Climate Change Management Approach
The Group has established a systematic climate change management approach by integrating climate-related matters into governance, risk management, and business operations to support the transition to a low-carbon economy and strengthen its capacity for sustainable long-term growth.
1) Governance and Management
The Board of Directors and management oversee climate change matters by setting policies, targets, and direction for climate change and greenhouse gas management and regularly monitoring performance through progress reporting and reviews against the Group’s plans. The Group has established a Sustainable Development Working Group to support implementation, data integration, and coordination among internal functions.
2) Assessment and Management of Climate-Related Risks
The Group considers climate-related risks and opportunities, including physical risks such as climate variability and extreme weather events that may affect operations and business continuity, and transition risks arising from changes in policies, laws, technologies, and markets related to greenhouse gas emissions reduction. Systematic identification, assessment, and management support response planning, process improvement, and appropriate investment decisions, reducing impacts on business continuity and strengthening organizational resilience.
Assessment results are used for management planning, project prioritization, and operational improvement. The Group evaluates short-, medium-, and long-term climate impacts, considering the transition to a low-carbon economy, environmental regulatory trends, and investor and stakeholder expectations. Climate strategy links greenhouse gas reduction targets with investment decisions, renewable power technology development, energy efficiency, and carbon offset projects to support business growth while reducing environmental impacts.
3) Measuring and Monitoring Greenhouse Gas Emissions
The Group continuously prepares a greenhouse gas inventory covering material emissions across Scopes 1–3. The inventory provides a basis for clear climate indicators and targets. The Group monitors performance, verifies and assures data accuracy, and evaluates the effectiveness of emissions reduction measures with an emphasis on accuracy, transparency, and auditability.
4) Reducing and Avoiding Greenhouse Gas Emissions
The Group prioritizes reducing greenhouse gas emissions from power generation and related activities through energy-efficiency improvements, machinery upgrades and maintenance, clean technology, renewable energy projects, and efficient resource use across the value chain.
5) Offsetting Greenhouse Gas Emissions
For emissions that cannot be reduced in the short term, the Group may use domestic and international carbon offset mechanisms to support its greenhouse gas management targets and progress toward carbon neutrality.
6) Disclosure and Continuous Improvement
The Group transparently discloses climate-related information in accordance with relevant sustainability reporting standards and uses performance results and lessons learned to continuously improve management practices, enhance operational effectiveness, and strengthen stakeholder confidence.
Energy Management
The Group has established an energy management approach to improve energy efficiency, reduce costs, and support sustainable business operations, as follows:
- Establish clear energy governance by assigning an energy management working group or responsible persons to set policies, targets, and plans and regularly monitor performance.
- Integrate energy management into corporate strategy and operational processes so that efficient energy use becomes part of management at every level.
- Systematically survey, analyze, and monitor energy use in production processes and related activities to identify significant energy uses and efficiency improvement opportunities.
- Continuously implement energy conservation and efficiency projects using appropriate and measurable measures that align with the nature of the business.
- Promote energy-efficient technologies, equipment, and machinery, including preventive maintenance, to maintain performance and reduce unnecessary energy losses.
- Increase the share of renewable energy in operations to reduce dependence on fossil fuels and support the transition to a low-carbon economy.
- Regularly monitor, measure, and evaluate energy use using appropriate indicators, including energy consumption and energy intensity, to support operational improvement.
- Strictly comply with applicable energy management laws, standards, and requirements and enhance practices in line with international best practices.
- Promote employee knowledge, awareness, and participation in energy conservation through ongoing communications, training, and campaigns.
- Regularly review and improve the energy management approach to reflect changes in business context, technology, and corporate sustainability targets.
Performance and Key Projects
Climate Change
The Group has advanced tangible climate change management actions focused on establishing systematic foundations, improving data accuracy, and preparing for long-term greenhouse gas emissions reductions. Key performance is summarized below.
1. Establishment of the Sustainable Development Working Group
The Group established a Sustainable Development Working Group as the principal mechanism for advancing climate change and greenhouse gas management policies, plans, and activities. The Working Group coordinates internal functions, oversees project progress, and supports the integration of climate matters into risk management and corporate strategy.
Climate Change Roles and Responsibilities of the Sustainable Development Working Group
The Working Group has the following key roles and responsibilities:
- Policy and strategic direction: Support the Board and management in establishing climate change and greenhouse gas reduction policies, direction, and targets aligned with corporate strategy, risk management, and national and international climate trends.
- Business integration: Coordinate and support the integration of climate matters into operations, business planning, and investment decisions so that climate action becomes part of organizational management at every level.
- Greenhouse gas oversight and monitoring: Monitor the organizational greenhouse gas inventory and corporate carbon footprint across relevant emission scopes to ensure accurate and complete information for performance monitoring and target setting.
- GHG Emissions Pathway: Support development of the Group’s emissions reduction pathway, from identifying emission sources and reduction potential to prioritizing measures, tracking progress, and continuously reviewing the plan.
- Climate-related risks and opportunities: Work with relevant functions to identify, assess, and monitor physical and transition risks and opportunities for integration into risk management and strategic planning.
- Climate project development and selection: Support the study and selection of greenhouse gas reduction and carbon offset projects in Thailand and internationally, considering technical and economic suitability and alignment with the Group’s climate targets.
- Monitoring, reporting, and disclosure: Track and evaluate climate performance and support reporting and disclosure under relevant sustainability reporting frameworks to strengthen transparency and stakeholder confidence.
- Internal capabilities and engagement: Promote employee knowledge, understanding, and participation through communications, training, and campaigns to foster an organizational culture that recognizes the importance of sustainable climate action.
2. Corporate Carbon Footprint
The Group prepares a Corporate Carbon Footprint (CFO) to systematically quantify greenhouse gas emissions from all organizational activities in accordance with the Thailand Greenhouse Gas Management Organization (Public Organization) Guidelines, 8th Edition, 6th Revision, July 2022. The inventory covers Scope 1 direct emissions, Scope 2 energy indirect emissions, and Scope 3 other indirect emissions. The information serves as a basis for monitoring performance and emissions trends and for setting future reduction targets.
| Group Activities Classified by Greenhouse Gas Emission Scope | ||
|---|---|---|
| Scope 1 | Scope 2 | Scope 3 |
| Stationary combustion, mobile combustion, fugitive emissions, and other direct activities | Purchased electricity from the Provincial Electricity Authority (PEA) | Purchased goods and services; fuel- and energy-related activities; other indirect emissions; and upstream transportation and distribution |
| Group Greenhouse Gas Emissions | |||||
|---|---|---|---|---|---|
| แหล่Greenhouse Gas Emission Sourceงปล่อยก๊าซเรือนกระจก | Unit | 2022 | 2023 | 2024 | 2025 |
| Scope 1 Greenhouse Gas Emissions (Direct GHG Emissions) | tCO2e | 17,796 | 17,834 | 17,274 | 18,873 |
| Scope 2 Greenhouse Gas Emissions (Energy Indirect GHG Emissions) | tCO2e | 391 | 300 | 496 | 422 |
| Scope 3 Greenhouse Gas Emissions (Other Indirect GHG Emissions) | tCO2e | 5,323 | 34,321 | 33,659 | 38,956 |
| Total Scope 1 and Scope 2 Greenhouse Gas Emissions | tCO2e | 18,187 | 18,134 | 17,770 | 19,295 |
| Total Greenhouse Gas Emissions | tCO2e | 23,510 | 52,455 | 51,429 | 58,251 |
Note
The Group recalculated its greenhouse gas emissions for 2022–2024 to align with the updated emission factors announced by the Thailand Greenhouse Gas Management Organization (Public Organization), effective January 1, 2026 and most recently revised in February 2026. As a result, emissions for 2022–2024 differ from prior annual reports. The recalculated information has been verified by an independent validation and verification body.
Summary of the Group’s Greenhouse Gas Emissions from 2022 to 2025
In 2022, the Group began establishing a baseline for greenhouse gas management. Direct emissions were 17,796 tCO2e and indirect emissions were 5,323 tCO2e, for total emissions of 23,510 tCO2e.
In 2023, direct emissions were 17,834 tCO2e and indirect emissions were 34,621 tCO2e, for total emissions of 52,455 tCO2e.
In 2024, direct emissions were 17,274 tCO2e and indirect emissions were 33,659 tCO2e, for total emissions of 51,429 tCO2e.
In 2025, the Group integrated assessment and verification by the Management System Certification Institute (Thailand), or MASCI, an independent expert body. Scope 1, or Category 1, emissions from fossil fuel combustion and fugitive emissions totaled 18,873 tCO2e. Scope 2, or Category 2, energy indirect emissions from imported electricity totaled 422 tCO2e. Scope 3, or Categories 3–6, other indirect emissions totaled 38,956 tCO2e. Total emissions were 58,251 tCO2e.
As the business expands and generation capacity increases in response to market demand, greenhouse gas emissions may rise. The Group recognizes this impact and is developing a systematic reduction approach that balances business growth with the achievement of long-term greenhouse gas reduction targets.
3. Feasibility Study of Projects Under the GHG Emissions Pathway
The Group is studying and developing a GHG Emissions Pathway with reference to international climate governance frameworks so that the plan is science-based, verifiable, and responsive to long-term stakeholder expectations.
The Group applies a science-based approach in setting the direction and targets for emissions reductions, considering criteria consistent with limiting the increase in global average temperature and using organizational emissions information under a business-as-usual baseline to establish a reasonable and achievable pathway. The plan prioritizes reductions from material sources, including combustion, production process improvements, energy efficiency, additional green areas, regular system maintenance, and appropriate clean technologies, before considering carbon offsets for residual emissions that cannot be reduced in the short term.
The Group also links the GHG Emissions Pathway study with the Task Force on Climate-related Financial Disclosures (TCFD) framework, systematically addressing governance, strategy, risk management, and climate metrics. This includes impacts on business operations, capital allocation, and progress toward emissions reduction targets. The linkage improves credibility, aligns the pathway with international practices, enhances data reliability, and supports strategic decision-making during the transition to a sustainable low-carbon economy.
4. Investment in Carbon Offset Projects
For greenhouse gas emissions that cannot be reduced in the short term, the Group has begun investing in carbon offset projects under Thai and international standards to offset organizational emissions and support its long-term carbon neutrality target.
The Group’s Net Zero Approach and Target Setting
According to the Thailand Greenhouse Gas Management Organization (Public Organization), TGO
Thachang Green Energy Public Company Limited, or TGE, has established a Greenhouse Gas Management Working Group to set policies, plan, monitor and evaluate performance, and report progress to the Board of Directors and the public. Its responsibilities include:
- Develop a roadmap for short-, medium-, and long-term greenhouse gas reductions aligned with the targets.
- Monitor and review greenhouse gas emissions data for accuracy against national and international standards.
- Recommend production process improvements and new innovations to reduce greenhouse gas emissions.
- Build awareness among employees and supply chain partners regarding the importance of Net Zero.
Commitment to Continuous Organizational Greenhouse Gas Reduction
As stated in the Commitment Letter to TGO
As a leader in biomass-based electricity and steam generation, TGE recognizes its role in supporting Thailand’s transition to a low-carbon society. TGE declares its commitment to highly environmentally responsible business practices and treats the global climate crisis as an urgent priority.
In alignment with the Paris Agreement objective of limiting global temperature rise to 1.5°C, TGE commits to achieving net-zero greenhouse gas emissions by 2050 through the following approaches and actions:
1. Emissions Reduction and Removal Targets
TGE targets a 10% reduction in Scope 1 and Scope 2 greenhouse gas emissions from biomass electricity and thermal energy generation by 2030, compared with the 2022 base year, and aims to achieve net-zero emissions. Priority will be given to improving the efficiency of biomass and municipal waste power generation while increasing greenhouse gas removals through ecosystem restoration projects and advanced technologies.
2. Governance Structure
TGE has established a Greenhouse Gas Management Working Group comprising representatives from management and all functions to set policies, monitor and evaluate performance, and transparently report progress to the Board and the public.
3. Operational Strategies for Net Zero
3.1 Decarbonization
TGE is committed to maximizing the efficiency of its electricity and steam generation processes to reduce greenhouse gas emissions intensity per unit of energy produced.
3.2 Carbon Offsetting
TGE seeks to address residual greenhouse gas emissions through carbon credit projects that meet recognized national and international standards. TGE also supports additional agricultural and forestry projects that enhance carbon sequestration and expand carbon sinks.
4. Commitment and Continuous Improvement
TGE will continuously review and improve operating procedures, technologies, and environmental policies to ensure that its approach keeps pace with innovation and international standards.
Thachang Green Energy Public Company Limited, or TGE, remains committed to conducting business in accordance with good governance principles, delivering reliable clean energy, and creating meaningful value for communities, society, and the planet.