Ratch : Sustainability Report 2023

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Vision

To become a leading value-orientedenergy and infrastructure company in Asia Pacific.

Mission

M1 To ensure shareholders' value creation through financial return sustainably generated by accountability for environment, society and good governance.

M2 To achieve operational excellence and enhance competitiveness.

M3 To adhere fair business conduct and strict compliance to relevant laws and regulations.

M4 To raise employees' awareness and motivation of self-development for readiness in competition and business changing.

M5 To support security of national power grid and infrastructure system.

M6 To explore potential opportunities and new alternatives in energy-related and other non-power businesses to generate growth and business expansion for shareholders.

Corporate Value

Power of Professional

Be Entrepreneurial & Commit to Integrity

Power of Innovation

Boost Agility & Encourage Innovation.

Power of Teamwork

Excel Synergy, Collaboration &

Strengthen Partnership

Business Strategy

STRENGTH	SYNERGY	SUSTAINABILITY
Efficient operations geared	Integrated operations with	Promoting renewable energy
towards worthwhile revenue	extended collaboration with	with concerns about
and returns and strong	leading partners in Thailand	environmental and social
foundation for excellence.	and abroad, for sustainable	stewardship and governance
	growth opportunities in	for sustainable growth.
	the Power Business and
	Non-Power Business in
	the value chain as well as
	value-added innovations.

Content 02

01

04

Vision, Mission and	02
Corporate Values
Message from Chairman	04
and Chief Executive Officer
Sustainability Performance	07
Highlights in 2023

Environmental Performance in 2023

Management and Reduction of	85
Greenhouse Gases
Environmental Management	101
and Biodiversity

Economic Performance in 2023

Economic Performance	197
Supply Chain Management	203
Customer Relationship Management	213
and Product Responsibility

Awards and Recognition	08
About this Report	10
RATCH Business Profile	14

03

Business Strategy and	25
Sustainability Strategy
Progress of Sustainability Strategy	27
Implementation
Material Topics in 2023	32
Management of Key Material Topics	35
Value Chain of RATCH's Business	40
Stakeholder Engagement	41
Good Corporate Governance	59
Business Ethics and Compliance	71
Prevention of Fraud, Corruption	76
and Conflict of Interest
Complaint and Whistleblowing	79
Channel
Risk Management	80
and Internal Control

Social

Performance in 2023

Respect for Human Rights	124
Safety and Occupational Health	132
IT Security and Cybersecurity	150
Employee Stewardship	158
Community and	175
Social Stewardship

Performance Data 2023	230
GRI Content Index 2023	244
Disclosure in the Alignment	257
with TCFD
Sustainable Development Goals	258
(SDGs) Mapping
Independent Assurance	260
Statement
Feedback Form:	262
2023 Sustainability Report

Message from Chairman and Chief Executive Officer

Dear all shareholders and stakeholders,

The Board of Directors and the Management of RATCH Group PCL. share the aspiration to drive the Company towards stable and continuous growth. As such, sustainable development principles have been integrated into the operations. While the Management takes the rein, the Board of Directors and sub-committees particularly the Corporate Governance and Sustainability Committee supervise the operations to ensure the generated economic values can offer appropriate and balanced benefits to society or stakeholders.

Groundworks towards universal environmental and social standards

RATCH is determined to uplift environmental and social operations due to the significant influence on the operations and expectations of stakeholders. The process has been improved. In the past year, the Company extended the Environmental and Social Policy to encompass the following key issues of the enterprise and its business: the environmental impact management; the procurement of environmental-friendly products and services; the conservation and rehabilitation of natural resources, forests and biodiversity; respect for human rights; fair labor treatment; the safety and health of employees and community; the promotion of community engagement; and respect for the indigenous people. The policy shapes the business direction and operational guidelines of all work processes and all activities of RATCH, subsidiaries and operational controlled entities in Thailand and abroad. Approved by the Board of Directors and enforced on 18 August 2023, the revised policy also serves as the basis for the development of Environmental and Social Management System (ESMS) in order to enhance effectiveness of environmental and social risk and impact management of RATCH, joint ventures, business partners and suppliers in the value chain, covering all business phases from development to construction, operation and decommissioning. To be implemented in 2024, ESMS was developed in alignment the international standards of the International Finance Corporation, the Asian Development Bank, the Equator Principles as well as international environmental, and safety and occupational health management standards.

04 Sustainability Report 2023

Adaptation and response to climate impacts

The energy transition, to cap an increase of global temperature below 1.5 Degree Celsius, is a challenge to the power and energy business's sustainability. RATCH is well aware of the global push and vows to achieve carbon neutrality by 2050 in line with the national goal. We have prepared the Climate Change Strategy and Decarbonization Roadmap. In 2023, under the renewable energy strategy, our renewable energy equity installed capacity reached 2,974 MW or 27.14% of total, and 1,739 MW is under the development and construction phases. Renewable energy distribution capacity accounted for 20% of total capacity in the year.

RATCH has started a study on hydrogen fuel technology and the feasibility of renewables-based green hydrogen production. Australia boasts an investment potential, being the location of the Company Group's large wind farms. With Australia's strategy to become a leading hydrogen exporter in 2030, Australia also has the proper ecosystem for hydrogen technology development. RATCH has been underway of the feasibility study and looking for experienced and interested partners, for participation in the development and investment.

Greenhouse gas removals were another activity continuously implemented last year. In collaboration with the Department of Royal Forest and the Department of Marine and Coastal Resources, RATCH has participated in Thailand Greenhouse Gas Management Organization (Public Organization)'s Thailand Voluntary Emission Reduction Program - Forestry and Green Space. Activities involve the reforestation and conservation of natural and community forests. RATCH also supported Mae Fah Luang Foundation under Royal Patronage's carbon credit for sustainable development program that is implemented through community participation and capability enhancement. All have been carried out along with other activities in support of economic, social and environmental development.

Promotion of Respect for Human Rights Principles

RATCH realizes our duties concerning human rights, which is an essential part of our Corporate Sustainability Strategy. The zero-tolerance goal is set for 2030. The Human Rights Due Diligence has been implemented, with human rights risk and impact assessments being scheduled every 3 years. Following risk assessment in 2022, in the past year the impacts concerning the employees of RATCH, subsidiaries and operational controlled entities were assessed, as employees are considered significant internal rights-holders. The assessment showed low risks and impacts and the control and preventive measures remained efficient and effective.

RATCH Group Public Company Limited 05

RATCH also demands suppliers and business partners' compliance with human rights, including the clause in the Supplier Code of Conduct and making it a condition in supplier screening and assessment processes. RATCH has encouraged our subsidiaries and operational controlled entities to follow our path and promoted the understanding and awareness in human rights among employees, to ensure all rights-holders in the value chain satisfy equitable treatment as stipulated by the human rights principles.

On behalf of the Board of Directors, the Management and all employees, we would like to thank all shareholders and stakeholders for their confidence in the Company's path towards sustainability as well as perspectives and recommendations to lift the bar for our economic, governance and environmental operations and create continuous and sustainable benefits to the economy, society and the environment.

Governance as sustainability pillar

RATCH has adhered to good governance, transparency and integrity in operating business and it has been the pillar or our growth and stability throughout the past 23 years. We have consistently improved the key areas in line with regulatory requirements and business or industry contexts and monitored the legal compliance, fight against fraud and corruption, risk management and compliance with the Code of Conduct. The adequacy and suitability of internal control is assessed along with the prevention of wrongful use of the Company and subsidiaries' assets and transactions with related parties. In 2023, we witnessed zero violation of related legislation and the Code of Conduct, or complaint concerning fraud and corruption.

Sincerely yours,

(Mr. Sutat Patmasiriwat)

Chairman

(Miss Choosri Kietkajornkul)

Chief Executive Officer

06 Sustainability Report 2023

Sustainability Performance Highlights in 2023

Generated and distributed renewable energy: 4,230,811 MWh Equity installed capacity of renewable energy:

2,974 MW,

up 55.44% from 2022 Hazardous wastes not deposited in landfills: 215 tons

Volume of saved energy:

70,151 MWh

Volume of consumed renewable energy:

16,600 MWh

Reduced GHGs:

39,728 tCO2e

Saved raw water consumption:

2,806,232 cubic meters

Water reuse

7%

Forest areas for reforestation and carbon sequestration

• Forest areas conserved under "Love the Forests and
  the Community Project":

30,614.78 rai

• Conserved forest areas for carbon credit assessment:

14,319 rai

• Mangrove areas for carbon credit assessment: 113.47 rai

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Certified carbon credits from T-VER projects

• 3 projects
• Certified carbon credit amount:
  4,967 tCO2e

Calculated carbon credits from T-VER projects

• 5 projects
• Total calculated

carbon credits

6,256 tCO2e

Environmental complaints and penalties on legal non-compliance:

None

Operating areas covered in biodiversity assessment

100%

Social investment:

Bahtฺ 171.98 million

Employee occupational illness incidence rate:

= 0

Lost-Time Injury

Frequency Rate:

0.11 Per 200,000

Hours worked

Employees of RATCH

and entities in the reporting boundary participating

in human rights impact assessment: 100 Violation on human rights:

None

Human Rights Due Diligence for RATCH and entities under the scope of reporting: 100 Community benefiting from the Love the Forests and the Community Project

16 villages

4,775 households

Forest conservation prize money:

Baht 1.45 million

Community using prize money for capacity building:

100%

S

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c i a l d i m ension

No. of students and teachers receiving skill training under

the Education for Career Empowerment Project:

• 83 teachers

in electric power, welding, mechanics and renewable energy fields, or 3.99%

of all teachers in the country

• 1,035 students

in electric power, welding, mechanics and renewable energy fields, or 6.49%

of all students in the country

• Employment ratio of participating students:

59.02%

• Continuing studies of vocational students under education for career Empowerment

Project in Lao PDR:

29.13%

							n
							o
							i	Revenue from renewable
						d n
				ic a	n	s
					electricity
					i m e
				m d
			o
		n e			• Baht 7,036.00 million
Ec a
	o c
				n
		n
	r
e						• 13.89% of total revenue
go
v

Investment in renewable energy

• Baht 137 million
• 5.37% of total investment in 2023

Investment in non-power business and innovation

• Baht 835 million
• 32.77% of total investment in 2023

Revenue from non-power business and innovation

• Baht 2,373 million
• 4.69% of total revenue

Spending ratio of significant suppliers 77.18% of total spending

Significant suppliers under ESG risk assessment 100% of all significant suppliers

No. of incidence on personal data breach and confidential information leak

None

Breach of the Code of Conduct and complaint on fraud and corruption

None

RATCH Group Public Company Limited 07

Awards and Recognition

RATCH Group was bestowed multiple external awards and recognition in 2023 regarding corporate governance, environmental and social activities that placed importance on all stakeholders, transparent information disclosure and regular external verification.

RATCH Group PCL.

Ranked Excellence from the Corporate Governance Report of Thai Listed Companies 2023 (5 star) organized by Thai Institute of Directors Association with support from the Stock Exchange of Thailand for the 16th consecutive year

An honorary mention of	Full score in the Annual General	SET ESG Ratings 2023 at
the 11th NACC Integrity Awards	Meeting Quality Assessment 2023	AA Level by the Stock Exchange
from the office of National	by Thai Investors Association for	of Thailand, being in Group 2 with
Anti-corruption Commission	the 5th consecutive year	market capitalization between
		Baht 30,000 - 100,000 million
		(inclusion into THSI for the 9th
		consecutive year)

Honorary Sustainability	Medal to benefactor in	Honorary Chief Innovation
Disclosure Award 2023 from	Community Forest Promotion	Officer Award from National
Thaipat Institute	and Development 2023 from	Innovation Agency
	the Royal Forest Department	(Public Organization)

CFI.co Award 2023 for Best Value Creation Energy Infrastructure Company (APAC)

by UK-based Capital Finance International Magazine

08 Sustainability Report 2023

Ratchaburi Electricity Generating Co., Ltd.

Honorary CSR-DIW Continuous	Sustainability Disclosure	Moral Award from Center for
Award 2023 for operator's social	Acknowledgement Award 2023	Morality Promotion
responsibility standard from the	from Thaipat Institute for the	(Public Organization) in collaboration
Department of Industrial	disclosure of environmental	with Ministry of Culture and
Works, Ministry of Industry for	and social activities	Moral Assembly
the 10th consecutive year

Sahacogen (Chonburi) PCL.

• Excellence Performance of Corporate Governance Report of Thai Listed Companies 2023 (5 star) by Thai Institute of Directors Association with support from the Stock Exchange of Thailand
• SET ESG Ratings 2023 at A Level by the Stock Exchange of Thailand
• Full score in the Annual General Meeting Quality Assessment 2023 by Thai Investors Association
• Sustainability Disclosure Acknowledgement Award 2023 from Thaipat Institute for sustainability disclosure

Berkprai Cogeneration Co., Ltd.

Nava Nakorn Electricity

Generation Co., Ltd.

Sahacogen Green Co., Ltd.

Sahagreen Forest Co., Ltd.

• CSR-DIWContinuous Award 2023 for operator's social responsibility standard from the Department of Industrial Works,
  Ministry of Industry
• Award under the Zero Accident Campaign 2023 from Thailand Institute of Occupational Safety and Health (Public Organization)
• Membership of Thai Private Sector Collective Action Against Corruption (3rd membership recertification)
• Award under the project on biomass-powered very small power plant (Biomass VSPP)'s energy, safety and environmental efficiency
• Membership of Thai Private Sector Collective Action Against Corruption (3rd membership recertification)
• Outstanding organization award for safety, occupational health and workplace environment management (Platinum level) from Thailand Institute of Occupational Safety and Health
  (Public Organization) (T-OSH)

RATCH Group Public Company Limited 09

About this Report

RATCH Group's operations and performance in 2023 in the governance, economic, social and environmental aspects are disclosed in this report and on the Company's website: www.ratch.co.th. RATCH analyzed and assessed positive and negative impacts of the Company's operations, particularly in the power business - our primary business, and topics material to the Company and stakeholders, to ensure the transparency and adequacy of the disclosure of our strategies as well as implementation, progress and performance.

The report disclosed its operating performance during 1 January 2023 to 31 December 2023, prepared in accordance with the Global Reporting Initiative, GRI Standards 2021 and supplement indicators for the Electric Utilities Sector. This report also included climate actions by adopting the framework of the Recommendation of the Task Force on Climate-related Financial Disclosures (TCFD). (Detail shown on Page 257)

Scope of the report

The scope of this report concerned the operations of RATCH Group, its subsidiaries and joint ventures in which the Company has operational control, located in Thailand and overseas. In 2023, the number of joint ventures increased from 2022, with Songkhla Biomass Co., Ltd. and contributed 84.76% of total revenues in 2023. The list of companies covered in this report is as follows:

Operational controlled company

1. RATCH Group PCL.
2. Ratchaburi Electricity Generating Co., Ltd.
3. RATCH Cogeneration Co., Ltd.
4. RATCH Energy Rayong Co., Ltd.
5. Nava Nakorn Electricity Generation Co., Ltd.
6. Berkprai Cogeneration Co., Ltd.
7. Sahacogen (Chonburi) Public Co., Ltd.
8. Songkhla Biomass Co., Ltd.
9. RATCH-AustraliaCorporation Pty Ltd

1. Fareast Renewable Development Pte. Ltd. (Asahan-1)
2. RATCH-LaoServices Co., Ltd.
3. Asia Water Co., Ltd.

Note:

= reported

Reporting Topics

Economic

Environmental

Social

Location

Production

Water

Waste

Biodiversity

Energy consumption

GHG

Safety

Employee

Community

Humanrights

Air

Thailand

Power Business

Thailand

Thailand

Thailand

Thailand

Thailand

Thailand

Thailand

Australia

Singapore

Non-power Business

Lao PDR

Lao PDR

= unreported

List of all subsidiaries and joint ventures appeared in Form 56-1 One Report and the company website: www.ratch.co.th.

10 Sustainability Report 2023