Climate Resilience 

Risk

Climate change is a significant challenge that poses a high risk in industrial water management. This is because water serves as a primary raw material for industrial estate business operations and also causes physical risks due to increasingly severe natural disasters each year. Climate change significantly impacts various stakeholders in the value chain, including the industrial water usage in the factories’ production lines, as well as the livelihoods and well-being of factory employees and surrounding communities. Additionally, its effects increase the Company’s operating costs for industrial water production to ensure a continuous supply of water meeting industrial quality standards to factories in the industrial estates, and for physical risk prevention against various natural disasters in the existing industrial estate and future projects.

In addition, there are changes in domestic and international laws and regulations related to climate change, posing transition risks for both the Company and factory operators within the industrial estates. Consequently, the Company must prepare for the increasing climate-related demands of current and future customers. This involves disclosing related operational information such as energy consumption and greenhouse gas emissions from various utilities, developing sustainable products and services to align with customer needs, and mitigating risks that could affect the Company's competitiveness in the future.

Opportunity

The Company sees opportunities in developing new products and services that arise from the needs of existing factory operators within the industrial estates. Those operators are impacted by evolving climate-related laws and regulations, trade standards influenced by government policies in each country, and increasingly stringent climate policies from their parent companies. Furthermore, this will enable the Company to respond to the rising demand from new customers or target groups that place greater importance on climate change.

Management Approach

Climate change is a global challenge that leads to risks of disaster and impacts on the economy, well-being, and sustainability of global society. The current impacts have evidently become tremendously severe. Thus, the Company is well aware of the importance of collaboration among all sectors to jointly reduce the effects of climate change and to support the Paris Agreement reached in December 2015, in which Thailand has also committed to reduce greenhouse gas emissions by 20 – 25% compared to the 2015 base year within 2030 in order to limit global temperature rise to well below two degrees Celsius above pre-industrial levels, and support the Glasgow Climate Pact, which advocates for renewable energy adoption and reduction of coal and fossil fuel consumption, thereby contributing to the achievement of UN Sustainable Development Goal 13.

The Company recognizes the importance of cooperation among all sectors in mitigating greenhouse gas emissions. Consequently, it has integrated a “Climate Change Management Policy” into the determination of the Company’s goals and business plan toward a low-carbon city, which focuses on energy efficiency by 2040 and a 30% reduction of direct and indirect greenhouse gas emissions (Scope 1 and 2) intensity by 2030, compared to the 2019 base year.  In 2023, the Company adjusted its approach to setting greenhouse gas emission reduction targets to be more ambitious. Moreover, the Company has launched the “Save Earth, Safe Us” campaign, and implemented policies and management guidelines aiming to reduce greenhouse gas emissions and address climate change. These consist of three management strategies:

Strategy 1: Climate Resilience City

The Company places significant importance on dealing climate change from the past such as precipitation patterns, rainfall, and the intensity of rainstorms in the eastern region that have led to droughts or flooding in the past years. The Company, therefore, focuses on integrated and sustainable water management across all categories, including raw water, industrial water, drought, wastewater, and flooding in order to ensure water security, build confidence in customers and communities in the area, and mitigate risks that could impact business operations and stakeholders’ quality of life.

  • Strive for water security by expanding internal reservoirs 
    The Company has set a policy to prepare raw water reserves that are at least 150% greater than the total water demand in the industrial estates per year. 
  • Reduce surface water dependence by utilizing treated water based on the Zero discharge principle 
    The Company maximizes the reuse of treated water to reduce dependence on natural surface water sources and the risk and severity of impacts in cases of drought. 
  • Develop infrastructure and capabilities to handle and prevent flooding 
    The Company has developed infrastructure and water management systems to handle and prevent flooding, as well as raised awareness among stakeholders about the effective use of water resources and keeping public waterways clear of debris and impediments through the AMATA Water Management Learning Center and a water management community development project. 
  • Search for strategic locations 
    The Company places importance on project locations that will minimize negative impacts on factory operators and enable long-term business operations, and the results of climate change impact studies in each region are used as one of the key factors in selecting future project locations. 

 

Strategy 2: Carbon Neutral City

The Company places importance on reducing greenhouse gas emissions, which are the main cause of climate change, and has established more ambitious targets towards becoming a carbon-neutral city by 2040 and reducing greenhouse gas emissions by 30% by 2030 compared to the 2019 base year. This is in line with the Paris Agreement and Thailand’s goal, announced at the 26th session of the Conference of the Parties (COP 26) to the United Nations Framework Convention on Climate Change (UNFCCC), of reaching carbon neutrality by 2050 and net zero greenhouse gas emissions by or before 2065.

  • Increase energy efficiency 
    The Company has replaced electrical equipment used in offices and common areas to be energy-saving devices, reduced the use of fossil fuels, and integrated this strategy into the Company’s business development plan to drive AMATA Smart City projects that focus on energy efficiency using technology and low-carbon energy sources. 
  • Minimize waste sent to landfills 
    According to the Zero Waste to Landfill target, the Company has applied principles of the circular economy to the solid waste and industrial waste management process, promoting recyclable waste sorting, maximizing the use of recyclable waste, and minimizing waste disposed to landfill. 
  • Accelerate the transition to renewable energy with the appropriate technologies 
    The Company promotes increased production of renewable energy with technology that is appropriate for the Company’s operation and the area inside the industrial estate, especially the Company’s central utility system. 
  • Enhance ability to reduce greenhouse gas emissions through collaboration with alliances 
    The Company promotes research and development to reduce greenhouse gas emissions throughout the Company value chain and product life cycle. As a result, the Company concentrates on platform development as well as project design and management using Building Information Modeling (BIM) technology and the Leadership in Energy and Environmental Design (LEED) building standard. 

Performance

Greenhouse Gas Emission of Organization

The Company’s greenhouse gas emissions inventory was prepared annually using the Carbon Footprint for Organization (CFO) guidelines and methodologies of the Thailand Greenhouse Gas Management Organization's (Public Organization) for calculating greenhouse gas emissions, which consist of direct greenhouse gas emissions (Scope 1), indirect greenhouse gas emissions from energy use (Scope 2), and other indirect greenhouse gas emissions (Scope 3). The scope of the report covered three locations of the Company, including Bangkok Head Office, two offices and common area in AMATA City Chonburi Industrial Estate, and AMATA City Rayong Industrial Estate, which are under the Company’s responsibility.

In 2023, the Company’s 2022 Carbon Footprint of Organization (CFO) was verified and certified by Thailand Greenhouse Gas Management Organization (Public Organization) for the fourth consecutive year.

In 2022, the Company emitted 58,077 tons of carbon dioxide equivalent of total greenhouse gas, consisting of direct GHG emissions (Scope 1), 454 tons of carbon dioxide equivalent, and indirect GHG emissions from the use of purchased electricity (Scope 2), 15,393 tons of carbon dioxide equivalent. The total direct and indirect greenhouse gas emissions (Scopes 1 and 2) were 15,847 tons of carbon dioxide equivalent (tCO2e), a 7.8% decrease from the previous year and an 11.9% decrease from the 2019 base year. The combined GHG (Scope 1 and 2) intensity for the year 2022 was 0.49 tons of carbon dioxide equivalent per acre, or 3.07 tons of carbon dioxide equivalent per hectare.

According to the carbon footprint data in 2023, which was calculated using the methodologies developed by the Thailand Greenhouse Gas Management Organization (Public Organization), the Company's direct greenhouse gas emissions (Scope 1) were 526 tons of carbon dioxide equivalent, and its indirect greenhouse gas emissions were 16,224 tons of carbon dioxide equivalent from using purchased electricity (Scope 2). The total amount of direct and indirect greenhouse gas emissions (Scopes 1 and 2) was 16,750 tons of carbon dioxide equivalent (tCO2e), which increased by 5.7% compared to 2022 but decreased by 6.9% from the 2019 base year. This was the result of reducing the use of electricity purchased from external sources, implementing energy-saving activities, and increasing the utilization of solar energy in industrial estates. The greenhouse gas emissions data for 2023 is still being reviewed by the Center of Excellence in Green Business Strategy at Kasetsart University (VGREEN) and is expected to be completed by the second quarter of 2024.

The combined direct and indirect greenhouse gas emissions (Combined Scope 1 and 2) intensity for the year 2023 was 0.50 tons of carbon dioxide equivalent per rai, or 3.15 tons of carbon dioxide equivalent per hectare, increased by 2.4% from 2022 but decreased by 11.8% compared to the 2019 base year.

In 2022, the Company emitted 42,230 tons of carbon dioxide equivalent from other indirect greenhouse gas emissions (Scope 3). It was a 1.9% decrease compared to 2021. In 2023, the Company emitted 46,470 tons of carbon dioxide equivalent from other indirect greenhouse gas emissions (Scope 3), an increase of 10.04% compared to 2022. Other indirect greenhouse gas emissions (Scope 3) were attributable to the contractors’ work in various activities as follows:

Therefore, to reduce the use of purchased electricity and other indirect greenhouse gas emissions (Scope 3), the Company encourages contractors to employ innovation and technology to reduce fossil fuel energy consumption and promote the use of renewable energy for the Company’s utility system maintenance and also strives for more recycling to reduce waste sent to landfills as much as possible. 

Strategy 3: Climate-related Products and Services

The Company foresees an opportunity to develop new products and services based on the needs of factory operators in today's industrial estates. These operators are affected by the enforcement of climate change laws and regulations, changes in foreign trade regulations by the government policies in each country, and more stringent climate policies from overseas head offices. This also includes addressing the needs of new customers or target groups who are concerned about climate change.

AMATA Summit Ready Built Company Limited (ASRB) specializes in developing ready-built factories and warehouses for rent. Committed to sustainable development, the Company focuses on creating products that minimize environmental impact and enhance human health. This commitment is evident in every aspect of its operations. During the design phase, ASRB selects eco-friendly materials. The construction process adheres to green building standards, uses low-carbon materials to reduce greenhouse gas emissions, and implements efficient waste management practices. Furthermore, ASRB optimizes energy and water usage throughout the lifecycle of its buildings to maintain environmental quality and occupant well-being. These efforts are aligned with global standards such as Leadership in Energy and Environmental Design (LEED) and Thai’s Rating of Energy and Environmental Sustainability (TREES), positioning ASRB as a leader in environmentally compliant ready-built factories and warehouses.

In 2023, the “AMATA Summit Green Distribution Center”, a new warehouse and distribution center operated by AMATA Summit Ready Build Company Limited in Samut Prakan province, Thailand, was awarded LEED Certified Gold Level version 4.1 for New Construction Warehouse category (LEED NC WDC). This distinction marks it as the first of its kind in Southeast Asia to receive this certification from the U.S. Green Building Council (USGBC). Additionally, the center was honored with the LEED Gold Certification Awards 2023 at the 'LEED in Southeast Asia Series' event, organized by Green Business Certification Inc. (GBCI). This recognition underscores its leadership in the field of energy and environmental design, making it a landmark in the globally recognized LEED rating system.

The warehouse complex includes storage areas, office spaces, after-sales service sections, and public utility areas. Air conditioning throughout the warehouse maintains product quality by controlling temperature and humidity. The building’s design focuses on energy efficiency, featuring insulated roofs, walls, heat-resistant glass, and efficient HVAC and lighting systems powered by solar panels on the roof. These measures have reduced electricity costs by more than 50% annually, equivalent to using over 350 megawatt-hours of clean energy per year. Monitoring meters installed in each zone accurately track electricity usage, aiding in energy management. Water-saving sanitary fixtures and equipment reduce water usage by up to 50%, saving about 140,000 liters annually. The exterior of the building is designed to collect rainwater, which is reused for watering plants in the project’s green spaces. The interior prioritizes employee well-being with air circulation and ventilation systems that reduce heat and increase natural airflow, alongside air filtration systems that remove dust and particles. The building materials, including paints, coatings, adhesives, and flooring materials, emit low levels of radiation and pose no health risks to employees. Located in a logistics hub near major transportation routes, the warehouse supports customers in reducing energy consumption and environmental impacts from transportation.

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