Sustainability Vision, Strategy, and Targets

Vision

“The Leader of the Renewable Energy Industry with Social and Environmental care”

Business Strategies

1. Expansion of Electricity Generation Capacity and Enhancement of Production Capability

The Company is committed to expanding its electricity generation capacity from renewable energy sources. The Company plans to expand its business through participation in bidding processes or investments in renewable energy power plant projects. The Group will conduct careful feasibility studies and project evaluations in accordance with the established procedures, regulations, and investment policies to ensure prudent and sustainable investment decisions.

2. Modern and Efficient Operations and Management

The Company adopts modern operational and management practices for all power plant projects. This includes the selection of advanced technologies and innovative electricity generation processes to enhance operational efficiency, improve convenience and speed in operations, and strengthen the Group’s competitive advantage. The Group’s operational management is conducted as follows:

1. Systematic Planning of Power Plant Project Development

   The Company has systematically planned the development of its power plant projects. All three biomass power plant projects within the Group are designed to utilize flexible production technologies capable of accommodating various types of biomass fuels. This enables the Group to select the most appropriate biomass feedstock based on availability and cost considerations. In addition, key machinery and equipment have been designed to allow the use of interchangeable spare parts and components across the projects. This approach helps reduce spare parts inventory and replacement costs, enabling the Group to efficiently manage production costs.

2. Selection of Modern and High-Efficiency Technologies

   For biomass power plant projects, the combustion system is designed to accommodate biomass fuels with high moisture content and low calorific value, while maintaining effective pollution control performance. The power plants are capable of efficiently combusting biomass fuels with moisture content of up to 40–60%, enabling the Group to utilize a wider range of biomass feedstock and maintain lower fuel costs compared with other biomass power plants of similar types.

   For municipal solid waste (MSW) power plant projects, the Group selects Direct Incineration technology, which generates electricity through the direct combustion of municipal solid waste after necessary preliminary sorting. This differs from systems that require waste to be processed into Refuse Derived Fuel (RDF) prior to combustion. The adoption of this technology reduces fuel processing steps, simplifies operational processes, and enhances cost efficiency in plant operations. Nevertheless, the Company has designed and installed air pollution control systems and ash management systems in compliance with relevant environmental laws and standards.

3. Environmental Control and Operational Monitoring

   The Company implements operational controls to manage air emissions, dust, wastewater, and noise levels. Monitoring systems are installed to continuously inspect operational performance, and preventive maintenance plans are conducted on an annual basis or according to operating hours. In addition, measures are implemented to manage fuel storage areas, reduce dust dispersion, and prevent fire hazards. Fuel transportation is also monitored and controlled to reduce accident risks both within and outside the plant. These practices are implemented in accordance with environmental impact mitigation measures and the Company’s sustainability management guidelines.

3. Sufficient and Stable Raw Materials

The Group’s biomass power plants are located in areas that are among the country’s key palm oil cultivation regions, which facilitates the continuous procurement of biomass raw materials. The primary biomass raw materials used for electricity generation include empty fruit bunches (EFB), palm fiber, wood chips, as well as other biomass materials that are compatible with the power plant technology.

The Group has entered into biomass raw materials supply agreements with Thachang Palm Oil Industry Co., Ltd. (“TCP”), which operates a palm oil extraction business, and Thachang Biofuel Co., Ltd. (“TBF”), which produces and distributes wood chips. In addition, biomass fuels are sourced from local operators and farmers located near the power plants for use as fuel in electricity generation.

The Group adopts a diversified raw materials procurement strategy, sourcing biomass from both key suppliers and external suppliers. This approach helps ensure raw materials supply continuity and reduces reliance on a single source of raw materials supply. Both TCP and TBF are companies whose major shareholder is the same as the Company’s major shareholder, and the related transactions are conducted in accordance with commercial terms, related party transaction policies, and applicable regulations.

The quantity and prices of biomass raw materials may be affected by various factors such as seasonal palm oil production, weather conditions, and market price fluctuations. The Company continuously monitors these factors and manages its raw materials procurement plans in line with plant operating levels and market conditions, in order to support the continuous operation of its power plants.

For municipal solid waste (MSW) power plant projects, the Group has entered into long-term municipal solid waste management agreements with local administrative organizations (LAOs). These agreements cover the entire project duration and specify the framework for the quantity of municipal solid waste that will be delivered to the project for disposal and use as fuel for electricity generation.

In the event that the volume of municipal solid waste delivered falls below the specified framework, the Company will monitor the situation and manage the associated fuel supply risks. The Company will coordinate with the cluster host local administrative organization to consider sourcing additional municipal waste from other areas in accordance with the relevant procedures and conditions.

4. Value Creation from Production By-products

Steam generated from the production process is sold to related companies for use in palm fruit sterilization and skim rubber drying processes. In addition, wastewater from the production process is utilized to produce biogas, which can be further converted into electricity.

5. Conducting Business with Good Governance and Responsibility toward Communities, Society, and the Environment

The Group places great importance on conducting its business with consideration for the environment, society, and governance (ESG) principles. The Company has adopted a corporate sustainability policy (ESG: Environment, Social, and Governance Policy) with a key objective of fostering organizational development alongside environmentally friendly business operations. Additionally, the Company is also integrated this approach with its core organizational values, known as “T-G-E” (Technology-driven innovation, Governance that prioritizes communities, society, and the environment, and Excellence in operational efficiency). These principles serve as key drivers for the Group’s strategic direction and operational plans, ensuring systematic alignment across the economic, social, and environmental dimensions throughout the business value chain. Through the strengthening of its management systems, the Group aims to achieve sustainable growth and long-term stability as a socially responsible organization. The Company is committed to supporting economic and industrial development through renewable energy, progressing toward becoming a low-carbon organization, and achieving excellence in the sustainable renewable energy industry. This approach ultimately creates long-term value for shareholders and all stakeholders.

6. Financial Management

The Group manages its liquidity and funding sources to support long-term investments. The Company prepares cash flow projections and continuously monitors and reviews such projections, while maintaining an adequate level of cash reserves to meet operational requirements. Any excess liquidity is invested to generate appropriate returns within an acceptable risk framework. In addition, the Company maintains short-term credit facilities from financial institutions to support business operations as appropriate.

Furthermore, the Group implements effective credit management practices by establishing appropriate criteria and procedures for credit extension that are aligned with the nature of its business operations. These practices are benchmarked against industry standards comparable to leading companies in the same sector. The Company also manages credit exposure efficiently by considering potential risks that may result in problematic receivables or non-performing debts.