Sustainability
SCG
en
TH

Sustainable Supply Chain Management

Sustainable Supply Chain Management Sustainable Supply Chain Management

Supporting the SDGs Goals

Goal 9:
Industry, Innovation and Infrastructure
Goal 12:
Responsible Consumption and Production

Goal and Performance Highlights

Goal
New suppliers sign the Ratch Pathana and affiliate Supplier Code of Conduct.
Performance
% of new suppliers signed the Ratch Pathana and affiliate Supplier Code of Conduct.
Goal
100% of new suppliers are surveyed for satisfaction with the Group’s ESG performance.
Performance
% of new suppliers were surveyed for satisfaction with the Group’s ESG performance.
Goal
100% of new suppliers undergo an ESG risk assessment.
Performance
% of new suppliers underwent an ESG risk assessment by the Group.
Goal
Organize annual training for suppliers on greenhouse gas (GHG) emissions reduction.
Performance
Organized one GHG emissions reduction training session for suppliers in 2024. session
ESG Performance Data

Challenges and Opportunities

Ratch Pathana Energy Public Company Limited recognizes both the challenges and opportunities presented by the rapidly evolving economic and environmental landscape of the energy sector. As part of our commitment to sustainable growth, we place a strong emphasis on building and enhancing a secure, fully integrated supply chain — from upstream to downstream — designed to operate seamlessly at every stage. This includes establishing flexible systems capable of adapting swiftly to future disruptions, thereby managing risks and maintaining operational resilience.

Our approach to supply chain development goes beyond improving efficiency and reducing costs. It is focused on proactively mitigating procurement and service risks arising from both external and internal factors, ensuring the company’s long-term competitiveness and stability. This strategy is fundamental to driving our energy business forward in a way that responsibly balances economic performance with social and environmental.

Management Approach and Value Creation

The company prioritizes the management of the supply chain by establishing guidelines for practices with partners that promote the development of product/service quality and sustainably manage relationships together. The company believes that this approach can foster potential development, create competitive advantages, and effectively manage business risks for both the company and its partners in the long term. This is achieved through the establishment of policies and practices as follows:

1
Supplier Selection System: We have a supplier selection system in supply chain that conducts in compliance with the law, adheres to safety and occupational health standards, and is environmentally friendly. The supplier are engaged based on fair competition, equality, and mutual respect, while acknowledging and managing suppliers’ risks to establish appropriate actions for risk prevention and resolution.
2
Community Engagement: We consider local suppliers to maintain efficiency in building and strengthening relationships within the areas where we operate.
3
Respect for Human Rights: We respect human rights and treat our suppliers and their workforce fairly, in accordance with internationally recognized standards. We foster relationships based on mutual understanding and cooperation, exchanging knowledge, collaborating on development, and enhancing the value of products and services for mutual growth.
4
Compliance with Trade Agreements: We adhere to commercial agreements and ensure the accuracy of information provided. In instances where obligations cannot be fulfilled, we engage in proactive negotiations with suppliers to jointly find solutions and prevent potential damage.
5
Confidentiality and Information Protection: We protect the confidentiality of our suppliers' sensitive information and refrain from using such information for personal gain or the benefit of any third party without proper authorization.
6
No Unwarranted Gifts or Benefits: We do not request, accept, or agree to accept assets or any benefits that fall outside of commercial agreements.

Criteria for Identifying Key Suppliers and Management Strategies

The company has established criteria for identifying key suppliers to enhance the efficiency of procurement processes and minimize risks that could impact the environment, society, and governance (ESG). Suppliers are categorized into three main groups:

1. Critical Tier 1 Suppliers
Suppliers with high purchase volumes, continuous orders, or those of strategic importance to the company's business.
2. Non-tier 1 Suppliers
Suppliers who provide goods or services to the critical partners, potentially impacting the company's business indirectly.
3. General Suppliers
Suppliers operating under practices and ethics that align with the company's standards and requirements.
Suppliers Group Number of Suppliers (Companies) Percentage (%)
Critical Tier 1 Supplier 7 2.89
Non-tier 1 Suppliers 27 11.16
General Supplier 208 85.95
Total 242 100

In addition, the company emphasizes the development of non-tier 1 suppliers to enable their growth and potential elevation to critical partners in the future, through appropriate support and management strategies.

Collaboration on Business Ethics and Integrity

In 2024, Ratch Pathana Energy Public Company Limited demonstrated its strong commitment to upholding business ethics and fostering ethical partnerships. The company adheres to Thai labor standards and anti-corruption principles and actively promotes these values throughout its supply chain. To advance this commitment, we expanded our network of partners who have signed declarations affirming their dedication to sustainable and ethical business conduct, as detailed below:

In 2024 no complaints and have no disputes with trading partners.
0
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Target Group Commitment / Program Participation Number of Participants
Suppliers, contractors, subcontractors, and external service providers Anti-Corruption and Anti-Bribery Policy 242
Quality, Environmental, Occupational Safety, and Energy Conservation Policy 242

Stakeholders Directly Impacted

Community and Society
Shareholders
Creditors
Government and relevant regulatory agencies

Related Documents

Supplier Code of Conduct
Download
Sustainability Policy
Download
Sustainable Supply Chain Management Plan
Download
Sustainable Supply Chain Management Practices
Download
ESG Reporting Library