensure that the accounting, registration, papers and financial reporting system is accurate, accountable and shielded against personal mischiefs.
s #ONTINUOUSLY COMMUNICATE AND EDUCATE COMMUNITIES on the progress and the Company’s operations. s 0UT IN PLACE A COMMUNICATION UNIT AS A DIRECT CHANNEL for hearing, suggestion, community's complaint, and
Priority emphasis for strict internal audits are finance/
responding to them timely.
accounting, procurement, asset management, inveritory management, human resource management, and legal compliance. Commercial operations stage s #LOSELY AND CONTINOUSLY COMMUNICATE WITH THE COMMUNITIES s (EED THEIR OPINIONS AND IMPROVE ACTIVITIES IN ACCORDANCE with community needs s #LOSELY MONITOR THE IMPLEMENTATION OF SOCIAL AND environmental impaer mitigation measures identified in EIA report
At Ratchaburi Power Plant, "the Environment Inspector Committee of Ratchaburi Power Plant" is set up, consisting of community representaives, community leaders, and representatives from local and provincial administrative bodies.
RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
At Ratchaburi Power Plant, “the Environment Inspector
Risk Management
Committee of Ratchaburi Power Plant” is set up, consisting of
The Company realizes the need in keeping risks in the
community representatives, community leaders, and
controllable level. The guidelines and procedures to identify,
representatives from local and provincial administrative bodies.
assess, handle and monitor all aspects of risks involving
They inspect the power plant and ensure that the environmental
business units and/or the organizational operations are
impact mitigation measures are implemented in accordance
outlined. The Risk Management Working group comprising
with the environmental impact assessment report and the
executives of all business units and risk management units is
environment monitoring plan. The committee acts as the
established, taking the primary role in ensuring compliance
coordinator with the power plant and disseminates information,
with the policy and practices specified by the Risk Management
facts, problems or possible problems and suggestions from
Committee. Their responsibility is as follows;
the community. This is a major channel of community
s
Identify, analyze and evaluate type of risks and outline risks
s
Study and analyze internal and external factors which may
participation in monitoring the Company’s operations.
which could derail the Company’s goals.
Environment and Occupational Health Measures
cause uncertainties and affect the Company’s operations, to protect the organization from destruction or loss of value,
The Company has enforced international operating standards
as well as seek opportunities to increase competitiveness
across the group. On environment, the group’s power plants
and generate added value to the Company.
- Ratchaburi, Tri Energy, Ratchaburi Power - have applied ISO
s
Specify international-standard risk management guidelines
14001 standards and the operations have been continuously
for business units and the organization, to minimize negative
and closely revierwed and monitored.
impacts. The guidelines will be submitted for the Risk Management Committee’s approval.
In 2011, Ratchaburi Power Plant won the OHSAS 18001
s
Monitor, analyze and ensure that managing risk in business
certificate and the occupational health standards have been
unit and organization all levels is in line with specified
enforced together with ISO 14001. Pradu Tao Power Plant
guidelines, and control risks can be contralled in the level
also won ISO 9001:2008 certificate and the Company has continuously followed through the requirements.
approved by the Risk Management Committee. s
Complete the Company’s quarterly risk management report and submit it to the Risk Management Committee. (Details
In 2012, Solarta Co.,Ltd’s solar farm was enlisted in the Clean Development Mechanism (CDM) sheme under the United
of risk management are in Annual Report 2012) s
Nations Framework Convention on Climate Change (UNFCCC).
The Board of Directors outlines risk management policy and ensures compliance. At meetings, the Board reviews risk factors that could affect the Company’s operations and outlines measures to tackle risks in the most effective way.
s
The Risk Management Committee considers the Company’s risk management framework and measures and reviews the efficiency and effectiveness of the measures.
s
Management team reviews business risks and specifies measures within the framework specified by the Board. The measures are submitted for the Risk Managment Committee’s consideration.
21
Social & Environment Responsibility Report 2012
Risk Management Diagram
Board of Directors
Audit Committee
Risk Management Committee Internal Audit Division Management
Risk Management Working Group Risk management Business level
22 Portfolio Managment Function
Planning and Business Development Function
Accounting and Finance Function
Corporate Administration Function
Managment Business unit risk level
s
s
Risk Managment Working group accumulates possible risks
The control encompasses financial information management to
and monitors risk management of business units. It analyzes
ensure accurate, complete and reliable financial reports as well
and defines business risks, completes measures to handle
as strict compliance with related laws, rules and regulations.
the risks, and submits the measures for the management
The Company’s internal audit emphasizes and requires
consideration.
thorough audit on four major areas:
Business units are tasked to evaluate their risks, which may
s
Efficiency and effective of main operating systems - human
affect the Company’s operations and complete the units’
resource management, accounting and finance, budget
risk management plan. They must report progress on a
disbursement, IT, inventory management, and procurement
monthly basis to the Risk Management Working group.
process s
Accuracy and reliability of financial reports, through the review
Internal Control
and evaluation of the data-processing system, SAP, and
Infornal control system is a mechanism adopted to manage
assurance of correct and properly-screened financial document.
internal risks. Through the independent internal audit unit
s
of the Company, subsidiaries and joint ventures are reviewed.
Conpliance with law, regulations and rules the Company’s business
reporting directly to the Audit Committee, all business units s
Worthiness of investment in joint ventures, through the review
The efficient and effective internal control is developed, to
of the 3 aforementioned areas. For joint ventures with under-
ensure that the Company’s operations are in line with business
development projects, the review is geared towards budget
goals in tems of operating results and resource maximization.
and investment disbursement.
RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
Internal Control System
Board of Directors
Independent Auditor
Audit Committee
Management
Internal Audit Division Coordinate & exchange information with the auditor
23
on audit plan, auditing scope and method, and results
Business units of Company, Annual audit planning
subsidiaries, and joint
Review and execute the audit plan
Submit suggestions when risks emerge and set correction
Complete quarterly audit reports for Audit Committee’s Consideration
Submit audit reports for Board of Directors’ review
The thorough and effective internal control has served well in preventing risks to the operations, having allowed the Company to demonstrate continued growth, achieve business goals and maintain the sustainable and solid leadership in the electricity generation industry.
Social & Environment Responsibility Report 2012
Human Rights
- Denounce child and forced labor as well as sexual
On human rights, the Company has followed the Constitution,
harassment, verbally and non-verbally. Penalties are clearly
related laws like the labor law, as well as the Company’s Code
specified and the approach is being applied with customers,
of Ethics which underlines respects in basic rights and freedom
suppliers and partners.
of stakeholders and equitable and fair treatment. These have
- Open a direct communication channel with stakeholders and
been applied in the operations, resulting in good reputation
a channel for compliant filing, and establish the efficient and
for the Company.
fair process to deal with the complaints, for transparent and accountable operations.
Growing overseas interests in the past two years in line with
- Allow communities to monitor the power plants’ operations,
the Company’s business strategy, the Company considers
recognizing that communities hold the constitutional rights
participating in the United Nations (UN) Global Compact, the
to guard and preserve their natural resources and
international principles having been adopted by international
environment. Dialogues are initiated to promote
organizations, to internationalize the Company’s human rights
understanding and solve problems, to ensure trustful co-
practices. The written code on human rights is in the planning process, to set guidelines for the treatment of employees,
24
customers, suppliers and partners.
existence of the power plants and communities. - Uphold moral, ethical and professional principles in the operations. - Preserve the environment through efficient and above-
Practically, the Company has included human rights principles
standard generating and environmental impact management
into the Code of Ethics, common values, corporate culture and
systems, to keep the environment from harming the health
corporate governance principles, aside from honoring laws
and living condition of communities and society.
which also highlight the human rights principles. The Company’s practices that promote human rights principles are
The principles have been honored and practiced for over a
summarized as follows;
decade. The Board of Directors and the management team hold this as the Company’s basic responsibility for stakeholders.
- Respect human dignity and basic rights as stipulated in the
The Human Resources Department and the Company’s
Constitutions, as well as safety of lives and properties of the
Secretary Office are in charge of monitor the compliance. The
Company’s stakeholders
principles have also been applied with subsidiaries and joint
- Promote equality and treat employees in a fair manner. All
ventures.
employees are entitled to prosper in their profession. The Company has offered appropriate remuneration and welfare
Taking these principles seriously, the Company has established
to employees, at the level comparative to companies in the
good relationship with stakeholders, which reduces risks to
same peer. The merit system is applied in evaluating their
the operations and forges trust and confidence among
performance. The Company also puts in place equitable job
shareholders, employees, regulatory bodies, partners, trade
opportunities and chance to develop and advance,
partners, customers, community and society. This leads to
regardless of their sex, religion, culture, age, race, language
today’s reputation and good image for the Company.
and skin color. - Respect differing opinions, choice of religion, beliefs, traditions and culture, as well as privacy and/or employees’ right to keep customer secrecy.
RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
Anti-Corruption and Prevention On corruption prevention, the Company has strictly honored the laws, Code of Ethics and business ethics since the establishment. The Audit Committee and the Internal Audit D i vis io n ar e in cha rge of moni t ori ng, surv e i l la nc e a nd investigation the procedures of all business units to ensure accurate, transparent and conflict of interest-free procedures. The Company has outlined the rules and regulations and guidelines on malfeasances for executives and employees and subjected them to job termination and legal actions.
The Company also specifies in the business ethics that business partners and/or creditors will not be demanded or offered anything. The Company will also thoroughly and cautiously consider avoiding business doing with individuals or juristic entities with unscrupulous behaviors.
25
Social & Environment Responsibility Report 2012
Sustainable Development on Economy
26
Ratchaburi Electricity Generating Holding Public Company Limited is the country's leading independent power producer. Its mission is to generate electricity, to address demand from the industrial, household and business sectors which are driving the economy and enhancing the quality of life. Aside from business growth, the Company emphasizes on social and environmental balance.
Ratchaburi Electricity Generating Holding PCL is an
approximately Bt 3,800 million, with over 80% in electricity
independent power producer with primary presence in
generating. In 2016, the Company targets to increase its
Thailand, Lao PDR and Australia. Its mission is to generate
generating capacity to 7,800 megawatt capacity from 6,303
electricity, to address demand from the industrial, household
megawatt at present.
and business sectors which are driving the economy and enhancing the quality of life. Aside from business growth, the
Economical risk management
Company emphasizes on social and environmental balance.
Locally and overseas, the Company has formed joint ventures, forged equity participation in under-development projects,
The Company’s business strategy is focused on generating
acquired business ventures, and indirectly built up investment
more electricity from fossil fuels and alternative sources as
through the capital market. All is under the same goal, to
well as investing in related businesses. Towards a more
expand the generating capacity and enhance organizational
integrated business, the Company last year invested
revenues and earnings. This will assure shareholders and
RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
chain and the overall economy. There are six major business
Business performance reflecting economic sustainability
risks to the Company’s operations as follows;
In 2012, the power plants operated by subsidiaries and joint
1. Risk from competition
ventures which are Ratchaburi Power Plant, Tri Energy Power
2. Risk on finance
Plant, Ratchaburi Power Power Plant,Nam Ngum 2 Hydro
3. Risk on the efficiency of assets in revenue generating
power Power Plant, Pratu Thao and Sao Thian Power Plant
4. Risk on human resources,
generated a total combined electricity of 26,337,789.36
5. Risk on image and reputation
megawatt-hours: 88.82 % from natural gas, 2.76 % from
6. Regulatory risks
bunker oil, 0.30 % from diesel and 8.13 % from hydropower.
Details of strategies to deal with the Company’s risks are
For wind power, Huay Bong 2 and 3 wind farms with a
presented in the 2012 Annual Report.
combined capacity of 207 MW, the largest wind farm in the
employees of returns and strengthen the company’s supply
country and South East Asia has started its operation and
Management framework on economy
generated electricity to EGAT. From 14 November, 2012 to
Under sustainable development guidelines that uphold the
1 February, 2013, Huay Bong 3 wind farm generated
balance of three key pillars – the economy, society and
28,777,430 kilowatt-hours of electricity.
environment, the Company has strived to lay out the integrated business structure. Primarily focusing on investment in large
Last year, the Company recorded Bt 60,011 million in revenue
fossil fuels-based power plants, the Company has expanded
and Bt 7,726.27 million in net profit. Dividend payment is
to cover environmental-friendly electricity generating projects
estimated at Bt 3,291.50 million and corporate tax amounted
starting with the generating of power from flue gas – to
to 887.23 million. The Company's subsidiaries contributed Bt
maximize the value of a crude by-product which is usually
208.11 million to the Power Development Fund, which will fund
wasted. The business is extended to encompass the power
projects to enhance the quality of life of communities near the
generating by alternative fuels, in line with the Company’s
power plants and compensation to communities affected by
greenhouse gas minimization strategy and the government’s
the power plants’ operations.
alternative energy development policy. As inventing a power project is time-consuming, the Company diversifies into generating-related business, starting with the establishment of a subsidiary to operate and maintain power plants, a joint venture to refurbish power plants’ gas turbines, and a mining joint venture which supplies coal to power plants. The diversification has solidified the Company’s cash flow.
Since 2000, the Company’s generating capacity has been expanded as well as earning growth, resulting mainly from the solid fundamentals built upon good governance whereby social and environmental concerns are taken seriously. This establishes confidence and trust among stakeholders, leading to business success in the domestic market and overseas, the stronger business strength and eventually sustainable growth.
27
Social & Environment Responsibility Report 2012
Economic Sustainable Results Statement of financial position
Assets
Liabilities
Equity
Million Baht
100,000 80,000 60,000 40,000
28
20,000 0 2012
2011*
2010
2009
Revenue
2008
Year
Profit of the year Revenue from the Company and its subsidiaries
Profit from the Company and its subsidiaries
Share profit of jointly-controlled and associated
Share profit of jointly-controlled and associated
entities
entities
Million Baht
Million Baht
7,000 60,000
6,000
50,000
5,000
40,000
4,000
30,000
3,000
20,000
2,000
10,000
1,000 0
0 2012 Note: *2011 Restated
2011*
2010
2009
2008
Year
2012
2011*
2010
2009
2008
Year
RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
Ratchaburi Power Plant’s Equivalent Availability Factor 2011-2012
94.14 83.43
99.54
88.86
81.5
73.35
65.74
73.73
69.07
67.9
63.17
80
94.35
80
86.67
100
94.45
Dispatch Factor (%)
TP = Thermal Plant CCGT = Combined Cycle Gas Turbine
2554 2555
EAF (%)
93.08
TP = Thermal Plant CCGT = Combined Cycle Gas Turbine
93.74
Ratchaburi Power Plant’s Dispatch Factor 2011-2012
60
40 34.74
21.34
25.77
37.86
40 20
00
29
0
TP#1
TP#2
CCGT#1
CCGT#2
CCGT#3
TP#1
TP#2
CCGT#1
CCGT#2
CCGT#3
Note: Ratchaburi Power Plant, with 3,645 megawatt capacity, is a primary genoration soure of the Company, representing 57.82% of total caparity. The plant comprises of 2x735 units of thermal power plant and 3x725 megawatt blocks of combined cycle power plants
Dividend per share 2011-2012
Dividend payment 2002-2012
Million Baht
3,500
2,500
1,500
1.0
2,175
3,292
3,263
3,263
3,263
3,190
3,045
1,450
2,000
1.17 * *
1.15
1.15
1.10
1.10
1.10
1.10
1.00
1.50 (48.42%)
1.10
1.75 (49.24%) 1.00
1.5
2,900
2.00 2.00 (47.06%) (50.32%)
2.0
3,000
2.27 2.25 2.25 2.20 2.25 2.10 2.10 (49.13%) (48.41%) (62.43%) (67.28%) (42.6%) (51.14%) (52.24%)
2,537
2.5
3,045
Baht
5,00
1.10
1.10
1.10
1.10
1.10
1.00
1.00
1.00
0.90
0.75
0.5
1.50
1,000
0.0
0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Year
2001 2002 2003 2004 2005 2006 2007 2008 2009 2011 2012
Note: ** An agenda proposed for shareholders' approval in the 2013 Shareholders' Annual General Meeting to be held on 28 March 2013. The Company paid interim dividend at Baht 1.10 per share on 14 September 2012.
Year
Social & Environment Responsibility Report 2012
Environmental-Friendly Business Operations
30
The more electricity demand, the more impacts. The Company thus puts its best effort in balancing the two sides, through the maintenance of power generating efficiency to fully respond to social and economic demands while ensuring the environmental management efficiency for minimum level of impacts.
Environmental Management
Generating process impact management
The Company acknowledges that electricity generating is a
The Company’s policy is to ensure that the generating process
two-sided coin. On one side, electricity is the infrastructure
is friendly to the environment and communities, through
necessary for economic development and convenience of the
preventive measures as follows;
general public. On the other side, electricity generating
1. Follow environment and related laws, rules and regulations,
consumes natural resources which inevitably impacts in social
and strictly follow up, prevent and monitor environmental
and environmental. The more electricity demand, the more
impacts mitigation and prevention measures as specified in
impacts. The Company thus puts its best effort in balancing
the Environmental Impact Assessment reports.
the two sides, through the maintenance of power generating
2. Analyze environmental impacts at the start of the projects
efficiency to fully respond to social and economic demands
and outline the measures to tackle and prevent the possible
while ensuring the environmental management efficiency for
impacts which may emerge during the construction period
minimum level of impacts.
and during the operations, which have successfully prevented and minimized the possible impacts.
RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
3. Apply high-efficiency technology in eliminating and containing
Environmental-friendly generating process
emission from the generating process, to tackle the problems
Ratchaburi Power Plant, the Company’s primary generating
at their root causes. The Company has invested in technology
source with 3,645 megawatt capacity or 58% of total capacity,
which reliably manages, controls and monitors the environmental
has embarked on environmental-friendly generating practices
quality for power plants, to ensure that emission is eliminated
which produce concrete results. Upholding “industrial,
at lower than the legally-required levels.
ecological and environmental friendship” for development
4. Apply international-standard environmental management
which does not affect natural resources and surrounding
system, to strengthen the environment quality management.
communities, Ratchaburi Power Plant acknowledged the value
The Company’s policy is to apply the internationally-
of environment around the premise. The Eco-Industrial concept
recognized management system with all power plants, to
has been applied to highlight the harmonious co-existence of
ensure that the environmental impact management system
the business and the environment, to produce least impacts
is efficient, effective and reliable. Ratchaburi Power Plant,
or ensure that the impacts are within the specified standards.
which is the Company’s primary assets, has won the ISO
Supporting this is the belief that nurturing the power plant’s
14001:2004 certificate from det Norske Veritas (Thailand)
environment is like nurturing the environment of the province,
Co.,Ltd, which also issued the OHSAS 18001:2007
and the better condition in the province will benefit the whole
certificate to the power plant. Under both systems, the power
Kingdom’s environment. This will; in turn, benefit the world
plant has to review all measures under ISO 14001 and
and global population. Showing responsibility for the global
OHSAS 18001 standards every six months. If any fault is
environment and natural resources is an attempt of a small
located, it will be fixed. The rules, manual and operating
start to conserve the global environment, which should lead
guidelines are reviewed regularly, to promptly monitor,
to sustainability of the industrial sector, environment and
prevent and fix problems.
natural resources.
5. Wisely choose fuels for the generating, which is a way to manage environmental impacts from the generating process.
Ratchaburi Power Plant has also applied generating technology
Each fuel causes different levels of impacts. The Company’s
that efficiently contains emission at its source and applied
priority is on natural gas, which is clean and promises low
environmental-friendly equipment; for example, in controlling
combustion emission. The Company has owned 10 natural
combustion chamber’s temperature to prevent nitrogen oxide
gas-fired power plants with combined installed capacity of
or the installation of equipment to eliminate sulfur dioxide
4,940 megawatt; 7 in Thailand and 3 in Australia.
incurring from the switch to auxiliary fuel. These procedures
6. Increase generating capacity with renewable energy, through
derive from the acknowledgement and care for possible
diversification into hydropower, wind power, solar power and
impacts on community and the environment, indicating the
biomass power as their generating process emits no impacts
Company’s responsibility to the future of the environment and
on the environment and communities. This also reduces
natural resources which will be valuable treasure of the
fossil fuels in electricity generating and hence reduces
younger generation.
greenhouse gas emission.
31
Social & Environment Responsibility Report 2012
Climate change solving Involvement
CO 2 Emission Reduction
The Company has a strong determination to tackle the
1. Energy Conservation Campaign
intensifying climate change, by lowering in-process carbon
Global warming is a critical problem and must be tackled
dioxide. The investment is primarily poured on generating
urgently. Wasteful use of electricity speeds up the depletion
projects powered by natural gas, hydropower and renewable
of natural resources and electricity is generated by fossil fuels
sources. Of total capacity, that generated by natural gas
like coal, oil and natural gas. The generating process naturally
accounts for the biggest part, while the capacity from
emits greenhouse gas and causes air pollution.
hydropower and renewable energy has been significantly increased.
Ratchaburi Power Plant has initiated in-door electricity conservation campaign, to promote wise use of electricity and
32
The Company plans to reduce the carbon emission, by
reduce CO 2 . In 2012, the power plant saved electricity by
applying the Carbon Capture Storage concept in the research
12,282 megawatt hours, reducing 6,253 tons of CO 2 . CO 2
project to cultivate spirulina algae with Ratchaburi Power
reduction was more effective than in 2011 thanks to the
Plant’s waste CO 2. The initial result shows that the spirulina
replacement of of HID 250W light bulbs with T5 light bulbs at
algae grows well with the waste CO 2, able to absorb CO 2 nine
the combined cycle power plant. Ratchaburi Power Plant now
times higher than big trees. In the past year, a study was
generates 15,889,156 megawatt-hours, equivalent to the
carried out to evaluate the feasibility of the project’s
emission of 7,679,074 tons of CO 2.
commercialization. Throughout the past 8 years (2005-2012), Ratchaburi Power In the next step, the Company has collaborated with the
Plant had reduced power consumption by 51,552 megawatt-
Department of Alternative Energy Efficiency and Development,
hour, reducing a equivalent to 26,891 tons of CO 2 .
the Energy Ministry, Bangchak Petroleum PCL and Loxley PCL in producing biodiesel from algae, which is grown by Ratchaburi Power Plant’s waste CO 2 . The project is currently in its first phase.
Ratchaburi Power Plant, which generates 58% of the Company’s total capacity, has undertaken numerous approaches to reduce CO 2 to be in line with the Company’s mission to take part in mitigating climate change impacts. The approaches are:
RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
Power Generating & CO 2 Emission Powe Generating from combined cycle power plants (million megawatt-hours) Powe Generating from thermal power plants (million megawatt-hours) Volume of CO 2 emission against power generation (million megawatt-hours)
8.4
7.7
6.7
8.6
8.1
10.7
9.7
10.8
10.2
11.7
12.7
13.3
33
1.9
3.3
3.7
4.7
5.8 4.2
13.8
11.8
14.7
14.8
14.5
2008
2006
2007
2008
2009
2010
2011
2012
Power Consumption Saved & CO 2 Emission Reduction Power Consumption Saved (megawatt-hours) Carbondioxide Reduction Emission (tons) 12,000
20.0
20.35 9,000
15.0
12.28
10.0
6,000
6.16
4.56
3.20
3.07 3,000
5.0
1,639
1,564
2,323
10,403
1,628
3,134
6,252
2.56
1,514
2.36
2004
2005
2006
2007
2008
2009
2011
2012
Social & Environment Responsibility Report 2012
2. Green area enhancement
Sustainable energy consumption
Acknowledgement in environmental impacts drives Ratchaburi
The Company has put greater emphasis on sustainable energy
Power Plant to grow trees in the premise. Green area now
consumption, through attempts in cutting power usage at
amounts to 472 rai or 23.4% of total area.
office buildings and power plants as well as improving the power plants’ fuel efficiency while maintaining the electricity
Under the tree planting project, teak trees account for 52%,
generating capability.
mahoggani 15%, mast trees 10%, Siamese neem trees 9%, golden shower trees 2%, palm trees 2% and others 10%.
Establishing energy-saving awareness is part of the efforts, to
Greening the premise, these trees produce pleasant scenary,
educate employees and communities of energy saving and
absorb CO 2 in the atmosphere and become a sanctuary of
sustainable energy consumption. They are educated on the
many lives.
source of energy, significance of energy in everyday life and economic development, proportional increase in energy demand in line with growing population, possible shortages from overuse, environmental impacts from the consumption, global warming and energy-saving tips for sustainability. In the past year, the sustainable energy consumption campaign
34
targeted community forest leaders in the Central, Eastern and Northern parts of the country, aside from a campaign on youth in the Southern and Northeastern community forest areas, on hope that understanding will lead to awareness and practice. At Kla Yim Youth Camp, One main activity of the love
TYPE OF PLANTS GROWN
Forestland Community project which is the company’s flagship
IN RATCHABURI POWER PLANT
serialland environmental responsibility program in partnership with the Royal Forestry Department the children are taught to
10%
“Eat up their food, drink up their water, and grow 3 trees”.
2% 2%
Daily, waste from their food was measured. The energy value of the waste - measured from raw materials through cooking process - was displayed, along with CO 2 generated by the
9%
process. The youth gained more knowledge on the energy and its social and environmental impacts, thus raising energysaving awareness among them.
10%
52% 15% Teak trees
Siamese neem trees
Mahogany trees
Golden Shower Trees
Mast trees
Palm Trees
Others
Note: Kla Yim Youth Camp, One main activity of the love Forestland Community project which is the company’s flagship serialland environmental responsibility program in partnership with the Royal Forestry Department
RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
Extended community energy project
Target Areas
The concept was replicated to communities near Ratchaburi
Tambon Tharab, Mueang district; and Tambon Ban Singh,
Power Plant, under the extended community energy project
Photharam district in Ratchaburi province. Project period since
in cooperation with Ratchaburi Provincial’s Energy Office, the
from October 2011 to November 2012
Energy Ministry. The project is divided into 10 Steps: The project calls for systematic public participation, to raise
•
administrative bodies and community leaders
their awareness in the value of energy and knowlege in turning locally-sourced materials into energy for maximum benefits.
Step 1: Explain the project to leaders and members of local
•
Step 2: Explain the project to community members and the
They are educated on the proper use of energy technology
general public interested in energy issues, and select
and energy management to support their dependence.
community energy volunteers, Entering the cooperation agreements on community energy planning between
Under this project, the community involved in community
Ratchaburi Provincial Energy Office and Ban Singh
energy management with the right and comprehensive
Municipality in Photharam district and Tambon Tharab Administrative Office in Mueng district.
knowledge on energy. They shared ideas and took part in the project in line with the sufficiency philosophy, setting an
•
Step 3: Collect general data and energy consumption data
example to other communities. For higher efficiency in the
of the communities. Selecting youth and community
community energy project, the Company cooperated with
volunteers for training on the collection of required data like
Ratchaburi Provincial Energy Office to extend the project, to
household details, energy consumption, cooking process,
achieve energy sustainability and collaboration within
as well as transport and agriculture.
communities and support the Company’s corporate social
•
energy management is part of returning profits to society.
•
Step 5: Present the data to the communities.
•
Step 6: A field trip to learn more about sustainable energy technology, as guidance for the development of the
Objectives •
•
community energy development plans.
Enhance energy-related knowledge and management capability of local administrative bodies
•
community capability and energy demand.
in target areas, so they can pass on the knowledge correctly
•
Step 7: Complete the community energy development plans. Community representatives draft the plans, based on the
Improve the capability of communities and the general public
and appropriately to local areas’ capability
Step 4: Process and analyze the data, to compare energy consumption rate and communities’ energy capability.
responsibility. Encouraging public participation in community
•
Step 8: Public hearing on the plans, to encompass no fewer
Establish energy-related knowledge, to raise awareness in
than 80 community members. Select pilot projects and
the value of energy and conservation and to set a good
nominate model households of the community.
example which leads to community development under the sufficiency philosophy
35
Social & Environment Responsibility Report 2012
•
Step 9: Have the communities expedite the pilot projects, putting the Provincial Energy Office as their advisor and providing technology support.
•
Step 10: Conclude the project, through the exchange of experiences, problems and obstacles witnessed by the pilot projects or model households. Solutions and next year’s plans were formulated.
Through the 10 steps, the communities learnt of their energy consumption and capability. Community energy plans, drawn up by the communities, are in place and present pilot projects which will lead to a reduction in energy consumption and the switch to sustainable energy. Key facts from this project are summarized as follows:
36
Key facts
Tambon Ban Singh
Tambon Tharab
Population
11,848
3,931
No. of households
3,783
1,156
Average household income
236,264 baht/year
172,825 baht/year
Aggregate income of the village
867,562,384 baht/year
169,878,151 baht/year
Community energy expenditure
212,426,553 baht/year
58,087,713 baht/year
- Fuel for transport and farming
(24.49% of aggregate income)
(29.50% of aggregate income)
Total energy usage
9,237.98 million tons/year
1,498.80 million tons/year
CO 2 emission from energy
21,734,020 kg/year
5,379,200 kg/year
purposes - Electricity bills - Cooking cost
consumption
RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
Results from the community energy plan execution Pilot projects in Tambon Ban Singh
•
81 energy community volunteers (52 from Tambon Ban Singh and 29 from Tambon Tharab), will steer forward energy
1. Replace 394 light bulbs with energy-saving ones
conservation and educate others on energy and electricity
2. Promote charcoal stoves, made of 200-litre oil barrels
which will lead to energy saving and efficient energy
(5 units) 3. Promote high-efficiency stoves (Super Ang-Lo) / (29 units)
management in the communities. •
4. Promote renewable energy technology
Pilot projects which lead to these energy consumption forecasts;
(1 set of energy-saving chicken grill stove and 1 set
o
of solar-powered oven)
In 2013, their energy expenpditure will decline by 5% from 2012
o
At least 5% increase in the application of community energy technology
Pilot projects in Tambon Tharab
•
Both villages can be developed into energy learning centers, if the projects are continued.
1. Replace 81 light bulbs with energy-saving ones to reduce power consumption 2. Promote biogas technology to reduce use of LPG gas for cooling (3 wells) 3. Promote high-efficiency charcoal stoves mock of 200-litre oil barrels (9 sets) 4. Promote biomass-powered stoves for cooling (6 sets) 5. Promote Super Ang-Lo or high-efficient stoves (35 sets) 6. Promote solor-powered ovens (5 sets)
•
Both communities show a good attitude towards the Company and better understanding in energy and electricity.
37
Social & Environment Responsibility Report 2012
Water management
•
Water from office buildings undergoes the extended aeration-
Basic environmental management of the Company’s power
activated sludge process. Mixed with chlorine, it is released
plants is focused on impact containment and prevention
to the irrigation pond. Water from the irrigation pond is used
beyond regulatory requirements. The over-10-year experience
to water trees inside the premise. Wastewater from the
in electricity generating is applied in the designing and
annual gas air heater washing is treated and after
development of the prevention system, to minimize the impacts and allow all power plants in concurrently generating power
sedimentation it is released to holding pond. •
Water quality monitoring device is installed at the retention
and preserving the environment and community co-existence.
pond before releasing to natural water channels. This device
Ratchaburi Power Plant’s treatment practices for water
will test the pH, Conductivity. Temperature, Dissolved
released from the power plant and office buildings are as
Oxygen (DO) and Biological Oxygen Demand (BOD). Samples
follows:
are collected for monthly wastewater testing, to ensure no impacts on the quality of water in natural channels.
•
38 •
•
Wastewater from chemical area drains and resin-washing water from the demineralization process is contained in
Ratchaburi Power Plant has undertaken regular water quality
neutralized basin. After the water is acid-neutral and
checks, to ensure that water to be released to natural channels
sedimentation, it is released to holding pond and retention
meets the Water Characteristics Discharged into Irrigation
pond (pond 1 and 2).
System of the Royal Irrigation Department No.73/2554 (2011),
Water from the cooling tower is released to holding pond for
Industrial Effluent Standards of Notification of the Ministry of
sedimentation and cooling. When temperature is down to
Industry, No. 2, B.E. 2539 (1996) and the Notification of the
28-30 degree Celcius after 24 hours, it is released to retention
Ministry of Science, Technology and Environment, No.3, B.E.
pond and treated to return to near-natural condition.
2539 (1996).
Oil is extracted from oil-contaminated water. While the water is released to irrigation pond, the oil would be kept in barrels
Wastewater test result
and stored at oil/chemical depot for later disposal.
The result shows that the wastewater meet the standards set by the Royal Irrigation Department, the Ministry of Industry and the Ministry of Science Technology and Environment. On top of this, the power plant recycles as much treated water as possible to reduce the release into natural channels.
In 2012, Ratchaburi Power Plant retrieved 29.3 million cubic meters of raw water from the Mae Klong River for the generating of 15.9 megawatt-hour and released 4.4 million cubic meters to Bangpa canal.
RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
Water Recycling through Reverse Osmosis (RO) and Ultra Filter (UF) Technology The project was conceived to maximize water use. The Cooling
Water Volume Reduction and Capacity at
Water Reuse Plant (CWRP) was constructed. Water from
Ratchaburi Power Plant
holding pond undergoes the process that allows treatment to
Raw water (Million Cubic Meters)
the cell level, under the Ultra Filter (UF) and Reverse Osmosis
Waste water (Million Cubic Meters)
(RO) technology, to allow the safe reuse. In 2012, 734, 747
Electricity Generated (Million Megawatts-Hours)
cubic meters were treated by the RO and UF technology and 325,692 cubic meters of RO water was produced, equivalent
29.3
24.5
which can make use of the treated water. In cooperation with
20.5
the Military Engineer Department in Ratchaburi Province, 40
24.3
23.4
28.3
power plant was turned into the organic demonstration field,
24.6
the released water volume. The 350-rai land in the west of the
32.5
35.3
The power plant also initiates a natural approach to reduce
38.4
to 2.5% of raw water used in the generating process.
17.6
17.1
rai was turned into a rice field and its output is presented to
17.4
12.7
15.9
14.1
2006
2008
2009
4.4
4.0
as well as the nature-learning center for the youth and general public. Ratchaburi Power Plant also designs a sprinkling
6.3
2007
4.5
2006
6.4
8.0
the sanctuary and source of food for marine lives and birds
7.7
9.6
the department. The rest is the water catchment area, being
2010
2011
2012
system, which feeds trees in the premise with the water treated accordingly to the Royal Irrigation Department’s standards.
Volume of water treated by Reverse Osmosis (Ro) and Ultra Filter (Uf) Technology and reused in 2012 Waste water used (Million Cubic Meters)
Jul
21,961
30,615
46,946
67,454 45,493
20,926
60,358
27,518
27,481
21,033
46,542
64,865
30,685
Jan Feb Mar Apr May Jun
59,042
93,052 74,438
43,823
34,417
33,190
18,283
47,094
85,740
RO water output (Million Cubic Meters)
43,723
channels.
15,760
This helps reduce the volume of water to be released to natural
Aug Sep Oct Nov Dec
39
Social & Environment Responsibility Report 2012
Air quality management To prevent and mitigate impacts from fuel combustion in the generating process, despite having natural gas as primary fuel, the Company acknowledges and emphasizes the preventive and monitoring system to assure minimum impacts. Measures seriously undertaken by Ratchaburi Power Plant are as follows;
•
The thermal power plant’s combustion system is equipped with the low NO burner and and the flue gas re-circulation, to reduce nitrogen oxide.
•
At the thermal power plant, the flue gas desulfurization (FGD) equipment with 97.2% effective of desulfurization. The equipment is activated when the generator is fuelled by bunker oil, the auxiliary fuel. Effective of desulfurization for over 95%, the FGD equipment is vital for the combustion of sulfer-containing fuel like bunker oil. This is for long-term
40
environmental protection. •
The combined cycle power plant, driven by natural gas, is equipped with the dry low NO burner. When diesel is in use, it will be injected with demineralized water to keep the temperature below the nitrogen oxide formation point.
•
Aside from mitigating impacts from the burning system, there is a system to monitor preventive measures through the installation of Continuous Emission Monitoring Systems (CEMs). Through CEMs, air from the stack is detected for the volume of nitrogen oxide, sulfur dioxide, carbon dioxide and opacity in every 15 minutes. The reading is automatically reported to the control room and the Pollution Control Department and appeared on the sign boards in front of the power plants. This is to ensure that the air quality remains within the standard criteria.
In case of malfunctions which raise the air quality level near the standard criteria, officers are immediately alerted for a prompt check and problem solving. If the level keeps moving up, the generating capacity will be lowered until the level falls to the normal level. Without success, the power plant will notify the National Control Center and ask for the immediate shutdown.
RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
•
Aside a close watch at the power plant, communities are
located above or below wind direction from the power plant.
assured of safety through the installation of the Ambient Air
No correlation with fuel was found, at the incident occurred
Quality Monitoring System (AAQMS) at four stations nearby
when the generator was fuelled by natural gas. Ozone level
the plant - Ban Chao Nua, Tambon Banrai; St. Antonio
has usually exceeded standard criteria in the dry season and
Church, Tambon Phaengphuay; Bangkado Temple, Tambon
all stations detected that on the same day.
Ban Singh; and Phoratburana Temple, Tambon Phongsawai. The system will detect sulfur dioxide, nitrogen oxide, ozone
Combustion does not directly generate ozone in the
and particulate matter smaller than 10 micron, and total
atmosphere, which rather formulates on phytochemical
suspended particulate around the clock, to assure that the
reaction - with the mixture of nitrogen oxide, oxygen and
air emitted from the power plant does not affect the
hydrocarbon having sunlight as the catalyst. Thus, ozone has
environment and surrounding communities. The communities
been high in the dry season since 1997, according to the
are informed of the data on a monthly basis.
Pollution Control Department’s air quality check in Muang district of Ratchaburi province. Then, Ratchaburi Power Plant
Ratchaburi Power Plant must meet the Emission Standard from
was not yet constructed.
New Power Plant of Notification of the Ministry of Industiry (2004) and the Notification of the Ministry of Science, Technology and
Nevertheless, the Company takes the problem into
Environment (1996). Meanwhile, the ambient air quality must be
consideration. “The study project to survey and analyze the
in strict compliance with the Notification of National Environment
cause of ozone around Ratchaburi Power Plant and Ratchaburi
Board No. 10 (1995), 24 (2004), 28 (2007) and 33 (2009).
province” was conceived in 2008 and carried out by SECOT Co.,Ltd. (licensed by the Office of Natural Resources and
Air quality monitoring results
Environmental Policy and Planning to complete environmental
Throughout 2012, pollutants in air emitted from the power
impact assessment reports). Its objective was to find the cause
plant’s stack - sulfur dioxide and nitrogen oxide - were within
of high ozone in the area and solutions. The study showed
positive levels as well as dust opacity, whenever the generators
that nitrogen oxide (NO) emitted from Ratchaburi Power Plant
were fuelled by natural gas and/or oil.
was not the primary cause of high ozone in Ratchaburi province. It was found that on the same day and time, ozone
To verify that the monitoring results were within standard level
at all air quality control stations was at high level and one
and the environment remains intact, Ratchaburi Power Plant
some days slightly exceeded the standard criteria. Considering
runs the automatic 24-hour air quality check through its air
wind direction, wind from Ratchaburi Power plant did not hit
quality control stations. The stations monitor sulfur dioxide
some stations. Thus, high ozone in the province was partially
(SO 2), nitrogen oxide (NO 2) , total suspended particulate (TSP),
formed outside the survey area. Regardless of this fact,
and particles not larger than 10 micron (PM 10). Throughout
Ratchaburi Power Plant has strictly followed through the
2012, all were within standard criteria, except ozone gas (O 3)
preventive, corrective and mitigating measures as specified in
which exceeded the standard criteria on one day at all stations,
the EIA report.
41
Social & Environment Responsibility Report 2012
1-hour average of SO2
1-hour average of NO2
(part per billion)
(part per billion)
Ban Don Modtanoy
Ban Khlong Khae
Ban Bangkado
Ban Chaonua
Ban Don Modtanoy
Ban Khlong Khae
Ban Bangkado
Ban Chaonua
340
600
1-hour standard not exceeding 300/ppb
1-hour standard not exceeding 170/ppb 170
300
42
Jan Feb Mar Apr May Jun
Jul
Aug Sep Oct Nov Dec
Jan Feb Mar Apr May Jun
Jul
Aug Sep Oct Nov Dec
1-hour average of Ozone (O3)
24-hour average of total suspended
(part per billion)
particulate (Îź g/m 3)
Ban Don Modtanoy
Ban Khlong Khae
Ban Don Modtanoy
Ban Khlong Khae
Ban Bangkado
Ban Chaonua
Ban Bangkado
Ban Chaonua
200
660
1-hour standard-not exceeding 100/ppb
24-hour standard - not exceeding 330 micrograms per cubic meter
100 330
Jan Feb Mar Apr May Jun
Jul
Aug Sep Oct Nov Dec
Jan Feb Mar Apr May Jun
Jul
Aug Sep Oct Nov Dec
RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
Noise management
• Officers at the power plant must wear noise-protection
Noise generated by generating activity mostly derives from
equipment like ear plugs, when in areas where noise level is
boilers, gas turbines and vehicles communiting in the power
above 90 decibel (A). Their presence in the area must not
plant area. Aside from the buffer zone bordering the power
exceed 8 hours per day.
plant from community areas, rows of trees around the area
• Regularly measure noise level. Noise scale at 3 stations - the
serve as noise barriers. There are also the following noise-
power plant, Ban Samruan and Ban Chaonua - is measured
controlling measures:
3 days in a row every 3 months.
•
•
Halt loud activities at night, to not disturb residents nearby
Notably, the power plant’s noise must be maintained at the
the power plant. These include activities that generate noise
level that does not disturb communities in accordance with the
level above 85 decibel (A) in a distance of 1 meter from noise
National Environment Board and must be at the level safe for
origin, under the noise level regulations for industrial plants.
all employees working inside the power plant in accordance
Apply noise-controlling equipment inside the power plant
with the Interior Ministry’s regulation.
during operating hours, focusing on the machinery or equipment of which noise level is above 85 decible (A) to
Noise test results
keep the level below the 85-decibel (A) limit. They are:
In 2012, the test in March, May, August and November
o
Install silencers on the pressure valves at the Soot Blower
indicated full compliance to the National Environment Board’s
Blow Down Tank and at the Ban Tharab water pumping
Announcement No.15 (2007) and the Industry Ministry’s
station.
Annoucement on noise disturbance and industrial noise
Install mobile silencers during the cleaning of steam
pollution (2005). The average and maximum noise level was
turbines ahead of generator activation.
within the stardard criteria of no more than 70 decibel (A) and
o o
Build a dome over the generator’s burner, to reduce the
115 decibel (A), respectively.
generator’s noise from the inside.
o
Growing trees around the power plant to establish a noise barrier.
Power Plant Location
Ban Chaonua
Ban Samruan
Leq 24 hr
L max
Leq 24 hr
L max
Leq 24 hr
L max
March
54.1-56.0
86.5
60.0-61.6
97.6
58.7-66.4
98.0
May
58.6-59.1
88.2
58.3-59.9
99.8
55.7-63.5
92.1
August
61.1-61.7
92.8
59.1-59.8
100.5
61.0-67.5
97.2
November
59.2-61.0
85.4
63.3-68.0
99.2
63.8-64.6
113.1
Standard
70
115
70
115
70
115
Standard : National Environment Board’s Announcement No.15 (2007) and Industry Ministry’s Announcement (2005) Measuring unit: decibel A (dB(A)) Leq L max
24 hr
= 24-hour average scale = maximum scale
43
Social & Environment Responsibility Report 2012
44
Waste and unused materials management
Waste from power generation management
Power plant waste is classified into 2 major categories -
Hazardous and non-hazardous wastes from power generation
general waste and hazardous waste.
like oil-tainted gloves, fiberglass and oil filters are taken care
1. General waste - recyclable waste, wet waste (food), and
of by an authorized company, in full compliance to the Industry
non-disposable or non-recyclable waste 2. Waste from generating process: Hazardous waste including used lubricant, oil-contaminated cloth/gloves, and non
Ministry’s regulation on waste disposal (2005). Others like oil-tainted water is handled by a contractor, which will separate the oil for reuse.
hazardous waste such as Air Inlet Filter insulation wooden paper packages.
In 2012, Ratchaburi Power Plant contracted outsiders to handle 128.98 tons of waste. Contractors were selected based on
General waste management
their “reuse� ability. For instance, some materials were recycled
- Recyclable waste: Recycle Bank* to buy recyclable waste
or used to generate steam in industrial estates lessening
from all units inside the power plant and transfer it to
contaminated underground water ane environmental. Of all
recycling contractors.
waste, 67.25 tons was sediment from wastewater treatment
- wet waste and non-disposable or non-recyclable waste: Ban
system, 20.6 tons of used lubricants, 5.89 tons of used resin,
Rai Municipality is hired to collect the waste which will end
12.28 tons of ragged cloth/tainted gloves, 3.26 tons of
up at landfills. Last waste segregation takes place at landfills.
fiberglass, 12.41 tons of burner deposits or scale, 4 tons of
In 2012, the municipality collected 22 tons of non-disposable
water-contaminated oil, 1.97 tons of brick insulator, 0.30 ton
waste.
of expired light bulbs, 0.62 ton of filters, and 0.20 ton of diesel.
*
Remark:Ratchaburi Power Plant initiated for promoting waste selection and recycling in order to reducing waste volumn and resources used in waste management.
RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
Ecological conservation and biodiversity monitoring
Recycle Waste in 2012
Ratchaburi Power Plant emphasizes on ecological conservation
1,315
and biodiversity. The ecological system is revitalized and Paper boxes
Paper scrap
Glass bottles
preserved under the water catchment project. The area has
Paper (used on both side)
Plastic bottles
Othes
been the sanctuary of wildlife - both local species and migratory ones. The ecological system of water sources - reservoirs for raw water and rainwater and holding ponds - is preserved as wildlife sanctuary or home to migratory birds. Impacts of the operations on wildlife have been monitored, through the
proliferation across the power plant.
987
-Volume (kilogram)
counting of bird species and diversity of their population and
In 2012, Ratchaburi Power Plant’s survey found 97 species of wildlife within the 1-square kilometer radius of the buffer zone: 677
10 amphibians, 10 reptiles, 73 species of birds, and 4 mammals.
565
549
Of total, 30 showed high relation abundance, 30 moderate relation abundance and 37 low relation abundance.
Of total, 73 are protected under a ministerial regulation (2003): 4 reptiles and 69 species of birds. Twenty four species are 196
not protected according to the regulation. It was also found
Paper boxes
Paper (used on both sides)
Paper scrap
Plastic bottles
that 5 wildlife species were protected under the Office of Glass bottles
Others
Natural Resources and Environmental Policy and Planning (2005b)’s rules like the endangered Purple Heron and the near-endangered Indian Cormorant, Watercock, Asian Golden Weaver and Ploceus philippinus. The Asian Golden Weaver is conserved according to near-endangered the rules of international union for Conservation of Nature (IUCN)
Recyclable waste management
The diversity and abundance analysis found no alteration
In 2012, Ratchaburi Power Plant campaigned for waste
during 2009-2012. The area around the power plant has
reduction and recycling, through various schemes undertaken
remained wildlife sanctuary, reflecting the similarity of their
by the Recycle Bank - the schemes to reduce plastic and
original ecological environment and the power plant’s. This
foam, to promote replacement plastic with cloth bags, to
indicates no change in the surrounding ecology. The species
conserve the environment, and to use both sides of paper.
discovered in the first year of study (2007) are still found
These are to cut down natural resource consumption and
around the area. Meanwhile, new species have been
reduce impacts on the environment. In the year, the Company
discovered. In 2012, 3 new species of birds are discovered
recycled 4,685 kilograms of waste. Paper boxes, amounting
– Tringa Tetanus, Irena Puella and Saxicola Stejneger.
1,315 kilograms, topped the list of recyclable items sold to
Naturally-grown and planted trees in the power plant becomes
the Recycle Bank.
bird-nesting and egg-laying places, while some birds nest
45
Social & Environment Responsibility Report 2012
around the piling gypsum boards, left over from the power plant’s desulfurization process. The endangered Purple Heron
Wildlife species found in Ratchaburi Power Plant in August 1997-2012
which nested in the area during 2003-2006 and were unseen during 2007-2010 returned to the scene in 2011 and are still seen.
1997
1998
1999
2000
Environmental-friendly procurement
2001
2002
2003
2004
In the past year, the Company paid more attention to
2005
2006
2007
2008
environmental-friendly procurement, with the adustment
2009
2010
2011
2012
towards green procurement. Initially, the Company required
0
20
60
80
enviornment-friendly procurement for office supplies. It started with the sourcing of products with “No.5” energy-saving labels and green labels, products with recycled parts, and products with carbon labels that show higher CO 2 reduction. The procurement rules are set for the sourcing of raw
46
materials, equipment and parts for the power plant. The rules specified the properties, delivery condition and delivery acknowledgement for all types of procurement - like items for the power plant, chemicals and others - to cover key details of all equipment, storage procedure and emergency preparation. This is to assure compliance with the power plant’s environment, occupational health and safety rules. In particular, chemical procurement required the specification of name, type, size, chemical and physical properties, material safety data sheet (MSDS), the distribution license, and the requirement for the sellers to reuse or properly thrash the containers. Notably, most items required by the power plant are mostly supplied by world-class suppliers who apply environmental-friendly standards in their manufacturing and distribution and have proved concrete results. amphibians reptiles
The Company is in the process of documenting the products
bird
with “No.5” energy-saving labels and green labels, products
mammals
with recycled parts, and products with carbon labels that show higher CO 2 reduction, to outline the Company’s procurement criteria and condition.
RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
Environmental-friendly products
The Company also embarked on other measures to minimize
As an independent power producer which supplies 14% of
pollutants, like the application of the Carbon Capture Storage
the country’s installed capacity, the Company must ensure
concept into the spirulina algae cultivation research project.
all power plants’ readiness in responding to the demands of
The spirulina algae as well as algae cultivated for biodiesel
customers - Electricity Generating Authority of Thailand and
production are fed on waste carbon dioxide from Ratchaburi
Provincial Electricity Authority - as specified in the power
Power Plant, the country’s biggest by capacity. Another
purchase agreements. Meanwhile, the efficiency of power
measure involves the promotion of community forests, to
plants’ environment quality control must be maintained, to
increase community participation in forest conservation as
minimize social and environmental impacts from electricity
forests are the natural carbon sink.
generation. These measures are undertaken out of the Company’s The Company’s electricity is generated by advanced
acknowledgement and care, to ensure that the power plants’
technology that promises efficient environment management.
electricity is environmental-friendly and that the efficiency to
Ratchaburi Power Plant, in particular, invested over Bt4,000
serve power users is maintained.
million in environment equipment which is highly efficient in reducing pollutants.
One of the Company’s focuses is fuels. Of all fuels required for the generating of total 6,303 megawatt, natural gas accounts for 78% of the capacity, hydropower 7% and renewable energy - solar, wind and biomass power 2.5%. These fuels are considered clean and produce minimum social and environmental impacts. This means the Company’s electricity is highly environmental-friendly.
In the past year, all power plants carried out the outage maintenance as planned, allowing them to satisfy customers’ demands and meet the legal requirements on environment quality management.
47
Social & Environment Responsibility Report 2012
Socially-Responsible Activities
48
Throughout these years,the Company has determined to do the business on a basis of socially-responsible way,and taken into account all shareholders interest. In this regard, the Company intends to learn about and respond to demands of all stakeholders. The responsibility is shared by all business in handling and addressing demands of each group of stakeholders, to establish trust and positive relationship. This will remain the Company's business foundation and allow sustainable growth.
Risk and risk management Globalization opens and connects the world, speeding up and
combustion waste which could impact communities and the
widening news circulation. Economic and social advancement
environment. Thus, starting a power plant is controlled and
leads to greater exploitation of limited natural resources, and
regulated by the government, starting from the bidding as
hence greater impacts on society and the environment. Under
carried out by the Energy Regulatory Commission in line with
those changes, businesses must take into account
the Power Development Plan (PDP). After the bidding, the bid
“stakeholders� who are impacted by their operations and
winners are subjected to submit environment impact
review their roles and approaches to handle the increasing
assessment reports, which must encompass participation from
diversity of individuals, interests groups and organizations.
communities around the new power plants as communities are the projects’ direct stakeholders. They play the role in
Electricity is fundamental infrastructure for economic
ensuring the development brings about best interests to
expansion, bringing improvement to the quality of life of all in
communities, society and the environment. Community and
society. Electricity security is thus the national security.
public trust and acceptance is a key success factor of the
Electricity generation also requires fuel and leaves behind
development and solid/sustainable business development.
RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
Meanwhile, larger population leads to higher electricity demand and higher electricity generation. Coupled with climate change as a result of global warming, public awareness and interest in the environment has grown, leading to the establishment of many private development organizations and people’s networks who have pushed forward environmental issues. Embarking on a new power plant thus requires closer involvement with these groups.
Social management strategies Social responsibility has been the Company’s priority in extending the responsiblity to cover all stakeholders, on the conviction that the Company’s sustainable business presence requires safeguarding and developing society as well as achieving financial goals. The Company’s social management framework covers the following 4 strategies:
1) Upholding and abiding by laws is the Company’s fundamental social responsibility as business laws generally are geared towards consumer protection, competition, environment, equality and safety. Upholding and abiding by the laws affirms the Company’s intention to take responsibility for consumers/customers, to nurture fair competition, to protect the environment, to ensure equitable treatment to all stakeholders, and to assure work-related safety. 2) Supporting and responding to the government’s policy. As electricity is the government-controlled public utility, the Company’s operations are under the government’s conditions. Profitability thus depends on reasonable grounds, for stakeholders’ stability. The Company strives for operating efficiency and competitiveness, to continue its role as a power producer according to the government’s policy. 3) Engage in community’s quality of life and social development as a responsible organization, particularly involving communities near the Company’s premises. The Company schemes and takes part in activities that benefits communities and society, to establish trust. 4) Maintain business ethics which influences the Company’s trustworthiness and ensures business continuity in all circumstances.
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Social & Environment Responsibility Report 2012
Stakeholders of RATCH The Company has been committed to social responsibility and all shareholders’ interests. In this regard, the Company intends to learn about and respond to demands of all stakeholders, not only those directly affected by the Company’s operations but also all others. The responsibility is shared by all business units in handling and addressing demands of each group of stakeholders, to establish trust and positive relationship. This will remain the Company’s business foundation and allow sustainable growth.
50
The Company’s stakeholders
RATCH
Shareholders
Employees
Business partners
Community
Government agencies
Media
Customers Trade partners
Co-investors
Creditors
Social groups Competitors /academics and thought leaders
RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
Engagement process and guidelines to address each group of stakeholders
Stakeholders
Demands
Process
Guidelines
Customers
o
o
Regular machinery
Determined to be a leading power producer in the region,
maintenance
to address power demand in the industrial sector, the
Secure storage of customer
overall economy and households as well as to compliment
information
the national power stability through:
Regular meetings and seminars
o
Readiness to promptly deliver goods and address
o
their demands
o o
Quality products and
o
services
for opinion exchange and
Ethics-based
relationship enhancement
operations
o
Maintaining efficiency in power distribution and output quality, by producing power accordingly to customers’ specification
o
Generating and distributing power as specified in
o
Strictly upholding and complying with requirements and
o o
Following customers-specified regulations and criteria
Maintain and
contracts
enhance good relationship
conditions under the power purchase agreements
Securing customers’ secrets, by not disclosing the information without their consent
o
Improving and maintaining good relationship with customers, for smooth operations and trust
Employees
o
Salary, welfare and
o
o o o
Job security and
transparency
Provide the Company's,
Specifying the code based on the labor law and fairness,
benefits
employee's and executives's
and applying the intenationally recognized standards to
Occupational health
Code of Ethics to use as a
treat employees with fairness
and safety
framework together with honesty, moral principal, and
o o
Merit-based remuneration setting
Skill development
o o
Promoting continuous employee skill development
advancement
Regularly ensuring occupational health and safety at workplaces
Avoiding unfair actions which may affect employees’ job security and treating employees with politeness and human-dignity respect
51
Social & Environment Responsibility Report 2012
Stakeholders
Demands
Process
Guidelines
Trade partners
o
o o
Taking complaints
Treat trade partners fairly, maintain equitable interests in
Transparent and fair short-listing
o
Heeding advice through
line with related laws and regulations, and clearly specify
and selection
meetings and formal/informal
selection criteria and credentials, through:
Appropriate price
gathering
o
timely and
Ensuring fair, transparent and accountable procurement process
payments according to the
o o
Putting in place clear surveillance system
o
Supporting trade partners who honor responsibility to
Strengthening trade partners according to corporate governance principles
contracts
society and environment Business
52
partners
o o
Benefits
o
Knowledge and skill
o
Occupational health and safety
o
Setting meetings for business
Having business partners take responsibility in the work
partners and the management
process concerning occupational health and safety as well
Opening a channel to receive
as knowledge/skill development, for efficient and effective
their opinions
capability, through:
o o
development
Paying out a fair share as required by law Improving business partners’ capability accordingly to their nature of business
Community
o o
Confidence and trust
o o
o
Host public hearing on
Uphold community engagement to become their good
Community
proposed projects, to seek
neighbor under the thought-sharing and joint-action
engagement
their opinions and
concept for good understanding and trust through:
Environmental care
engagement in surveillance
o
Information
o
disclosure
o
Community
o
development
Community relations activities to address community
Open power plants for
needs and create maximum benefits in education,
community visits
health, sports and religion, for example
Consult community through
o
the environmental inspector
Partial revenue contribution to Power Development Fund under the Energy Business Act BE 2550 for power
team
plants vicinities community development
o
Consultation with community through the environmental inspector team
Shareholders
o
Returns and
o o
Rights to information
business growth
Compliance to corporate governance
o o o
Annual shareholder meeting
Operate business under corporate governance for
Quarterly briefings
continued growth and added value thus positive returns
Shareholder visits to power
to shareholders
plants
RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
Stakeholders
Demands
Process
Guidelines
Co-investors
o o
o
Found business on fairness for trust, cooperation, and
Fulfill business plans
Joint meetings
Avoid conflict of
good relationship which will culminate in sustainable
interest
capability and efficiency of the joint investment, and success of such investment
Creditors
o o
Ability to repay, with
o
Joint meetings
Strictly honor conditions and requirements specified in the
good and punctual
contracts through:
returns
o
Not demanding, taking or making any dishonest
o
Reporting accurate, punctual and consistent financial
Maintain cautious
payments
but profitable operations Government
o
Comply with related laws and regulations
agencies
o
information
o o
Campaign against demands and
o
Joint meetings
o
agencies’ visits
with government agencies on academic fronts and
Host public hearings
supports for their activities
o
Provide financial supports to the agencies’ activities
o
Multi-channel information
Emphasize on disclosing information to the media, for
disclosure
accurate, concise and quick dissemination to the public
o
Quarterly press conferences on
through:
Arrange interviews
financial results and company
with executives
strategies
o o o o
Disclose prompt, clear and accurate information
o
Set guidelines in dealing with government agencies based on corporate governance principles and cooperate
corruption Media
o
Welcome related government
o
Site visits
Press releases on major events Press conferences on quarterly operaling performance Special executive interviews on special occasions Continuous and regular activities to strengthen relationship
Social groups/
o
Operate with
academics and
concerns in impacts
thought leaders
and emphasis on environment, society and community
o
o
Heed opinions
Uphold the principle in disclosing complete, clear and
Welcome suggestions and
accurate information, and welcome suggestions from
complaints
all parties for positive understanding and collaboration
Follow articles or news in
to reduce possible conflicts or impacts on the business.
different media
This, also going along with participation in community and
Disclose business
social development, is undertaken through:
information in
o o
transparent manner
o
o o
Socially-responsible business practices Information in annual reports and CSR reporting in
Preserve natural
accordance with the internationally-accepted Global
resources and
Reporting Initiative (GRI)
environment
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Social & Environment Responsibility Report 2012
Stakeholders
Demands
Process
Guidelines
Competitors
Follow competition
Learn from public channels
Legally promote free trade and competition through:
rules in moral and
o
ethical way and com-
Avoidance of actions which directly and indirectly intimidates or defame competitors
ply with the laws
o o
Promote free trade, by not robbing competi-
Campaign against threats and trade barriers Not putting competitors in a disadvantageous situation
tion opportunities from competitors
Employee connection and development 54
In 2012, the Company was geared towards expanding
Employees’ work livelihood was in focus, through the
business in the domestic and overseas markets, under more
improvement in workplace environment and quality of living,
challenging strategies and fiercer competition. Human resource
the adjusted and improved pay system to motivate highly-
is the key mechanism to achieve sustainable expansion and
talented employees in preparation for current business
achievements. Aside from equitable treatment without
operations and future expansion, and a campaign for
discrimination in race, nationality, sex, complexion or religion
awareness and understanding in the new common values
under the supervision of the HR and remuneration committee,
which will be a key foundation towards a change in corporate
for advancement accordingly to the business strategy and
culture.
direction, the Company undertook adjustment in HR policies to meet the enhanced mission.
To support business expansion, employee esteem and organizational image, in the past year the Company
The Company stepped up on recruiting talented and
commissioned the new permanent office construction and a
experienced personnel, particularly to fill high-ranking executive
management reshuffle. For legal compliance and international
posts. For greater strength, executives of the entire group
standards in terms of safety, occupational health and
were reshuffled to allow new management skills and
environment, the Company set up a business unit to directly
experiences so that they can grow along with the organization.
take charge of the new permanent office management.
Moreover, the Company has the policy to take care of employees and create capable, ethical and talented personnel
The Company’s personnel nomination and selection criteria
to whom the Company’s achievements are the priority. The
are in line with business plans. All employees must come under
Company promoted goodness and ethics among employees,
the se l e c ti o n pro c e ss, w he re by the y a re s u b j ect ed t o
ensuring they are aware of responsibility for themselves and
competency tests to guarantee that the Company has the
others and engagement in social and community development.
“right” persons to help it achieve the determined goal.
RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
Employee selection process
Behavioral and Competency Based Interview
Applicants
RATCH people
“To be the leading independent power producer in the region trusted by the public” - Ability test - Psychological test - Analytical test
Good, talented and quality people whose attitude aligns with corporate values
The Company has prepared employees to grow together to enhance capability for greater individual ability and corporate competitiveness, through job reshuffle opportunities. There are opportunities for overseas posts at the Company’s projects in Australia and Lao PDR. The employee development is designed according to their areas of work. Employees are also groomed on general management, to encourage and ready them for career advancement.
55
Social & Environment Responsibility Report 2012
The Company draws up training criteria to ensure that personnel is prepared to assist the corporate goal. Employees High-level executive
at all level are provided with skill training necessary and appropriate to particular positions, duty and responsibility.
Middle-level executive
Generally, operating-level employees must be trained on technical skill and business knowledge. Primary-level executives must be equipped with necessary technical skills;
Primary-level executives
aside from knowledge in their jobs, they must have the art in handling people for higher work efficiency as well as human relations skill.
Operating-level employees
The Company also targets to improve middle-level executives’ skills in materializing the Company’s policies in their respective areas. Their business units are required to come up with business plans and clear action plans and the executives can
56
lead them professionally. They must demonstrate virtuous and ethical behavior and enhance the leadership. Executive Development Program Leadership /Managerial Skill
For high-level executives, they are trained to efficiently apply
Conceptual/People and Technical Skill
knowledge in organizational management. Opportunities are
Technical Skill and Business Knowledge
offered for experience and knowledge sharing, for the better system and management procedure. They are encouraged to improve their vision and knowledge and acquire new experiences.
Human resource development activities in 2012 were as follows:
RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
Activities
Operating-level employees
Primary-level executives
Orientation
√
Ratchaburi Power Plant site visit
√
Site visit to Hongsa Power Plant, Lao PDR
√
√
English skill training
√
√
Technical skill training
√
Local cultural training for overseas-posted
√
employees Safety training for supervisors and executives
√
√
√
High-level executives
√
57
√
for executives
evacuation course
√
√
Personality and dining etiquette courses
Basic fire extinguishing and high-rise
Middle-level executives
√
√
√
√ √
Energy knowledge course by Thailand Energy Academy
√
Advance certificate course on public economic management by King Prajadhipok’s Institute
RATCH Volunteering The Company in the meantime promotes employee engagement
In 2012, the Company hosted 11 CSR activities that involved
in Corporate Social Responsibility (CSR) activities, allowing
“RATCH Volunteer” the activities are ranged from environmental
employees at all levels in planning and undertaking CSR
conservation,educational and youth activities, religions and
activities for community and social benefits. Employees are
culture activities. Some are initiated by employee clubs. Last
encouraged to volunteer for the Company’s and clubs’ CSR
year, there were 164 RATCH Volunteers, which accounts for
activities under “RATCH Volunteering” project. Employees are
95 percent of the whole number of staff, who dedicated their
allowed to take upto 3 days per calendar year for volunteer
301 hours to repay the society.
purposes and entitled to extra scores in annual performance appraisal in return for their volunteer.
Social & Environment Responsibility Report 2012
Establishing new core values: Path to the goal As the Company is geared towards more overseas investment, the core value has changed accordingly for the changing course and the more challenging competition. In the meantime, all employees are invited to take part in the change from the beginning as sense of ownership and pride built up on the engagement will help guide all towards the desirable behaviors.
Throughout 2012, the Company campaigned for awareness of the new core values and instill them as well as desirable behaviors in accordance with the values both directly and indirectly in forms of internal communications channels, activities, and meetings. Moreover,the values are applied in many employee relations activities such as family day,sport
58
day,and the Company's traditional and cultural activities.
The Board of Directors demanded evaluation of the awareness and values be part of the Company’s 2012 corporate KPI, which required the survey on all executives and employees. A number of 165 (or 92.69% of all 178 employees) completed the survey. It showed 90.44% of executives and employees were aware of and understood the new values, which met the criterion. In the next years, the campaign will be beefed up to ensure all employees’ greater understanding and cooperation to the 4 values.
RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
New common values Professionalism
Symbols
Guidelines
• Proficient in their jobs • Respectable • Responsible for jobs and the corporate image
Desirable behaviors
• Responsible for success or failure of business units and the organization • Having the sense of ownership about the organization • Possessing professional conduct • Being inspirational • Transferring knowledge to others • Following business and social etiquettes • Respecting themselves and others • Being punctual at all occasions • Open and adaptable to changes to individuals policies and changing circumstances • Being positive • Ready for domestic and overseas posting • Commanding communication and presentation skills
Passion for Excellence
• Determined towards excellence • Improving the capability of themselves and teams • Being undeterred by obstacles
• Being committed and devoted • Constantly improving work efficiency and work procedure • Self-improvement and yearning for new knowledge • Being creative and comprehensive • Being determined to overcome problems or obstacles • Passionate for quality and above-standard achievements • Responsible and ready to take on more challenging tasks • Planning clearly or envisioning framework or goal before acting • Possessing the "Can Do" attitude • Forecasting problems or evaluating the situation, and preparing solutions in advance • Thinking out of the box and having the forwardlooking view, to create new things
59
Social & Environment Responsibility Report 2012
New common values
Symbols
Guidelines
Desirable behaviors
Collaboration
• Being compassionate • Caring, helping and taking care of others like siblings • Trusting and being sincere to others • Respecting their team
• Sincere and willing for knowledge and experience sharing and ready to float opinions to other team members • Creating the trusting, supporting and collaborating environment • Taking part in team goal setting and the team's achievement • Acknowledging individual differences and understanding their behaviors • Coordinating with all groups and at all levels for good relationship • Treating others with friendliness and care • Accepting majority opinions and understanding responsibility as a team member • Putting mutual benefits as priority • Forgiving and understanding others • Volunteering on inter-unit activities and the organization's activities • Neutralizing differences or reducing conflicts for mutual benefits • Smiling and greeting all in all occasions • Expressing gratitude and apology at all occasions • Open to suggestions or advice with respect to others' rights • Seizing opportunities to make new friends and nurturing good relationship with internal and external members
Good governance
• Being honest • Being virtuous and ethical • Honoring the integrity and good values
• Carrying out tasks in righteousness, transparent and fair manner • Treating others equitably and keeping promises, based on corporate interests • Avoiding actions that harm themselves and the organization • Following the law, rules, regulations and the Company's policies • Keeping the Company's secrets and business information • Showing volunteering spirit and devoting own time for the sake of others or society
60
The Company has the confidence that the 4 new core values will inspire all employees towards the behaviors that will allow the Company to achieve its mission and vision. This will pave way for sustainable development and further business expansion in the future.
RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
Healthcare and occupational health:
On occupational health, the Company last year adopted the “5S” activity to improve the workplace environment for tidiness,
Cleanliness and safety as the central part of operations
safety, good hygiene and favorable work atmosphere. The
Aside from welfare and financial assistance for employees’
implemented continuously to make it part of corporate culture.
quality of living, the Company also promotes and supports
Employees were engaged in a contest to find the persons who
good health among employees through the regular
constantly kept their desks clean and tidy, in line with the “5S”
dissemination of health-related knowledge and advice through
activity.
activity drew participation from employees at all levels and was
multi-channels like e-mails, the intranet, announcement boards, and internal TV circuit. Necessary vaccination is
The Company believes that safety, occupational health and
provided like vaccines for tuberculosis (Type B) and influenza.
workplace environment is a key factor for efficient and effective
Annual tests on physical fitness and strength are hosted, to
operations. The systems to manage safety, occupational health
promote health self management. The Company also promotes
and workplace environment are improved to meet the laws,
employees’ physical and mental health through a number of
international standards and other regulations applied to
clubs engaging with football, badminton and golf, for example.
establish sustainable work-related safety culture for employees,
The annual sport day is also hosted.
contractors, visitors or others in the Company’s premises.
The Company’s new permanent office houses an indoor fitness
In the past year,there were no work-related accidents either
center for after-hour exercise, equipped with modern exercise
to the Company’s employees or others.
equipment to boost blood circulation, improve the respiratory system and improve muscle strengthening. Through qualified experienced trainers, the Company guides employees on equipment usage and advises them on sports science and appropriate exercising choices. depending on their ages and health conditions.
61
Social & Environment Responsibility Report 2012
Ratchaburi Power Plant's safety measures Process to instill culture on safety, occupational health and environment
Through the past years, Ratchaburi Power Plant have ensured that its operations would not be harmful to workers, community and the environment, through systemic risk management. While all risks of power plants are envisaged, appropriate
Promote and support employee engagement
controlling measures are devised to bring the risks to acceptable levels. Related laws and regulations are taken into consideration. The following measures are in place for
Assure the efficiency of preventive and corrective measures for risks of danger and environment impacts
controlling efficiency;
- All persons in the premise must strictly follow safety rules and measures.
Instil and raise employee awareness on the signigicance of safety and occupational health
- All persons must attend an orientation course before entering the premise. - All persons must envisage possible risks from their tasks and devise risk controlling measures accordingly. Such must
62 Monitor and review the implementation of safety and occupational health measures outlined in the annual operating plan
be presented to the supervisor at least 5 working days before they carry out their tasks. - The safety of heavy equipment, machinery, slings, chains and prime power tools must be certified before entering the premise.
The Company has emphasized on power plants' safety measures, under the aims to achieve zero losses or accidents
- Supervisors, task leaders or unit chiefs must ensure compliance to the measures from all persons.
harmful to all in the power plants - including the employees
- Those violating the safety rules and measures, regulations,
of the Company, contractors and nearby communities and to
orders or announcements will be barred from entering the
keep power plants from any risks. Throughout the past years,
premise.
the Company's power plants have been instructed to regularly
- Area supervisors, security officers, task leaders, supervisors,
monitor, evaluate and improve safety measures, to ensure that
and security department must jointly examine work safety
lives and assets of all persons in the premises are protected.
at least once a week.
At Ratchaburi Power Plant, the Company's primary power plant, safety measures and procedures are clearly specified and strictly implemented. Safety culture is also incorporated into the operating process , through the standard regulations that all workers in the premise must follow.
RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
Emergency prevention and mitigation
Emergency plans for natural disasters
Preventing the unexpected events and risk management are
From the great flood in 2011, Ratchaburi Power Plant has
the core of the power plants' operations and the measures to
drawn up an emergency plan for floods. A consulting firm was
protect communities around the power plants. Each power
hired to study the possibility of a flood around the power plant
plant must envisage the unexpected events, which could be
and nearby areas, to devise preventive measures and
harmful to employees and others working inside the premises.
preparation for the emergency.
All power plants are required to come up with emergency plans, to reduce and tackle possible risks as well as prepare for what may come. Measures and procedures specified for the emergencies are aimed at minimizing impacts on communities and the environment.
Each year, all power plants of the Company carry out emergency drills, to evaluate and improve the plans and procedures for maximum efficiency and effectiveness. Each drill will encompass local government units in the respective areas.
Contingency plan at Ratchaburi Power Plant Emergencies at the power plant can be driven by the generating activity and natural disasters.
There are 4 emergency plans to address generting-related emergencies. 1. Fire emergency plan 2. Chemical spill emergency plan 3. Gas leak emergency plan 4. Radiation emergency plan
Ratchaburi Power Plant conducts annual drills and training. In 2012, 30 level-1 fire drills, a level-2 fire drill, and a level-3 fire drill were carried out. There were 5 drills for chemical spill emergency, 3 for gas leak emergency, 1 for radiation emergency, and 1 for flood emergency. Business units were clearly given roles and responsibility in each simulated drill, so that all officers and business units realize their parts and mission.
63
Social & Environment Responsibility Report 2012
Community and social development In 2012, the Company rolled out a series of social activities, to show responsibility to society which will bring about a good corporate image. The summary of the activities is as follows:
1. “Love the Forest and the Community” project In cooperation with the Royal Forestry Department, the project conceived under the memorandum of understanding dated 25 January 2008 entitled both parties to primarily conserve community forests via assistance to community for such conservation as guided by Their Majesties’ sufficiency philosophy and wishes. Both have completed the 3 primary activities - community forest contest, Kla Yim community forest leaders’ network seminar and Kla Yim Youth Camp. 2012
64
marked the fifth and the last year of the first phase. On 30 September 2012, the Company and the Royal Forestry
Responsibility for goods and services
Department signed the MoU to launch the second phase which will run from 2013 through 2017.
As electricity must be transmitted through the high-voltage grid to 2 key customers - Electricity Generating Authority of Thaialnd and Provincial Electricity Authority, the current and voltage must meet the specification in the power purchase agreements. Meanwhile, the Company’s power plants must be ready to generate and transmit electricity at all time. All equipment involved with the transmission must be ready and safe at all time.
Conclusion of “Love the Forest and the Community” project Phase I (2008-2012) The business plan requires the Company to get deeply involved with social responsibility on realization that it is a key factor towards sustainable business development. Since 2007, the “Love the Forest and the Community” project has been the company’s key social activity. The Company sought cooperation from the Royal Forestry Department, leading to
Goods and services data is reported to the customers periodically and such information would not be revealed without the customers’ consent. The Company also have a particular unit at the Company’s office and the power plant, to take charge of the communications between the Company and the customers and the between the power plant and the customers, for goods and services improvement.
the memorandum of understanding dated 25 January 2008 to launch the “Love Forest and the Community” project, binding both parties in primarily conserve community forests via assistance to community for such conservation as guided by Their Majesties’ sufficiency philosophy and wishes. The 3 primary activities - community forest contest, Kla Yim community forest network conference, and Kla Yim Youth Camp have been completed.
Compliance with related laws and mitigation of generating impacts on community and environment demonstrates the Company’s responsibility to customers, to assure them that the Company’s goods are environmental-friendly and safe to community. This is an indirect responsibility to customers.
RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
model and learning center for other communities.
Objectives
They must have the following qualifications:
1. Follow Her Majesty the Queen’s wish to raise public
1) Community forest formed with Royal Forestry
awareness on national forests conservation
Department’s approval or
2. Help push forward the application of the royal ideas in
2) Community forest once obtaining Royal Forestry
strengthening community’s self-sufficiency
Department’s approval and
3. Strengthen community and establish community network for
3) Community forest still in existence
effecient community forest management in line with the sufficiency economy philosophy
o
Reviewing and judging process The coordinating committee proposed the Royal
Results
Forestry Department the establishment of 3 judging
Community forest contest
c o m m i tte e s fo r the “ Lo v e the Fo r es t an d t h e
The project’s primary activity to honor the community forests
Community” project, consisting of the department’s
with outstanding and systematic management of the forest
officials, employees of Ratchaburi Electricity
involving all parties in the community - households, temples
Generating Holding PCL, experts, academics and
and schools - in safeguarding, retoring and preserving the
officers with experience in community forest support.
forests as well as in making use of the forests in everyday’s
o
Judging panel for the “Love the Forest and the
life in a sufficient way. From 2008-2012, the forests should
Community” project having the Department’s deputy
set a learning model for other communities. The winner in
director-general as chairman and having the
the national level is bestowed HRH Princess Maha Chakri
Department’s and RATCH’s officers as members.
Sirindhorn’s trophy.
They ruled on the national-level winner and outstanding (area-specific) awardees as well as awardees at all levels. The list was then announced
Contest plan
by the Royal Forestry Department.
Step 1: Contest designing and delegation of responsibility The Royal Forestry Department assigned local units – the
o
Four regional selection committees having chiefs of
Forest Resources Management Office and regional offices
the Forest Resources Management Office and
– to recruit qualified community forests. The “Love the Forest
regional offices as members. They shortlisted
and Community Project” coordinating committee was
community forests from all regions for the national-
established to smooth liason between the department and
level contest and for the outstanding prize on eco-
Ratchaburi Electricity Generating Holding PCL. Its
tourism.
responsibility was to lay down the contest plan, coordinate,
o
Nineteen provincial selection committees having
evaluate and appoint working committees.
chief of the Forest Resources Management Office
Step 2: Identify criteria of exemplary community forest and
as chairman who tasked provincial working
review committee establishment
committees with the nomination of community
o
Exemplary community forest: community forests with
forests for provincial-level contests. Only one
outstanding and systematic management of the
community forest was nominated for the regional-
forest involving all parties in the community -
level contest.
households, temples and schools - and being a role
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Social & Environment Responsibility Report 2012
o
Judging criteria based on four sustainable resource
Prizes
management aspects - social aspect, economic aspect, sustainability, and energy and environmental
Category
Prize
Best National
- HRH Princess Maha Chakri
conservation.
o
Project period
Community Forest (1) Period
Sirindhorn’s trophy - Bt 200,000 fund for community
Detail
forest conservation February-April
- Establish the selection committee for the provincial and Forest Resources
Regional-level community forests (4)
- Bt 100,000 fund for community
- Take applications from community
forest conservation
forests nationwide
66
- Select the provincial-level community forests
June
Resources and Environment Minister
Management office-level selection
May
- Honorary plaque from Natural
Outstanding community forest (1)
- Honorary plaque from Natural Resources and Environment Minister
- Select Forest Resources Management
- Bt 100,000 fund for community
Office-level community forests
forest conservation July
- Select 4 outstanding regional-level community forests
July-August
- Select the national-level winner and
Provincial-level community forests
Forestry Department Director-
(66)
General
outstanding community forest September
- Bt 25,000 fund for community
- Announce and award the prizes for the annual “Love the Forest and the Community” project
- Honorary plaque from Royal
forest conservation Complimenary awards (66)
- Honorary plague from Royal Forestry Department DirectorGeneral - Bt 10,000 fund for community forest conservation
RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
Conclusion of community forest contests
4,412 community forests participated in the contest.
During 2008-2012, 714 awards were presented to community
•
2008: about 862 community forests
forests.
•
2009: 674 community forests
• 2008: 125 awards
•
2010: 735 community forests
• 2009: 190 awards
•
2011: 1,162 community forests
• 2010: 132 awards
•
2012: 982 community forests
• 2011: 134 awards • 2012: 133 awards
Summarized contest results
Year
Awardees
2008
Total 125 community forests • Best National community forest 2008 Khao Wong Community Forest, Moo 4, Tambon Wang Takhe, Nongbua Rahew district, Chaiyaphum • 4 outstanding regional-level community forests North: Ban Mae Raharn Community Forest, Moo 4, Tambon Bankard, Mae Sariang district, Mae Hong Son Northeast: Noneyai Community Forest, Tambon Siew,E-se, Pho Srisuwan district, Si Saket Central and East: Phuyang Community Forest, Moo 12, Tambon Thungluang, Pak Thor district, Ratchaburi South: Thamphueng Community Forest, Moo 5, Tambon Tonyuan, Phanom district, Surat Thani • 120 provincial community forests
2009
Total 190 community forests • Best National community forest 2009 Huay Saikhao Community Forest, Moo 6, Tambon Tha Pladook, Mae Tha district, Lamphun • Outstanding community forest (food abundance) Don Chaopoo Community Forest, Moo 3, Tambon Saimoon, Nam Phong district, Khon Kaen • 4 outstanding regional-level community forests - North: Ban Wangtamon Community Forest, Moo 2, Tambon Nakhunkrai, Srisawang district, Sukhothai - Central and East: Ban Yangthone Community Forest, Moo 3, Tambon Srimongkon, Sai Yok district, Kanchanaburi - Northeast: Wangkok-Khaosaluad, Moo 5/17/19/21, Tambon Huay Yai Jiew and Moo 10, Tambon Watabaek, Thepsathit district, Chaiyaphum - South: Ban Sakaew Community Forest, Moo 8, Tambon Saithong, Chaiburi district, Surat Thani • 64 provincial community forests • 120 complimentary awards
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Social & Environment Responsibility Report 2012
68
Year
Awardees
2010
Total 132 community forests • Best National community forest 2010 Baan Huay Rai Burapa Community Forest, Moo 10, 4, Tambon Oobmoong, Nongwuasaw district, Udon Thani • Outstanding community forest on eco-tourism Ban Thamphueng Community Forest, Moo 5, Tambon Tonyuan, Phanom district, Surat Thani • 4 outstanding regional-level community forests - North: Ban Samkha Community Forest, Moo 6, Tambon Huasua, Mae Tha district, Lampang - Central and East: Ban Nonehinphueng Community Forest, Moo 3/4/5, Tambon Dongbang, Prachantakham district, Prachin Buri - Northeast: Ban ALor-Doneban Community Forest, Moo 10, Tambon Nadee, Muang district, Surin - South: Ban Thoongsoong Community Forest, Moo 4, Tambon Khaoyai, Ao Luek district, Krabi • 63 provincial community forests • 63 complimentary awards
2011
Total 134 community forests • Best National community forest 2011 Baan Klang Community Forest, Moo 6, Tambon Bang Toey, Muang district, Phang-Nga • Outstanding community forest on “forest-loving youth” Ban Nongphuk, Moo 10, Tambon Pua, Chiang Klang district, Nan • 4 outstanding regional-level community forests - North: Ban Pakluay Community Forest, Moo 8, Mae Sariang district, Mae Hong Son - Central and East: Ban Huaysaphan Samakki Community Forest, Moo 2, Tambon Nongrong, Phanomthuan district, Kanchanaburi - Northeast: Dong Krasaen Community Forest, Moo 12, Tambon Tha Champa, Tha Utane district, Nakhon Phanom - South: Aow Aiyor Community Forest, Moo 4, Tambon Namtok, Thoongsong district, Nakhon Si Thammarat • 65 provincial community forests • 63 complimentary awards
2012
Total 133 community forests • Best National community forest 2012 Ban Huaysaphan Samakki Community Forest, Moo 2, Tambon Nongrong, Phanomthuan district, Kanchanaburi • Outstanding community forest on “Sustainable development” Ban Denpattana Community Forest, Moo 12, Tambon Pua, Chiang Klang district, Nan • 4 outstanding regional-level community forests - North: Ban Meesuk, Moo 8, Tambon Wangchan, Sam Ngao district, Tak - Northeast: Ban Tad Rinthong Community Forest, Moo 6, Tambon Thatthong, Phukiew district, Chaiyaphum - Central and East: Ban Khaomusi Community Forest, Moo 10, Tambon Nongprue, Nongprue district, Kanchanaburi - South: Ban Chalapornpattana Community Forest, Moo 13, Tambon Sukhirin, Sukhirin district, Narathiwat • 64 provincial community forests • 63 complimentary awards
RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
Kla Yim Youth Camp
Results of Kla Yim Youth Camp project
Targeting young conservationists to help conserve the forests
- Youth can improve their learning and understanding in
and forest sustainability. The camp helps raise conservation
community forests and natural forests in social, economic
awareness among the youth and educate them on the value
and forest sustainability aspects.
of forests, community forest conservation and energy and
- Develop awareness in value of community, realizing the forest
environment conservation in light of global warming. The camp
value as community food source, loving their communities
features expert lecturers and for better knowledge transfer and
and forests in their communities, and realizing their role to preserve community forests for the next generation
understanding, learning through their five senses - hearing, seeing, smelling, tasting, touch and their heart. The Kla Yim
- Youth learn the relationship of trees and energy, understand
camp was hosted 11 times during 2008-2012, encompassing
the global warming, and realize the need of energy saving to ease global warming
890 young people from all parts of the country.
- Communities have younger generation to maintain and preserve community forests
69
Year
Location
2008
1 st:
2009
2 nd : Doi Suthep-Pui National Park, Chiang Mai
2010
Ban Nongree Community Forest, Nong Ya Plong district, Phetburi
3 nd :
Doi Luang National Park, Chiang Rai
4 th :
“Ustream to Downstream� Youth Camp, Samut Songkhram
5 th :
Southern Kla Yim Youth Camp, Ban Thamphueng Community Forest, Tambon Tonyuan,
6 th :
Northeastern Kla Yim Youth Camp, Chaiyaphum
7 th :
Central Kla Yim Youth Camp at Kung Krabaen Bay Royal Development Study Center,
No. of participants
60
160
270
Phanom district, Surat Thani
2011
160
Tambon Khlongkud, Tha Mai district, Chanthaburi
2012
8 th :
Northern Kla Yim Youth Camp, Mae Moh, Lampang
9 th :
Love Forest Youth Camp, Samut Prakan
10 th : Southern Kla Yim Youth Camp, Phang-Nga 11 th : Northeastern Kla Yim Youth Camp, Sakon Nakhon
240
Social & Environment Responsibility Report 2012
Community Forest Leaders’ Network Seminar The forum where community forest leaders exchange their experiences in developing and managing forests. Here, they learn new forest-conservation ideas and approaches, value of
Results - Community forest leaders learn new knowledge and experiences, beneficial for their community forests. - Community forest leaders secure new friends, for form a network in the future.
the forests, and success in community forest management
- Community learns and understands more about energy,
from community forest contest winners. The activity is
realize the necessity of energy conservation, and gain more
strengthening community forest leaders’ bond and establishes
knowledge in community energy.
the network for the exchange in community forest management knowledge which is geared towards the same goal - forest sustainability. For five years, the activity drew participation
Activities related to the “Love the Forest and the Community” project designed to support community forest
from 640 community forest leaders across the country to the
management’s capability
following 8 seminars.
• Nature trails that turn community forest to natural classrooms for unlimited ecological learning. The project involves all parties in the community in initiating and
70
Year
Activity
designing the trails as well as producing learning media for people in the community and outsiders. The project was
2008
Northeastern community forest leaders’ seminar at Khaowong Community Forest, Tambon Wang Takhe, Nongbua Rahew district, Chaiyaphum
kicked off in 2010, emcompassing 10 community forests. 1. Ban Tha Papao Community Forest, Tambon Tha Pladook, Mae Tha district, Lamphun 2. Khao Ai Pode, Tambon Sub Takian, Chaibadan district, Lop
2009
Northern community forest leaders’ seminar at Ban Tha Papao Community Forest, Tambon Tha Pladook, Mae Tha district, Lamphun
2010
1 st : Northern community forest leaders’ seminar at Jae Son National Park, Lampang 2 nd :
Central and eastern community forest
leaders’ seminar in Suan Phueng district, Ratchaburi 2011
1 st : Northeastern community forest leaders’ seminar at Baan Huay Rai Burapa Community Forest, Udon Thani 2 nd : Southern community forest leaders’ seminar in Aow Luek Community Forest, Krabi
2012
1 st : Central and eastern community forest leaders’ seminar at Ban Huay Saphan Samakki Community Forest, Kanchanaburi 2 nd : Northern community forest leaders’ seminar at Ban Meesuk Community Forest, Tak
Buri 3. Ban Sakaew Community Forest, Tambon Saithong, Chaiburi district, Surat Thani 4. Khao Wong Community Forest, Tambon Wang Takhe, Nongbua Rahew district, Chaiyaphum 5. None Yai Community Forest, Tambon Siew/E-Se, Pho Srisuwan district, Si Saket 6. Khaosaluad Community Forest, Tambon Watabaek, Thepsathit district, Chaiyaphum 7. Ban Phu Yang Community Forest, Tambon Thungluang, Pak Thor district, Ratchaburi 8. Ban Yang Tone, Tambon Srimongkol, Sai Yok district, Kanchanaburi 9. Khaokham Hinyoke Community Forest, Tambon Taladraeng, Ban Khewa district, Chaiyaphum 10. Wang Takian Community Forest, Tambon Thasailuad, Mae Sot district, Tak In 2012, all 10 nature study trails are completed, and opened. All the 10 communities educated people about forests, biodiversity and the forests’ benefits through the nature trails.
RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
• 84 Community Forest Reforestration for the King in celebration of His Majesty the King’s 7th cycle birthday anniversary on 5 December 2011 Oriented to tree growing in community forests to promote trees’ carbon dioxide absorption as carbon sink and following His Majesty the King’s initiative on “growing 3 types for 4 benefits”. Promoted in the project are trees for use, foods and economic purposes. A total of 840,000 trees, of 126 species, were planted at 84 community forests in 64 provinces.
• Kla Yim City Forest for the King in celebration of His Majesty the King’s 7th cycle birthday anniversary on 5 December 2011 Set to grow tree in people’s heart, targeting 84 educational institutions and temples nationwide. Schools and temples are turned to forest learning centers to educate the youth of tree species and to encourage them in designing learning materials upon the knowledge for the schools. Trees promoted under the project are: Royally-bestowed auspicious trees of 76 provinces At least 20 species of sweet-smelling flowers At least 20 species of trees used for food Suitable species like auspicious birthday trees, institutions’ official trees, local trees, trees in literature and trees in Buddhism history
• Learning center at Ban Huayrai Burapha Community Forest for the HRH Crown Prince Maha Vajiralongkorn in celebration of the 5th cycle of birthday anniversary on 28 July 2012 The learning center where community members in Tambon Oopmoong and its network can learn and jointly develop community forest management. It is also the gesture of all parties and all community members’ determination towards sustainable forest conservation. an exhibition of community’s progress in forest biodiversity conservation is featured along with local wisdom. The learning center is also a meeting venue, to promote learning and community participation. Through the nature study trail, the general public experience nature and natural studies. There is a seedling nursery where seedlings cultivated to promote reforestation are available for the general public. Rare local herbs are grown and expanded, for academic purpose and local use. From the learning centre, the community forest concept will be replicated by nearby communities and society. Having Ban Huayrai Burapha Community Forest as the model for public learning, it brings pride to the community.
71
Social & Environment Responsibility Report 2012
• “Native trees - Community food” Book for the Queen in
or make references from the book. The book will be the
celebration of Her Majesty’s 80th birthday anniversary
medium to raise public awareness in nature around them and
on 12 August 2012
tree species, which will establish their bond with nature and
To promote knowledge about trees for food and herbs to
encourage them to preserve plants.
community forests nationwide, which will help encourage conservation of these trees in community forests. Targeting
• Evaluation of “Love the Forests and the Community”
community forests and the general public, the book portrays
project
the value of forests as a key source of food and water, vital
To obtain the end-result of the project, for the improvement
to the living of community and society. It also introduces
of future plans, the Faculty of Forestry, Kasetsart University,
native “food’ trees to the general public, to raise their forest
is assigned to play the central role in assessing community
conservation awareness.
forest management under the project since 2010. The evaluation compares award-winning community forests with
72
The book will be distributed to communities participating
those winning no awards. The evaluation of the “Love the
with the “Love the Forest and the Community” project
Forest and the Community” project can be summarized as
natiowide, students and the general public. The book’s
follows:
contents include:
1) A change in community’s attitude in the more positive
• Records of Her Majesty’s activities in forest conservation • Details of the Royal Forestry Department’s community
way through the project period in these areas: •
Community forest management under a community
projects and the “Love the Forest and the Community”
forest committee and public participation. Award
project
winners’ attitude is better than those winning no
• A list of 150 native “food trees” in community forests
award, indicative of most community forests’ focus on
nationwide vital as a food source for communities and
community-inclusive management to ensure
herbs, and their benefits
sustainable forest protection from the entire community.
• Dependence on community forests for food and wood as well as for religious purposes • Details of 150 native food trees covering their scientific information, ecology, use and photos
•
Planning, regulations, rules and forest resources and environment conservation. The overall attitude improves as award-winning community forests continue to uphold their management plans. Unawarded forests’ attitude improves in the accelerated
The book project has raised public awareness in Her Majesty
pace. Driven by the urge for a prize, community
the Queen’s vision in the conservation of forest resources as
members are enthusiastic in taking parts in all
the vital food and water source for her citizens. Communities
community forest-related activities, particularly the
are educated of the value of community forests as a main food
management planning which could win their community
source, which should strengthen their sense of ownership.
forests an award - the honor and pride to their
Students and the general public can also obtain knowledge
communities.
RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
•
On compliance with the sufficiency economy,
2) Change in community forest fertility, considering the types
communities’ attitude is overall positive and improves
of forests, the species and the number of big trees, the
in an accelerated pace as communities have applied
ratio of big trees to overall areas, biodiversity of big trees,
the philosophy into their everyday’s life. Involving in
their biomass, carbon dioxide absorption, and overall
community forest management, they automatically
fertility. The study shows overall positive condition of
obtain the understanding in the philosophy as the
fertility and signs of improvement depending on the type
sustainable forest management concept is built up on
of forests. Dry evergreen community forests tend to
the philosophy. Those community forests will become
demonstrate highest fertility, followed by dry dipterocarp
true forests in a sustainable way depends on the
forests and mixed deciduous forests.
73
pattern of use, particularly direct use. The concept is
3) On improvement guidelines, the study team, basing their
annual benefits must not exceed increases in annual
views on community information and opinions during the
output. The project has obvioiusly played a part in
study and evaluation period, comes up with the following
applying t he p hi l osop hy w i t h c omm uni ty fo re st
proposals;
management, to ensure the balanced use of forests. •
On energy and environment conservation, community’s
through the 3 main activities - community forest contest,
attitude is overall positive and continues to improve.
community forest leaders’ network seminar, and youth
Most award-winning community forests emphasize on
camp - as these are the catalyst for higher awareness in
use of wood as an energy source, realizing that the
local forest conservation.
forest condition will improve if trees are tended, with
• Introduce new activities related to community forest
twisted and dead branches being cut. Their goal is to
management, for higher management efficiency.
improve the forest condition and win an award from
Suggested activities are:
the project. The cut wood is a good source of energy. •
• Maintain and promote the project’s outstanding feature
Community’s attitude towards the project is overall positive and tends to improve, as the project is leading to community forest improvement.
Social & Environment Responsibility Report 2012
Promote energy and environmental conservation, encouraging communities to rely more on low-cost
2. Education for Career Empowerment in Lao PDR
alternative energy. Promote and strengthen communnity understanding
The Company is a major Thai investor in Lao PDR’s electricity
in the global warming, including them into voluntary
generating, with combined investment of over Bt 70,000 million.
greenhouse gas reduction scheme through forestation
Supporting economic development, the Company takes into
and agriculture. This should further bring good
consideration social and environmental responsibility. On social
reputation to the communities, the Company and the
responsibility, the Company initiated a project in support of
project.
Lao PDR’s policy to improve education and vocational skill
Introduce activities for awarded community forests like
and produce workforce for the labor market which is expanding
a career development project for products made of
in line with economic growth and foreign direct investment
output from the forests, the development of eco-
particularly in the electricity generating industry.
tourism, academic training on forestry, herbs and
74
widelife, as well as field trips.
The “Education for Career Empowerment” project was
Promote forest diversity, biomass and appropriate use
launched in cooperation with Lao PDR’s Ministry of Education
of firewood through activities like native tree plantation,
and Sports. Under the memorandum of intent signed on 27
fire protection, the making of annual timetable for non
May 2011, the project aims to provide educational opportunities
-timber forest product collection, and training on
to students and teachers in Lao PDR, so that they can improve
firewood.
their knowledge, expertise and skills for the benefits of their
Promote community knowledge in community forest
work and career in the future.
ecological management and their community forest potential analytical ability through training on a simple
The Lao government holds this as a pilot social responsibility
forest survey and data analysis to determine the fertility
project that other private companies are encouraged to follow,
of their own community forests.
to respond to social needs and lift up Lao citizens’ quality of
Sponsor a national academic conference on community
living in a concrete way. The project’s details cover:
forests, where academics and community forest
1) Course scholarships are provided to vocational students
representatives exchange their views, knowledge and
under the conditions set jointly by the Lao PDR’s Ministry of
experiences and learn new initiatives in community
Education and Sports and the Company. The number of
forest development.
scholarships is set accordingly to the allocated budget.
Take the lead in laying down community forest
2) Academic and skill training scholarships are provided for
management foundation, targeting young generation
students, teachers and general public. Lao PDR’s Ministry
in local areas and community forest leaders. Through
of Education and Sports and the Company jointly work out
the youth, local wisdom will live. Meanwhile, there
the number of scholarships and training courses useful for
should be an accessible data network, which should
both Lao PDR and Thailand. Initially, the courses focus on
strengthen the community forests.
mechanic engineering, electricity, and other engineering areas, for example.
RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
3) Other supports on a case by case basis. In 2012, the project’s goals were achieved as follows: - The curriculum and teaching papers for skill training in 3 areas - program for machine control (PLC), metal piercing and machine maintenance - were developed. - Prepare training plan and budget for 2012-2013 academic year, for 120 senior students. - Finalize scholarship criteria for vocational teachers, supporting their further studies for higher vocational and bachelor degrees. - Select 10 teachers for specialized training and award scholarships to vocational teachers in support of their further studies for higher vocational and bachelor degrees. - Provide lab equipment and install the equipment at the labs of Vientaine Polytechnic College, Pakpasak Technical College and Lao-German Technical School. - Install lab equipment for the labs of Vientaine Polytechnic College, Pakpasak Technical College and Lao-German Technical School for senior students’ training. Experiences from the labs will be developed and replicated at other vocational schools in other provinces. • Vientaine Polytechnic College is the pilot lab for PLC training.
•
Lao-German Technical College is the pilot lab for metal piercing.
• Pakpasa k Te c hni c a l Col l e ge i s t he pi l o t l a b o n machinery maintenance. - Survey for further lab installation at the technical colleges in Vientiane, Luang Prabang and Xayaburi.
75
Social & Environment Responsibility Report 2012
Community care In 2012, communities around the Company’s and subsidiaries’ power plants were the priority of community care.
Power Development Fund Activities at Pratu Thao Power Plant, Tambon Kong, Kongkrailas district, Sukhothai
1) Scholarships In cooperation with Sukhothai Primary Educational Service Area Office, poor students of Pradu Thao School who possess good grades and behavior were selected for 106 scholarships. The scholarships for 4 levels are worth totally Bt 141,400. • Kindergarten level, 41 scholarships, Bt800 each
76
• Prathom 1-4, 39 scholarships: Bt 1,500 each for those with good records and Bt 1,000 each for those with good performance • Prathom 5, 14 scholarships: Bt 2,000 each for those with good records and Bt 1,500 each for those with good performance • Prathom 6, 12 scholarships: Bt 5,000 each for those with good records and Bt 1,800 each for those with good performance The scholarship program has continued since 2008 as a mechanism to establish community acceptance and trust towards the power plant. In 2012, the Company hosted the scholarship presentation ceremony for the 2012 academic year to 102 students of Pratu Thao School, Tambon Kong, Kongkrailas district, Sukhothai, on Thursday 15 November 2012. • Pre-school (3-year), 20 students • Kindergarten 1: 9 • Kindergarten 2: 11 • Prathom 1: 9 • Prathom 2: 11 • Prathom 3: 9 • Prathom 4: 4 • Prathom 5: 15 • Prathom 6: 14
RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
Aside from better quality of life through educational
2) Ratchaburi Power Plant visit and network of schools
opportunities to the youth, the scheme also helps lessen
around the power plant
household expenses, leading to positive community attitude
Plant visit is designed to give the right information on power
towards the project and friendly co-existence. More discussion
plants and to forge relationship with groups residing around
on the power plant followed.
the power plant, including schools and teachers. In 2012, the Company hosted a visit to Ratchaburi Power Plant for
2) Community visit and complaint taking
Arunothai School’s network. They observed the power
The Company has the community relations team, which
plant’s electricity generating process and exchanged views
establishes communications with communities and receive
on local cirriculum for the network of schools around the
their complaints. The team makes regular visits to
power plant. They also observed Ratchaburi Power Plant’s
communities. In 2012, monthly visits were arranged and no
community career development schemes. Participants of the
complaint was filed.
visit during 5-7 August 2012 expressed satisfaction and brought with them better understanding in electricity
Activities at Sao Thian Power Plant, Tambon Krainai, Kongkrailas district, Sukhothai
generating process.
3) Community visit and complaint taking 1) Scholarships
In 2012, the community relations team made out regular
In cooperation with Secondary Educational Service Area
visits to nearby communities and received complaints on
Office 38 and Sukhothai Primary Educational Service Area
loud noise and hot air which affected their rice fields. The
Office, poor students from 8 schools around the project who
complaints were filed and the problems were solved.
possess good academic scores and behavior were selected for scholarships. In the area, there were 7 primary schools
Problem solving
and 1 secondary school.
• Hot air: The air stack was adjusted higher which satisfied
180 scholarships worth Bt 294,5000 were put in 3 categories:
• Noise: The environment team asked the affected for more
those who filed the complaints. • Primary level, 113 scholarships, Bt 1,500 each
detail and installed noise-measuring equipment at 3
• Lower secondary level, 45, Bt 1,800 each
points, to prove the noise level. One fan in the generator
• Higher secondary level, 22, Bt 2,000 each
was turned off, which lowered the noise. A noise barrier construction is planned to solve the problem in the long
For the 2012 academic year, 180 students were presented scholarships at the ceremony on 31 May 2012.
term.
77
Social & Environment Responsibility Report 2012
Activities in Ratchaburi province
training; hosting of a community meeting to brainstorm on
1) Extension of community energy plan for Ratchaburi
community forest management plan as well as annual
The project was carried out in cooperation with Ratchaburi’s
budgeting set according to priorities; ensuring community
Energy Office, covering Tambon Tharab in Muang district
actions go as planned; and advising on tips for sustainable
and Tambon Bansing in Photharam district, during October
community natural resources and environment development.
2011 and November 2012. The two areas are adjacent to
• Training
Ratchaburi Power Plant and Ratchaburi World Cogeneration’s
The process to educate community forest committees on
premise. Details are on Page 35
planning, explain forest management planning to communities, and present forest management plan to local
2) Ratchaburi’s community forest enhancement project
and related agencies for their supports. It must be assured
The project was carried out in cooperation with the Royal
that the forest management and exploitation of forest
Forestry Department’s community forest management office,
resources are in line with laws and regulations, while local
to establish community forests in Ratchaburi under the plan
knowledge and wisdom can be appplied for sufficient living
to preserve forests as the natural carbon sink. This is also
and developed into a career to boost household income.
to promote the right understanding in electricity generation
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• Forest management supports
and raise energy-saving awareness. The project covers the
The process to support communities in devising forest
following areas;
management plans, with knowledge accumulated from the
• 2 in Muang district
day community members approved the community forest
• 9 in Photharam district
registration. They are guided on prioritizing management
• 8 in Jom Bueng district
activities, budgeting and delegating responsibility in the
• 9 in Pak Thor district
management, operation and supporting accordingly to their projects as approved by the Royal Forestry Department for
Six associated activities are to support:
sustainable and maximum benefits to community members.
• Community forest survey and establishment
They are guided in filing for the Company’s supports.
The process to prepare community data for community forest
Through the process, the department and the Company can
application filing (extension). Officers were dispatched to join
advise and take part in problem forecasting and strategy
forest survey and measuring; coordinate with area leaders;
adjustment, to ensure maximum value of the management.
establish relationship with communities, explain and
• Ratchaburi community forests’ network seminar
introduce community forest-promoting activities; participate
The process to steer the community forest project forward,
with community meetings; and write up the community forest
through a network where knowledge and experience in the
project accordingly to the Royal Forestry Department’s
management of community forests in Ratchaburi province
guideline (Community Forest 1-3). The project proposal was
can be exchanged. This is to strengthen the relationship of
submitted to the department for the approval and registration
community forest leaders in the province, so that their unity
of the community forests. The proposal also serves as the
can be used to promote the community forest concept in
communities’ action master plan.
other areas.
• Community forest support The process to draw public participation in nurturing, maintain and revitalize the community forests before and after the Royal Forestry Department’s approval is granted. This includes the selection of community representatives for
RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
• Energy and environmental conservation
• Host the annual 2012 seminar for teachers in “For our
The process to educate communities on electricity, energy
neighbourhood” project (an education network) under
conservation and environment conservation through lectures
“Enhance teaching technique with project approach”.
and community development projects.
This is to improve the teaching skills of teachers of the 27 networked schools near the power plant. Drawing
As of 2012, the activities were in stage 3 - training on the
87 teachers, the seminar at Ban Krud Beach Front
development of community forest management plan. In the
Hotel in Prachuab Khiri Khan had Dr. Prasong
stage, they were educated on the power plant, electricity
Mateapinitkul from the Institute for the Promotion of
generating and environmental management through field trips.
Teaching Science and Technology and his team as the
The community relations team’s survey found that public
speaker.
attitude towards the Company has improved and communities
• Organize the “energy and environment conservation
are more open to absorb the Company’s information. The 28
youth leaders” training, bringing 95 teachers and
community forests encompasses total areas of 13,230 rai.
Prathom 5 and Prathom 6 students from the 27 networked schools to the training at Ruamtawan
3) Ratchaburi Power Plant’s community care
Center, Kanchanaburi. The training was part of extra-
Ratchaburi Electricity Generating Co., Ltd, the subsidiary
cirriculum learning, according to local cirriculum on
which operates Ratchaburi Power Plant, is determined to
alternative energy and environment devised jointly by
take care of nearby communities as a “good neighbor”. A
Ratchaburi Power Plant and the school network. The
series of activities have been rolled out to improve the quality
participating youth were intended to lead in the
of life in various areas like education, sports, health and
formation of the energy and environment conservation
career development. There are also activities to promote
club in their respective schools.
understanding and relationship with nearby communities and
• Annual 2012 scholarships to extend education
promote public participation in its activities - in the planning
opportunities to the youth. In the 7th year, the
and execution stages - for mutual benefits. Major activities
Company awarded 1,009 scholarships to students of
in 2012 are:
the 27 network schools, worth totally Bt 2,002,000.
(1) Quality of life improvement
The scholarship presentation ceremony was hosted at
(1.1) Education and youth
the multi-purpose pavilion of Wat Banmai Buppharam
The Company teamed up with the network of nearby
School, Tambon Watkaew, Bang Phae district,
schools, 27 in 9 Tambons, in hosting major educational
Ratchaburi. These students joined the writing and
activities and projects.
painting contest under the “Follow His Majesty’s
• School executive development, a brainstorming
footstep, developing Ratchaburi” theme, initiated in
seminar on educational planning where the network
celebration of His Majesty the King’s 7th cycle birthday
schools’ plan and the Company’s were integrated.
a nni v e rsa ry . T he sc ho l a rshi ps i n th e year w er e
• Support the establishment of a teacher council,
classified in 3 levels.
representing schools near the power plant which won
Kindergarten level: 198 scholarships, Bt 1,000 each
the contest on local cirriculum highlighting alternative
Primary school level: 629, Bt 2,000 each
energy and environment, and the panel to revise 21
Secondary school level: 182, Bt 3,000 each
local cirriculum. This is to ensure that the cirriculum could be started in the 2013 academic year.
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Social & Environment Responsibility Report 2012
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Throughout the past 7 years, Ratchaburi Power Plant had
• Meditation project for good physical and mental health
awarded 6,878 scholarships worth a total of Bt 14 million.
for residents around the power plant. Ratchaburi
Since 2008, Ratchaburi Power Co.,Ltd. has taken part in this
Electricity Generating Co.,Ltd. hosted this in cooperation
scholarship scheme.
with Phaneonphloo Temple in Tambon Bangpa during
• Annual party for the National Children’s Day. Hosted for
10-17 September 2012, to extend knowledge on the
the eighth year, the party on 13 January 2012 was themed
benefits of meditation on physical and mental health - the
“good kids, good society, good life” and secured
principle of holistic health approach for a good health and
cooperation from Ratchaburi Power Co.,Ltd., local
immunity. Trained meditators were expected to apply the
administrative bodies, teachers from the near-power plant
knowledge with themselves and others, to reduce
school network, students’ parents, and partners in the
sickness. Phra Maha Seephrai A-phatharo from Voranaram
province and nearby areas. The activities were designed
Temple in Chon Buri and his 40-monk troupe were the
for “play and learn” through a variety of activities like
speakers. Over 1,500 participants showed up, consisting
games from the school network, a science and energy
of officers from Tambon Health Promoting Hospital,
vehicle, cartoons, Ratchaburi Hospital’s activities, a
Tambon Municipality and Tambon Administration in 9
power plant tour tramp, free hair cuts, rides and over 50
Tambon around the power plant as well as the general
food stalls. Over 10,000 children and their parents living
public. The event took place at the meditation sala at
around Ratchaburi Power Plant appeared at the party.
Phaneonphloo Temple, Tambon Bangpa, Muang district,
(1.2) Health and health services
Ratchaburi.
• Mobile medical and dentist services - which are free of
• Community health personnel training. Through the little
charge - are one of the Company’s focuses. This initiative
angel and community dentist projects, scholarships were
has won cooperation from all parties like the Tambon
extended to young people selected for studies in nursing
Municipality, Tambon Administration, village chiefs, health
and dental care. They will become professional nurses
offices, health volunteers and private organisations like
and dental officers for the health offices at 9 Tambons
Muang Ratch Hospital which provided the medical team
near the power plant. Achievements in 2012 are as
for health and oral checks and the group of local
follows;
traditional masseuses. In 2012, 6,318 residents were
• Four students graduated with a nursing degree from
served. • Ratchaburi Power Plant hosted a training for officers of Tambon Health Promoting Hospital and health volunteers
Boromarajonani College of Nursing, Ratchaburi, and started working in their home areas. Another 4 are completing the course.
of 9 Tambons surrounding the power plant. Themed
• Two students graduated with a dental care certificate
“Holistic healthcare”, the 2012 training as part of the “For
and were posted at Damnoen Saduak Hospital and
Our Neighborhood” (health group) scheme had Amnuay
Tambon Bansing Health Promoting Hospital. A student
Fuangfookitchakarn, a director of the Chiang Mai
is completing the degree.
traditional Thai medicine association, Health Office 10, as the speaker. The holistic approach offers an alternative that the hospital’s officers and health volunteers can apply with their health schemes designed for people in their respective areas. The training was held for three groups during 11-13 June 2012, covering 237 participants.
RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
(1.3) Sports
• Ratchaburi Power Plant’s Mini Football Academy 2012
The Company launched the Ratchaburi Power Plant Mini
recruited 30 youngsters from the 9 Tambon around the
Football Academy in 2011, to promote football skills
power plant. All attended advance football skills training by
development of young people in Ratchaburi province and
national footballers during 1 June 2012-25 November 2012,
raise their playing standard to that of the international level.
totalling 28 weeks.
In 2012, the scheme was designed to further train the
(2) Ratchaburi Power Plant’s environmental inspector
academy’s graduates for the national youth football league.
Ratchaburi Power Plant kicked off the second series of the
Achievements in 2012 were as follows:
environmental inspector project (2011-2013). The inspectors committee will monitor and ensure the power plant operations
• Training of Ratchaburi Power Plant’s youth team, consisting
are in line with Ratchaburi Power Plant’s measures to prevent,
of attendants of Mini Football Academy Classes 4 and 5.
mitigate and minimizing environmental impacts as well as the
• 1st prize of the Ratchaburi competition under the Prime
environment quality monitoring plan as specified in the
Minister Cup tournament (14-year-old) • 4th place in the West Region tournament under the Prime Minister Cup tournament (14-year-old) •
environmental impact assessment report. The committee will also coordinate with the power plant in environmental inspection as well as disseminate information, facts, opinions
A place in the quarter-final round of Manchester United
and suggestions on the power plant’s environment-related
Premier Cup 2011 (MUPC 2011), for players aged no more
activities to the joint committee on Ratchaburi Power Plant’s
than 15 years
environmental monitoring and community environmental
• Ratchaburi Power Plant’s Mini Football Cup 2012. Ratchaburi Power Plant in cooperation with local administrative bodies in the surrounding 9 Tambons hosted the “Ratchaburi Power Plant’s Mini Football Cup 2011” during 5-11 April 2012. Eighteen teams vied for the victory during the 7-day event. Ratchaburi Power Plant was the main sponsor: 25 uniforms for football players and team officers of each team and the financial support of Bt 3,000 for each of the 9 Tambon. • The 2012 winning team was from Tambon Banrai, which was presented the trophy and a Bt 20,000 cash prize. The 1st runner-up was Tambon Phaengphuay Youth Team, winning a trophy and a Bt 15,000 cash prize; the 2nd runner-up was Tambon Watkaew Youth Team, winning a trophy and a Bt 10,000 cash prize; and the 3rd runner-up was Tambon Samruang Youth Team, winning a trophy and a Bt 5,000 cash prize. Tambon Tharab Youth Team won the “Fair Play” prize.
development. The committee’s activities in 2012 are as follows:
o o
Host a meeting every quarter Host two activities to empower and educate the environmental inspectors committee
1. Grooming on general environmental knowledge and environment management criteria 2. A field trip to Map Ta Phut community, Rayong to enhance their knowledge and experience (3) Development and farmers groups empowerment Ratchaburi Power Plant provided financial supports to 13 development and farmers groups in the nearby areas, to finance their plans in 2012, on hope that the supports will strengthen their operations and develop new careers for additional income. Moreover, Ratchaburi Power Plant also provided training on farm crop and vegetable plantation as well as organic fertilizer making to the development groups.
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Social & Environment Responsibility Report 2012
(4) Participation with Corporate Social ResponsibilityDepartment of Industrial Works (CSR-DIW) Ratchaburi Electricity Generating Co.,Ltd. enrolled into the Department of Industrial Works’ corporate social responsibility project, targeting industrial plants nationwide. A committee was set up to ensure the plant’s social responsibility under the CSR-DIW, consisting of the management team of Ratchaburi Electricity Generating Co.,Ltd. and officers. It has met the CSR-DIW criteria after the coaching from the Department of Industrial Works’ experts and the report was reviewed by the department’s advisor and submitted in September 2012. The Company is awaiting the evaluation, vying for the CSR-DIW Award to be presented by the Department of Industrial Works in November 2012.
82
Activities in Pathum Thani 1) Scholarships In cooperation with Pathum Thani Primary Education Service Office Area 1, Ayutthaya Primary Education Service Office Area 2, Secondary Education Service Office Area 3 and Secondary Education Service Office Area 4, the scholarships have been extended since 2007 to promote education of students living around the Company’s operating premise in Tambon Khlong Kwai, Sam Kok district, Pathum Thani. Students with good behaviors and outstanding academic scores were selected for the scholarships. Students from 21 schools - encompassing schools in Som Kok and Lad Lum Kaew districts of Pathum Thani as well as Bang Sai and Lad Bualuang disricts of Ayutthaya - are entitled to the scholarship program.
Types of scholarships 3 levels, totalling 252 scholarships worth Bt 425,000 • Primary school level: 208 scholarships, Bt 1,500 each • Lower secondary school level: 38 scholarships, Bt 2,500 each • Higher secondary school level: 6 scholarships, Bt 3,000 each
RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
Humanitarian assistance Humanitarian assistance remains a vital and necessary issue for Thai society, mostly extended in the form of non-binding donation of money, equipment and other supports.
6) Restoring an old wood building, submerged in water for a period of time 7) Restoring the submerged library Providing dance costumes and local musical instruments damaged by the flood
In the past year, the Company’s major humanitarian assistance, which
Involvement in the restoration of Tambon Khlong Kwai Health
involved financial aid and supports from employees, was to
Promoting Hospital in Tambon Khlong Kwai, Sam Kok district,
rehabilitate Khlong Sa (Sapha Withaya Uthit) School in Pathum Thani
Pathum Thani
and Tambon Khlong Kwai Health Promoting Hospital in Pathum
1) Restoring the building, mostly the fixing of floor, walls,
83
Thani, which were devastated by the 2011 flood disaster. The
ceilings, glass doors, officers’ room, windows and the safety
Company donated a sum of money through the Thai Listed
room to prevent electrocution and short circuits
Companies Association to assist flood victims, which later helped set
2) Replacing damaged medical equipment like stethoscope and
up the Thai Stock Market Flood Relief Fund. The Company also
oxygen tank with accessories, wound stitching kits for small
introduced the “Return schools to our children, nurture community
operations, hand-squeezing pulmonary resuscitation
relationships” project, to restore primarily schools and hospitals in
equipment, digital blood pressure machine, dual blood
flood-affected areas.
pressure monitor, emergency baby-delivery kits, and patient mattress.
As a member of the Thai Listed Companies Association, the Company volunteered to take care of the restoration of Khlong Sa School (Sapha Withaya Uthit) School in Pathum Thani and Tambon Khlong Kwai Health Promoting Hospital in Pathum Thani. The work was
3) Replace damaged office equipment like desks, the drug cabinet and chairs 4) Replace the damaged mosquito control machine and other equipment
completed in 2012. 1) Involvement in the restoration of Khlong Sa School (Sapha Withaya
For community participation in all steps, the Company involved
Uthit) School, in Tambon Khlong Kwai, Sam Kok district, Pathum
community leaders, religious leaders, representatives from
Thani
local government units, and other stakeholders in the tasks to
2) Meeting with the school to hear its needs and coordinate with
ensure that the process properly and thorougly addressed the
Thai Listed Companies Association and the Fund for the budget
problems and properly answered community needs. Igniting
3) Installation of a water filter
sense of ownership, their involvement should lead to
4) The construction of a highly-elevated one-storey building, of which
determination to maintain the properties in a sustainable way.
lower floor is open for for multi-purpose functions 5) Restoring the school’s landscape
This should also raise their morale and unity. Khlong Sa School and Tambon Khlong Kwai Health Promoting Hospital now can resume their normal educational and medical services.
Social & Environment Responsibility Report 2012
CSR innovation and innovation promotion
84
The Company has acknowledged the responsibility for stakeholders and sought continual improvement, to achieve public acceptance as specified in the Company’s Vision.
Since establishment, the Company has acknowledged the
•
Encourage the power plants’ participation in the Department
responsibility for stakeholders and sought continual
of Industrial Works’ CSR-DIW project. Ratchaburi Power
improvement, to achieve public acceptance as specified in the
Plant joined the scheme last year.
Company’s Vision. Since 2010, the Company has continually
•
Improve the power plants’ generating efficiency against lower
improved the social and environmental responsibility and taken
fuel consumption, to respond to the country’s economic and
this as a CSR innovation. The innovations can be summarized
social development. Electricity generating technology
as follows;
innovation has been closely monitored, for the application with power plants which are subjected to annual maintenance
Operational innovation •
•
Improve the organizational values, in raising awareness and
and equipment replacement. •
Improve the system to handle generating pollutants, waste
promoting social and environmental responsibility among
water, waste and biodiversity at power plants, to maintain it
employees which now shape employee behavior. This was
above the legal requirements. World-class environmental
started in the past year.
management standards are applied. Ratchaburi Power Plant
Employees’ social activities, organized to promote and boost
last year applied the OHSAS 18001 and integrated it with
employee participation in the activities initiated by the
the ISO 14001 to increase the efficiency in handling and
Company and employees.
maintaining the impacts on health and living condition of community and society – the Company’s basic responsibility.
RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
•
Engage in carbon emission management to reduce the global
•
Collaborate with the Department of Environmental Quality
warming, through energy-saving schemes in power plants
Promotion, the Ministry of Natural Resources and
and the application of Carbon Capture Storage to feed
Environment, in biodiversity conservation, through
spirulina algae with waste CO2. Under a 2-year research, it
participation with seminars for an exchange of ideas and
is proved that the algae that can absorb CO2 9 times higher
progress on the Company’s biodiversity conservation
than big trees. The research project is in the commercialization
practices exercised at the power plants as well as the
process.
conservation of community forests in cooperation with the Royal Forestry Department. •
Cooperate with the Electricity Generating Authority of
Organization-level innovation
Thailand, a major shareholder, in synchronizing social
Sustainable business development requires collaboration from
activities, for greater benefits to the economy, society and
other parties, for success and maximum benefits to society. In
the environment. In the past year, both parties brainstormed
the past year, the Company forged cooperation with other
on cooperation on projects for the next year.
organizations in carrying out the following social activities: •
Cooperate with the Ministry of Energy and Ratchaburi
Collaborate with the Royal Forestry Department, the Ministry
province in extending energy-saving and community energy-
of Natural Resources and Environment, to promote and
saving projects in the province, which is the company’s
expand the community forest concept nationwide.
primary electricity generating location. The project was
Communities are encouraged to take part in forest
kicked off last year at two pilot villages in Muang district and
conservation and make use of forests without harming them.
Photharam district. The project raised community awareness
Forest existence ensures watersheds, a source of food and
in energy saving and knowledge in managing energy
energy. Beside, it is the natural carbon sink that efficiently
consumption in everyday’s life.
reduces the global warming, for the benefit of entire society. ·
•
•
Cooperate with the Royal Forestry Department, the Ministry
Sign a cooperation pact with the Department of Alternative
of Natural Resources and Environment, to promote the
Energy Efficiency and Development, the Ministry of Energy,
establishment of community forests in 28 villages which
Bangchak Petroleum PCL and Loxely PCL for an algae-to-
encompass over 13,000 rai in total area. The forests will help
biodiesel project, extended from the project to feed spirulina
absorb carbon dioxide and create favorable environment for
algae with Ratchaburi Power Plant’s waste CO2. The land
the province and the country.
is being prepared for the cultivation of algae at Ratchaburi
•
Power Plant. The cooperation demonstrates the Company’s
Innovation promotion
determination in combating global warming, for the sake of
The social responsibility innovation has been revealed to
society and the environment.
stakeholders directly and indirectly through various
Participate in the Sustainability Business Development
communications channels, like the shareholders’ meetings,
Institute of Thailand Environment Institute, to extend the
seminars, exhibitions, the Company’s web site, advertisement,
efforts in combating global warming and conserving the
press releases, as well as the visits and discussion with all types
environment. The Company has engaged in the institute’s
of media - television, radio, newspaper and online agencies - to
activities to exchange experiences with and learn from other
ensure all stakeholders’ thorough access to the Company’s
members, in order to improve the Company’s patterns
information.
particularly involving environmental protection and global warming.
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Social & Environment Responsibility Report 2012
Social responsibility reporting The Company has set social responsibility standards, to raise
•
awareness and improve the understanding on social responsibility among executives and employees. The guidelines
executive board at the monthly meetings •
cover the following areas: •
•
related parties
Posting social activities on the Company's web site and through Thai Listed Companies Association's CSR Club which is overseen by the Stock Exchange of Thailand and
fairness
through Thailand Business Council for Sustainable
4. Respect stakeholders' interests by opening for stakeholders' opinions on the Company's activities
Regularly keeping employees informed about the Company's social and environmental activities
3. Ethical business practices, upholding integrity, equality and
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Presenting monthly social and environmental activities summary reports to the Board of Directors
1. Responsibility which is open for external audit 2. Transparent dissemination of the Company's activities to
Reporting soical and environmental activities to the
Development (TBCSD) •
5. Uphold the rule of law with the concrete integration of laws
Including volunteering programs into the Company's activities, like the Company's anniversary or annual holiday
and regulations into the Company's operations
trips, and allowing employees to join community activities
6. Honor international principles like treaties acknowledged
which is a way to promote the Company's social activities
by international organizations 7. Respect human rights and individuals’ equitable rights, acknowledging all individuals’ rights under the laws
Since 2010, the Company has embarked on social and environmental responsibility reporting, to inform stakeholders and the general public about the Company's social and
The Company has also forged external cooperation with the
environmental activities. The report covers details in the
public and private sectors and and private organizations, to
following areas:
jointly steer forward the Company's social activities for maximum benefits to society. All employees are welcomed to
•
make suggestions and participate in social activities.
Business operations - vision and mission reflecting the principle and guidelines of responsible companies, the good corporate governance structure and operating results
In carrying out social activities, the Company forges cooperation
•
Environment and safety measures - the policy on
with other parties: in the public sector like the Royal Forestry
environment and safety, nature restoration, and waste and
Department, the Ministry of Energy and provincial government
inventory management
units; in the private sector like youth development associations,
•
Social measures - policy on labor and employees, employee
schools and temples. This reflects the Company's move to
welfare, employee development and training, as well as
become a responsible corporate citizen. Social and
supports to communities located around operating
environmental activities are also directly and indirectly
premises
disseminated through:
RATCHABURI ELECTRICITY GENERATING HOLDING PCL.
The 2012 social responsibility report covers details in the following key areas:
•
Sustainable development - the summary of business plans; the framework designed towards good corporate governance, ethical and honest business doing, as well as responsibility to society, community and the environment which will ensure solid and sustainable business growth
•
Risk management - the policy and governance measures to minimize business risks
•
Sustainable business development - key concepts towards business risk management, strategies and approaches to manage risks, and the Company's operating results which reflect business sustainability
•
Environmental-friendly operations - the Company's approaches to handle environmental impacts from the generating process and the environmental-friendly generating process with new initiatives for carbon emission reduction, waste water recycling, and power plant ecological conservation, and etc
•
Socially-responsible operations - the summarized reflection of the Company's business model that is built on moderation, caution, risk management, ethics, zero exploitation to avoid making excessive profits at the cost of social disadvantages, respect in human rights, anticorruption, and readiness to return benefits to society and all stakeholders
In the report, the Company discloses complete, concise and clear information in easy-to-understand language, with the avoidance to use technical terms. Information from outside organizations are property referred to. The sources of such information and the accuracy is verified. The report is disseminated in various channels. For the convenience the readers Not only it is printed in Thai,it is also provided in CD Rom in both Thai and English ,and through the Company’s website.
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