Bangchak and Sustainability

Sustainability Governance

Innovating in an environmentally and socially sustainable way

The Company is committed to meeting the needs and expectations of all its stakeholders, including the sustainable development goals (SDGs). It also applies the criteria for assessing its sustainability performance with national and global standards, covering governance, environmental, and social aspects to reduce risks and business impacts, and to explore opportunities for continuous improvement in work processes and operate the business with sustainability compliance with global sustainability standards in order to improve the adaptability of the Company to global changes and emerging issues.

The Sustainability and Corporate Governance Committee (SCGC), working alongside the Enterprise-wide Risk Management Committee, oversees, reviews practices, and formulates policies regarding sustainability and corporate governance.

The Company conducts its sustainability operations through supervision from the Sustainability Policy Committee (SPC), chaired by the Group’s CEO and president with business group executives and functional group managers acting as committee members. (Disclosure 2-9, 2-13)

The SPC defines the goals, directions, policies, and strategies for the Company and its subsidiaries’ sustainability direction by aligning them with the SDGs, organizational sustainability assessments, and stakeholder expectations. It holds regular at least biannual meetings to ensure collaboration and communication.

The sustainability policies and goals established by SPC are implemented by various departments and committees related to corporate sustainability. The Sustainability Management Committee (SMC) oversees this process by monitoring, collecting, and evaluating the progress and performance of each unit and reporting the results to the SPC at least on a biannual basis. The SPC will then communicate the sustainability performance to the Risk Management Subcommittee, the Enterprise-wide Risk Management Committee, and the Sustainability and Corporate Governance Committee on a biannual basis, respectively.

The SMC consists of executives from Bangchak Group. In 2023, the focus is on developing a strategy to address climate change within the BCP NET framework, aiming for the Net Zero GHG Emissions target by 2050.

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Report of the Sustainability and Corporate Governance Committee

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Strategy and Sustainability

Bangchak committed to develop sustainable business innovation in harmony with the environment and society through the 4S strategy

Security

Create energy security by focusing on the source of energy

This constitutes one of the Company’s core business groups that supports national energy security. The strategy is executed through integrated collaboration across the Refinery, Marketing and Biofuels; Upstream; Power and Infrastructure; Trading; and New Businesses and Holdings business groups. Together, these groups focus on securing, producing, and distributing petroleum products and biofuels to meet the energy needs of both businesses and the general public, in alignment with trends in overall energy demand. Although the adoption of electric vehicles is expected to grow significantly in the future, these businesses continue to play a critical role in meeting the country’s current energy requirements and are projected to maintain steady growth. In 2023, Bangchak Sriracha Public Company Limited became part of the Bangchak Group, increasing the Company’s combined nameplate capacity from its two refineries to 294,000 barrels per day. This expansion strengthens the Company’s strategic positioning and reinforces national energy security.

Synergy

Create collaboration to transform and create products and services covering all business groups

Focusing on conducting business in line with the expertise of the Bangchak Group and the core business units (S1) such as oil and logistics transportation business, utilities and energy infrastructure, food and beverage, and mining to increase revenue and create shared value of the portfolio. In 2022, the Company established Bangkok Fuel Pipeline and Logistics Company Limited (BFPL) to support an integrated fuel transport system across transportation modes and service areas. In 2023, the Company acquired the majority of the shares of Bangchak Sriracha Public Company Limited and became part of the Bangchak Group, allowing Bangchak to provide services across a wider area. At the same time, the Company continues to enhance the customer experience to be the most impressive for customers. The same year, the Company also established Refinery Optimization and Synergy Enterprise Limited (ROSE) to plan and provide management services for both oil refineries, thereby achieving production efficiency, reducing costs, and maximizing economic value. In addition, the Company developed a Platform for Growth and focused on leveraging synergies for sustainability, access, and energy security while driving towards a low-carbon society.

Sustainability

Develop and extend core businesses to achieve growth and sustainability

This is the development of related businesses that support or strengthen the existing core business, helping it grow and remain sustainable. This is so they can prepare for future technologies and changes, including addressing the challenges of global climate change by accelerating the proportion of investment in environmentally friendly green businesses with the goal of achieving Net Zero by 2050, and focusing on investments in clean and environmentally friendly companies, such as the lithium battery business, to prepare for the future growth of electric vehicles. In addition, the Company uses innovations that benefit the environment and society through the Business Innovation and Incubation Center (BiiC), which focuses on developing innovations and venture capital businesses, including research and development with external organizations, to continuously expand green energy and bio-based product businesses both domestically and internationally.

Scalability

Build flexibility and focus on seeking opportunities and driving new business in the future (New S-curves) to support long-term growth

Focusing on reforming revenue streams with new businesses in the future (New S-curves) to support long-term growth that can create widespread benefits for the organization. In addition, the Company is also preparing to cope with technological changes, new emerging risks, and the volatility of the business environment.

Sustainable Strategy

With the vision of “Crafting a Sustainable World with Evolving Greenovation”

The company is dedicated to driving the sustainable energy transition while maintaining a balance in energy security that enhances the quality of life and well-being of Thai society. In addition to its business operations, the company drives growth through the strategic “4S” framework, a key mechanism for advancing Bangchak’s development. This strategy focuses on creating energy security (Security), fostering collaboration (Synergy), advancing sustainable business practices (Sustainability), and seeking new opportunities (Scalability). The company continues to reinforce and guide its business direction through the “4 Green Strategies,” ensuring that the company’s operations and investments align with its vision and mission.

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Bangchak has adopted revised Vision, Mission, Core Value and 4S Strategy

In each business unit’s strategy for continuing to maintain high performance and to balance the business growth. This leads diversification and synergy of its portfolio through 5 main businesses with acceleration in new economy (green) portfolio to achieve a target of Net Zero GHG Emission by 2050 to support the energy transition while balancing energy security and committed to be the leader of the low-carbon society.

Security

Synergy

Sustainability

Scalability

The 4 Green Strategy

Promoting investment in businesses that create sustainable value.

In addition to increasing the proportion of revenue from new businesses, it is also environmentally friendly, uses Green Initiatives in business operations, and improves various production processes. In addition, the Company attaches importance to green energy businesses and energy management, and invests in such businesses through the Bangchak Initiative and Innovation Center (BiiC), which will generate businesses that can be further developed for the Company in the future.

GREEN Business

Bangchak focuses on environmentally friendly and safe operations with optimal efficiency in utilization of water and energy resources.

To achieve these goals, Bangchak has adopted the operating systems certified by ISO 14001, ISO 50001, and Green Industry (Green Network) Level 5 of the Ministry of Industry standards in addition to Eco Factory from the Federation of Thai Industries, the occupational health and safety standard of ISO 45001, and advanced operating systems under Process Safety Management (PSM).

GREEN Production

To be a destination that creatively and sustainably meets the needs of customers of all ages by focusing on being a leader in developing green innovations through various products and services, including non-oil businesses at “Bangchak” service stations.

The goal of being a leader in this area is to fulfill all customer needs comprehensively and drive the business toward sustainability. The Company adheres to 1. responding to the needs and expectations of customers, partners, and operators; 2. procuring, developing, and creating innovations in oil products, non-oil services, and other services so as to be able to adapt to changes quickly; and 3. conducting business responsibly and sustainably for the environment and society. “Your Greenovative Destination for Integeneration”.

Your GREENovative Destination

The Company maintains a balanced approach to business operations, grounded in preserving both value and long term returns, while advancing the energy transition toward achieving Net Zero greenhouse gas emissions by 2050.

This balance extends to the Company’s commitment to ethical conduct, environmental and social responsibility, and strong corporate governance (ESG). These principles are reflected in the BCP NET framework. Under the “C: Conserving Nature and Society” initiative, the Company implements programs that enhance ecosystem integrity while creating benefits for communities and society. Meanwhile, the “NET: Net Zero Ecosystem” initiative promotes the development of a national Net Zero ecosystem, preparing the public, SMEs, and the private sector to collectively support the country’s climate goals.