Risk Management
Challenges and Opportunities
In an era of rapid change—driven by environmental, technological, regulatory, and economic challenges—effective risk and crisis management is crucial to ensuring stable and sustainable growth.
Ratch Pathana Group adopts a proactive risk management approach by systematically analyzing and assessing potential risks that could impact our operations. We have also developed a comprehensive Business Continuity Plan (BCP) to address crises and ensure that our business can adapt and continue operating under all circumstances. Through robust and effective risk management, we are committed to strengthening our business resilience, enhancing competitiveness, and creating long-term value for all stakeholders.
Management Approach and Value Creation
Risk Management
Recognizing the importance of risk management, the company conducts continuous assessment, analysis, and monitoring of various risk factors to identify both business opportunities and potential threats to the energy sector. Key risks include geopolitical risks, which contribute to ongoing volatility and rising energy prices. Simultaneously, evolving energy policies are increasingly shifting toward renewable energy adoption to combat climate change. Moreover, advancements in energy production technologies, particularly in solar energy, wind energy, and energy storage solutions are reshaping the energy sector's infrastructure. Increased investments in clean energy present both opportunities and challenges for businesses. Strategic direction with energy market trends while proactively managing both opportunities and risks arising from rapid industry changes.
The company implements an enterprise-wide risk management and mitigation of potential impacts, while maintaining the company’s competitive capabilities in a highly uncertain and volatile business environment, the company has adopted the 2017 COSO Enterprise Risk Management (COSO ERM) framework internationally recognized as a foundation for defining its risk framework and guiding adaptive strategies in alignment with energy market trends. This approach enables the company to manage rapidly changing business opportunities and risks, emphasizing enterprise-wide risk management within an established Risk Appetite. The framework encompasses strategic, financial, operational, and compliance risk management, as well as environmental, social, and governance (ESG) risks, ensuring alignment with the organization’s objectives and goals.
The group conducts regular risk management reviews, reporting and presenting performance results to the Governance and Risk Management Committee for monitoring, oversight, and policy recommendations. These results are also presented to the Board of Directors to evaluate the effectiveness of risk management and governance processes across the organization. This approach ensures a comprehensive, holistic, and effective risk management process that supports sustainable business objectives.
Sustainability Risk Management
The Corporate Governance and Risk Management Committee recognizes the importance of managing the constantly evolving economic, social, and environmental landscape. As a result, the committee conducts assessments and analyzes the risks and opportunities arising from sustainability issues that may impact the organization, including its subsidiaries and projects, both from internal and external factors. Additionally, the committee reviews risk management plans by applying the organization’s overall risk management framework to address risks related to Environmental, Social, and Governance (ESG) aspects as follows:
| Goals | Performance |
|---|---|
| 1. Zero claims of non-compliance | Number of claims of non-compliance 0 claims |
| 2. Zero incidents of non-compliance | Number of incidents of non-compliance 0 incidents |
| 3. Zero ESG issues | Number of ESG issues 0 issues |
| 4. Zero fines and settlements specified for ESG issues in audited accounts | Provisions for fines and settlements specified for ESG issues 0 baht |
Economic and Governance Risks
Risk Factors and Opportunities
Geopolitical conflicts, which are inherently complex and have far-reaching implications for global politics, security, and economic stability, may contribute to fluctuations in energy prices, particularly oil prices. Such volatility could affect the pricing of electricity and steam supplied by the Company. In addition, disruptions to logistics and supply chains involving goods, machinery, and equipment may adversely impact business operations, as well as industrial energy demand in affected sectors.
Risk Management Approach
- Strategic Business and Investment Planning Aligned with a Dynamic Economic Landscape.
- Analyze risk factors that may impact the organization’s objectives.
- Develop contingency plans to address potential changes and uncertainties.
- Continuously monitor operational performance to ensure alignment with strategic goals.
Operational Results
Continuously monitor the impacts on electricity and steam consumption of customers within the Saha Pathana Group Industrial Park, Sriracha.
Risk Factors and Opportunities
The rapid evolution of innovation and technology in the energy sector presents both opportunities and risks for businesses. If organizations fail to adapt or invest appropriately in new technologies, they may experience a loss of competitive edge. Additionally, reliance on outdated technologies or legacy systems can reduce operational efficiency, thereby impacting the financial stability of the business.
Risk Management Approach
- Establish an Innovation Development and Management Policy
- Study innovative approaches in the energy business and assess the risks associated with investments in new technologies and innovations, including an analysis of expected returns.
- Continuously monitor information, news, and evaluate the evolving landscape of new technologies.
Operational Results
The monitoring of technological changes found that no new technologies are currently applicable to the business; therefore, no risk impact has been identified.
Risk Factors and Opportunities
IT systems are the part that can support business operations for convenient, fast, competitive, and can create business differences. The evolution of cyber threats is becoming more sophisticated and intense. It is therefore a channel for cyber attacks on the company's collective database. Loss of sensitive or financial information Affecting the confidence and performance of the company. Therefore, it is a challenge to reduce the impact. The company has set the key risk management measures as follows:
- It is scheduled to replace IT equipment every 3-5 years. The replacement model must have better performance, including a security system, intrusion prevention system and backup.
- Install advanced systems and programs to protect data security from cyber threats such as Deep Discovery Inspector, WAF, Hyper Converged Infrastructure (HCI), Dell VXRail Server, Data Leak Prevention (DLP), Cyber Command Intelligent Threat Detection and Response as disclosed in the Annual Registration Statement (Form 56-1 One Report) Topic “Risk Management”.
Risk Management Approach
- Establish and appoint an Information Technology Security Working Group to oversee and support the management of IT security risks.
- A policy for maintaining cybersecurity and information technology security is in place, with the establishment of task forces in each area to ensure preparedness. Training is provided to employees to raise awareness of the policy and the Cybersecurity Act B.E. 2562 (2019).
- Communications and public awareness campaigns about the legal aspects and recommendations for using information technology are carried out through screen notifications when using computers or the intranet. This ensures that all employees are informed and aware of the importance of the Cybersecurity Act B.E. 2562 (2019).
- Continuously review and monitor the implementation progress and performance.
Operational Results
- Established an Information Technology Security and Personal Data Protection Working Group.
- The monitoring of cybersecurity threats and intrusion attempts indicates that potential incidents have been detected; however, no events have occurred that have impacted business operations.
Risk Factors and Opportunities
The improper use and disclosure of personal data, if not handled with adequate precautions, could lead to significant losses and impact current business operations. It is essential to comply with legal regulations and any amendments to laws related to data protection.
Risk Management Approach
- The Company has established a working group to oversee compliance with the Personal Data Protection Act and related laws to ensure strict personal data protection, with periodic monitoring and review, including legal compliance monitoring.
- The company has a Data Protection Policy in place to safeguard personal data.
- The company has implemented programs to obtain consent (both through forms and verbal agreements) in accordance with the Personal Data Protection Act B.E. 2562 (2019).
- Periodically monitor regulatory updates and conduct continuous reviews to ensure effective risk oversight and compliance.
Operational Results
- Established an Information Technology Security and Personal Data Protection Working Group.
- No personal data violations were found.
Risk Factors and Opportunities
The Company places strong emphasis on conducting its operations in accordance with the principles of good corporate governance, which serve as a key foundation for sustainable business development and value creation. Good corporate governance also strengthens investor confidence and supports the Company’s ability to remain competitive and maintain stable performance, while taking into account long-term impacts.
The Company conducts its business with ethics, respect for rights, and accountability to shareholders and stakeholders, thereby contributing to societal benefits. At the same time, the Company is committed to improving environmental performance, reducing adverse environmental impacts, and enhancing its ability to adapt to changes in various external factors.
The Company requires policies and operational guidelines to be reviewed regularly on an annual basis to ensure alignment with its business direction. The Board of Directors, executives, and employees at all levels are informed of and adhere to these principles as common guidelines for their operations.
Risk Management Approach
- Establish and implement good corporate governance principles.
- Develop and enforce policies, manuals, and operational guidelines to ensure transparent and accountable operations in accordance with good corporate governance principles.
Operational Results
- The Company was assessed under the Corporate Governance Report of Thai Listed Companies (CGR) for 2025 and achieved an “Excellent” rating.
- The Company received an “AAA” rating in the SET ESG Ratings for 2025.
- The Company has been certified as a member of Thailand’s Private Sector Collective Action Against Corruption (CAC) for the third consecutive term.
Social Risk
Risk Factors and Opportunities
The company has assessed human rights risks to prevent and mitigate the impact of such risks. The assessment of human rights risks related to labor includes the following aspects: employee working conditions, employee health and safety, discrimination and harassment against employees, freedom of association, assembly, and collective bargaining, and the use of illegal labor. Based on the risk assessment results, the company ensures compliance with labor practices and human rights standards. The company has a fair and standardized employee selection system, including written tests and interviews, to evaluate knowledge, skills, and the suitability of individuals for specific job positions. The company adheres to principles of fairness and equality in human rights in accordance with its human rights policies and practices, ensuring no discrimination based on gender, religion, political rights, or any other factors. Furthermore, the company provides internal employees with the opportunity to apply for vacant positions if their qualifications are suitable. If no suitable internal candidates are found, the company will then proceed with external recruitment.
Risk Management Approach
- Compliance with Human Rights Policies and Practices:
- - The company does not engage in or support any activities that violate human rights.
- - The company upholds the principles of independence and respects diversity in thought, gender, race, religion, politics, and other matters. It ensures that expressions or opinions that could lead to conflict or division are avoided.
- - The company provides channels for communication with employees, allowing those who feel they have been treated unfairly to submit complaints. These complaints will be addressed with attention and fairness.
- - The company requires that all employees and contractors be at least 20 years of age, and it prohibits the employment of child labor or the use of forced labor, as well as any form of gender discrimination.
- Training and providing information to all new employees before they start work, as well as conducting training for contractors before commencing work to ensure they understand safety, environmental, and energy-related issues, along with the company's goals, policies, regulations, and compliance requirements.
- Establishing a welfare committee within the organization to involve employees in determining the criteria, benefits, and welfare programs that go beyond the legal requirements, demonstrating a commitment to employee care and well-being.
- Continuously monitoring information, news, and evaluating the situation.
Operational Results
- Established a Human Rights Working Group and developed a Human Rights Policy.
- Conducted training on “Business and Human Rights, including practical training on human rights impact risk assessment.” The training was attended by employees at all levels, including management and operational staff, with a total of 122 participants, representing 61%.
Risk Factors and Opportunities
The Group recognizes the importance of effective management of occupational health and safety within its operations. It has established processes for hazard identification, risk identification and assessment, implementation of preventive and control measures, and regular reviews of their effectiveness. These measures aim to prevent accidents, incidents, and potential impacts on employees, workers, communities, and stakeholders, while reinforcing confidence in the Company’s sustainable operations.
Risk Management Approach
- Manage safety, occupational health, and environmental operations through an environmental management system (ISO 14001) and an occupational health and safety management system (ISO 45001).
- Regularly review hazard identification and risk assessment processes to ensure the safety and well-being of employees and contractors working within the company.
- Develop manuals and conduct drills for emergency and disaster preparedness, such as fire and chemical spill scenarios.
- Implement safety awareness programs to enhance the safety consciousness of employees and contractors working in the organization.
Operational Results
- Implemented the occupational health and safety management system, including hazard identification, risk assessment, and emergency response drills.
- The occupational health and safety management system audit (ISO 45001) found no non-conformities.
- No lost-time injuries or incidents causing impacts on the community were reported.
Risk Factors and Opportunities
Following global experiences with widespread outbreaks of communicable diseases driven by biological, environmental, and behavioral factors, as well as increasingly severe climate change impacts, there remains a risk of future outbreaks of severe or emerging infectious diseases, such as Coronavirus Disease 2019 (COVID-19), novel influenza strains, or other emerging pathogens. Such events could significantly affect public health, economic conditions, employees’ well-being, workforce operations, and business continuity. Moreover, emerging disease outbreaks are inherently uncertain, rapidly evolving, and difficult to predict with precision.
Risk Management Approach
- Developed a Business Continuity Plan (BCP) to mitigate potential impacts on the company from disruptive events.
- Implemented measures to prevent the spread of infections, aiming to reduce severe health risks for employees and on-site workers.
- Provided training to employees to raise awareness of emerging infectious diseases and severe communicable diseases, with an emphasis on preventing and minimizing the risk of infections both at the workplace and in nearby communities.
- Continuously monitored news and updates, assessed risks, and closely monitored events.
Operational Results
- No emerging diseases were reported in 2025.
- Provided group health insurance for employees to support medical treatment in case of illness.
Risk Factors and Opportunities
The energy business, especially electricity generation, is of interest to society, so there is a risk of being rejected or not being accepted in the business. If there is an impact on safety, occupational health, environment to the community and society acceptance and trust from the community and society. It is an important factor that affects long-term business development.
Risk Management Approach
- Establish guidelines and develop plans to prevent and reduce safety, occupational health, and environmental impacts, as well as to improve the quality of life for employees and nearby communities.
- Set up a department responsible for enhancing the organization's image by following the company’s sustainability policy, monitoring performance, and carrying out community relations activities in the area to foster ongoing communication and understanding with the community.
- Foster community engagement by listening to feedback from the community, creating a communication manual, and implementing a process for handling community complaints.
Operational Results
- Conducted community relations and public relations activities on an ongoing basis.
- Conducted annual community opinion and satisfaction surveys.
Risk Factors and Opportunities
Ratch Pathana and Affiliates places strong emphasis on conducting its business through an inclusive approach, prioritizing transparent communication, active listening, and systematic responses to community concerns. The Group also promotes shared value creation through the Power Development Fund for Local Development and the continuous implementation of social initiatives. These efforts are intended to strengthen mutual understanding, mitigate social risks, and support the Group’s long-term sustainable operations
Risk Management Approach
- Compliance with Sustainability Policy
- Measures or Management Approaches in the Event of Community/Societal Disputes
Operational Results
- Zero community complaints or disputes were recorded in 2025.
- Continued implementation of development by the company activities and projects under the Community Development Fund in areas surrounding the power plant.
Environmental Risks
Risk Factors and Opportunities
Extreme climate change leads to increasingly volatile weather patterns and a higher frequency of natural disasters from global warming are becoming increasingly severe, leading to various risks. These risks include direct impacts, such as natural disasters and droughts, and indirect impacts, such as stricter regulations, new standards, changes in consumer behavior, and technological transformations. The Ratch Pathana Group recognizes the importance of addressing these issues and is actively working to reduce greenhouse gas emissions in a tangible way. This effort aligns with global initiatives to tackle the climate crisis as an urgent priority. The company is committed to focusing on the development and investment in renewable energy businesses in alignment with national and global directions and targets, the Company focuses on developing and investing in renewable energy businesses and clean energy technologies to enhance adaptive capacity, strengthen operational resilience, and support sustainable growth.
Risk Management Approach
- Establish policies to address climate change and appoint a working committee for greenhouse gas management to drive the organization's greenhouse gas reduction efforts.
- Set greenhouse gas management targets aimed at achieving Carbon Neutrality by 2050, and report greenhouse gas management performance to the Sustainability Committee and the Board of Directors accordingly.
- Assess the organization’s greenhouse gas emissions and removals by registering the organization's Carbon Footprint (CFO) and Product Carbon Footprint (CFP) with the Thailand Greenhouse Gas Management Organization (Public Organization) or TGO.
- Continuously monitor information, news, and evaluate situations to assess organizational risks.
- Communicate the importance of, and encourage participation in, greenhouse gas reduction measures to all employees and stakeholders to address climate change.
Operational Results
- Ratch Pathana Group received the Carbon Footprint for Organization (CFO) certification from the Thailand Greenhouse Gas Management Organization (Public Organization) for 2022–2025.
- No impacts from natural disasters were reported in 2025.
Risk Factors and Opportunities
The company strictly adheres to laws and regulations related to environmental impacts and safety. A designated department is responsible for monitoring and analyzing results, ensuring compliance with the evolving legal and regulatory landscape. This includes continuous tracking of changes in laws and regulations that may affect environmental impact and safety. This proactive approach allows the company to develop timely measures and contingency plans to mitigate potential environmental risks.
Risk Management Approach
- Environmental Management: Managed through an Environmental Management System (ISO 14001).
- Policy Implementation: Adhered to policies related to quality, environment, safety, and energy conservation.
- Environmental, Safety, and Occupational Health Handbook: Developed a manual to guide operations and monitor performance in environmental management, safety, and occupational health.
- Emergency Response Plan: Prepared emergency response plans, created operational manuals, conducted training sessions, and performed drills to test equipment and alarm systems in accordance with the defined schedule, ensuring strict adherence to the guidelines.
- Impact Mitigation and Environmental Monitoring: Reported the results of monitoring mitigation measures and environmental quality checks to the Office of Natural Resources and Environmental Policy and Planning, the Energy Regulatory Commission, the Department of Industrial Works, the Industrial Office, local administrative organizations, and relevant agencies.
Operational Results
- Implemented the environmental management system (ISO 14001), including the development of environmental manuals, operating procedures and work instructions, emergency plans and drills, and continuous legal compliance monitoring.
- Environmental impact mitigation measures, environmental quality monitoring, and environmental management system audits found no non-conformities.
Risk Factors and Opportunities
The Group places strong emphasis on the systematic management of biodiversity impacts across both new and existing operations or projects. For new projects, comprehensive risk and impact assessments are conducted prior to investment or project implementation. For ongoing operations, impacts are continuously monitored, reviewed, and evaluated in accordance with applicable laws and relevant regulatory requirements to ensure that operations remain appropriate and do not cause significant adverse effects on natural resources, ecosystems, or surrounding stakeholders.
Risk Management Approach
- Conduct biodiversity impact assessments prior to project implementation and monitor performance appropriately throughout operations.
- For natural gas power plant businesses, Environmental Impact Assessment (EIA) reports are prepared and periodically reviewed to ensure compliance with legal requirements and environmental standards.
- For biomass power plant businesses, Initial Environmental Examination (IEE) reports are prepared and regularly assessed, with a focus on monitoring impacts on biological resources and promoting the sustainable use of biomass feedstock.
Operational Results
- In 2025, no additional new projects or activities were undertaken.
Emerging Risk Management
In fast‑changing situations, organizations must continuously adjust their strategies and assess potential risks that may affect the achievement of objectives across multiple dimensions, including strategic, financial, operational, legal, and business continuity aspects. These risks are driven by the rapid development of new technologies and innovations, shifting consumer behaviors, evolving economic and social conditions, extreme climate change, environmental and resource challenges, and geopolitical uncertainties. Such factors may significantly and rapidly impact the energy sector and could further affect the Company’s business operations over the next 3–5 years.
Artificial Intelligence (AI) technology is rapidly evolving and plays an important role in the energy business, particularly in power plants. AI helps enhance efficiency, reduce costs, and support operations, such as predictive maintenance, which can forecast machinery issues in advance, reduce downtime, and extend equipment lifespan.
However, reliance on AI also brings risks, such as lack of model transparency, errors caused by inaccurate data, cybersecurity risks, impacts on business continuity, and increasing compliance costs due to stricter AI-related regulations. In addition, AI may change the workforce structure by reducing certain positions while creating opportunities to develop new skills.
Therefore, organizations must plan investments, establish governance, and manage risks related to technology, data, personnel, and ethics to maintain competitiveness and long-term sustainability.
Risk Management Approach
- Monitor technological changes that support and align with operations and power generation.
- Study and evaluate AI technologies that can be utilized to improve efficiency and reduce operational costs.
- Educate employees to prepare for the integration of AI in enhancing the organization’s capabilities.
- To develop Artificial Intelligence Policy (AI Policy) to establish guidelines for managing the risks associated with applying artificial intelligence (AI) technologies in work processes to enhance operational efficiency in data management systems and promote competitiveness.
Geopolitical risk may lead to geoeconomic confrontation, which is a complex issue with broad impacts on politics, the economy, and society worldwide. Such conflicts not only affect the countries directly involved but also have spillover effects on other countries through changes in trade and investment markets, continuously affecting the stability of energy markets. Competition for natural resources has contributed to heightened volatility and uncertainty in the global economy. This situation may affect the Company in terms of fuel costs and continuity of supply.
In addition, these circumstances may affect the industrial sector through economic slowdown, rapidly changing costs, and uncertainty in economic activities, including impacts on imports and exports. These factors may lead to uncertainty in demand for electricity and steam from industrial customers, which could be affected by global economic and trade conditions.
On the other hand, geopolitical conflicts have accelerated the restructuring of global supply chains and the diversification of industrial risks toward more stable countries. This may result in the relocation of certain industries’ production bases to Thailand, creating potential opportunities to support new production bases and investments. Therefore, the Company needs to prepare and appropriately manage energy-related risks, including supply stability, cost control, and energy system flexibility, to address challenges and capture business opportunities in a stable and sustainable manner amid a changing environment.
Risk Management Approach
- Continuously monitor geopolitical news and information that may affect the power generation business.
- Collaborate with Saha Pathana Inter-Holding Public Company Limited to seek additional industrial customers, particularly customers in new industries with high energy demand and a need for energy security.
- Study the feasibility of, and develop, new projects to support new industrial customer groups and expand the Company’s business.
- Regularly monitor news and assess changes in customer situations.
- Conduct risk assessments and consider potential impacts on operations in cases where risks are identified as high.
The increasing severity of climate change and the growing frequency of extreme weather events, together with advancements in energy production technologies and innovations aimed at promoting sustainable resource use and reducing greenhouse gas emissions, provide the Company with opportunities to improve production efficiency. However, innovations that are still in the early stages of development may involve uncertainties in terms of technology, performance, safety, and economic viability.
At present, natural gas-fired power plants continue to play an important role in maintaining power system stability and supporting the variability of renewable energy during the transition period. Nevertheless, the Company recognizes potential structural risks that may arise and affect long-term returns and asset value.
Energy Transition Risk, from fossil fuels toward green energy, is an emerging risk that challenges the power generation business across all dimensions, including increased costs, intensified competition, and regulatory uncertainty. If the Company is able to adapt by investing in clean energy and establishing an appropriate ESG strategy, the energy business will be able to remain resilient and grow sustainably in the future.
New Risk Factors That May Significantly Impact the Energy Business and Preventive Measures:
- Energy Production Technology Innovations: Continuously monitor technological advancements and explore the feasibility of integrating new innovations into operations. This includes overseeing production control and maintenance of power plants, as well as solar energy projects.
- Renewable Energy Technology and Competition Affecting Costs (e.g., Solar and Wind Energy): Monitor the prices of materials and equipment that may impact projects, and review the results of feasibility studies for new projects, as rapidly decreasing costs for solar and wind energy technologies could affect profitability and project viability.
- Advanced Energy Storage Technologies: Investigate developments in technology to enhance the efficiency and stability of energy production and continuous power delivery systems.
- Energy Transition Risks Leading to Potential Stranded Assets: The transition to cleaner energy could render fossil-fuel-based power plants at risk of becoming stranded assets if they must shut down before the end of their useful life. Continuously manage operations and monitor changes in government policies, regulations, and power development plans.
- Need for Skilled Personnel in Clean Energy Innovations: Develop and implement plans to recruit and train human resources that align with the business’s clean energy objectives, ensuring a workforce capable of meeting future industry demands.
- Fuel Energy and the Promotion of Renewable Energy Projects: Support the shift towards renewable energy, including solar, wind, and biomass, by advancing and investing in these technologies, in line with the company’s commitment to clean energy and sustainability.
- Continuously monitor changes in government policies, laws, and regulations to ensure that the Company’s operations and power generation activities remain compliant and aligned with applicable requirements.
Business Continuity Plan (BCP)
The company places great emphasis on the development and management of business continuity to ensure the uninterrupted operation of the business during abnormal situations, whether caused by external or internal threats such as pandemics, cyberattacks, natural disasters, civil unrest, protests, etc. Each threat has the potential to cause harm to lives and property, as well as create obstacles to business operations. An effective and systematic approach to Business Continuity Management (BCM) enables the organization to quickly restore operations. The Corporate Governance and Risk Management Committee has outlined procedures to prepare for crisis situations, ensuring that the Ratchaburi Group's management systems are capable of responding to challenges and addressing operational inefficiencies effectively and continuously. The creation of the Business Continuity Plan (BCP) ensures that it can be effectively implemented when needed.
Ratch Pathana Energy Public Company Limited and its subsidiaries recognize the importance of Business Continuity Management (BCM) to ensure that, in the event of a crisis or emergency, the organization can restore operations swiftly with minimal disruption. This approach safeguards the interests of stakeholders and ensures long-term business sustainability.
Objectives
- To provide a framework for managing business continuity, ensuring the protection and safety of employees' lives and the organization's assets, as well as maintaining customer service.
- To prepare for emergencies or disasters by developing and implementing preventive and crisis management plans.
- To establish a process for managing responses and restoring operations to normal within an appropriate timeframe.
- To reduce the severity of the impacts caused by business disruptions and minimize significant losses to an acceptable level.
Business Continuity Management Approach
- Implement a business continuity management system based on recognized industry standards, with continuous improvements and development.
- Establish a working group responsible for managing the business continuity plan, overseeing and supporting the overall continuity efforts across the organization.
- Promote and support all levels of leadership and employees in developing awareness and understanding of business continuity management, as well as enhancing and building personnel competencies in preparing measures to ensure ongoing operations. This will lead to effective implementation.
- Ensure that all leaders and employees at every level participate in adhering to the business continuity management policy and take actions to help the organization achieve its business continuity goals. Focus on regularly reviewing and updating the business continuity management plan, conducting drills, and cultivating a corporate culture centered around business continuity.
Examples of ESG Incidents and Responses
| ESG Incidents | Response Plans | |
|---|---|---|
| Environmental | Fire |
|
| Flood |
|
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| Drought |
|
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| Social | Pandemic |
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| Governance | Human rights violation |
|
The Company emphasizes effective crisis management and the integration of Business Continuity Management (BCM) into its organizational culture. Employees at all levels are made aware of the importance of BCM, as well as their respective roles and responsibilities, to ensure that business operations can continue during times of crisis. The company conducts the development and testing of its Business Continuity Plan (BCP) on a regular basis, with at least one exercise conducted annually. In 2025, the evaluation results of the drill were rated at a “Very Good” level (exceeding 90%).
In 2025, Ratch Pathana and its affiliates reviewed and updated its Business Continuity Plans to address various potential scenarios, including fire, flooding, earthquakes, machinery and equipment failures, as well as emerging threats. This initiative aims to enhance organizational capabilities in Business Continuity Planning (BCP), ensuring comprehensive preparedness for potential incidents while maintaining uninterrupted service delivery to customers, even under abnormal circumstances
Standards for Managing Sustainability Risks
The company places great importance on managing sustainability risks by using international standards as a guide to its business operations, aiming to achieve a balance between economic, social, and environmental growth. This balance is the foundation for sustainable organizational development. The company adopts the practices of the Global Reporting Initiative (GRI) as a framework for disclosing sustainability information, with a focus on systematic risk management that encompasses all aspects of the business. This includes managing potential impacts on stakeholders by integrating organizational risk management with risks related to environmental, social, and governance (ESG) factors, using the COSO ERM Framework. Furthermore, the company adheres to the United Nations Sustainable Development Goals (UN SDGs), which consist of 17 main goals, as a guide to define the organization’s strategies and policies.
Managing sustainability risks is a critical factor for businesses to consider in an era where climate change and the demand for sustainable energy are receiving increasing global attention. Operating a power plant with responsibility toward the environment and society not only responds to stakeholder expectations but also strengthens long-term financial stability. Therefore, the company integrates internationally recognized standards and guidelines, including the GRI Standards and the UN SDGs, into the sustainability risk management of its power plant operations.
The implementation of GRI Standards enables the company to assess and manage risks related to energy production that may have an environmental impact, such as emissions, waste management, and biodiversity preservation. From a social perspective, power plant businesses should consider respecting labor rights, community engagement, and complying with social regulations that may affect the business. Managing social risks according to GRI standards helps power plants establish positive and sustainable relationships with surrounding communities, while also ensuring responsibility for the safety and health of employees and local populations. In terms of governance, GRI Standards facilitate transparent disclosure of information related to sustainability operations and potential risks arising from internal management practices. Although the UN Sustainable Development Goals (SDGs) are not directly a risk management standard, using SDGs as a strategic framework helps power plant businesses gain a deeper understanding of sustainable development and enables more effective management of sustainability-related risks.
Stakeholders Directly Impacted
Business Partners
Community and Society
Employees
Shareholders
Customers
