Corporate Social Responsibility Report 2011 · To create and improve the quality of life ... while endorsing the participatory ... public awareness and understanding related to EGAT’s

Corporate Social Responsibility Report 2011

Corporate Social Responsibility Report 2011

VISIONTo be a world-class organization in electricity business

CORE PURPOSETo create and improve the quality of life and strengthen the country’s competitiveness through reliable and affordable electricity services while giving due care to society and the environment

4 Message from the Governor 6� �� 8 CSR Vision and Strategies10� �� 12 CSR Highlights � � �� 17� !"�#$�� !�� %�� &�'�'�� in the International Standard ISO 26000

18� ��"�� 25� (��'��)�*�� 38� #��+��%� the Environment49� ,�� 51� +��54� +��-�� .��61� #��'��-�� .��

63� ��-�� *�� #�&��!"�#$��65� �*��'��75� �&��%�"�� 79� +�� %��%�� !"�#$��*�� %��

CONTENTS

How to read this reportEGAT Corporate Social Responsibility Report 2011 was published with a purpose to present

to our internal and external stakeholders EGAT’s performance on economic, environmental and social impacts during the reporting year cycle towards the goal of sustainable development. The topics and contents of our reporting this year were prepared following the guidelines as outlined in GRI-G3’s Sustainability Reporting Guidelines & Electric Utility Sector Supplement, and the principles as outlines in the relevant International Standard ISO 26000. For information on ��!"##$

Electricity Generating Authority of Thailand 2

Corporate Social Responsibility Report 2011 3

EGAT has actively pursued the best and all applicable means to make our dams and power plants coexist in harmony with the society, communities and the environment.

Power Plant

Dam


MESSAGE FROM THE GOVERNOR

On behalf of the Electricity Generating Authority of Thailand (EGAT) I have a pleasure to present to you our Corporate Social Responsibility Report 2011. This year we continue to prepare our reporting contents covering the social and environmental performance indicators and ��%�� of the Sustainability Reporting Guidelines & Electric Utility Sector Supplement. Our reporting topics are also consistent with the core subjects and issues of social responsibility in the relevant International Standards ISO 26000 titled “Guidance on Social Responsibility”.

��!"##��as it marked the auspicious occasion of His Majesty the King’s 84th birthday anniversary. As a tribute to His Majesty the King, EGAT has implemented the “planting seedlings to conserve watershed forests” project to honor our Beloved King by joining hands with 143,854 Thai people in planting 984,000 young trees in areas around the reservoirs of EGAT’s nine dams. These dams, to which His Majesty graciously bestowed their names, consisted of Bhumibol, Sirikit, Srinagarind, Vajiralongkorn, Ubol Ratana, Sirindhorn, Chulabhorn, Rajjaprabha, as well as Lamtakong Jolabha Vadhana hydro power plant. The seedlings planting project was developed in response to His Majesty’s initiatives on the sustainable conservation of forestry resources and watershed forests. During the year, EGAT also carried out a project for the construction of 840 check dams in areas around the reservoir of Bhumibol dam and developed a garden in honor of His Majesty the King’s 84th birthday anniversary in the vicinity of Mae Moh power plant in Lampang province.

During 2011, EGAT continued conducting our power generation and transmission businesses in an environmentally and socially responsible manner in efforts to realize our vision in becoming a world-class organization in electricity generation business while embracing the principles of good organizational governance and social responsibility which include accountability, transparency, and respect for stakeholder interests. However, during the monsoon season towards the end of 2011, Thailand had experienced the worst '�� of Northern, Northeastern and Central regions along the *�+��/��7��:��$��'��reached the mouth of Chao Phraya River and inundated parts of the capital city of Bangkok including EGAT’s six high voltage substations, EGAT still successfully managed and operated the overall power supply system to secure the electricity demand without any interruption.

;��'��!"##�EGAT and our volunteer employees actively participated

with the public and private agencies to lend the helping hands in providing assistance and relief efforts to the affected people in 24 provinces countrywide. EGAT’s �� '�� concerted efforts included three phases, namely the providing of assistance and relief, the restoration of ��'��'��+��$;��“providing of assistance and relief” phase, EGAT had provided donations, sustenance kits, and vehicles for transportation �� '��$;��the <��'��= phase, EGAT had developed the effective microorganism (EM) stations to produce and distribute EM for treatment of water as well as trash and sewage. Other activities carried out during this phase included the organizing of medical mobile units and free eye glasses distribution units for the affected people, the repairing of vehicles ��'��supplying of water pumps to facilitate the water pumping operation for Rojana Industrial Park in Ayutthaya province and Navanakorn Industrial Promotion Zone in Pathum Thani province. And during the last phase, the “returning ��'��+��=, EGAT top management and volunteer employees participated in ��:��'��in the districts of Bang Plad in Bangkok Metropolis and Bang Kruai in Nonthaburi province.

EGAT also lent our helping hand with the Thai government to Japan to alleviate the suffering and shortage caused by the major earthquake and tsunami. We sent �� %�� >�� /�+ �� of two 122 MW gas turbine generators to Japan on behalf of the Thai government after being approached by Tokyo Electric Power Company (TEPCO) to ease the power shortage crisis. EGAT’s contribution helped create goodwill and promote strong relations between the two countries. The Japanese government publicized Thailand’s assistance and contribution to their people who in turn showed their thankfulness and appreciation to the Thai government as well as EGAT.

During the reporting year of 2011, EGAT was proud to be an organization which won numerous awards in recognition of our good corporate governance and social responsibility from both domestic and international organizations. These awards included two SOE Awards in the categories of outstanding organizational management and outstanding innovation for the solar weighted tracking system installed at Sirindhorn solar cell power plant, the CSR-DIW and CSR-DIW Continuous Awards 2011 in recognition of our social responsibility practices at 11 locations of EGAT power plants and departments,


(Mr. Sutat Patmasiriwat)Governor

Electricity Generating Authority of Thailand

EGAT continued conducting our power generation and transmission businesses in an environmentally and socially responsible manner to realize our vision in becoming a world-class organization in electricity generation business.

the Thailand Quality Prize 2011, the crown standard award for Thai CDM projects for the development of irrigation valve based micro hydro projects installed at Mae Ngat Somboon Chon dam and at Kaeng Krachan dam, and ��?��@��/��2011 for 17 locations of EGAT’s dams, power plants, and regional operation departments.

In 2011, EGAT had made a review of our corporate social responsibility master plan in agreement with changing situations, namely the Government’s Statement of Direction (SOD), EGAT’s corporate social responsibility policy and strategies focusing on the conducting of social responsibility embedded in our core business operation or the CSR in process, the formulating of CSR roadmap following the principles as outlined in the International Standard ISO 26000, and the integration of social responsibility in our core business processes. EGAT also actively promoted and supported the building of social responsibility culture and encouraged employees at all levels to involve in the social responsibility initiatives and activities. Meanwhile, EGAT also worked in close collaboration with our social network in undertaking social and community activities for the well-being of communities and the society at large in order to become a role model organization in performing our duties as in the slogan “Power for Thai Happiness”.


Name of organization Electricity Generating Authority of Thailand (EGAT)

Location of organization’s 53 Charan Sanit Wong Road, Bang Kruai, Nonthaburi 11130headquarters

Nature of ownership Y ��operated as both a system operator and Thailand’s largest power producer under the Ministry of Energy (MOE) and the Ministry of Finance (MOF).

Y [��?��of electric power under the promulgation of the Electricity Generating Authority of Thailand Act B.E. 2511 (1968), amended in B.E. 2535 (1992).

Primary brands, products, Y ��and/or services Y \��:��

development Y 7��

lignite by-products.

Major customers Y *��]*��^� Y 7��]7��^� Y ��:�� Y >��:��]_��*��^

Operational Structure

Number of power 39 power plants comprising 3 thermal plants, 6 combined cycle plants, generating facilities 21 hydropower plants, 8 renewable power plants and one diesel plant.(Locations)

Installed capacity 14,998(MW)

Number of substations 209(Locations)

Voltage levels 69, 115, 132, 230, 300 and 500(kV)

Length of transmission 30,445.22lines (circuit-kilometers)

Power dispatching centers One national control center(Locations) Five regional control centers

Coal mining Mae Moh lignite mine located in Lampang province, with 65 plots of concession permits.

Investment in electricity EGAT is currently investing in two subsidiaries, one associated company, businesses and two joint ventures.

ORGANIZATIONALPROFILE


Scale of Organization

Number of employees 22,680(Person) Average employee age - 47.5 Average work year - 23.6 Gender - female 21.52% and male 78.48% Level of employee position - management 12.1% and operating employee 87.9% Level of education - Doctorate degree - 0.20% - Master degree - 5.65% - Bachelor’s degree - 25.83% - Vocational education - 68.32%

Net revenues 418,445(Million Baht)

Operating expenses 30,704(Million Baht)

Remittance to the Ministry 15,442of Finance (MOF)(Million Baht)

Markets Served

Energy sales 154,817.58(Million kWh) Metropolitan Electricity Authority (MEA) 45,734.94 (Million kWh) Provincial Electricity Authority (PEA) 106,034.06 (Million kWh) Direct customers and neighboring countries 2,915.82 (Million kWh) Standby power supply 128.04 (Million kWh)

�� In 2011, EGAT underwent an organization restructuring in pursuit of greaterthe reporting period � ��:��$��{��(January-December 2011) consists of 10 command lines serving by a total of 87 divisions, 2 units �� |��}��$

Subsidiary 45%

Subsidiary99.99%

Associated company 25.41%

Joint venture 35%

Joint venture 45%

Ratchaburi Electricity Generating Holding Public Company Limited (RATCH)EGAT International Company Limited (EGAT Inter)

Electricity Generating Public Company Limited (EGCO)

District Cooling System and Power Plant Company Limited (DCAP)

EGAT Diamond Service Company Limited

ELECTRICITY GENERATING AUTHORITY OF THAILAND


Indicators for EGAT’s Corporate Plan

Integrate the implementation of social responsibility projects and activities across the organization

Promote the social responsibility implementation

Promote the social responsibility implementation

The integration of EGAT’s social responsibility implementation plan

The social responsibility implementation promotion plan

The survey on public acceptance and stakeholders’ satisfaction towards EGAT’s operations and performance plan

Percentage of achievement of the plan

Percentage of achievement of the plan

��report of research

100% of achievement

100% of achievement

The conduct of survey completed by October

Action Plans Indicators Operational Goals

CSR VISIONS AND STRATEGIES

During 2011, EGAT’s corporate social responsibility (CSR) strategies had been revised to be in line with our vision in becoming a world-class organization in electricity :��$��/~��'��our strong determination in placing prime importance on the social responsibility implementation, in particular the social responsibility which has been embedded in our core business processes or the so-called “CSR in process”.

EGAT’s revised CSR strategies have been incorporated in EGAT’s Corporate Action Plan 2011-2015, in the strategic theme 3 stating that “EGAT will create and improve the quality of life and strengthen the country’s competitiveness through reliable and affordable electricity services while giving due care to society and the environment.” Such strategic themes were also included in the operational goal of P 3.1, stating that to conduct the social environmental practices to achieve the following purposes;

“To become an organization with due care to society, community and the environment by adopting the environmental management practices which are higher than the required standard, while endorsing the participatory management in carrying out the social activities to enhance the quality of life on a sustainable and continual basis, focusing on the importance of community involvement in all operational phases and fostering the two-way proactive communication approaches, and raising the public awareness and understanding related to EGAT’s roles and responsibilities in strengthening the security and reliability of the power supply system to facilitate the country’s economic growth”.

EGAT has set up the operational goal and the evaluation of the organization’s performance as follows.


Indicators for EGAT’s Corporate Plan

Indicator for public acceptance of EGAT’s social responsibility performance

79% of public acceptance of EGAT’s social responsibility performance

The continuing increase of public acceptance

Target Goal in 2011 Goal for the following years

Vision: To be a world-class organization in electricity business

Core Purpose: To create and improve the quality of life and strengthen the country’s competitiveness through reliable and affordable electricity services while giving due care to society and the environment.

Strengthening core business

S1: Providing high-quality and equitable electricity price

P 1.1: Proactively cooperating with Governments,Regulator, Businesses and other responsible agencies to enable the better understanding and reliability of the electricity system to support the continuous growth and development of Thailand.

P 1.2:�� %�� facility and transmission

P 2.1: Building growth from electricity business and non-regulated business

P 3.1: Working with responsibility to support each community, society and environment

P 2.2: Supporting the synchronization between the subsidiary companies and EGAT’s policy

P 3.2:~�� use of energy

P 2.3: Encouraging growth in non-regulated business

P 3.3:~�� use of energy

S2: Enabling electricity business growth as well as other non-regulated business

S3: To be recognized for good corporate governance, social responsibility and environmental friendly organization

To be a high performance organization, able to adapt to an ever changing global environment

L1: Coutinuously improving human resource management system to achieve high standrds with our employees when comparedto other leading companies

L2: Encouraging morality and morale in an environment of a working culture compliance with a good corporate governance system

L3: Striving for EGAT to be a premium learning and development organization that promotes the development of new innovations

L4: Strengthening management’s ability to meet the various challenges in the business with an effective information technology system

Building growth from non-regulated business

To be a good corporate governance, social responsibility and environmental

friendly organization

Fina

ncial

Viab

ility

Stak

eholde

rInternal P

roce

ssLe

arning

&

Growth

EGAT Strategy Roadmap 2011-2015

EGAT also included the public acceptance indicators of EGAT’s operations and performance in the strategic goal S3 which included good organizational

governance and the caring for the society, community and the environment with integrity, accountability, and fairness.

P 1.3:�� generation and distribution of electricity

P 1.4:*�� support the Vision and Mission of EGAT

P 1.5: Communicating actively with the stake-holders and Thai Society to create accoptance of EGAT’s Business Plans

P 3.4: �� +�� with EGAT

F1:~��:��


SIGNIFICANT IMPACTS, RISKS AND OPPORTUNITIES

During 2011, EGAT had made an analysis of the country’s electricity situation in relation to the economy, the organizational status, some internal and external impacts and risk factors, as well as the opportunities for EGAT to implement social responsibility initiatives and activities. A summary of such analysis are as follows:

1. The weather conditions and economic slump The exceptionally cold weather and heavy rains

that took place throughout the summer of 2011 were ��:�� consumption than the forecast in 2010, coupled with the disastrous earthquakes and tsunami which hit Japan in March 2011 and gravely had negative impacts on the world’s economy including the overall industrial sectors in the United States and European countries. The Thai economy was also severely affected by the unprecedented '�� $

2. A decline of EGAT’s share in generating capacity

The decline could be contributed to the public �� +� ��%��nuclear power plants, which consequently affected the schedules of EGAT’s power projects. There was an increased risk to a decline of EGAT’s share in electricity generation. EGAT’s approaches to solve this problem included the forging of closer collaboration with related public agencies and the Energy Regulatory Commission of Thailand (ERC) to gain approval for the projects. Better communication with the communities living in the target sites for new power plant project construction was also implemented.

3. The unbalanced fuel diversityThe public opposition to new power plant

projects and innovative power technologies had caused substantial impacts upon the balance of fuel diversity for electricity generation. EGAT adopted some risk management measures which included the building of better understanding regarding the advantages of new power plant project among the target communities.

�� viability

As the government has a policy to cap and ��situations in the long run were getting weaker which �� system.

5. The insecurity of electricity supply systemDuring the year, EGAT was also subjected to

confront certain operational risks induced by the following internal and external factors:

- The aging transmission system and high-voltage substations and facilities which have been in


service for over 25 years could have negative impacts upon the security of EGAT’s power supply system.

- The accident-related damages to the existing power plants and transmission system might result in the decline of the availability of EGAT power plants. At present, many of EGAT’s power plants located across the country have been in service for many years. Any accidents occurring to these plants and facilities could have negative impacts on the reliability of EGAT’s power system as well as on our reputation and public image.

- Continuing domestic unrests in the southern border provinces of Thailand and in other regions could cause damages to EGAT’s properties and resulted in negative impacts to the power plants and transmission lines. These posed some risks to the security of power supply system.

- The extent of severe damages caused by ��]��?��+��'��^��occurred in 2011 were unprecedented. The severity of these disasters tended to increase each year. The great '��~��:��and power plant in early 2011 caused disruption to the transmission system which might further cause negative impacts on other EGAT’s power plants.

6. The delay of project implementation behind schedules

EGAT was unable to complete some projects on schedule due to a number of internal and external factors, which included the preparation of project’s environmental impact assessment and health impact

assessment (EIA/HIA) reports, the introduction of numerous new environmental laws and requirements, and the failure to build better understanding among local communities in the target areas. There was also a number of pending supplementary laws and new environmental laws that had direct impacts on the construction of EGAT’s new power plants and electricity generation. These factors caused a delay to the schedules of some EGAT’s power development projects. EGAT adopted some risk management measures which included the proactive communication approach to gain public acceptance for the projects.

7. The public awareness and understanding regarding EGAT’s operations

The risk came from the inability to undertake the proactive communication approaches, both for the internal and external stakeholders, to establish accurate �� %�� nuclear power plant project development. The situation had some direct impacts on EGAT’s current and future operations. More proactive communication measures were implemented to gain more favorable public acceptance.

8. The transfer of knowledge among employees to continue EGAT’s missions and responsibilities

The current average age of EGAT’s personnel is quite high and a large number of employees will reach retirement age within the next 5-10 years. EGAT will be at risk of manpower and work skill shortage in the near future. EGAT have to adopt the personnel management and development strategies practised by most leading organizations and to develop EGAT into a learning organization to boost the high quality and commitment of existing employees.


CSR HIGHLIGHTS AND ACTIVITIES IN 2011

EGAT has pledged support and assistance

��

emergencies

2011 was the year when Thailand experienced ��'�� during the monsoon season. �� in 2011 was ranked by the World Bank as the world’s �� !�� occurred in terms of the amount of water and the number of local people affected. In March 2011, many �� '��%'�� heavy rainfalls after being hit with a series of severe tropical storms. EGAT promptly responded to the disaster emergencies by joining hands with the government, public and private agencies in providing assistance in forms of donations and sustenance kits. EGAT also set up and ��'��%�� ~��Region Operation Division within Krabi power plant in Krabi province, Surat Thani power plant in Surat Thani province, and Chana power plant in Songkhla province in efforts to provide assistance to reduce the losses in lives, and in social and economic assets affected from '��'��until the situation was back to normal.

�� '��%�� :�� operated in coordination with EGAT headquarters located in Nonthaburi province and EGAT’s other region operation ��$ �� '��%�� :�� support and facilitate the relief activities. EGAT top management and employees volunteered to participate in the preparing of sustenance kits. Trucks and boats


were also provided to transport people living in inundated ��$/��'��%��+��{��'��%��$

��'��%��provide assistance and reliefs to cope with the sudden and unexpected crisis. In Surat Thani province, EGAT’s temporary evacuation center serves as a shelter for people who had to leave their homes. The center was equipped ��+��'��living around the area. After the water level receded, EGAT carried out the rehabilitating activities including the distributing of effective microorganism (EM) for water treatment. EGAT employees volunteered to clean and ��:��:��'��$��and informal meetings consisting of EGAT representatives, local administrative organizations and community leaders were held to develop plans and preventive measures in preparation for any possible disaster emergencies in the future.

*�� '��%�� in Krabi and Songkhla provinces actively coordinated relief efforts with the government agencies and the local administrative organizations to provide assistance to the affected people. EGAT top management and volunteer employees participated in preparing package of sustenance kits and drinking water. Temporary kitchens were developed to prepare meals for affected people. Boats and vehicles were provided to transport relief items to the affected communities. After the floodwater subsided, rehabilitation and recovery activities were carried out for the affected communities.

Toward the end of 2011, Thailand saw more ��'��across the country. As the changing global weather :�� }�� beginning at the end of July triggered by the landfall of ��>��+%��'��the provinces of Northern, Northeastern and Central Thailand along the Mekong and Chao Phraya river basins. Flooding persisted in some areas until mid-January 2012 and resulted in over 13 million people affected �� %�� $ *�� :��:�'��in manufacturing disruptions and global supply shortages.

EGAT had worked in close collaboration with the Thai government, the Ministry of Energy, public and private agencies, as well as the local administrative organizations to provide mitigation and relief efforts to

the affected people in 24 provinces across the country. ��%��'��at EGAT headquarters in Nonthaburi province to serve ��{��'�� for EGAT Governor and EGAT top management to ensure the reliability of power supply system along with ��'��+��$

EGAT also realized that any blackout occurred ��'��well-being of life and the overall economy. The shortage of power might also interrupt the water pumping operations �� $��'��2011 posed a high risk to the country’s electricity supply system, EGAT’s operations were not severely affected due to our well prepared emergency and contingency plans. �� '�� high water levels interrupted the operations of some of EGAT’s power plants, EGAT was able to cooperate with the Metropolitan Electricity Authority of Thailand (MEA) and the Provincial Electricity Authority (PEA) to provide �� '�� $

EGAT’s operation to provide mitigation and relief ��'��three phases, namely the contribution of assistance, �� '�� '��+��communities.

The contribution of assistance, mitigation

and relief.

From the beginning of the disaster, EGAT’s activities focused on the providing of assistance and


��$ >�� '�� EGAT’s power plants and regional operation departments countrywide. EGAT’s volunteer employees joined hands in preparing sustenance bags and mobile kitchens were set up to distribute ready-to-eat meals for affected people. Also in conjunction with the local administrative organizations, EGAT provided trucks and boats to facilitate the transportation of relief items as well as commuting ��$ �� %�� '�� ?�� support and to organize caravans to deliver necessary ��?��'��and relief center.

EGAT also provided assistance and relief to the communities in the vicinity of our headquarters in Nonthaburi ��'��+��districts of Bang Plad and Bang Or, in which EGAT has always regarded as our “Closed Relatives and Neighbors”. EGAT had actively worked with Bang Kruai Municipality in Nonthaburi province and the community leaders in the districts of Bang Plad and Bang Or in Nothaburi province ��+��'��

% 7�� '�� :� �� sandbag barriers and installing water pumps at insecure locations;

% ~�� ?��with food, drinking water, bedding and essential items for affected people moving from their inundated homes;

- Mobilizing assistance from the central operation departments and regional operation units, EGAT Labor Union, and numerous individual groups, agencies and networks of volunteer organizations to distribute aid and sustenance kits to the affected people;

- Providing and supplying vehicles such as trucks and boats for transportation in some inundated areas and setting up mobile kitchens for distribution of meals and drinking water;

- Preparing space for public parking lots and

constructing temporary elevated walkway for community people; and

- Assigning EGAT employees to engage in the ad-hoc rescue team around the clock to help sick and injured people until the water subsided.

��

After the flood began to subsided, EGAT coordinated with Bang Kruai Municipality and community leaders to rehabilitate the areas by pumping water from the main commuting roads and inundated communities. EGAT also adopted the community involvement approaches by developing a caravan of EM spraying and distributing. The EM liquid produced from EGAT’s own EM stations had been distributed to community households for water and garbage treatment. The approaches enabled community residents living in the districts of Bang Kruai, Bang Bua Thong, and Bang Yai of Nonthaburi province to return home while resuming normal commuting along the Bang Kruai-Sai Noi road.

EGAT also participated in the Ministry of Energy’s project in providing assistance to the people affected ��'��of Phitsanuloke, Nakhon Sawan, Ayutthaya and Pathum Thani. EGAT’s assistance and support included the setting up of an effective microorganisms (EM) bank to produce 3,000,000 liters of EM liquid for distribution to ��'��%��{��mobile medical units and eye glass distribution units as well as the electrical appliances and vehicle motoring repairing units by local vocational students, and the repairing and renovating of schools and nursery centers ��:�'��$

EGAT was also entrusted by the Ministry of Energy with a mission to implement the water pumping to restore the industrial estates. EGAT, in conjunction with the Department of Energy Business, the Ministry of


Energy, PTT Public Company Limited and other private ��of water pumps, the design and installation of water pump '��supervising the pumping operation at two major industrial estates, namely the Rojana Industrial Park in Ayutthaya province and Navanakorn Industrial Promotion Zone in Pathum Thani province. Moreover, EGAT received support of water pumps and electric generators from J Power Co., Ltd., a Japanese company, to facilitate the water pumping from these industrial estates. Through these collaborations and efforts, many business companies and manufacturing plants in the industrial estates were able to quickly resume normality of operation, which further contributed to the overall effort to restore Thailand’s economy and ��:��$

��

communities

The third phase of EGAT’s contribution to relief ��'��place priority to social contribution. EGAT’s returning of ��'��+��out by our top management and employees who joined forces to return back to normal the public areas, streets, and temples. EGAT employees are proud to be part of the country’s efforts to help the Thai society at large �� '�� !"##� ��the popular notion that “We Thais will never leave each other”, with an ultimate wish to see the Thai people get back to live normal life on the path to happiness again.

Apart from our CSR activities during the great '��!"##��included the following.

EGAT’s blankets for the people affected from

cold weather

During November and December of every year the weather in Thailand changes from the rainy season to the cool season. This phenomenon is generally induced by the cold fronts from high pressure areas moving into Thailand, especially in the Northern and Northeastern provinces. The mountainous and high plateau terrains of these two regions cause the weather to become colder than those of other regions. People living in some areas of these regions may not have adequate clothing to protect them from the seasonal cold weather and the situation put their health at risk.

EGAT has procured blankets and distributed them to the people suffered from cold weather every year.

We have taken into consideration our efforts should also contribute to the promotion of local products. In 2011, EGAT purchased products for our cold weather relief campaigns from local communities in different regions across the country as means to boost income earning among local people in rural areas.

Japanese earthquake and tsunami disaster:

A test of goodwill between true friends

On March 11, 2011, a major earthquake of 9.4 richter scale hit the town of Sendai in Miyata Prefecture of Japan, followed by a gigantic tsunami that wiped out houses and people lives over large areas. This is one of the most tragic disasters in the Japanese history that came with a great loss of lives and properties as well as serious threats to Japan’s electricity security. The 4.7 GW Fukushima nuclear power plant was so devastated by the tsunami that it had to shut down the operation. The fact that the disaster occurred during winter made �� with the electricity shortage.

EGAT was able to make some contribution to solve the electricity shortage in Japan after receiving approval from the Thai government to send EGAT’s Nong Chok power station consisting of two 123 MW gas turbine generators to Japan. These gas turbine generators helped ease the shortage caused by the earthquake and tsunami. ��%��>��/�+��to Japan under the name of the Thai government and began operation to supply electricity in August 2011.

EGAT’s contribution to ease the electricity shortage in Japan also greatly promoted goodwill and international relations between the two countries. The Japanese government publicized our contribution among Japanese people and sent Ms. Makiko Kikuta, Parliament Vice-Minister for Foreign Affairs, Ministry of Foreign


Affairs Japan, to present letters of recognition and gratitude to the Thai government and EGAT for our valuable aid and support. EGAT also received letters and post cards from many Japanese citizens expressing gratitude for our contribution. The mission has been one among our great pride in having an opportunity to represent Thailand and the Thai people through this act of goodwill and our unique social value of never letting a friend down in time of crisis. We at EGAT hope that our small act will contribute to a long lasting relationship between Thailand and Japan.

EGAT’s outstanding community project in

2011

Khlong Rua community hydropower plant

The Khlong Rua community hydropower plant is located at Pak Song subdistrict, Pa Toh district in Chumphon province is EGAT’s latest social project. The power plant represents a new and changing trend

related to Thailand’s sustainable development effort. EGAT, in conjunction with Thammasat University, organized a project to disseminate energy knowledge among numerous communities in the Southern region. The project had a focus on electric energy and adopted a new approach to encourage the civil sector and communities to participate in its development process. The project’s study showed that local people were capable of identifying local potentials, local wisdom and local resources most useful for their own community. The project also had an aim to encourage the local people to participate in the making decision process and implementing the development projects that are appropriate to local demands and development.

At Khlong Rua power plant project, EGAT provided �� of small hydropower generators, power distribution lines and other facilities. In 2011, EGAT also provided our employees to work with local people on project construction. The power plant has become a new energy learning center for the communities and serves as a model project that any community can pay a visit to, learn and apply the knowledge for their own future development projects. The project demonstrates that a key to community success lies in the empowering of local communities to apply their wisdom and cost-effective resources to achieve sustainable development.

EGAT’s Social and Environmental Performance consistent with the Principlesin the International Standard ISO 26000

Organizational Governance

Human Rights and Labour Practices

Taking Care of the Environment

Fair Operating Practices

Consumer Issues

Community Involvement and Development

Technology and Innovation Development

Survey on Public Attitudes towards EGAT’s operations



ORGANIZATIONALGOVERNANCE

EGAT

Board of

Directors

��+�

Structure of Organizational Governance

Executive

Committee

Audit

Committee

Enterprise

Risk

Management

Committee

Corporate

Governance

Committee

Human

Resources

Committee

Committee

for Deputy

Governor

Nomination

Committee for

Assistant

Governor and

Division Director

Nomination

Organizational Governance Structure

EGAT’s organizational structure in 2011 consists of 10 command lines of operation with 87 divisions serving as the operating units. The organizational structure is under the supervision of a Board of Directors who makes a decision concerning policies, determines corporate strategies, and oversees EGAT’s overall operations in compliance with the principles of good corporate governance.

The Board of Directors has also appointed seven committees to handle particular critical issues requiring expert assistance before submitting to the Board. These committees include Executive Committee, Audit Committee, Enterprise Risk Management Committee, Corporate Governance Committee, Committee for Deputy Governor Nomination, Committee for Assistant Governor and Division Director Nomination, and Human Resources Committee.

EGAT is a state-owned enterprise operated under the supervision of the Ministry of Finance (MOF) which is EGAT’s major shareholder. EGAT Board of Directors has been established to serve as MOF’s representatives to monitor the performance of EGAT’s good corporate governance while putting the government’s policies and directions into practices. During 2011, EGAT’s performance on organizational governance in accordance with the guidelines of governance, commitments, and engagement governance outlined in GRI-G3 included the followings.


#$\ ��*�� #

!$\ ��*�� #

3. Independent Directors 7

4. EGAT Governor 1

Total 10

Composition Number of Person

#$\ ��*�� #

!$\ ��*�� !

3. Independent Directors 7

4. EGAT Governor 1

Total 11

Composition Number of Person

Authority and responsibilities of the Board

of Directors

To separate the authority and responsibilities between �� supervising bodies, a chairman of the Board of Directors is accordingly not EGAT Governor and will be appointed by the Cabinet. EGAT’s Board of Directors has the authority and responsibilities in laying down rules and regulations, establishing EGAT’s vision and policies and accountable for the performance of EGAT management, reviewing �� :}��:}��:�� (CSR) and EGAT’s initiatives as well as monitoring regularly the performance of the management, and ��'��may occur with an employee, management, or Director as well as monitoring the misuse of EGAT’s property and investigating misconduct of illegal or unethical behavior.

The Corporate Governance Committee in particular has responsibilities in establishing policy, strategies and practical guidelines for good corporate governance and social responsibility, giving recommendations at the policy level on social and environmental performance, overseeing ��:�� practices, promoting and encouraging the involvement of Directors, management, and employees in corporate governance and CSR activities, as well as monitoring and reporting the operational outcomes to the Board of Directors.

Number of independent directors

Independence is a key factor to enhance accountability of each Board member for the Board’s performance. Independent members will be able to use their independent judgments and drive for change or inhibition of any execution when necessary. The composition of EGAT Board of Directors includes members from various agencies and institutions as follows:

EGAT Board of Directors (according to the Cabinet

resolution in October 2010)

EGAT Board of Directors (according to the Cabinet

resolutions in October 4, and in November 22, 2011)

The number of independent members on EGAT Board of Directors was generally greater than the general standard requirements. All of them were on the directors’ pool list of the Ministry of Finance.

Mechanism in place for shareholders and

employees to provide recommendations and

direction to the top management

The Ministry of Finance, in its capacity as EGAT’s major shareholder, can provide recommendations and direction to EGAT top management through the government shareholders’ Statement of Direction (SOD) policy determined by the State Enterprise Policy Committee attached to the Ministry of Finance. EGAT has to adopt this statement as guidelines for the formulation of our state enterprise operational plans. Other mechanism for submission of recommendations and opinions is present in a stipulation that representatives from the Ministry of Finance and the Ministry of Energy, which are EGAT’s regulatory bodies, and independent directors selected from the Ministry of Finance’s name list must be appointed to EGAT Board of Directors. It is the duties of these directors to provide opinions and suggestions on good corporate governance issues.

For EGAT employees, the available mechanism in place is a submission through the Relation Affairs Committee which comprises one member of EGAT Board of Directors as chairman and representatives from the management and EGAT Labor Union as members. The Committee shall have the power and duties as stipulated by the State Enterprise Labor Relations Act B.E. 2543 (2000). For example, it can deliberate and approve matters related to employment conditions and appointment of a person or group of persons to negotiate labor dispute or minimum wage determination.

Remunerations

The Audit Committee appointed by EGAT Board of Directors is responsible for the evaluation and review of ��second half of the year by adopting the evaluation criteria ��+��$��


including the indicators, scoring weight, and objectives for evaluation are included in the action plan in 2011 and the performance criteria in 2011 which comprise three components, namely the quality of management performance (30 %), the performance achievement goal (67%), and the value-added economic performance (3%), which will be submitted to the Board of Directors for approval in advance before the calendar year ends. Results of performance evaluation at each level which depend on the scores earned will be calculated to determine the ��:��of governorship in accordance with the provisions of the ~��~��;��Employee Act B.E. 2518 (1975) and its amendment, as well as EGAT’s criteria and guidelines for chief executive � ��+��by the Ministry of Finance (MOF). The MOF’s relevant guidelines for this matter state that “the determination of performance evaluation criteria must be based on a mutual agreement between both parties which include the state owned enterprise’s Board of Directors and the chief �� =$

The Board of Directors has accordingly evaluated ��%��+�� with the memorandum of agreement on performance evaluations entered into by EGAT Governor and Deputy Governors, which identify the performance indicators, weighting scores, and measurement criteria. EGAT Governor and Deputy Governors were evaluated twice a year and the evaluation outcomes will be connected to the determination on relevant remunerations and incentives. EGAT’s working committee for the monitoring of state enterprise performance was set up to review the work �� %��+�� the said memorandum of agreement on performance evaluations.

��%��+�� of performance evaluation to modify the operational plans for the next following year in accordance with the vision and policies established by the government. The operational plans will be communicated throughout the organization’s command lines. EGAT Board of Directors accordingly applied the evaluation outcomes prepared by TRIS Corporation Limited to improve EGAT’s performance to formulate the operation review plans for the following year.

Processes in place for EGAT top management

��

EGAT has established the processes in place �� '��of interest are avoided. A process for the disclosures �� '�� :�� :��

been developed and stated in EGAT’s Good Corporate Governance Handbook. All executives of deputy governor level and higher must make full disclosure of their assets ��:��+�� '��'��:�the procurement committee while performing the duty. EGAT’s Good Corporate Governance Handbook also ��'��between personal and public interest, which states that ��%��+�� ?�� #$ ��:��+��

execution of his or her duties in the forms of, for example, gift, souvenir, money compensation, donation or cash sponsorship for various causes,

2. Exploit his or her position and authorities for ��:��family members, relatives or friends,

3. Work in competing businesses with EGAT, 4. Work for the business of EGAT’s business

partners, 5. Accept any special employment that is competitive

with EGAT’s operation, including becoming a project’s consultant and using his/her position to create credibility for the said business or employment,

6. Utilize his or her access to inside information to ��:��+��:�� members, relatives, friends and acquaintances, and

�$ ��:��:��persons, family members, relatives, friends and acquaintances. For example, using government-provided vehicle for private use, using work stationary for home use or EGAT tools and machinery to advance the interests of others.


�$ ��%��+�� :��or approve certain issues that may become a ��'��:��'��{��person. He or she should then remove himself or herself from participating in such undertaking, and

�$ ��%��+�� %��'��interest as required in the self-assessment form.

��

management

EGAT has developed a process to determine the ?��:��management for guiding the organization’s strategies on economic, environmental, and social topics. EGAT’s Committee for Deputy Governor Nomination and Committee for Assistant Governor and Division Director are responsible for selecting and recommending candidates for nomination or rotation for the position of Deputy Governor, Assistant Governor, and Division Director. Selection criteria and methods for nomination to these positions are in accordance with EGAT’s regulations on nomination and rotation of the Division Director positions and higher. Executives in these positions are selected by their knowledge, competency, experiences, work history, ��+��+��?��$

Revision of statements of missions or values,

codes of conduct and principles relevant to

economic, environmental, and social performance

In 2011, EGAT has made revisions of statements of our missions, values, code of conduct and principles which are relevant to economic, environmental and social performance as follows .

- EGAT’s missions relevant to economic performance were revised to be in line with the three purposes for the establishment of EGAT, as stipulated in the amended EGAT Act of B.E. 2535 (1992), by adopting the economic value management (EVM) to improve the overall performance of EGAT’s operations both at the organizational and command lines levels.

%��strategic challenges for the following aspects: business, operation, human resources, as well as other challenges which affect the organization’s sustainability. The outcome of the review will be adopted to enhance the operational performance. For example, in the aspect of business ��:�� good public image and public trust, and the maintaining of quality power services and the competitive generation

cost. As for the aspect of human resources, the challenges included the building continuously of socially responsible culture.

- EGAT’s Codes of Conduct which was issued in 2002 has been revised to be consistent with the amended laws and regulations. Ethical codes for EGAT Board of Directors, management, and employees are proclaimed in compliance with Article 279 of the Constitution for the Kingdom of Thailand B.E. 2550 (2007) and with the ethical ��:��\ ��\�:��Thailand. EGAT employees at all levels and in all operation areas are expected to observe these ethical codes.

- EGAT has adopted the social and environmental principles as outlined in the International Standard ISO 26000 titled ‘Guidance on Social Responsibility’ as guidelines to improve the formulation of EGAT Corporate Social Responsibility Master Plan. All core subjects and issues of social responsibility are namely the organizational governance, human rights, labour practices, the environment, fair operating practices, consumer issues, and community involvement and development.

EGAT has improved the missions associated with the international standards which include the standardized quality management systems ISO 9001 for the power plant operation, the environmental management systems ISO 14001 for the power plant environmental management, and the occupational health and safety management ��\�~�~#�""#��#!��of the state enterprise performance appraisal (SEPA) to improve the overall performance.

Risk management

EGAT has continuously improved the enterprise risk management system and practices in accordance with the Committee of Sponsoring Organizations (COSO) and in compliance with the criteria developed by the Ministry of Finance to manage and control organization-wide risks to be within an acceptable standard. A risk appetite ��+��:��+��+��of the organization and all business lines. Risk residuals are included as part of SWOT analysis to be further used in preparing the organization’s strategic planning. EGAT’s four key strategic aspects are retained which include the ��+��+��risks, and compliance risks.

Processes for evaluating the top management’s

performance

EGAT has developed the following indicators for the evaluation of EGAT top management’s performance, particularly with respect to the economic, environmental and social performance.


Indicator 1 Leadership- comprising the adoption of management strategies and practices to gain recognition among and acceptance from relevant parties as well as to uphold the organization’s reputation.

Indicator 2 Vision and decision-making Indicator 3 Change management Indicator 4 Risk management Indicator 5 Operation in compliance with the

Board of Directors’ policies Indicator 6 Stakeholders’ satisfaction

Precautionary approach of principle

EGAT has also addressed the precautionary approach of principle by adopting the risk management principles to prevent any risks that may arise and affect the organization’s operations. Risk management has been applied to the internal control system by using risk factors to formulate the internal control plan and the corporate plan at organizational and divisional level.

Externally developed charters, principles,

and initiatives to which EGAT subscribes

or endorses

EGAT is a state enterprise under the supervision of the Ministry of Energy. In 2011, EGAT won two state owned enterprise (SOE) awards, held by the Ministry of Finance, namely the Outstanding Organizational Management ��the Outstanding Innovation Award from the development of the solar weighted tracking system, installed at Sirindhorn dam in Ubon Ratchathani province. Mr. Thirachai Phuvanatnaranubala, the Finance Minister, presided over the 2011 SOE Awards presentation ceremony on 31 August 2011, which was organized by the State

�� 7�� \ �� ]~�7\^ �� “Beyond Expectation, Beyond Imagination” at the Royal Jubilee hall, IMPACT Arena, Muang Thong Thani.

Among these SOE awards achieved, the Outstanding Innovation Award for EGAT’s solar weighted tracking system has been categorized as the award in recognition of EGAT’s economic, social and environmental initiative, ��:�~�7\�� organization.

In addition, in 2011, EGAT’s power plant and �� recognition for their operation and performance. EGAT’s Mae Moh power plant was awarded CSR-DIW from the Department of Industrial Works for the third consecutive year. Mae Moh power plant which was awarded the CSR DPIM award and the green mining award from the Department of Industrial works, has been recognized as an organization which operates with due care to the communities and the environment according to the social and environmental aspects developed by the Department of Primary Industries and Mines, comprising the recognition of social and environmental responsibility, the conduct of environmental impact mitigation and preventive measures, the implementation of occupational health and safety activities for employees and surrounding communities, the development of green areas and landscape for communities, the being of an organization of transparency and accountability, and the utilization of resources for ��:��$�� !"##��facilities, and departments of 28 in number, received the national occupational safety and health awards 2011 from the Ministry of Labour. Among these, EGAT’s Nam Phong power plant won this award for eleven consecutive years, which emphasizes EGAT’s outstanding performance in occupational health and safety operation.

Memberships in associations and national

advocacy organizations

EGAT has actively joined memberships in associations and advocacy organizations in which EGAT has participated in projects and committees and viewed such memberships as strategic. In 2011, EGAT has been a member of the “Muang Khon Dee (City of Good People) Network”, to take part in mobilizing the national strategies for corruption prevention and suppression ��:��\ ��>��Anti-Corruption Commission (NACC). EGAT has also been chosen to enter the 2nd NACC Integrity Awards 2011 Contest.

In 2011, EGAT has provided substantive funding beyond routine membership dues to support numerous sporting associations. EGAT granted a 16 million baht


�� Association (TAWA) for the preparation of athletes to enter competition in the 2012 London Olympic Games in England. EGAT also provided funding of 15 million baht to organize the EGAT Junior Weightlifting Championship for the purpose of searching for star weightlifters for Thailand’s national weightlifting teams. Besides, EGAT has pledged to support the Petanque Association of Thailand from three years (2011-2013), by providing 15 million baht in total over the three period. EGAT also supported the Thai Government which played host for EGAT 15th Asia Petanque Championship 2011, held in December 2011 at Pitchayanun Petanque court in Nonthaburi province. The event was organized to celebrate the auspicious occasions of His Majesty the King 84th birthday and to commemorate the 111th birthday anniversary of Her Royal Highness Princess Mother who was the patron of the association and actively promoted the international standard of Petanque sport in Thailand.

EGAT has also viewed membership in the external research development organization as strategic. In 2011, EGAT signed a memorandum of understanding with the Thailand Research Fund (TRF) for a close collaboration in the “EGAT-TRF Grants for Research and Development Project”, with an aim to co-assist in the development of researchers and research-based knowledge through making research grants, in particular the research and development projects to be conducted at the policy level in the area of energy, society, and the environment. For ��}�� provide funding of 20 million baht each which totals 40 million baht. Additional funding will be provided continuously to cover the three year period to maintain the project’s total annual budget of 40 million baht. EGAT, TRF and research grantees will jointly own the intellectual property derived from the research undertaken under this project, ��{�:��completed researches.

EGAT’s memberships in such associations and national advocacy organizations as well as the contribution of substantive funding beyond routine membership dues well demonstrate EGAT’s key strategies which have been adopted in the organization’s corporate social responsibility implementation.

Groups of stakeholder and basis for selection

of stakeholders

��+��selected from individuals, groups of individuals or external agencies affected from EGAT’ business operations including EGAT suppliers. EGAT’s stakeholders consist of the following: 1. The Government agencies comprising the

Ministry of Energy and the Ministry of Finance, 2. The communities living in the vicinities of power

plants, along the transmission lines and around the lignite mines and mining facilities,

3. The Energy Regulatory Commission (ERC) of Thailand, and

4. The electricity users who are customers of MEA and PEA.

Stakeholder engagement

EGAT has been conscious of the effects of our decisions and activities on the interests and needs of our stakeholders. EGAT has also developed a fair and proper process based on engaging the most relevant groups of stakeholders while incorporating the stakeholder engagement in the organization’s policies which have been deployed into practices across the organization. Effective two-way communication channels for stakeholders’ complaints or grievances were developed. For example, EGAT news and information committee was set up to disseminate news and information regarding EGAT’s operation activities covering all lines of operation. EGAT’s Call Center 1416 and EGAT Post Box 1111 were developed to accept public complaints. A survey was


also conducted in 2011 on the stakeholders’ awareness, expression of opinions and expectation from EGAT ��$��from the general public as well as EGAT employees shed light on EGAT’s present status as well as our strength and weakness regarding good corporate governance. These data were analyzed for subsequent formulation of EGAT’s master plan for good organizational governance. They were also used to improve the communication approaches with all groups of stakeholder and served as baseline data

for comparison with EGAT’s performance in the following years. These measures contributed to the promotion of EGAT’s good corporate governance practices.

Key topics and concerns raised through

stakeholder engagement

A summary of stakeholders’ key topics and concerns raised through the engagement with different groups of stakeholder has been listed as follows:

The Government agencies, the Ministry of Energy, the Ministry of Finance

The communities living in the vicinities of power plants, along the transmission lines and around the lignite mines and mining facilities

The Energy Regulatory Commission (ERC) of Thailand

The electricity users who are MEA and PEA customers.

- Organizing meetings, seminars and trainings

- Implementing activities in accordance with the government’s policies- Organizing formal and informal

meetings- Formal and informal participa-

tion in activities such as sporting games, parties, and site visits

(to dams, power plants, etc.)

- Organizing meetings for the Social, Community and Environ-

mental Coordination Committee- EGAT’s Community Relations

Department- EGAT top management participating in community activities in the vicinity of power

plants- Meetings with community leaders to listen to their problems and issues- Inviting community representa-

tives to visit the sites of EGAT’s power plants and power projects

%;�� :��- Organizing social and environmental projects, such as

the Biological way of life, Waen Kaew and Mobile Medical units.

- Organizing meetings, seminars and study tours at EGAT’s operation facilities as well as at electricity utilities oversea

- Organizing both formal and informal meetings- Participating in occasional activities

Developing channels for suggestions and opinions. - www.egat.co.th- EGAT Call Center 1416- EGAT Information Center located at EGAT’s headquarters

(prinfo.egat.co.th)- EGAT’s public relations sections

located at regional operation divisions and power

plants across the country.

- Observance of the electricity policy developed by the government- Generating revenues for the government - Investment by the government sector to stimulate

the overall economy - Implementation of power projects with minimum

impacts upon communities and the environment- Dissemination of news and information in quick and timely fashion

- Development for the well-being of life and communities- Control of environmental impacts which harm life in

nearby communities- Dissemination of news and information regarding

EGAT’s operations activities (rationale/ necessity)- Involvement in decision-making process related to

EGAT’s power projects- Fair compensations- EGAT’s prompt responses to complaints, suggestions

and opinions

- Adequacy and security of electric power- Reasonable-priced electricity tariff rates- Development of power plants utilizing alternative fuel

sources- Control of environmental impacts- Organizing meetings, seminars and study tours at

EGAT’s operation facilities as well as at electricity utilities oversea

- Organizing both formal and informal meetings- Participating in occasional activities

- Reasonable priced electricity fees- Security of electricity supply- Quality of electricity service- Reliability

Stakeholder EGAT’s responseKey topics and concerns


HUMAN RIGHTS AND LABOR PRACTICESHuman Rights

EGAT has continued conducting business operations while placing greater consideration to the human rights which is one among seven core subjects and issues addressed in the International Standard ISO 26000 titled “Guidance on Social Responsibility”. In 2011, EGAT’s human rights performance based on the ISO 26000’s human rights issues included the due diligence, human rights risk situations, avoidance of complicity, resolving grievances, discrimination and vulnerable groups, civil and political rights, economic, social and cultural rights, and fundamental principles and rights at work.

Due diligence

EGAT has always realized that our operation activities might infringe the rights of others, in particular of our stakeholders. Therefore we have been careful to take the human rights issue into consideration prior to the development of power plant projects. Activities with regards to our compliance to the human rights as ��/�� and other relevant laws have been monitored and reported to the Ministry of Energy, our regulatory body. In 2011, EGAT has exercised due diligence as in the following activities.

To comply with Section 57 of the Constitution of the Kingdom of Thailand with regards to the right to receive information and to express opinion on any project or activity that may affect different aspects of a local community, EGAT has organized a number of public meetings to disseminate information on the construction of a double circuit 500 kV transmission line at the delivery point on the Thai-Laos border (Nan province) – Nan 2 – Mae Moh 3 (for the section passing the forest conservation area) which will deliver power from the Hongsa lignite power plant in Laos to EGAT power grid. At these meetings, information on EGAT’s project development steps has been provided to local community representatives living in the area including their rights.

EGAT also conducted surveys on public and stakeholder opinion regarding the development of Bang Pakong combined cycle power plant block 5 project. �� the public and relevant parties, including the preparation of the environmental health impact assessment (EHIA)

report, following the EIA’s guidelines developed by the \ �� >�� 7��and Planning (ONEP).

Human rights risk situations

To prevent any conflict regarding political instability and failure of democratic or judicial system, EGAT has developed the Code of Ethics for the Board of Directors, top management and employees across the organization to observe the practices of ethical behav-iors, in particular of the democratic principles. EGAT’s Code of Ethics prohibits the use of one’s position or authority to support or organize any activity in support of a political party or a person with political power. However, EGAT has promoted our Board of directors, top management and all employees to exercise their political rights through voting, joining as membership in a political party and participating in the good organizational management.

Also to prevent any involvement in the activities �� life and local culture in communities, EGAT has integrated an environmental policy and a corporate social responsibility (CSR) policy throughout the organization. As for the employment, EGAT has avoided all forms of child labor by not hiring workers under the legal working age of 18 years old.

EGAT has avoided the culture of corruption by formulating guidelines for all employees to observe the practices of corruption. EGAT employees are expected ��:��'�� with the interest of the organization or the society at large. The issue of human rights risk situations are also addressed in the topic related to EGAT’s Code of Ethics ��</��'��=$

Avoidance of complicity

Complicity is associated with the concept of aiding and abetting an illegal act or omission. EGAT has developed a policy on the avoidance of complicity which requires EGAT top management and employees to strictly observe the principles of good organizational governance and refrain from involvement in any practice of human rights violation. Six key good organizational governance issues incorporated in this policy were namely the respect for the rule of law, ethical behavior, transparency, part ic ipatory management, accountabi l i ty , and cost-effectiveness. In 2011, EGAT’s security approaches


�� +� ��be consistent with the international norms and the law enforcement standards.

Resolving grievances

EGAT has established the mutual agreement and put in place the grievance mechanisms for negotiation between the management and employees. The mechanisms have been operated through the following channels.

- EGAT Labor Union Relations Committee comprising nine representatives each from the management and EGAT employees. One member of EGAT Board of Directors acts as chairman for this committee whose duties are to deliberate and give advices regarding rules and regulations related to employment conditions as well as ��:��$

- EGAT Occupational Health, Safety and Work Environment Committee consisting of nine representatives from EGAT management, ten from EGAT employees and one secretary. The committee’s duties are to deliberate EGAT’s safety of workplace policy and action plans for the operation of health and safety activities to prevent and mitigate work-related accidents, injuries, and illness as well as to promote the other health and safety activities.

- EGAT Working Group on Internal Coordination comprising seven top management, seven employee representatives (from EGAT’s Labour Union) and one secretary. It is the working group’s duties to coordinate and exchange information among different groups within EGAT. The working group also collects employee opinions and submits for consideration by EGAT management.

Discrimination and vulnerable groups

EGAT has recognized the importance of taking any approach to ensuring equal opportunities and respect for all individuals. EGAT has examined our own operations to determine whether direct or indirect discrimination is present to prevent any form of discriminating practices against our employees, business partners, customers, stakeholders and anyone else with whom EGAT has any contact or on whom EGAT can have an impact. Guidelines with respect to the values of ethical behaviors are included in Section 5 of EGAT’s Code of Conduct which requires all employees to serve the public with courtesy and in a timely fashion. Activities carried out organization-wide included the raising of employee awareness to embrace ethical behaviors, to perform their daily work with

� ��:��country, to denounce all forms of crime, misdemeanor and act of self-interest, and to treat the others including the stakeholders, with fairness and indiscrimination. Recognition and praise are also given to employees with outstanding ethical behaviors and performance. EGAT has also developed steps to prevent sexual harassment and acts of self-interest and included them in Section 6 of EGAT’s Code of Conduct. EGAT expects that all employees, particularly the top management, have to accordingly respect human dignity and refrain from all forms of sexual harassment.

Civil and political rights

EGAT has respected all individual civil and political rights, including the freedom of opinion and expression. A complaint management system was set up in conformity �� \ �� 7�� ~�� 7��*��\ ��a national complaint management system. The system will enhance the freedom of opinion and expression as well as the freedom to exercise political rights among them. Such civil and political rights promotion measures ��:�� {��$�� grievance mechanism has been put in place and operated to collect information from the public through the following communication channels;

The Government Website (www.1111.go.th),The Government Hotline 1111,The Government Post Box 1111, andCounter Service 111.

EGAT’s “Complaints and Anonymous Letters Committee” has been established to process complaints from the public as well as EGAT’s own employees. Other channels to receive public complaints include the call center number 02-4360000 (20 lines) and the 1416 Emergency Call Center for reports of accidents, failure of


high-voltage transmission lines and relevant information. Information provided through these channels is updated on a daily, monthly and yearly basis or whenever there are changes of information.

Economic, social and cultural rights

EGAT has facilitated access to education and lifelong learning for community members and explored ways related to our operation activities to contribute ��rights. EGAT has implemented the knowledge manage-ment project for alternative energy and community power plant development in the southern region with an aim to involve the network of local electricity users in EGAT’s power development activities as well as energy conservation. EGAT has also contributed to the well-being of local communities by carrying out the initiatives for the conservation promotion, the communication for knowledge building and the restoration of natural resources and the environment in the conserved forest areas. Moreover, the “EGAT D.I.Y. Camp” project has been undertaken to promote the volunteering spirits among the university students engaged in volunteer camp activities for social and community development.

EGAT has also worked in close collaboration with the Department of Labor Protection and Welfare, the Ministry of Labor, to improve our occupational health, safety and work environment performance and activities. EGAT has accordingly won the national occupational safety and health awards for many consecutive years.

Fundamental principles and rights at

work

EGAT has allowed all employees to have the freedom of association and the right to collective bargaining. EGAT’s Labor Union was established comprising representatives from members of various committees within the organization to give advice and voice opinions on good governance practices. EGAT has also promoted and supported many other associations and clubs set up by employees. In addition, EGAT has not engaged in or :��:��$EGAT has also formulated explicit employment practice criteria regarding personnel hiring, work promotion, salary and additional payment which were in line with job requirements as well as free from discrimination based on gender, race, religion or cultural background. Moreover, all employees have equal access to training opportunity.

Labor Practices

EGAT’s labor practices in accordance with the International Standard ISO 26000 included the employment and employment relationship, freedom of association and effective recognition of the right to collective bargaining, anti-corruption, conditions of work and social protection, social dialogue, human development and training in the workplace, and health and safety at work.

During 2011, EGAT’s labour practices performance have continued to be in line with EGAT’s human resource policy and relevant approaches. EGAT’s policy on human resources has placed priority upon the employment for the development of human resources by enhancing the standard of living as well as the security of employment and the agreeable work conditions. EGAT’s human resource policy has been regularly revised to achieve the policy aims by;

1. Improving the security of employment, the employee’s spirit and morale and the standards of living through the promotion for the capable and high performance employees with appropriate �� :��

2. Enhancing the value of employees by promoting their capability to become professionals in their career path that are in line the corporate vision and strategies as well as the situation of the organization, and the promoting of teamwork spirits among them;

3. P romot ing the pe r fo rmance-o r i en ted human resources management with regard to contribution to improved prductivity and optimization of human resources;


4. Adopting the management approaches which focus on fairness, transparency and accountability based on a competency-based performance system; and

5. Encouraging practices of ethical behaviors, dedication and self-discipline among employees by giving recognition to personnel with ethical conducts who frequently participate in religious, traditional and cultural activities and dedicate themselves to the interests of the society at large.

Employment and employment relation-

ships

EGAT observed all of the relevant labor laws and labor practices to ensure compliance to key employment issues addressed by ISO 26000 - Guidance on Social Responsibility. We adopted non-discriminatory employment practices that provided equal opportunity to people of all races, colors and genders. To ensure fair employment ��+:��:�� criteria on employee’s advancement, income raise, and special remunerations that were based on competency-based performance without any discrimination

regarding employee’s gender, race, religion or culture. EGAT also provided training opportunity for all employees on an equal and non-discriminatory basis.

EGAT Workforce

EGAT has currently employed a total of 23,393 employees and workers (as of December 31, 2010): 22,591 employees and 702 workers. There are also another 5,000 subcontract workers.

Recognizing the importance of securing capable workforce on a continuing basis, EGAT had formulated a 5-year manpower plan (2010-2014) to cope with retirement of employees in the next 5 years.

In 2011, EGAT employed a total of 22,680 employees which could be divided by types of employment, employment contract and employment ��#!�� ! �� !�| ��:��+�� |� ��:�� +�� |��+�� |� ��+�� $� ��of 24 employees, which accounted for 0.10% of total employees, resigned during the year comprising 17 from central � �� $

1 1 2 1 1 1 7

Age range (Year) Male Female Total (person)

20-30 1,841 457 2,298

31-40 1,390 586 1,976

41-50 5,961 1,804 7,765

51-60 8,508 2,133 10,641

Total 17,700 4,980 22,680

Employees

Age (Year)

Totalmale

"� ��#��$�� %��

"� ��#��$�� %��

23 24 26 28 44 53

Career diversity and equal opportunity

EGAT’s promotion of career diversity and equal opportunities was evident from the number of our

Age (Year)

Female Male Female Male Male Female Female Female Male Female Male Male Female Male Male Male Male

22 23 24 25 26 27 30 36 37 40 42 43 48 50 53Total

1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 17

Total employees (person)

Total employees (person)

employees, subcontract workers and temporary workers ��:��:��


Minimum wages for male and female

employeesEGAT had established the following minimum wage

rates for male and female employees based on their educational ?��$

Educational Level Male (person) Female (person) Total (person) Total (Baht)

Bachelor’s degree and higher 4,713 2,574 7,287 12,000

�� 6,659 1,016 7,675 9,000

�� 2,633 843 3,476 7,200

Other 3,695 547 4,242 According to the Wage /��

Total 17,700 4,980 22,680

Minimum wages for male and female employees by educational levels

Freedom of association and collective

bargaining

72.8% of EGAT total employees were under mutual negotiation agreement with EGAT’s management. These employees were encouraged to freely join EGAT’s Labor Union with no risk to their employment security. EGAT supported various Labor Union activities. For example, upon the Labor Union’s request EGAT assisted in the election process of the Labor Union’s executive board and the deduction of EGAT Labor Union’s membership fees from employees’ pay checks. EGAT’s Labor Union was allowed to organize its activities, as EGAT deemed ��permission for time off to join the activities.

Anti-corruption practices

EGAT has established and put in place a system to deal with cases of corruption. Upon accusation of

�� %�� :� �� grounds for such accusation. If no grounds for the accusation are established, the investigation will be terminated. If there were grounds to pursue the investigation, a disciplinary investigation committee will be appointed under EGAT’s directive No. Khor 85/2538 regarding work suspension, disciplinary investigation, disciplinary action and case appeal.

Conditions of work and social protection

EGAT has set up fair and appropriate wage rates, �� :�� employees at all stages of their career. The following measures were implemented in 2011 to ensure employee’s employment security and decent standards of living.

Total workforce by types of employment, employment contract and employment locations

Subcontract Workers

Age range Male Female Total (Year) (person)

20-30 35 2 37

31-40 144 5 149

41-50 83 16 99

51-60 14 1 15

Total 276 24 300

Temporary Workers

Age range Male Female Total (Year) (person)

20-30 7 2 9

31-40 42 2 44

41-50 11 4 15

51-60 1 2 3

Total 61 10 71

&��%�� "��%�� Subcontract workers

'&��%�� *

Subcontract workers

'"��%�� *

Temporary workers

'&��%�� *

Temporaryworkers

'"��%�� *

12,788 9,892 263 38 37 34


- The establishment of minimum wage rates for all employees that are in accordance with the State Enterprise Relations Committee’s �� enterprise employment and the Wage Committee’s ��$

- The establishment of starting wages that are determined by an employee’s experience, �� ?��$There are minimum and maximum rates for work of different nature. The rates are competitive when comparing with those of the other enterprises engaging in the same kind of business.

%��:��:��?��:��State Enterprise Relations Committee (SERC) on the minimum standard for state enterprise ��$

- The establishment of additional welfare and :��:��the nature and characteristic of work performed or as deemed suitable. They are awarded as work incentives in addition to normal welfare ��:��?��:��$~��:�� +��emergency loans.

EGAT’s Labor Relations

EGAT’s labor relations system has been regu-lated by the State Enterprise Workers Relations Act B.E. 2543 (2000) and other relevant laws. EGAT has also adopted good labor relations practices based on mutual approval of both parties.

In compliance with the State Enterprise Workers Relations Act B.E. 2543 (2000), EGAT has established the EGAT Labor Relations Affairs Committee which comprises nine representatives each from the management and EGAT Labor Union. One member of the board of directors becomes the Committee’s chairperson and the head of EGAT Labor Relations Division becomes its secretary. This Committee meets once a month. Its primary duties are to promote and develop good labor relations, contemplate improvement of EGAT operation � ��+��conditions. It also deliberates complaints on imposed disciplinary actions.

Based on mutual approval of EGAT’s management and employees, EGAT has adopted and put in place the following good labor relations practices:

- President of EGAT Labor Union or a representative

was allowed to attend EGAT Board of Directors’ meetings to provide data and explanations involving the Labor union.

%��for the operation of EGAT Labor Union and facilitated various aspects of its activities. For example, EGAT supported the Labor Union’s study tours and participation in domestic and international meetings such as the PSI-�� /��]7��/^��of Chemical, Energy, Mine and the General Workers’ �� ]�/�*^ ��$ �� support for the Labor Union’s annual general meetings, an election of its executive committee. Members of EGAT Labor Union’s executive committee from the central �� traveling expenses to attend the Labor Union’s executive committee meetings, as if they were working for EGAT.

- EGAT’s Working Group on Internal Coordination was established with seven representatives from the


management and another seven representatives from EGAT’s Labor Union. This working committee holds four meetings each year as well as coordinates and shares vital information with relevant parties in order to foster better understanding and uniform directions of operations. It also collects employee opinions for consideration by EGAT management.

- Upon the request of EGAT Labor Union, the management agrees to organize an election of the executive committee for EGAT Labor Union at the end of each committee’s term.

- Representatives of EGAT Labor Union are permitted to address and explain its operations to new employees during their orientation sessions.

Social Dialogue

The existence of EGAT Labor Union is a testimony to the freedom of association and collective bargaining of EGAT employees. Employees can freely voice their opinions and demands through the Labor Union’s representatives. EGAT also supports the establishment of other employee associations by providing necessary venues, facilities and public relations channels for their activities.

EGAT Labor Union was founded on 1 May 1975 following the government’s proclamation of the Labor Relations Act. EGAT’s Labor Union membership has grown from the initial number of 10 founders to the present number of 16,687. Throughout the past 36 years of its existence, EGAT Labor Union has achieved many ��'�� and negotiating agreements between employees and the ��$��:��the introduction of many new policies which led to better ��'��$

EGAT Labor Union’s outstanding performance during 2011 included the followings:

- Recommending to EGAT top management an �� '�� victims who are EGAT employees from 10,000 to 20,000 baht for a house owned by an employee or his/her spouse and from 5,000 to 10,000 baht for an employee’s rented house. It also negotiated for the founding of a Flood-victim Loan Fund from which an employee can borrow up to 50,000 baht for a period of 36-months with no interest;

- Negotiating the rights to claim medical expense for parents of employees hired after October 2005;

- Negotiating for additional work preparedness stipend of 100 bath for normal working days and 150 baht for holidays for employees posted at high voltage substations;

- Providing a total of 6,765,000 baht assistance to 2,706 EGAT’s Labor Union members whose houses and belongings were damaged by the '��$ �� ;��:�� !"##� �� _�:�� appealed for cash donation from EGAT employees across the country to purchase New Year gift baskets for EGAT’s employees and military personnel in the three southern border provinces of Pattani, Yala, Narathiwat and Chana power plant in Songkha. A gift-presentation trip to these locations was organized in January 8-13, 2012; and

- Increasing the amount of funeral wreaths and funeral rite assistance for employees and employee’s family members from 5,000 to 6,000 baht, effective from October 1, 2011. Total funeral rite assistance given out to members for 2011 was 349,655 baht.

- A total of 306,303 baht was provided as 303 scholarships and awards for excellent educational achievement to children of EGAT’s Labor Union members, social welfare assistance grants and grants to labor leaders.

- EGAT’s Labor Union set up kitchen facilities at Wang Noi power plant in Ayutthaya province, Pathumthani Hospital in Pathumthani province and at EGAT headquarters to prepare meals for '��:��\��:��#��>��:��10, 2011, and

- Negotiate for the proclamation of EGAT’s Regulation No. 59 - Extra Stipends for High Place and Tunnel Operations B.E. 2547 (2004).

EGAT supported various employee associations through permission to use EGAT’s premises, facilities, and public relations channels for their activities. There are currently 22 different clubs established to promote employee dialogues and to improve the standards of living of EGAT’s employees. Some of these clubs are the Buddhist Club, Christian Club, Basketball Club, Amateur Radio Club, Mae Moh Bowling Club, Shooting Sport Club, Writers’ Club, and Petanque Sport Club.

Personnel Development and Training

EGAT recognized the importance of continuing human resources development and had established a human resources development policy that included personnel development at all levels and in all positions both in the technical and managerial skills. EGAT was determined


to improve the employees’ standards of living with the goals of promoting their work capacity and employability. We have also encouraged our employees to become people of ethical behaviors who observed EGAT’s Code of Ethics and transparency principles with regards to high ��%��to the good of society. Safe and pleasant conditions of work, good quality of life as well as career advancement opportunity were promoted. Standard work environment safety and established risk management system for both inside and outside operations were also provided. EGAT encouraged all employees to participate in suitable CSR practices based on our conviction that human resources are the key to EGAT’s success as a high-performance ��{��<7��for Thai Happiness”.

EGAT’s personnel development training pro-grams were designed with the goals of improving work performance for all levels of personnel so that they could achieve EGAT’s principal missions, visions, values and strategic directions. These programs also gave special consideration to the moral and ethical aspects of an employee’s work performance. Their ultimate goal was to produce model employees with outstanding work capability and good conducts who were also happy with their work. Personnel performance were improved through a large variety of training techniques such as work coaching, mentoring, counseling, on the job training, special assignment and work rotation. Training evaluation and monitoring of these training programs were also included as part of EGAT’s personnel development process. � �� :�� guidelines as follows:

1. A total of seven training programs for entry level to the highest level personnel which included new employee orientation, young generation development, head of section development, chief of department development, assistant division director development, division director development, and assistant governor development.

2. Four preparation programs for junior and senior executives: preparation programs for Level 8, 9, 10 and 11 personnel.

3. There were training programs on technical and managerial skills organized by the Personnel Development Division and training programs organized by individual command lines such as training programs in electricity generation, development, transmission, fuel, administration, �� control system engineering, information technology, risk management and knowledge management.

4. Promotion of employees’ quality of life program with emphasis on the improvement of physical �� $

5. External training programs, seminars and conferences both locally and overseas were promoted to broaden employee’s perspectives and to create new alliances.

In 2011, the average training days for training programs organized by the Personnel Development Division was 3.76 days per employee per year. This number excluded the number of training days provided by individual command lines. These programs were designed to support EGAT’s strategic goal of developing EGAT into a successful and high performance organization. They aimed to improve personnel competency and foster positive attitudes towards working for social and cultural causes among EGAT’s employees while creating a corporate culture of creative work performance. These programs placed emphasis on EGAT’s sustainable development in which their employees became a professional in one’s own, embraced good moral and ethical standards ��:��$��:� recognized as Thailand’s leading organization through the help of these model employees.

Promotion of Occupational Health and Safety

Performance

During 2011, EGAT continued to perform our occupation health, safety and work environment activities in accordance with our policy which states that “to conduct our business activities in a participatory manner to ensure that all incidents and hazardous events are prevented at all times in a proactive manner and with respect to all applicable laws and international standards.”

Th is po l i cy was imp lemented under a fundamental hypothesis that “if an organization �� health, safety and environment management system, existing work risks will be kept at acceptable level. Such system will reduce the chances of accident and prevent


illness from contact with hazardous environment”. The following guidelines were work established for EGAT’s occupational health, safety and work environment management.

1. EGAT has implemented a management system that was in line with the Ministry of Labor’s Regulations on the Prescribing of Standard for Administration and Management of Occupational Health, Safety and Environment, B.E. 2549 (2006). EGAT had 41 operation areas across the country and registered them as operative units with the Department of Labor Protection and Welfare. Each operative unit set up a bi-party occupational health, safety and environment committee consisting of appointed and elected members at the ratio stipulated by the Ministry of Labor’s regulations. Based on the current number of 21,377 eligible employees with voting rights, there were 238 elected committee members.

2. EGAT’s operative units in each operation area set up an occupational health, safety and environment management system whose ef-�� :�their achievement of international standard cer-��~��Occupational Health and Safety Management System (TIS 18000) and the OHSAS 18000 (Occupational Health and Safety Assessment Series).

3. EGAT’s work safety units and safety personnel had been set up in EGAT’s command line structure to do the following tasks.

3.1 Set up work safety units and safety personnel in all operation areas.

3.2 Set up the Quality and Safety Development Division to make recommendation to the management on various safety management issues and to provide services in the

following areas: Y Give advice on the development

of occupational health, safety and work environment management system.

Y Implement safety engineering operations. Y Develop safety training programs

required by laws. Y Inspect, evaluate and measure elements

of work environment such as heat, lighting, noise, dust, chemical substances, bacteria, etc.

Y Inspect and evaluate occupational safety, health and environment management system by persons who are not related to the inspected operative unit.

National Occupational Safety and Health Award 2011In 2011, EGAT won the national occupational

safety and health award from the Department of Labor Protection and Welfare, the Ministry of Labor, during the 25th National Work Safety Week for 28 locations of EGAT’s power plants and departments. EGAT’s Vajiralongkorn dam and Nam Phong power plant have won this national award for eleven consecutive years.

Work-related Accidents and Injuries Statistics During 2011, there were 149 cases of work-related

injuries and illness or personnel accidents, 17 cases of which were disabling or severe injuries, 101 cases were non-disabling or minor injuries, 2 deaths and 29 cases were pending for conclusion. EGAT’s rate of work-related injuries or illness cases in 2011 decreased by 14.37% from 174 cases reported in the previous year. The rates of disabling or major injuries decreased by 61.36% while the rates of non-disabling or minor injuries decreased by 20.47%. However, there were fatalities this year. (In 2010, there were 44 disabling or severe injuries, 127 non-disabling or minor injuries and no fatalities).

EGAT’s disabling injury frequency rate (IFR) was 0.47, a decline of 0.31 (from 0.78 in 2010). The incident rate (IR) of non-fatal work-related injuries and illness ��"$"��!""�"""��%��+��$��was lower than the disabling injury frequency standard index which is 3.2 for 200,000 employee-hours worked according to the NAICS Code for electric power generation, transmission and distribution (Injuries Facts


Lost workdays cases, cases without lost workdays and injury frequency rate (IFR)

Number of workday losses, no workday losses and injury severity rate (ISR)

450

400

350

300

250

200

150

100

50

0

2.5

2

1.5

1

0.5

0

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

IFR (cases per 1,000,000 employee-hours worked)

ISR (cases per 1,000,000 working hours)

Number (cases)

Number of Workday Losses

Loss of workdays

Loss of workdays

No workdays loss

No workdays loss

Injury Frequency Rate (IFR)

ISR

Year

Year

80,000

70,000

60,000

50,000

40,000

30,000

20,000

10,000

0

1800

1600

1400

1200

1000

800

600

400

200

0

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

2010 Edition, the National Safety Council 2008).In 2011, EGAT’s disabling injury severity rate (IRS)

was 303.81, which had risen from 2011 by 109.54 (the

2010’s IRS rate was 194.27). This rise was the result of work-related fatalities in 2011. The disabling injury index (DII) rose slightly to 0.14 (compared to the DII rate of 0.08 in 2010).

In 2011, EGAT spent a total of 7,661,966.68 baht in compensation for employees who experienced work-

related injuries or illness, which was higher than a total of 956,531.04 baht spent in 2010. However, in 2011 EGAT paid a total of 5,830,906.64 baht for employees’ medical expenses, which was less than the amount paid in 2010.


Values of property damages between 2002-2011

Number of accidents between 2002-2011

500

450

400

350

300

250

200

150

100

50

0

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Number (cases)

Fiscal Years

Number (cases)

Damage values

250

200

150

100

50

0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Damage values

Fiscal Years

Overall, the number of EGAT employees who experienced work-related injuries and illness in 2011 was lower than the 2010 disabling and non-disable injuries or illness rates. This number has continued to decline since 2003. However, EGAT’s injury severity rate had increased due to 2 work-related fatalities in 2011.

Property damage accidents

In 2011, EGAT encountered 335 cases of accidents which caused damages to EGAT’s property, a decline of 3.94% from 379 cases in the previous year. These

included the 171 cases of accidents that caused damages to motor vehicles, the same number as in 2010; 65 cases of accidents resulting in damages to heavy machines (a decrease of 8.45% from 71 cases in 2010); two cases of accidents resulting in damages to machinery and equipment (a decrease of 66.67% from six cases in 2011); and two accidents resulting in damages to the buildings (the same number as 2010). There were also 95 cases of accidents resulting in damages to EGAT’s other kinds of property, a decrease of 25.78% from 128 cases in 2010. In 2011, the total value of property losses accounted for 79,105,910.35 baht, a decrease from 208,738,994.64 baht


For over 40 years we have provided

the Thai consumers with the quality

electricity services produced from the

well-established and reliable electric

power generation and transmission

system.

We lend our helping hands to

contribute to the well-being

of communities and the society

at large. We always treat all

community members as our

own family members.

We are professionals.

We behave ethically.


We have also developed our forward-looking

younger generation employees which

will enable them to create better or

more effective technologies to continue

��

to the Thai society.

We are innovative.


TAKING CARE OF THE ENVIRONMENT

During 2011, EGAT continued to conduct our operation in an environmentally responsible manner to ensure the sound environmental practices in full compliance with all applicable laws and regulations. EGAT has observed in particular the environmental principles as outlined in the International Standard ISO 26000 titled “Guidance on Social Responsibility”, which include the environmental responsibility, the precautionary approach, the environmental risk management, and the polluter pays. Key environmental issues taken into consideration during the year were the prevention of pollution, the sustainable resource use, the climate change mitigation and adaptation, and the protection of the environment, biodiversity and restoration of natural habitats.

Prevention of Pollution

EGAT has a strong determination to adopt measures to prevent and control the environmental impacts, in particular the organization’s emissions to air such as sulfur dioxides (SO2), nitrogen oxides (NOx) and carbon dioxides (CO2). Discharges to water have been managed in compliance with all applicable environmental laws including the improving of the overall environmental quality.

EGAT has also recognized the importance of stake-holders’ involvement and participation. Numerous formal and informal meetings and public hearings were organized to provide opportunities for the views and comments of stakeholder and local people to be heard. A tripartite committee consisting of representatives from both government and civil sector, as well as from EGAT, was established to take responsibility in the monitoring of EGAT’s environmental ��:��in the environmental impact assessment (EIA) report.

Sustainable Resource Use

EGAT continued pursuing the clean and green energy sources by promoting the development and consumption of renewable and alternative energy, ranging from solar power, wind energy, hydropower to geothermal energy. In 2011, a total of 7,943.63 million kWh of electricity from clean energy sources was produced from EGAT’s power

generation system.


Climate Change Mitigation and Adaptation

EGAT has actively developed 10 clean development mechanism (CDM) projects as means to reduce greenhouse gas emissionos. Up until 2011, nine out of ten projects received the Letters of Approval (LOA) from Thailand Greenhouse Gas Management Organization (TGO). Among these projects in particular, the irrigation valve-based micro hydro projects installed at Kaeng Krachan and Mae Ngat Somboon Chon dams received the crown standard awards for Thai CDM projects.

Promotion of the Environment, Biodiversity and

Restoration of Natural Habitats

EGAT has implemented plans in collaboration with numerous organizations and agencies at the regional level in efforts to minimize possible environmental impacts resulting from land use involving with local communities in numerous environmental campaigns and activities. Among these environmental campaigns is EGAT’s reforestation project which was developed in commemoration of the Royal Golden Jubilee in 1984. The project has recovered an area of 384,418 rais of the former degraded forests which account for over 53 million trees in total. The project which adopted the sustainable forestry practices has contributed to the protection of biodiversity and restoration of natural habitats in 49 provinces across the country. EGAT has also implemented the plant genetics conservation project under the royal initiatives of HRH Princess Maha Chakri Sirindhorn. An area totaling 21,006 rais around 12 of EGAT’s dams and reservoirs has been allocated to be developed into areas for preserving local and traditional strands of herbs and plants in efforts to value, protect, and restore local ecosystem.

Environmental Performance

In 2011, EGAT continued actively implementing our environmental operations and activities as anchored in our corporate social responsibility and environmental policies. Outstanding activities carried out during the year included the preparation of EIA reports for EGAT’s on-going development projects which adopted the public participatory processes, the pollution control and management which adopted new technologies capable of emissions control better than required standards, and the implementation of clean development mechanism or CDM projects.

Project Study and Preparation of EIA Reports

Combined Cycle Power Projects

EGAT has implemented during the year two new ��%��:��}�� Chana combined cycle power plant block 2 and North Bangkok combined cycle power plant block 2. In May 2011, the National Environment Board (NEB) approved an EIA report for Chana power plant block 2. In August 2011, EGAT submitted an EIA report to seek approval for the development of North Bangkok power plant block 2 project. The decision for the latter was under pending for consideration by the Expert Committee on EIA reports of government, state enterprise, and joint venture with the private sector development projects.

Clean Coal Technology Power Projects

Implementation of clean coal technology power projects is one among EGAT’s alternatives for development of power generating sources to cope with the increasing demand for electricity resulting from economic growth and to lower the risk from relying heavily on natural gas. At present, EGAT has conducted an EIA and feasibility report for a new power generating plant in the southern province, which includes the development of jetty pier and transportation route for importing good quality coal. To secure the reliability of the national power system while responding to the government’s policy in optimizing the domestic fuel sources, EGAT has also projected to develop a new power plant to replace the aging Mae Moh thermal power plant, units 4-7. An environmental health impact assessment (EHIA) study has been conducted for this project as EGAT has to �:��:��*��>��Resources and Environment with respect to the prescription for the industrial projects or activities which may cause severe impact on the environment, natural resources, and community health.


Natural Gas21.77 million tons

Lignite18.15 million tons

Diesel0.03 million tons

Fuel Oil0.97 million tons

Wind Turbine Power Project

In 2011, EGAT’s 18 MW Lam Takhlong wind turbine power project has been further developed. The project was EGAT’s pilot wind turbine scheme to undergo the conduct of EIA study. In December 2011, the EIA report for the Lam Takhlong wind turbine project received approval from the Expert Committee on EIA reports of government, state enterprise, and joint venture with the private sector projects.

Transmission System Network Development

Project

EGAT has planned and developed new transmission system projects to increase the capability of transmission lines and ensure the continuity and reliability of power supply system. A number of transmission system interconnection projects have been developed to receive electric power from IPP projects in neighboring countries. In 2011, EGAT has prepared an initial environmental examination (IEE) report for the construction of a double circuit transmission lines entitled a double circuit 500 kV transmission line at the delivery point on the Thai/Laos border (Nan Province) - Nan 2 - Mae Moh 3 (for the section passing the forest conservation area) to deliver power from Hongsa lignite power plant in Laos to EGAT power grid. The double circuit 500 kV transmission line link to the substation in Nan province and Mae Moh substation. The project’s EIA report has been under approval process by the Expert Committee on EIA reports of government, state enterprise, and joint venture with the private sector projects.

Pollution Control and Management

Air Quality Management

CO2 Emissions

EGAT has well recognized that electricity generation activities resulting in the release of carbon dioxides (CO2) to ambient air and the environment. As Thailand’s largest power producer engaging in electricity generation and transmission, EGAT has actively monitored and disseminated data and information on the volume of CO2 emissions generated from power generation activities via the website www.egat.co.th, to ensure our operational transparency under the good governance principles. EGAT has also addressed the global warming issues by implementing the reforestation project in honor of His Majesty the King and the clean development mechanism or CDM projects.

Emissions of CO2 from EGAT’s power plants during 2011 totaled 40.92 million tons. The CO2��by fuel types consisted of 21.77 million tons from natural gas, 0.97 million tons from fuel oil, 0.03 million tons from diesel, and 18.15 million tons from lignite.


CO2 Emissions from EGAT’s Power Plants in 2011

Sources: 1. Environmental Division, EGAT (February 2012) 2. EGAT Fuel Consumption Monthly Report prepared by the System Control and Operation Division. (Data available in February 2012) Remarks: 1. CO2 emissions calculation is based on the 2006 IPCC Guidelines for National Greenhouse Gas Inventories, Volume 2 – Energy 2. kgCO2/kWh refers to the volume of CO2 emissions (kilograms) per kilowatt-hour calculated from EGAT’s energy generation

in 2011 (73,151,539.172 kWh) which includes fossil fuel, hydropower, and renewable energy. (Data from EGAT Fuel Consumption Monthly Report prepared by the System Control and Operation Division)

3. kgCO2/kWh refers to CO2 emissions per kilowatt-hour of electricity generation - including fossil fuel, hydropower, and renewable energy

In 2011, EGAT’s power generation emitted 0.56 kilograms of CO2 per kilowatt hour into the ambient air (0.56 kgCO2/kWh).

Emissions of SO2, NO

X and Particulates

EGAT continued to enforce strict measures to adopt sound environmental technologies for the control of emissions to air of pollutants such as sulfur dioxides (SO2), nitrogen oxides (NOX) and particulates. New technologies and practices included the installation of the low NOX burner to reduce nitrogen oxides emissions, the electrostatic precipitator (ESP) to control particulates, and flue gas desulfurization (FGD) to lower the level of sulfur dioxides. Air quality has been continuously monitored. The continuous emission monitoring systems (CEMS) has been installed to collect

January 1,177 22,428 1,577,676 1,882,418 3,483,698 0.55

February 1,118 24,186 1,427,814 1,973,345 3,426,463 0.54

March 1,483 - 1,612,022 1,975,143 3,588,649 0.57

April 1,558 79,619 1,537,229 1,692,994 3,311,400 0.58

May 952 73,873 1,641,729 2,013,139 3,729,692 0.58

June 6,203 168,339 1,576,389 1,791,505 3,542,435 0.59

July 5,267 210,533 1,626,007 1,756,500 3,598,306 0.61

August 2,685 96,499 1,473,385 1,847,569 3,420,139 0.54

September 1,453 198,536 1,421,356 1,785,820 3,407,165 0.53

October 2,477 48,779 1,471,090 1,620,607 3,142,953 0.52

November 990 30,084 1,351,242 1,729,692 3,112,007 0.55

December 4,356 14,761 1,431,997 1,705,831 3,156,945 0.57

Total 29,719 967,636 18,147,935 21,774,563 40,919,853 0.56

CO2 Emissions (tons) kg CO2 / kWh

Diesel oil Fuel oil Lignite Natural gas Total

and send data by EGAT’s communication system to the Department of Industrial Works, the Pollution Control Department and relevant agencies.

In 2011, emissions of SO2, NOX and particulates from EGAT’s power plants were within the standard �� :� �� *�� regarding emissions from power plants B.E. 2547 (2004). In 2011, aggregate volumes of emissions from EGAT’s power plants were 24,943, 80,303 and 1,611 tons respectively.


80,000.00

70,000.00

60,000.00

50,000.00

40,000.00

30,000.00

20,000.00

10,000.00

0.00

0.70

0.60

0.50

0.40

0.70

0.30

0.20

0.10

0.00

Electricity Generation (GWh)

kTon CO2

kg CO2/kWh

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Electricity Generation (GWh) kTon CO2

kg CO2kWh

Air Quality Monitoring at EGAT’s Power Plants in 2011

SO2 (ppm) NOx (ppm) Particulates (mg/m3)

Volume Standard Volume Standard Volume Standard

Remarks: ppm refers to one per million partsmg/m3 refers to milligram per cubic meter

Mae Moh Thermal Power Units 4-13 Lignite 63 - 222 320 219 - 433 500 3 - 15 180

Pakong Thermal Power Units 1-4 Natural gas/fuel oil <1 320 36 - 158 200 4 - 15 120

Combined Cycle Blocks 1-2 Natural gas - 60 - 450 - 60

Combined Cycle Blocks 3-4 Natural gas <1 60 191 - 204 230 - 60

Combined Cycle Blocks 5 Natural gas <2 20 32 -53 120 2 - 6 60

Krabi Thermal Power Unit 1 Fuel oil 50 - 57 450 116 - 133 180 68 - 89 120

Southern Bangkok Thermal Power Units 4-5 Natural gas/fuel oil 10 - 18 320 84 - 160 180 20 - 31 120

Combined Cycle Block 1 Natural gas <1 60 209 - 246 250 9 - 21 60

Combined Cycle Block 2 Natural gas <1 60 161 - 187 175 3 -5 60

Combined Cycle Block 3 Natural gas <1 20 72 - 89 120 3 - 10 60

Wang Noi Combined Cycle Blocks 1-3 Natural gas <1 60 53 - 159 175 3 - 12 60

Nam Pong Combined Cycle Blocks 1-2 Natural gas 5 - 8 60 215 - 229 250 6 - 17 60

Chana Combined Cycle Block 1 Natural gas <1 60 29 - 36 120 2 - 5 60

Lan Krabue Gas turbines 1-9 Natural gas <1 - 2 60 121 - 239 250

Gas turbines 11 Natural gas - 20 - 120

Surat Thani Gas turbines 1-2 Diesel <1 60 176 - 182 230 24 -32 60

North Bangkok Combined Cycle Block 1 Natural gas <1 20 36 - 37 120 14 - 17 60


Noise Prevention and Control

EGAT continued using measures for the control of noise level generated from the operations of power plants. Silencers were installed on machineries and equipment that may produce harmful noises. Monitoring of noise levels were also carried out both within the power plant areas and in nearby communities. In 2011, the results of noise level monitoring within power plant areas and community areas were in compliance with the standards determined by the National Environment Board (NEB) and the Ministry of Industry.

Water Quality Management

To monitor possible water pollution that may have adverse impacts on the environment and the nearby communities, EGAT has implemented measures for water quality management and control according to power plant types. For hydropower plants, the emphasis �� use, requiring that waste water quality must meet the determined standard. Implementation of water saving campaigns is also endorsed. For thermal power plants, EGAT emphasizes the adoption of water saving measures and the reuse of discharged water. Waste water from all power plants must be treated before being released and the quality of water must meet the standards required by laws.

Environmental Management

During the power project development, EGAT continued to put priority on the management of social and environmental aspects in pursuit of sustainable development. EGAT has also put emphasis on the adoption of management approaches which are in compliance with relevant regulations and environmental laws. Among these approaches included the environmental impacts prevention and mitigation measures and the monitoring activities covering all environmental aspects ranging from the

physical and biological resources, human use values, to the values to the quality of life. Mitigation measures in focus were the conduct of social impact assessment (SIA) and health impact assessment (HIA) as well as the applying of ISO 14001 environmental management system (EMS) and the occupational health and safety management system standard (TIS 18001) to the power plant operations during all stages of development. Management approaches carried out in parallel were the participation and involvement of all groups of stakeholder in order to create better understanding and seek acceptance for project development. This is due to the observances of regulations and relevant environmental laws are fundamental to the establishment of good governance and corporate social responsibility.

In 2011, EGAT has undergone the preparation for the construction of two power plants which were granted permission from the Cabinet, namely Chana combined cycle block 2 and Wang Noi combined cycle block 4. These power plant projects were to be developed under strict compliance to the permit requirements. At Chana power plant, a joint committee was established to monitor the power plant construction activities and the environmental development for communities in the vicinity. The committee was chaired by the Provincial Governor of Songkhla, with representatives from the government and private sectors and nearby communities participating as committee members. The committee met twic during the year to acknowledge the progress of project. Moreover, a working group for the environment was further appointed by this joint committee to participate in the monitoring of the quality of air, noise and water in the surrounding areas. Two environmental training activities were held for ��+��plant which participated in the environmental network, to enable young schoolchildren to monitor the water quality


by themselves. Monitoring activities were also included in the school science projects with aims at enhancing young ��promoting better understanding of and linkage with the ecosystem in their locals.

At Wang Noi power plant, EGAT has closely worked with a network of schools by organizing two training sessions for a group of youth in water conservation and young students from schools located around the power plant. Activities included the organizing of a study tour and demonstration of environmental monitoring works as means to enable students to conduct some :��:��$�� undertaken were well in response to EGAT’s strategic themes in becoming an organization with due care to the society, community, and the environment, while embracing good organizational governance in operational practices.

Stakeholder Participation and Public Hearings

EGAT has well recognized the importance of the inclusion of stakeholders’ participation and involvement in all stages of operations. During 2011, a total of 9 meetings have been organized to open for opinions and suggestions from the stakeholders regarding EGAT’s four power projects with a focus on the scope of study, the evaluation

and assessment, and the review of draft reports. The meetings in details included the followings.

1. Three meetings for the study and preparation of an environmental health impact assessment (EHIA) report for Bang Pakong combined cycle power plant block 5 project.

2. Three meetings for the study and preparation of an environmental impact assessment (EIA) report for the North Bangkok combined cycle power plant block 2 project.

3. One meeting for the study and preparation of a ��}��>��power plant block 3 project.

4. Two meetings for the study and preparation of an initial environmental examination (IEE) report for the construction of a double circuit transmission lines entitled a double circuit 500 kV transmission line at the delivery point on the Thai/Laos border (Nan Province)-Nan 2-Mae Moh 3 (for the section passing the forest conservation area) to deliver power from the Hongsa lignite power plant in Laos to EGAT power grid.

EGAT also held many focus group meetings to listen to the public and stakeholder opinions during the year. Meetings of the tripartite committee comprising representatives from the public sector, the civil sector and EGAT, and the environmental inspectors working groups were organized to be used as platforms to communicate to the public as well as to get public feedbacks to improve EGAT’s operations.

Clean Development Mechanism (CDM) Project

EGAT has developed clean development mechanism (CDM) projects to reduce greenhouse gas emissions. In 2010, seven out of ten projects received the Letter of Approval (LOA) from Thailand Greenhouse Gas


EGAT’s gross electricity generation and purchase in 2011 Million kWh Percentage(By type of power plant)

Solar power 2.20 0.003

Wind energy 4.64 0.006

Hydropower 7,935.32 10.85

Geothermal energy 1.20 0.002

Fossil-fuel based 65,208.18 89.14

Total 73,151.54 100

Hydropower

Fossil-fuel based

Geothermal Energy

Solar Power

Wind Energy

89.14%

Fossil-fuel based

0.006%

Wind Energy

0.002%

Geothermal Energy

0.003%

Solar Power

10.85%

Hydropower

Management Organization (TGO), Ministry of Natural ��$��%��{��hydropower projects installed downstream of diversion dams, namely Chao Phraya, Mae Klong, Pasak Jolasid, Khun Dan Prakan Chon, and Khwae Noi, a 1 MW Sirindhorn ��}�� :�� }�� ]�� :��^ �� *�� *��%��#"%##$

In February 2011, EGAT’s irrigation valve-based micro hydro project at Kaeng Krachan and Mae Ngat Somboon

Chon dams received LOA from TGO, including the crown standard awards for Thai CDM projects. EGAT’s CDM projects to be further developed include the second phase of 2.5 MW Lam Takhlong wind turbine power project and the small hydropower project to be installed downstream of the existing Kiew Khor Ma diversion dam.

EGAT has been currently conducting researches on carbon footprint. Campaigns focusing on the � �� under EGAT’s Demand Side Management (DSM) program. In 2011, the implementation of EGAT’s CDM projects was capable of cutting CO2 emissions by 1.5 million tons.

Electricity Generation from Clean Energy

The promotion of renewable energy development and consumption as well as the development of CDM projects enabled EGAT to generate in 2011 clean electricity of 7,943.36 million kWh in total. The sources of energy consist of solar power, wind energy, hydropower, and geothermal.


Solar Power

EGAT has been a pioneer in solar power development since 2003 by developing and operating the 504 kW Pha Bong solar power plant in the northern Mae Hong Son province. Later EGAT developed the 1 MW solar power plant with a water weight-based solar tracking system at Sirindhorn dam in Ubon Ratchathani province and commissioned to the power grid in 2009. Having a development cost of 209 million baht, the Sirindhorn solar power system is equipped with 2,500 solar cell panels with a combined capacity of 1,014 KW. In 2011 Sirindhorn solar power system was operated to produce 2.32 million kWh of clean energy which helped avoid CO2 emissions by 1,000 tons.

EGAT’s solar power system has been undergone development on a continual basis. A prototype of 30.24 kW '��%��plant with water weight-based solar tracking system project were installed on the reservoir of Srinagarind dam. This float-mounted solar power system was connected to the power grid in February 2011, to supply 47,450 kWh of clean electricity annually while replacing 11,806 liters of fuel oil consumption and cutting the CO2 emissions of 27 tons. Srinagarind solar power system prototype will serve as a model for the future installation ��'��%�� $��'��%��solar power system on the water will help EGAT avoid the high cost of land procurement and site preparation for new power generating sources.

At present EGAT has adopted advanced solar cell �� building. The amorphous silicon solar cell panels have been �� :��-quarters since 2007. The building won the ASEAN Energy Awards 2009 from ASEAN Center for Energy in the category of new and existing building which adopts best practices �� :��$��panels installed on the building’s wall have a total capacity of 27.82 kW and are capable of generating an energy output of 50 kWh daily, or 18,250 kWh annually. This solar power system can save 6,000 liters of diesel oil and reduce CO2 emissions by 13 tons per year.

��!"##�� :�� to be included under the project for carbon reduction ��:��{��:�� Institute with an aim to encourage the business sector


in Thailand to participate in the reduction of greenhouse gases in buildings.

Wind Energy

Also as a pioneer in wind energy development, EGAT has developed and operated Thailand’s biggest wind turbine power plant project, featuring two 1.25 MW tri-blade wind turbines, located in the compound of Lam Takhlong Jolabha Vadhada pumped storage power plant in Nakhon Ratchasima province. This wind turbines power system began operation to supply electricity to the Provincial Electricity Authority (PEA)’s distribution system in April, 2009. The wind turbine units can produce 4.6 million kWh of energy, the amount that can replace 1.10 million liters of oil consumption and reduce emissions of CO2 by 2,300 tons annually. In 2011, EGAT continued the development of the second phase of Lam Takhlong wind turbine power project consisting of 12 wind turbines with a total capacity of 18 MW. The project is expected to be commissioned to the power system by 2012.

Hydropower

Hydropower development has been regarded as one among EGAT’s key policies as means to increase the generating capacity from renewable and alternative energy sources. EGAT has accordingly developed hydropower plant projects installed downstream of existing diversion ��{�:��$;��completed the construction of 6 small-sized hydropower plants with a combined capacity of 78.7 MW, downstream of the existing diversion dams, namely Pasak Jolasid, Khun Dan Prakan Chon, Chao Phraya, Naresuan, Khwae Noi,

and Mae Klong. EGAT also completed in December, 2011 the construction of two 6 MW hydropower plant downstream of Chao Phraya diversion dam. The small-sized Chao Phraya hydropower plant can annually produce 62 million kWh of electricity, while saving 15.1 million liters of fuel oil and cutting CO2 emissions by 35,624 tons. In 2011, EGAT received approval from the Cabinet for the further development of three small-sized hydropower plant projects downstream of existing diversion dams, which include Klong Tron, Kiew Khor Ma and Chulabhorn. These projects will have an aggregate generating capacity of 9.25 MW.

Geothermal Energy

EGAT has since 1990 operated a 300 kW geothermal power plant located at Fang district of Chiang Mai province and supplied energy output from this binary cycle demonstrating geothermal plant to PEA’s distribution system.


R&D for Society and the Environment

�� !"##� �� million baht to the education institutes for the conduct of 12 research and development (R&D) projects. These R&D schemes had a focus on the prevention and mitigation of environmental impacts from electricity generation, the development and involvement of communities within the vicinities of power plants and facilities, and the development of clean energy sources. Major R&D projects implemented during the year included a study on sulfur dioxide dispersion from Mae Moh power plant by using air pollutants dispersion model, a study on an integrated use of discharged water from the water cooling system, a study on the opinions of communities affected from the transmission system network expansion, a study on the compensation and remedial efforts of EGAT, and a study on the potential of a prototype for community renewable energy consumption.

EGAT also worked in close collaboration with the National Electronics and Computer Technology Center (NECTEC) under the National Science and Technology Development Agency (NSTDA), the Hydro and Agro Informatics Institute (HAII) under the Ministry of Science and Technology, and the Faculty of Science at Chulalongkorn University to develop the wind database in Thailand. This ‘Wind Database Development Project’ has been developed with a purpose to utilize the wind information and its database to conduct further researches and to analyze the change of weather atmosphere and its effects from the global warming. NECTEC will provide technology skills on high performance computing technology, including large storage system and virtualization technology, while EGAT and HAII will co-develop a three dimension me-teorological model for daily wind forecast. All organizations participating hope that the project will help the country make more accurate weather forecast while developing knowledge base for disaster prevention.


FAIR OPERATING PRACTICES

During 2011, EGAT’s performance regarding the fair operating practices in accordance with the core subjects addressed in the international standard ISO 26000 covered the areas of the anti-corruption, responsible political involvement, fair competition, promoting social responsibility in the value chain, and respect for property rights.

Anti-corruption

Corruption is the abuse of entrusted power for private gain and can undermine an organization’s effectiveness and ethical reputation. To raise the awareness of our employees about corruption and how to counter it, EGAT has established the Code of Conducts for EGAT Board of Directors, top management and employees to use as guidelines in their work performance and ethical behavior conduct. The anti-corruption section included in this Code of Conducts stipulates that EGAT personnel must perform their duties with honesty and refrain from ��+��:��:��indirect corruption intent. EGAT’s Code of Conducts was ��:�� '�� employees.

Responsible political involvement

EGAT has also trained our employees and raised their awareness regarding responsible political involvement and contribution by establishing the guidelines for responsible political involvement. As a leading utility responsible for electricity generation and transmission,

EGAT’s business operations are crucial for the country’s economic and social development, particularly to our social responsibility towards the government sector. EGAT has established close collaborations with the public sector by strictly observing the relevant public laws and regulations including the embracing of good organizational management, as well as the placing priority on the adopting of such approaches as risk management and internal control to increase the added values to the organization. *�� '�� judicial and democratic issues, EGAT’s Code of Conducts clearly indicates that all EGAT employees have the right to exercise their political rights guaranteed under the


constitution. For example, they can vote for or become members of a political party but must not directly or indirectly hold positions in or work for a political party.

Fair competition

To promote the practices of fair competition, EGAT’s Code of Conducts set out ethical criteria that all employees must abide to serve their obligations to the government, the general public, EGAT’s customers, trading partners, and entrepreneurs in the same business. They have to conduct businesses honestly and equitably by giving clear, accurate and complete information to their trading partners to ensure fair competition. They must open for the opinions and suggestions of trading partners and use such recommendations to improve EGAT’s own operating processes. EGAT employees must keep �� :�� business relations with different trading partners and ��:��from them.

In 2011, EGAT’s gross procurement and work hiring comprised a total of 22,284 million baht or 70 percent made at EGAT’s central procurement department and another 9,441 million baht or 30 percent of procurement operated at the regional procurement units. EGAT has established procurement policies and procedures for the procuring of goods and services from locally-based suppliers following our green procurement policy which has been proclaimed since 2009. EGAT has also adopted similar policy for the hiring of workers from local communities in the vicinity of EGAT’s operating locations, to work for EGAT’s construction projects as well as the tree planning and maintenance works carried out under EGAT’s reforestation project.

Promoting social responsibility in the value

chain

EGAT has also encouraged other organizations in particular our business partners to observe the principles of good organizational governance within their own organizations as means to promoting the social responsibility in the value chain. To ensure the compliance to such principles, EGAT has set up a database to keep record on subcontractors who violated the good governance practices by deserting a contract, committing customer fraud or violating human rights. EGAT has also conducted the regular outsourcing evaluations to prevent any violation of good governance practices, human rights or other provisions of laws. EGAT has ensured our own procurement practices by adopting the following approaches;

- EGAT’s bidding and procurement information have been posted on the advertising boards, the website of Comptroller General’s Department and in the newspapers to ensure the widespread of news and information among relevant parties.

- EGAT’s price deliberation committee was set up to ensure transparent and fair practices under EGAT’s procurement procedures as well as in accordance with the public agencies’ procurement rules and regulations.

- Bidding price negotiations were publicly announced on EGAT’s website (www.egat.co.th) which can be accessed by all relevant parties.

Respect for property rights

EGAT has also recognized the importance of respect for property rights by implementing policies and practices that promote the respect for property rights, particularly the respect for intellectual properties by refraining from engaging in any activity that might violate property rights and in counterfeit or piracy acts. For example, EGAT has actively prohibited the use of patent-infringement products or illegal software.


CONSUMER ISSUES

During 2011, EGAT has put importance on the performance of consumer issues which is one among the core subjects addressed in the international standard ISO 26000. EGAT’s performance on consumer issues covers the areas of fair marketing, factual and unbiased information and fair contractual practices, protection of consumers’ health and safety, sustainable consumption; consumer data protection and privacy, access to essential services, and education and awareness.

Fair marketing, factual and unbiased informa-

tion and fair contractual practices

EGAT has organized Open House sessions for the general public at least once a year at our headquarters and some regional operation departments to provide to all groups of stakeholder complete, accurate, and understandable information related to EGAT’s business operations and performance in a transparent manner. The public can access to EGAT’s information, in particular the power projects which may result in some negative ��:��$�� :��]��$��$��$�^and EGAT’s Call Center 02-436-0000.

Protecting consumers’ health and safety

Apart from observing the safety laws and standards for the protection of health and safety of all electricity end-users, EGAT has provided supports to the conduct of research and development of innovative technologies for electricity generation, focusing on such renewable sources of energy as solar, wind, hydropower, and geothermal. EGAT has also conducted the health and environmental assessment with an aim to protect the health of all consumers, such as the emissions of carbon dioxides (CO2), sulfur dioxides (SO2), nitrogen oxides (NOx), and particulates, including the assessment of carbon footprint (CF) throughout the life cycle of electricity generation.

Sustainable consumption

EGAT has long contributed to the sustainable consumption of electricity by launching numerous energy �� conservation among consumers nationwide. Since 1933, EGAT has been actively involved in a number of demand side management (DSM) programs implemented as our social contribution activities. EGAT’s major energy �� %� �� _�:��


No 5 programs which was launched to promote the �� %�� electrical appliances.

��%� ��_�:��>��-grams for several electrical appliances have resulted in the cumulative savings of 2,380 MW peak demand and 14,122 million kWh of energy as well as a reduction of 8.7 million tons of carbon dioxide emissions. Over 170 �� %� �� :�� :��distributed covering totally 15 products.

During 2011, EGAT has continued implementing ��%� ��_�:��>�$��$��Ministry of Energy signed an MOU with key electrical appliance manufacturers to expand the labeling program to cover three more appliances including water heaters, electric irons, and exhaust fans. EGAT has also �� %� �� compact fluorescent lamps (CFLs) to substitute incandescent lamps countrywide. From 2008-2011, EGAT has replaced the CFLs at the public agency buildings and temples with a total of 1,010,300 units.

Consumer data protection and privacy

EGAT has recognized the importance of consumer data protection and privacy by including the issue in EGAT’s Code of Conducts. EGAT top management and employees at all levels are expected to protect the organization’s properties by not appropriating any of EGAT’s movable and immovable properties as well as technologies, R&D information, inventions and undisclosed

��:��:��who have no connection to EGAT’s business operations.

Access to essential services

Thailand’s economic recovery in the previous years had led to an increase in the demand for electricity consumption. As the country’s key power utility, EGAT had strived to cope with the increasing demand by extending the life of aged power plants and facilities while speeding the schedules of new project construction. We have also been in pursuit of alternative sources energy, particularly those of the environmental-friendly renewable energy. Meanwhile, the government’s extension of its populist measures to lower the cost of living by subsidizing electricity fees for low income earners have caused grave impacts on EGAT’s revenue as we had to absorb the cost of fuel mechanism (Ft) in the electricity tariff rates.

Education and awareness

EGAT has also endorsed numerous campaigns to educate and raise consumers’ awareness on energy saving such as the replacing of incandescent lamps ��%� ��'��]/�_�^��%� ��_�:��>�$�� $��has also instilled the attitude of energy and environmental conservation into young Thai generation through the green learning room project. A green learning room equipped with teaching and learning facilities and equipment has been established in 426 schools across the country. To date, 20 schools achieved Green School standards.



COMMUNITY INVOLVEMENT AND DEVELOPMENT IN 2011

!"##��+��it marked the auspicious occasion of His Majesty King Bhumibol’s 7th cycle birthday anniversary. As a tribute to His Majesty the King, the Thai government invited all sectors of the Thai society to take part in numerous projects to show their gratitude for the King’s benevolence to the Thai people. His Majesty the King has laid down a solid foundation for the nation’s development through his many royally-initiated projects together with his New Theory on land and water management and the ~� ��$��society have lived in peace and prosperity under the royal benevolence.

EGAT had launched the “planting seedlings to conserve watershed forests to honor our Beloved King” project based on His Majesty the King’s initiative on natural resources and forest conservation and development. 984,000 saplings were planted in watershed areas above the reservoirs of EGAT’s nine dams and power plants. These dams, to which His Majesty graciously bestowed their names, namely Bhumibol, Sirikit, Ubol Ratana, Chulabhorn, Sirindhorn, Srinagarind, Vajiralongkorn, Rajjaprabha, and Lamtakong Jolabha Vadhana power plant. EGAT’s top management and employees as well as the public and private sectors joined forces in making this project highly successful and the number of trees


planted far exceeded its original goal. EGAT also took responsibility in the maintenance works of these young trees for another two years before turning them over to responsible agencies which include the Royal Forest Department and the Department of National Parks, Wildlife and Plant Conservation. Through reforestation and rehabilitation effort in these watershed areas, EGAT had �� :�� country’s dwindling forests and depleted water resources.

EGAT also implemented the “840 Fai Thawai Nai Luang (the 840 check dams in honor of His Majesty the King)” project which was a collaborative scheme between EGAT and the communities in the watershed areas around Bhumibol dam. These check dams were built in compliance with the King’s royal initiative for the conservation of watershed areas and water resources which further contributed to the effective water management and restoration of fertility to the watershed areas. The project was completed as planned in 2011 and successfully raised the public awareness and community involvement in conserving the country’s forest and watershed resources.

Involvement in Community Development

During 2011, EGAT continued placing an emphasis on the meticulous designing of appropriate social projects and action plans to meet the needs of stakeholders in communities in the vicinity of EGAT’s power plants and along the transmission line routes. Our primary goal for these social projects was to mitigate possible impacts from our electricity generating operations both during the construction and throughout their operating phase.

In 2011, EGAT had implemented a total of 69 CSR action plans in 20 locations of power plants across the country under the guidelines of EGAT CSR Master Plan (2011-2015) for the generation command line. These

action plans were implemented in efforts to achieve EGAT’s 2011 strategic goals of gaining public support for the environmental practices of each power plant and to build good relationships with the communities. The plans were also congruent with the objectives of EGAT’s CSR Master Plan (2010-2015) in driving EGAT toward “an organization with due care to the society, communities and the environment while embracing honest, fair and sincere practices”.

EGAT’s primary mission was to generate electricity from our power plants across the country. This mission has placed EGAT in direct contact with communities close to our operations. Apart from achieving this mission, EGAT was determined to develop these power plants into organizations with special care for their communities and the environment. Approaches of systematic and sustainable community supports were implemented to promote the well-being of life in the communities so that they can become self-reliant. EGAT aimed to create better public understanding of our missions in order to secure continuous support and cooperation from these communities.

In the past year, EGAT’s CSR performance in accordance with the strategic roadmap and objectives achieved success. These CSR actions were implemented ��:��high level of determination and dedication on the part of EGAT’s employees. Many of these CSR performances ��:��the popular Mae Moh Jit-arsa (volunteer) Club. EGAT has been determined to generate electricity and implement both in-process and after-process CSR projects and initiatives which contribute to the environmental care and the empowerment of local communities living around the power plants.


Education and Culture

EGAT has also realized that education and culture are foundations for social and economic development. In 2011, EGAT has contributed to the promotion and support of education at all levels while engaging in actions to improve the quality of and access to education as well as helping to conserve and protect cultural heritage, especially on which EGAT’s operation activities have an impact.

Supporting Thailand Golf Championship

2011

The Ministry of Energy hosted the “Thailand Championship 2011” golf tournament to honor His Majesty the King, who was a keen and talented sportsman, on his 84th birthday anniversary. EGAT together with two of our subsidiaries, Ratchaburi Electricity Generating Holding Public Company and Electricity Generating Public /�$_��$��|"�"""�""":��to the tournament. Many well-known golfers, both Thai and foreigner, participated in the tournament which was broadcasted live via satellite throughout the world to publicize the 84th birthday anniversary celebrations of His Majesty the King.

Supporting the Petanque Association of

Thailand

The project was a collaborative scheme between EGAT and the Petanque Association of Thailand with an aim to provide support to the participation of Thai petanque sportsmen’s in the international competitions. Petanque sport was initially introduced to Thailand by the Princess Mother to promote the use of free-time activities

to enhance good health among Thai people as stated in the Princess Mother’s motto of “Time is valuable”. EGAT’s support had contributed to the continuation of this sport in Thailand.

EGAT continued providing an annual budget of 5,000,000 baht to the Petanque Association of Thailand, to enable the Thai petanque athletes to achieve impressive international records and bring fame to the country by winning gold medals at various world championships for many consecutive years.

Supporting Thai Weightlifting Sport

This was another of EGAT’s sport projects which was launched under the Thai government’s “One Association, One State Enterprise” campaign. EGAT signed a memorandum of cooperation with the Thai Amateur Weightlifting Association in 2004 to support the Thai weightlifters to compete at international level. In the ��support of 7,000,000 baht to sponsor Thai weightlifting athletes to compete in the “Athens Olympic Games 2004” in Greece. The team’s outstanding achievement made a new record for Thailand’s sporting arenas. Members of Thailand’s women weightlifting team brought fame and pride to the Thai people by winning four gold and silver medals.

From this success EGAT continued contributing to the Thai Amateur Weightlifting Association (TAWA) an annual budget of 5,000,000 baht between 2005 and 2008 to prepare athletes for the “Peking Olympic Games 2008” in China. This time a woman weightlifter won a gold medal for Thailand.


EGAT was determined to continue our support of the Thailand’s weightlifting teams for their participation in international competitions. EGAT had also increased our �� #��"""�""":��:��2009 and 2013. These budgets were to facilitate the preparation of athletes to compete at ASEAN and international venues, especially in the “London Olympic Games 2012”. They also covered the expenses for TAWA’s public relations activities and recruitment of new athletes ��$��“EGAT Youth World Weightlifting Championship” in 2010 in Chiang Mai Province. Thai athletes’ outstanding �� ?�� compete at the ASEAN Weightlifting Championship where they won many medals.

In 2011, EGAT hosted two EGAT Youth World Weightlifting Championships. EGAT is proud to have become a part of the effort that put these athletes on their path to success for the country.

Upgrading the Green Learning Room to

Green School Project

This was a continuation of the collaborative project ��:��\ ��[�� Commission to promote the founding of 426 model schools for energy conservation. EGAT’s initial support put an emphasis on the development of learning media and a transfer of knowledge on electricity saving to students and teachers. Model schools for energy saving were established and their energy conservation achievements were shared among their member schools in the network. Students were encouraged and trained on creative thinking and communication skills about energy saving. They learned to present energy-saving information in different formats of discussion group, talk show, Likay and folk songs. Students in model green learning schools set good examples and shared their knowledge with other students so that they could put them into practice. EGAT also participated in a campaign to raise the national awareness �� $

Also embracing the motto of “Today’s children are tomorrow’s adults” and recognizing the importance of youth as the country’s invaluable human resources, EGAT aimed to raise proper public awareness on energy consumption. The green learning rooms’ original focus on energy and environmental conservation had been expanded to include energy and environmental conservation. A total of 54 schools met EGAT’s standard criteria and achieved the Green School standards between 2009 and 2011.

EGAT D.I.Y. Camp for the volunteering

spirit fostering project

Launched in 2009, this Do It Yourself (D.I.Y.) project was now in its third year of implementation to foster the volunteering spirit among university students under the theme of “Kid Dee Tham Dee” (Good Thoughts, Good Actions). The project was implemented through the existing volunteer camp activities organized by students at most universities. A collaborative network between EGAT, the \ �� /�� ]\��/^�educational institutes and students as well as local communities was established to organize productively social volunteering camps.

In 2011, EGAT and OHEC invited students with volunteering spirit to enter their projects, which aimed to help poor communities in remote areas, in a contest to win 20 volunteer camp grants at a budget of 100,000 baht for each grant. 17 educational institutes that passed EGAT’s selection criteria and received grants for their projects in 2011 included Bansomdejchaopraya Rajabhat University, Lampang Inter-tech College, Lampang Rajabhat University, Chiang Rai Rajabhat University, Chulalongkorn ��}��_��Phayab Region at Chiang Mai, Thammasat University, Chiang Mai University, Southern College of Technology, Kasetsart University, Prince of Songkla University at Hat Yai, Sripathum University, Sisaket Rajabhat University, Kasem Bundit University, Huachiew Chalermprakiet University, Silpakorn University, Saint Louis College and Phranakhon Rajabhat University. 200 representatives from 18 educational institutes participated in EGAT’s 2011 D.I.Y. camp activities to forge a spirit of unity before departing to their separate community development volunteering camps.


An evaluation committee was set up to make ��“Outstanding Camps” with distinguished operational success in terms of collaboration with relevant sectors and possible sustainable community development outcome that could be further developed. Each selected volunteer camp received a scholarship of 30,000 baht.

Over the past three years, EGAT has been proud to become a center for “EGAT saplings” comprising a network of youth who were dedicated to perform volunteering activities for community development. Egat-diy-champ. webpage was set up on such a social media as Facebook to serve as a communication channel for EGAT saplings to discuss topics of their interest, share experiences and invite cooperation for new volunteering activities. EGAT pledged to provide continuing support ��}��+��“EGAT saplings” growing into massive trees of virtues for the well-being of the society at large.

Supporting Tor Saeng Tor Yod (Experience

Transfer) Camp with RTG scholarship

grantees in the United Kingdom

2011 was the second year of this collaborative ��}��:��\ ��/��~�� Commission (OCSC). The Royal Thai Government scholarship grantees in the United Kingdom, who returned home over school breaks, were invited to participate in an educational camp to improve educational potential ��$�� grantees shared their educational experiences and expertise in science, English and mathematics through interesting and entertaining activities with secondary ��$[��:��}��scholarship grantees could make social contribution and form a Thai-style ‘junior-senior’ network of friendship and unity with younger students.

In 2011, the Tor Saeng Tor Yod Camp was held at Srinagarind dam in Kanchanaburi Province. It was participated by 70 students and a group of observer teachers. This project provided educational opportunities to the young school students in remote areas who lacked access to tutoring schools in large cities. The camp offered a valuable opportunity for these students to absorb and apply what they have learned to their future educational choices.

EGAT’s Adoptive Parents Project

This is one of the projects organized to promote volunteering spirit among EGAT employees through the

granting of scholarships to needy students at secondary and high school levels. This project was launched in 2004 and has, to the present day, supported a total of 164 students. In 2011, a scholarship presentation ceremony was held in the Thai-Burmese border district of Wiang Haeng in Chiang Mai province.

Cultural heritage preservation project at

Si Thep Historical Park in Phetchabun

Province

This was a collaborative project between EGAT and the Fine Arts Department, the Ministry of Culture with an objective to preserve the Thai cultural heritages under the royal initiative of HRH Princess Maha Chakri Sirindhorn. The restoration project of Si Thep Historical Park has been carried out by the Fine Arts Department’s specialists in historic buildings. The project contributed to the preservation of cultural heritages so that the future generations as well as interested persons to learn about Thailand’s history, ethnicity and culture. It also made �� :�� $��8,800,000 baht to this restoration effort.

Wealth and Income Creation

EGAT’s biological way of life for sustainable

development project

This scheme was conceived under the royal initiative of Her Majesty the Queen to reduce chemicals and toxics use in agricultural sector and to increase agriculturists’ income by cutting down the expenses for these products. Reduction of chemicals and toxics use also mitigated environmental problems and risks to agriculturists’ health. In the long run, this scheme will greatly contribute to the protection of consumers through improvement in the quality and safety of agricultural products.


To achieve the project’s goal of converting agriculturists across the nation to this biological way of ��}��\ �� Commission (OVEC) for the selection of 99 vocational and agricultural colleges as the model institutes and learning centers for the biological way of life for sustainable development scheme. Model institutes further disseminated knowledge and encouraged agriculturists to adopt the biological way of life. At present, a large number of ��:��the scheme and have combined it with local wisdom and local technologies to successfully improve their livelihood. Local farmers’ groups had shared their biological way of life knowledge among themselves and disseminated the knowledge to other agricultural communities.

Social Investment

EGAT’s operations have always been closely related to rural communities and their livelihood from the construction survey to the construction of power plants and transmission lines as well as the electricity generating activities. It is, therefore, one of EGAT’s policies to “become part of the community wherever we operate”. This policy is implemented through EGAT’s hiring of local people and procuring materials and equipment from local suppliers. Such practices generate extra income among local communities.

Over the past 30 years, EGAT has supported numerous public construction projects such as transportation routes, religious buildings, schools, and primary health

care centers in deprived areas. EGAT has also supported the construction and maintenance of a large number of communal properties such as Suan Luang Rama IX Public Park, Phutthamonthon Park, and Rama V Garden.

EGAT has also been committed to the responsibility of developing basic public utilities that are unavailable in the communities located close to our regional operation departments. These utilities are generally constructed at the same time with the construction of EGAT’s facilities. EGAT continues to monitor positive as well as negative development outcomes of these projects after the completion of power plants and transmission lines by promoting the establishment of local cooperatives and providing assistance funds for people affected from our ��$~��improvement on the well-being of life of local people.

EGAT’s strong commitment to social investment in 2011 was evident from a number of outstanding projects.

Chalerm Prakiat Garden to commemorate

His Majesty the King’s 84th Birthday

Anniversary

A construction project to improve the landscape �� *��Moh district in Lampang province, this multi-purposed ��_��%��architectures was designed to showcase His Majesty ��$��garden was built on an area of 84 rais. The construction


��$;��a 50 rai of public park was developed and scheduled to be completed in 2011. During the second phase, a garden on an area of 34 rais was constructed which was expected to be completed for public visiting in 2012.

Conservation of Irrawaddy dolphins in

Bang Pakong River

This conservation project is a collaborative effort between EGAT and the Department of Fishing and Coastal Resources, the Ministry of Natural Resources and Environment. The project’s main objectives are to support the study and conservation of Irrawaddy dolphins in Bang Pakong River. Public relations campaigns were organized to raise public awareness on the importance of conservation effort of these valuable and nearly extinct animals among youth and local communities. The conservation of these coastal creatures is important to the balancing of Thailand’s coastal ecosystem. EGAT ��:�� }�� :� �� support of 6,000,000 baht.

EGAT’s charity booth at the 2011 Red

Cross Fair to raise fund for the Thai Red

Cross Society

The Thai Red Cross Society, a public organization under the royal patronage of Her Majesty Queen Sirikit, has played important roles in assisting needy people in normal times as well as during the times of disasters. !"##��booth at the annual Red Cross Fair to raise funds for the society through undertaking such activities as lotteries ��~��;��communities in the vicinity of EGAT’s power plants. In addition to raising 6,000,000 baht charity fund for the Thai Red Cross Society, EGAT was able to distribute income to rural communities through the sale of their products.

EGAT’s volunteering spirit via online

social network project

Having recognized the importance of instilling the concept of social responsibility within the organization, EGAT has formulated action plans to promote volunteering spirit among our employees. EGAT had raised our employees’ awareness on the importance of social responsibility roles and volunteering spirit for the good of society. In the past year, EGAT organized various activities to foster our employees’ volunteering spirit through such projects as '��'��%��:�� marche project to build chairs for the intellectually-challenged children and many other projects.

While conducting various volunteering spirit campaigns it was found that EGAT’s volunteers scattered over different locations both at the headquarters and the regional operation departments with no proper channel to coordinate their volunteer activities. EGAT chose to use social network, the newly popular communication channel on the Internet, as a venue for the sharing of ideas and volunteer activities information among EGAT’s volunteer employees and interested persons. “EGAT volunteer” fanpage (www.facebook.com/egatvolunteer) was launched during the year for all EGAT’s operative units to publicize their volunteer activities. The fan page becomes very popular and has effectively established a public image of EGAT as an organization of up-to-date personnel with high commitment to social responsibility and strong volunteering spirit.

“Facebook EGATvolunteer”�� on March 7, 2011 with 200 members visiting it during ��$��:��to more than 1,000. The fan page has realized EGAT’s goal of becoming a communication channel for EGAT’s volunteers across the country.


TECHNOLOGY AND INNOVATION DEVELOPMENT

EGAT has generated added economic value to the communities and society by providing research grants and supports to numerous R&D projects conducted by both EGAT’s in-house researchers and external research laboratories. EGAT has accordingly engaged in partnerships with the universities and research institutes ��focusing on the R&D initiatives which contribute to the development of low-cost technologies that are easily applicable to replace the imported ones, the development of new and alternative energy sources for electricity generation, the development of innovative technologies that can help solve the social and environmental issues in local communities near EGAT’s power plants and along the transmission lines routes countrywide. EGAT has allocated each year budgets of about 3 percent of the net ��""%�""��:��for the conduct of R&D initiatives and activities related to electricity innovation and development.

In 2011, EGAT provided research grants to the universities and research institutes to conduct 22 R&D projects. Some of the outstanding projects implemented during the year included the followings.

Solar weighted tracking system project

EGAT has always recognized the importance of alternative energy development, in particular the solar power. EGAT has developed since 2009 the 1 MW solar power plant with a water weight-based solar tracking system in the compound of Sirindhorn dam in Ubon Ratchathani province and commissioned it to the power grid for operation. Sirindhorn solar power plant has :��plant which adopted the solar weighted tracking system and has been successfully operated on a commercial basis. In 2011, the Sirindhorn solar weighted tracking system project won SOE Awards in the category of

outstanding innovation from the State Enterprise Policy \ ��]~�7\^$

Since 2002, EGAT has developed the solar tracking system on a continual basis and could obtain the petty patent issued under the name of EGAT in 2003. Later, a prototype solar tracking system was installed at San Khamphaeng solar cell power station at Mae On district of Chiang Mai province, marking the beginning of EGAT’s solar power development project.

The solar weighted tracking system installed at Sirindhorn dam was designed to use the water weight-based tracking system. The system has adopted the low-cost technology that is easily applicable, as well as the materials available in the locals, including the saving of energy due to the use of water for tracking system. The system was designed to follow the direction of the sun from 9.00 a.m. to 3.00 p.m. as well as equipped with the shock absorber to prevent vibration of solar panel caused by storm or strong wind. This solar weighted tracking system can produce 10-20 percent of electric ��%��power system, depending on the availability of seasonal sunlight.

The solar weighted tracking system has yielded many advantages. The system produces an annual energy output of 1.7 million kWh, thus replacing 384,000 liters of fuel oil consumption and reducing 851 tons of CO2 emissions per year. The development of this system has well responded to the government’s policy in the optimization of domestic renewable energy sources. Moreover, Sirindhorn solar power system has also served as a learning center for solar cell electricity generation while becoming a new tourist attraction in the northeastern region.


EGAT-TRF grants for research and development

project

In 2011, EGAT signed a memorandum of understanding with the Thailand Research Fund (TRF) for a close collaboration in the implementation of the “EGAT-TRF Grants for Research and Development Project”, with an aim to co-assist in the development of researchers and research-based knowledge through making research grants, in particular the research and development projects conducted at the policy level in areas of energy, society, ��$��}�� EGAT and TRF will provide funding of 20 million baht each which totals 40 million baht. Additional funding will be provided continuously to cover the three year period of the project to maintain the project’s total annual budget of 40 million baht. EGAT, TRF and research grantees will jointly own the intellectual property derived from the research undertaken under this project, and each of them ��{�:��$

Demonstrative project for solving old municipal

garbage problem by recovery of organic fertilizer

and refuse derived fuel

EGAT has provided a research grant to the Faculty of Science, Chulalongkorn University, for the design and development of demonstrative project to solve the old municipal garbage problem by recovering the organic fertilizer and refuse to be used as fuel for electricity generation. A prototype community waste recovery plant was built at Sri Mahapho Municipality in Prachinburi province. This garbage recovery plant features the sorting

of waste with wind and water system, the waste heating for pathogen and odor removal, and the opening of garbage bags with machines. The plant is capable of about 30 tons of old and new waste recovery per day which �� :�� $ ~��*��recovery plant can also yield income for communities from the sale of waste-related products in the forms of refuse-derived fuel, organic fertilizer and biogas.

Small hydropower research and development

project

This R&D project had a focus on the development and utilization of renewable energy. EGAT has recently developed a small-sized 55 kW hydropower generating unit with the height of water head of about 5-10 meters and a small-sized 137 kW hydropower generating unit with approximate 15-20 meters high of water head. These hydropower generating units have been designed as mobile compact sets for easy transportation and installation. �� %�� replace the imported hydropower generators. At present, these small-sized power generators have been installed for trial test at Kaeng Krachan dam in Petchaburi province.

Community participatory waste management

project

EGAT’s community participatory waste management project has been implemented at Bang Kruai Municipality in Nonthaburi province. The scheme has an aim to study the social capital in communities and the adoption of participatory approach for waste management to pursue the sustainable development of communities and the environment. The project also has a purpose to enhance the community’s potential in environmental management and to encourage their participation in adopting appropriate means for waste management in their locals. The project has been implemented into three phases and 12 communities ��}��$��}�� the conduct of a survey research, while the second phase focusing on the participatory research in action, and the last phase emphasizing the project evaluation. The project ��positive attitudes, participation and involvement, and recognition of community problems related to the social and environmental dimensions have been changed. This led to the improvement of household garbage sorting behaviors among community members.

Production of hydrogen from organic-rich

wastes for electric energy generation

This R&D project has been developed for the production of hydrogen from organic-rich waste to be further utilized as fuel for electricity generation in Thailand. The project’s achievement will be used as a model for the commercial production of hydrogen fuel in the near future.


During 2011, EGAT engaged CSN & Associated Co., Ltd. to conduct a survey on the public attitudes towards EGAT’s operations and performance. A summary ��

Awareness of news and information from EGAT

��+�� of EGAT’s news and information revealed that the public agencies, business partners, customers and opinion leaders have been aware of the news and information released by EGAT better than the general public and the community members living close to EGAT’s power �� $~�� improve our communication approaches and open more communication channels available for the latter, namely �� :�� $ �� the former which include the public agencies, business partners, customers and opinion leaders, who received news and information from EGAT’s employees and via EGAT’s � ��:��$*��:�� members received news about EGAT from the newspapers, on the television, and from their community leaders. �� :�� will develop more effective means and channels for communication appropriate for the groups of stakeholder in the future.

Availability of renewable energy and

development of power generating sources

��:��:��energy and the development of new power generating sources disclosed that 23.6% of respondents believed �� consumption, while 41.6% thought that the existing power �� |�$��:�� $��majority of survey respondents believed that the existing �� electricity demand in the future. And when asked about the types of new power plants to be developed to cope with the increasing demand, the majority of respondents strongly preferred the utilization of hydropower, solar power, wind energy, natural gas, and biomass energy, respectively. On the contrary, the least number of respondents agreed with the use of nuclear power for electricity generation. The respondents also provided opinions about the pros and cons of having the power plants, mining operations, and facilities located close to community areas. The advantages of living in the vicinity of power plants include the opportunities to be employed and earn more �� %:��

power supply, while the disadvantages are the pollution, ��$�� provided EGAT the baseline data for consideration for the power project planning and development.

Public acceptance of

EGAT’s operational performance

As for the surveys on public attitudes towards �� 9 aspects disclosed that the public strongly approved EGAT for the performance related to the observance of environmental regulations and requirements, the contribution ��adopt the principle of cost-effectiveness and accountability respectively. However, the public did not approve EGAT for the aspects regarding the adoption of participatory management, the transparency and fair operating practices, the observance of ethical behaviors, and the observance of the rules of law. The public and the communities living close to EGAT’s power plants in particular accepted EGAT at the lowest rate in comparison with the other groups ��+��$��better communication approaches to build trust and acceptance among the particular groups of stakeholder.

EGAT’s Top Social Project

A survey on the popularity of EGAT’s seven social projects also disclosed that, from the most to the least, over 80% of survey respondents recognized the following projects, namely the Energy Efficient No.5 Label program, the Reforestation Project in Commemoration of His Majesty the King, the Tree Planting around Our Beloved King’s Residence, and the Green Learning Room program. EGAT’s social scheme which the public are least aware of is the Weightlifting Sport Support project. ��:�� the implementation of existing social and environmental projects highly recognized among groups of respondents.

SURVEY ON PUBLIC ATTITUDES TOWARDS EGAT’S OPERATIONS


Expectation and Satisfaction of Stakeholders

The survey on the expectation and satisfaction of stakeholders regarding EGAT’s operations and performance revealed that the general public has an average rating of expectation from EGAT between 3.3-3.5 and an average rating of satisfaction between !$�%|$"��"��$��the public expectation was lower than their satisfaction was in the aspect of the participation and involvement in community’s social and environmental development, the transparency of operation, the quality of electricity ��:��:��before those of the organization. The average disparity scale between the expectation and satisfaction among the general public was at 0.6.

The communities in the vicinity of EGAT’s locations of operation has an average rating of expectation from EGAT between 3.3-3.5 (on a 0 to 4 scale), and the average rating of satisfaction between 2.6-2.8. with the gap of satisfaction and expectation between 0.6-0.8.

The survey on the opinion leaders and the public in general (15.5%) who previously had contacts with ��}��contacts with an average rating of satisfaction at 3.2 on a 0 to 4 scale. The minority of respondents who used to ��with EGAT at an average rating of 1.9.

On what the survey respondents which include the business partners, customers, public agencies, opinion leaders, electricity users, and community members, ��$��$��should “disseminate more news and information about the operations and performance”. Secondly, EGAT’s organizational management system should be conducted �� $��EGAT’s top management should be a professional who embraces ethical behaviors. The information from the �� '�� managements as well as EGAT’s response to such expectation.

Findings from the evaluation program on the

relations between communities and EGAT’s

power plants

In 2011, EGAT also engaged Thammasat University to conduct an evaluation program on the relations between EGAT and the communities living in the vicinity of the 20 locations of EGAT’s dams and power plants across the country. The program has an aim to acknowledge the attitudes and acceptance of local people towards EGAT’s operations by referring to the social and environmental activities implementation for the communities around EGAT’s power plants, which was the on-going project in 2008 and 2009.

The research was a study of the relations between EGAT’s power plants and the surrounding communities based on the conceptual framework of the KAP theory (K - Knowledge, A - Attitude and P – Practice), including the public image, the relationship with the public, the situation of communication, the social responsibility performance and EGAT’s top social project. The program was conducted by using both the quantitative and qualitative methods and the findings are summarized as follows.

��

The survey conducted by using quantitative method covered a population of 6,168, comprising 3,128 people living in the communities within the distance of 5 kilometers from EGAT’s dams and power plants and 3,040 people in the communities outside such distance. The tools adopted to collect data and information �� ?�� attitudes which include EGAT’s public image, the relations with the communities, the situation of communication, the social responsibility performance, and EGAT’s top /~��}��$�� factor which was only part of the relations has an average rating score of 2.25 in a 0 to 4 scale.

��

The research which adopted the qualitative method was conducted by the interviewing of the population of 116 community leaders consisting of local leaders, area leaders, informal leaders and mass media from the communities in the vicinity of 20 locations of dams and ��$��gave high scores to EGAT in the public image aspect which consists of the recognition, satisfaction, acceptance, and admirations for top social projects. EGAT earned lower scores for the following aspects, namely the relationship, the situation of communication, and the performance of social responsibility. Yet EGAT has to improve the top CSR schemes as they are not well known among the communities.

Target Group

Aspects of Communities Communities Total Evaluation living within living outside the distance the distance of 5 km of of 5 km of power plant power plant Public image 2.46 2.35 2.41Relations 2.30 2.20 2.25Situation of communication

2.30 2.16 2.23

Social responsibility performance

2.34 2.21 2.28

Top social projects 2.40 2.24 2.32


Indicator in Detail Page

ABOUT THIS REPORTEGAT Corporate Social Responsibility Report 2011

was published in response to the policy of the State ��7��\ ��]~�7\^��to evaluate the Thai state enterprises on their performance regarding good corporate governance (CG) and corporate social responsibility (CSR). SEPO also assigned TRIS Corporation Limited (TRIS) to engage in the design of evaluation criteria. Among TRIS’s key criteria, the state enterprises of all types and sizes are required to publish annually their corporate social responsibility reports to ��:�� impacts on their stakeholders, board of directors, top executive and management, employees, communities, customers, as well as the public in general.

Our CSR report this year was prepared to cover the contents of reporting cycle from January 1 to December 31, 2011. The report was published separately from EGAT Annual Report 2011 with an aim to present our social and environmental performance and achievements to ensure all stakeholders that EGAT has actively continued our commitments on social responsibility towards sustainable development goals. Moreover, 2011 was �� :�� topics following the core subjects and issues of social responsibility as outlined in the relevant International Standard ISO 26000 titled ‘Guidance on Social Responsibility’.

In preparing this report, EGAT continued to apply the guidelines in GRI’s Sustainability Reporting Guidelines and Electric Utility Sector Supplement, for the standard ��disclosure and performance indicators. EGAT expected to extend the reporting boundary of our CSR report to meet

the B level for the disclosures of standard information and core performance indicators for the next consecutive year. ��working group committee for EGAT’s CSR Report 2011 Production was established to take responsibility in the selection of materiality including data and information to be disclosed and reported. The committee which reported to the Assistant Governor-Corporate Social Responsibility held meetings between December 2010 and March 2011.

Regarding the basis for reporting on joint ventures and subsidiaries, our CSR report 2011 also presented the CSR ��:�� :�� Holding PCL (RATCH), EGAT International Co. Ltd. (EGAT Inter), Electricity Generating PCL (EGCO), District Cooling System and Power Plant Co. Ltd. (DCAP), and EGAT Diamond Service Co. Ltd.

EGAT’s CSR report 2011 also provided information required to be disclosed and reported by TRIS Corporation Limited (TRIS). Disclosures on GRI-G3 indicators and electric ��GRI content index, which is the table identifying the location of standard disclosures and performance indicators. The report was produced in Thai and English languages and can be downloaded from EGAT website. For more information about this report, please contact the address below:

Social Affairs Division

Electricity Generating Authority of Thailand

Bang Kruai, Nonthaburi 11130, Thailand

Telephone: +66 (0) 2436 4610, +66 (0) 2436 4612

Facsimile: +66 (0) 2436 4695

Website: www.egat.co.th

List of indicators formulated by TRIS Corporation Limited

- CO2��>��:�� :��}��$ �!

- Percentage of electricity generated from clean energy sources, namely solar, wind, hydropower, 45 geothermal, and fossil fuel based, comparing to gross electricity generation and purchase in 2011.

- Emissions of Nox and Sox (ppm and Kg) from individual power plant and all power plants 41-42 and in comparison with total electricity generation and purchase. (g/kWh)

- Emissions of particulates (mg/m3 and Kg) from individual power plant and all power plants in comparison 41-42 with total electricity generation and purchase. (g/kWh)

- CO2 emissions volume (ton and kgCO2/kWh) in comparison with total electricity generation and purchase. 42

- Areas of reforestation implemented and accumulative volume of CO2 absorption by 54 the number of trees reforested. (ton)

- Budgets and expenses for social and environment responsibility implementation. -

- Budget for R&D projects and initiatives. 48

- Social and environmental aspects management during power plant construction projects including 43-44 prevention and mitigation measures.

Y ��!"## �� Y /~��!"## /��~��:��!"## Y >�� >��:��


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GRI Content Index

EGAT has self-evaluated our disclosures on information and core indicators in Corporate Social Responsibility Report 2011 at the B level. Our reference is made to the Sustainability Reporting Guidelines & Electric Utility Sector Supplement (GRI RG & EUSS).

1.1 Statement from the most senior decision-maker of the organization. �� 14 4-5 1.2 Description of key impacts, risks, and opportunities.

�� 37-39 10-11

194-195;��<��+��

2.1 Name of the organization. �� - 6 2.2 Primary brands, products, and/or services. �� - 6 2.3 Operational structure of the organization, including main divisions,

operating companies, subsidiaries, and joint ventures. �� - 7

2.4 Location of organization’s headquarters. �� - 6 2.5 Number of countries where the organization operates, and names of

��}�� - - N/A the sustainability issues covered in the report.

2.6 Nature of ownership and legal form. � - 6

2.7 Markets served (including geographic breakdown, sectors served,

��:��^$ � - 6

2.8 Scale of the reporting organization, including number of employees;

net sales (for private sector organizations) or net revenues

(for public sector organizations); total capitalization broken down in terms � 13-26 7

of debt and equity (for private sector organizations); and quantity

of products or services provided.

!$� ~��{��

structure, or ownership � - 7

2.10 Awards received in the reporting period. � 76 75-78

��=��$�� #��

;��<��+��9� ��

EU1 Installed capacity, broken down by primary energy source

and by regulatory regime. � 20 6

EU2 Net energy output broken down by primary energy source � 20,

7 and by regulatory regime. 115

EU3 Number of residential, industrial, institutional and commercial

customer accounts. � - 6-4

EU4 Length of above and underground transmission and distribution lines

by regulatory regime. � 23 6

EU5 Allocation of CO2e emissions allowance or equivalent, broken down

by carbon trading framework. - - N/A

Report Parameters

"�#��+��

|$# ��]�$�$��^��$ � - 65

3.2 Date of most recent previous report. � - 65

3.3 Reporting cycle. � - 65

3.4 Contact point for questions regarding the report or its contents. � - 65

|$� 7��

prioritizing topics within the report; and identifying stakeholders � - 65

the organization expects to use the report.

3.6 Boundary of the report. � - 65

|$� ~��:��$ � - 65

Page

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3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, �� 65 comparability from period to period and/or between organizations. 3.9 Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to � 65 the compilation of the Indicators and other information in the report. 3.10 Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement.

� 65

|$## ~��:�� or measurement methods applied in the report.

� 65

3.12 Table identifying the location of the Standard Disclosures in the report. � 67-743.13 Policy and current practice with regard to seeking external assurance for the report.

- - N/A

Governance, Commitments, and EngagementGovernance

4.1 Governance structure of the organization, including committees under ��:��:��+�� 40-41 18 setting strategy or organizational oversight. 4.2 Indicate whether the Chair of the highest governance body is also �� $

� 42 19

4.3 For organizations that have a unitary board structure, state the number of members of the highest governance body that are independent and/or � 43-44 19 non-executive members. 4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body.

� - 19

4.5 Linkage between compensation for members of the highest governance body, senior managers, and executives, and the organization’s performance � 49 19-20 (including social and environmental performance). �$� 7��:��'�� of interest are avoided.

� 42, 82 20

�$� 7��?��:�� of the highest governance body for guiding the organization’s strategy � 77 21 on economic, environmental, and social topics. 4.8 Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance � 79-81 21-22 and the status of their implementation. 4.9 Procedures of the highest governance body for overseeing the organization’s �� performance, including relevant risks and opportunities, and adherence or � 78-79 22 compliance with internationally agreed standards, codes of conduct, and principles. 4.10 Processes for evaluating the highest governance body’s own performance, particularly with respect to economic, environmental, and social performance.

� 48 22

4.11 Explanation of whether and how the precautionary approach of principle is addressed by the organization.

- - N/A

4.12 Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses.

� - 22-23

4.13 Memberships in associations and/or national/international advocacy organizations in which the organization:

� - 22-23

Y ��:��Y 7��}��Y 7��:��:��:��Y ��:��$

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CSRR 2011

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4.14 List of stakeholder groups engaged by the organization. � - 23

�$#� [��+��$ � 79 23

4.16 Approaches to stakeholder engagement, including frequency of engagement � - 23

by type and by stakeholder group.

4.17 Key topics and concerns that have been raised through stakeholder

engagement, and how the organization has responded to those key topics � - 24

and concerns, including through its reporting.

Economic Performance

Management Approach

Core EC1 Direct economic value generated and distributed, including revenues,

operating costs, employee compensation, donations and other community

investments, retained earnings, and payments to capital providers � 13 7

and governments.

EC2 Financial implications and other risks and opportunities for the organization’s

activities due to climate change. � 101 44-45

�/| /��{��:��:��$ � 138-139, 28-29

155,178

�/� ~��$ % % >��

Add EC5 Range of ratios of standard entry level wage compared to local minimum

��$ � - 29

Core EC6 Policy, practices, and proportion of spending on locally-based suppliers

��$ � - 50

EC7 Procedures for local hiring and proportion of senior management hired from

��$ � - 50

EC8 Development and impact of infrastructure investments and services provided

��:��:��%+��:�� % % >��

engagement.

�� /� ��:��

including the extent of impacts. - - N/A

��=��$��#��

Economic Disclosures on Management Approach

Availability EU6 Management approach to ensure short and long-term electricity

and availability and reliability. � 86-94 9

Reliability

Demand- EU7 Demand-side management programs including residential, commercial,

Side institutional and industrial programs. � 102 52

Manage-

ment

Research EU8 Research and development activity and expenditure aimed at providing

and reliable electricity and promoting sustainable development. � 94-96 48,

Develop- 60-61

ment

Plant EU9 Provisions for decommissioning of nuclear power sites.

Decom- - - N/A

missioning

��=��$��#��

Economic Performance Indicators

Availability EU10 Planned capacity against projected electricity demand over the long term,

and broken down by energy source and regulatory regime. - - N/A

Reliability

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~�� ## �� :��

� �� $ - - N/A

System EU12 Transmission and distribution losses as a percentage of total energy. - - N/A

� ��

Environmental Performance

Management Approach

Core EN1 Materials used by weight or volume. - -

EN2 Percentage of materials used that are recycled input materials. - -

EN3 Direct energy consumption by primary energy source. - -

EN4 Indirect energy consumption by primary energy source. - -

�� >� �� $ � - 51-52

�>� ��%� ��:��:�� - -

services, and reductions in energy requirements as a result of these initiatives.

EN7 Initiatives to reduce indirect energy consumption and reductions achieved. - -

Core EN8 Total water withdrawal by source. - -

�� >� ��:��$ % %

EN10 Percentage and total volume of water recycled and reused. - -

Core EN11 Location and size of land owned, leased, managed in, or adjacent to, - -

protected areas and areas of high biodiversity value outside protected areas.

�>#! ;��

biodiversity in protected areas, and areas of high biodiversity value outside - -

protected areas.

Add EN13 Habitats protected or restored. - -

EN14 Strategies, current actions, and future plans for managing impacts on biodiversity. - -

EN15 Number of IUCN Red List species and national conservation list species

with habitats in areas affected by operations, by level of extinction risk. - -

Core EN16 Total direct and indirect greenhouse gas emissions by weight. � - 41-42

EN17 Other relevant indirect greenhouse gas emissions by weight. � - 41-42

Add EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved. � - 44-45

Core EN19 Emissions of ozone-depleting substances by weight. - -

EN20 NOx, SOx��:��$ � - 41-42

EN21 Total water discharge by quality and destination. - -

EN22 Total weight of waste by type and disposal method. - -

�>!| ��:��$ % %

Add EN24 Weight of transported, imported, exported, or treated waste deemed

hazardous under the terms of the Basel Convention Annex I, II, III, and VIII, - -

and percentage of transported waste shipped internationally.

EN25 Identity, size, protected status, and biodiversity value of water bodies

��:��:��{�� % %

discharges of water and runoff.

Core EN26 Initiatives to mitigate environmental impacts of products and services,

and extent of impact mitigation. - -

EN27 Percentage of products sold and their packaging materials that

are reclaimed by category. - -

�>!� *��:��%��

for non-compliance with environmental laws and regulations. - -

�� >!� ~��

and materials used for the organization’s operations, and transporting - -

members of the workforce.

EN30 Total environmental protection expenditures and investments by type. - -

Y ��!"## �� Y /~��!"## /��~��:��!"## Y >�� >��:��



CSRR 2011

Remarks

Page

Social Section

��=��$��#��

Labor Practices and Decent Work Disclosures on Management Approach

Employ- EU14 Programs and processes to ensure the availability of a skilled workforce. � - 31

ment

EU15 Percentage of employees eligible to retire in the next 5 and 10 years

broken down by job category and by region. � - 11

EU16 Policies and requirements regarding health and safety of employees

and employees of contractors and subcontractors. � - 32

Social Performance Indicators

Labor Practices and Decent Work Performance Indicators

Aspect: Employment

Core LA1 Total workforce by employment type, employment contract, and region. � - 27-28

Commentary on LA1

Report on total contractor workforce (contractor, subcontractor,

independent contractor) by employment type, employment contract and region.

LA2 Total number and rate of employee turnover by age group, gender, and region. � 28

Commentary on LA2

For the employees leaving employment during the reporting period,

provide the average length of tenure of employees leaving broken down

by gender and age group.

EU17 Days worked by contractor and subcontractor employees involved - -

in construction, operation and maintenance activities.

EU18 Percentage of contractor and subcontractor employees that have - -

undergone relevant health and safety training.

�� _�| [��%�� - -

or part-time employees, by major operations.

Aspect: Labor Management/Relations

Core LA4 Percentage of employees covered by collective bargaining agreements. � - 32

Commentary on LA4

Report on percentage of contractor employees (contractor, subcontractor

and independent contractor) working for the reporting organization covered

by collective bargaining agreements by country or regulatory regime.

LA5 Minimum notice period(s) regarding operational changes, including whether

��$ - -

Aspect: Occupational Health and Safety

Add LA6 Percentage of total workforce represented in formal joint management-worker

health and safety committees that help monitor and advise on occupational � 32

health and safety programs.

Core LA7 Rates of injury, occupational diseases, lost days, and absenteeism,

and number of work-related fatalities by region. � - 33-34

Commentary on LA7

Report on health and safety performance of contractors and subcontractors

working onsite or on behalf of the reporting organization off site.

LA8 Education, training, counseling, prevention, and risk-control programs in

place to assist workforce members, their families, or community members � - 32

regarding serious diseases.

Add LA9 Health and safety topics covered in formal agreements with trade unions. - -

Aspect: Training and Education

Core LA10 Average hours of training per year per employee by employee category. � - 31-32

Y ��!"## �� Y /~��!"## /��~��:��!"## Y >�� >��:��



CSRR 2011

Remarks

Page

Add LA11 Programs for skills management and lifelong learning that support the continued

employability of employees and assist them in managing career endings. � 97-99 31-32

LA12 Percentage of employees receiving regular performance and career - -

development reviews.

Aspect: Diversity and Equal Opportunity

Core LA13 Composition of governance bodies and breakdown of employees

per category according to gender, age group, minority group membership, � - 19,25

and other indicators of diversity.

LA14 Ratio of basic salary of men to women by employee category. � - 29

Human Rights Performance Indicators

Aspect: Investment and Procurement Practices

/�� # 7��:��

include human rights clauses or that have undergone human rights screening. - -

��! 7��

screening on human rights and actions taken. - -

Add HR3 Total hours of employee training on policies and procedures concerning

aspects of human rights that are relevant to operations, including - -

the percentage of employees trained.

Aspect: Non-discrimination

Core HR4 Total number of incidents of discrimination and actions taken. � - 25

Aspect: Freedom of Association and Collective Bargaining

�� \��

��:��:��+��+��

support these rights.

EU Commentary on HR5

Report on management mechanisms to address the right to organize,

right to bargain and right to strike or instances of lock out given the

context of the industry’s need to ensure continuous provision of essential

services. Where the right to strike does exist or is limited, report on � - 25

remedial measures such as binding arbitration. Where freedom of

association or expression are limited or prevented by regulatory regime,

report on mechanisms and processes that exist for getting employee input

on conditions of employment.

Aspect: Child Labor

�� \��+��:��

and measures taken to contribute to the elimination of child labor. � - 25

Aspect: Forced and Compulsory Labor

�� \��+��

compulsory labor, and measures to contribute to the elimination of forced � - 25

or compulsory labor.

Aspect: Security Practices

Add HR8 Percentage of security personnel trained in the organization’s policies or

procedures concerning aspects of human rights that are relevant to operations. - -

Aspect: Indigenous Rights

HR9 Total number of incidents of violations involving rights of indigenous people

and actions taken. - -

��=�� #��

Society Disclosures on Management Approach

Aspect: Community

EU19 Stakeholder participation in the decision making process related to energy

planning and infrastructure development. � - 23-24

Y ��!"## �� Y /~��!"## /��~��:��!"## Y >�� >��:��



CSRR 2011

Remarks

Page

EU20 Approach to managing the impacts of displacement. - -

Disaster/ EU21 Contingency planning measures, disaster/emergency management plan

Emergency and training programs, and recovery/restoration plans. � 15, 103, 12-15

Planning and 195

Response

Society Performance Indicators

Aspect: Community

Core SO1 Nature, scope, and effectiveness of any programs and practices that

assess and manage the impacts of operations on communities, including � 103 55

entering, operating, and exiting.

Commentary on SO1

Nature, scope, and effectiveness of any programs and practices that

assess and manage the impacts of operations on communities, including

entering, operating, and exiting.

Include discussions of programs related to:

Y��

involved, prior, during and after the event and the provision for

intervener funding for the local population.

Y ��'��+��:��

(including changes to local social structures and culture);

Y /��%��:��

(e.g. access to land, natural resources, and heritage);

Y ��]�$�$��^��

(e.g. education, utilities, healthcare); and

Y /��?��$

EU22 Number of people physically or economically displaced and compensation,

broken down by type of project. - -

Access EU23 Programs, including those in partnership with government, to improve or

maintain access to electricity and customer support services. � 79-85 52

Provision of EU24 Practices to address language, cultural, low literacy and disability related

Information barriers to accessing and safety using electricity and customer support services. � 83-85 52

Aspect: Corruption

SO2 Percentage and total number of business units analyzed for risks related � - 29, 49

to corruption.

SO3 Percentage of employees trained in organization’s anti-corruption policies

and procedures. - -

SO4 Actions taken in response to incidents of corruption. � - 29

Aspect: Public Policy

SO5 Public policy positions and participation in public policy development

and lobbying. - -

�� ~\� ��%+��:��

politicians, and related institutions by country. - -

Aspect: Anti-competitive Behavior

SO7 Total number of legal actions for anti-competitive behavior, anti-trust,

and monopoly practices and their outcomes. � - 50

Aspect: Compliance

/�� ~\� *��:��%��

sanctions for non-compliance with laws and regulations. - -

Y ��!"## �� Y /~��!"## /��~��:��!"## Y >�� >��:��



CSRR 2011

Remarks

Page

Product Responsibility Performance Indicators Aspect: Customer Health and SafetyCore PR1 Life cycle stages in which health and safety impacts of products and �� - 51 products and services categories subject to such procedures. EU Commentary on PR1 Indicator Protocol: For electric utilities the following categories should also be addressed: Y��7�� Y�� Y�� Y;��:�� Y�� State the processes for assessing community health risks including monitoring, prevention measures an, if applicable, long term health-related studies. Identify community health risks that are assessed such as: Y/��]�^��]��+��^ ��]��^��:��:��:�� and employees in the areas in which the reporting organization operates. Add PR2 Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products and services during - - their life cycle, by type of outcomes. EU25 Number of injuries and fatalities to the public involving company assets, including legal judgments, settlements and pending legal cases of diseases.

� - 35

Aspect: AccessCore EU26 Percentage of population unserved in licensed distribution or service areas. - - EU27 Number of residential disconnections for non-payment, broken down by duration of disconnection and by regulatory regime.

- -

EU28 Power outage frequency. - - EU29 Average power outage duration. - - EU30 Average plant availability factor by energy source and by regulatory regime. � 23 - Aspect: Product and Service LabelingCore PR3 Type of product and service information required by procedures, and percentage ��:}��?��$

- -

Add PR4 Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling, by type - - of outcomes. PR5 Practices related to customer satisfaction, including results of surveys measuring customer satisfaction.

� - 63-64

Aspect: Marketing CommunicationsCore PR6 Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship.

� 81 52

Add PR7 Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, - - promotion, and sponsorship by type of outcomes. Aspect: Customer Privacy PR8 Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data.

� 81 52

Aspect: Compliance/�� 7�� *��%�� and regulations concerning the provision and use of products and services.

- -

Electricity Generating Authority of Thailand 74 Electricity Generating Authority of Thailand 74


AWARDS OF GREAT PRIDE IN 2011EGAT has long recognized the importance of

the social responsibility conduct with accountability and integrity. We at EGAT have conducted our business operations in accordance with the principles of good organizational governance in pursuit of our goals in contributing to the well-being of life in society and communities, as well as the Thai economy.

�� as in the statement “Power for Thai Happiness”, which has been our philosophy in business operations for over 41 years, EGAT has strived to develop the operation practices by placing greater emphasis upon the adopting of social responsibility principles in our core business processes or CSR In process. EGAT has also integrated the international standard systems into our operation practices, namely the quality management standard systems ISO 9000, the environmental management systems ISO 14001, which includes the CSR-DIW industrial standard systems

developed by the Department of Industrial Works, and the CSR-DPIM for mining management established by the Department of Primary Industries and Mines (DPIM). In 2011, EGAT also recognized the implementation of social responsibility and behavior as outlined in the relevant international standard ISO 26000 titled Guidance on Social Responsibility.

��{��!"##��'�� EGAT’s strong determination in the development of our operation practices as stated in our vision, “To become a world-class organization in electricity business”. These awards have brought great pride to EGAT employees at all levels while driving us to step forward in performing our duties in pursuit of the security of power supply system for the Thai happiness in years to come.

In 2011, EGAT’s awards of great pride included the following:

Outstanding State-owned Enterprise (SOE) Awards 2010

��~��7��\ ��(SEPO), Ministry of Finance

In 2011, EGAT won two SOE Awards 2010 in the category of outstanding organizational management and outstanding innovation for the solar weighted tracking system installed at Sirindhorn solar power plant in the compound of Sirindhorn dam.

EGAT has won the SOE awards in the category of �� {�� starting in 2005, 2006, 2007, 2010, including the honorary organizational management award in 2008. EGAT also ��in 2011 for the development of solar weighted tracking system installed at Sirindhorn dam in Ubon Ratchathani province. This solar cell power system with a water weight-based solar tracking is equipped with 2,500 solar cell panels with a combined generating capacity of 1,014 kW. EGAT’s Sirindhorn solar power plant is Thailand’s �� +�� kind which has been operated on a commercial basis.

The SOE Awards 2010 presentation ceremony was organized :��~��7��\ ��]~�7\^��theme of “Beyond Expectation, Beyond Imagination”. The awards contest has been held annually to publicize the performance of outstanding state enterprises to pursue the standards and benchmarks for the development of Thai state enterprises while creating incentives to enhance �� $

Award Name PresenterDetail


7��?��/��Recognition for Social Responsibility Practices

CSR-DIW Awards 2010

7��?��/��Recognition for Social Responsibility Practices

CSR-DIW Awards 2011

CSR-DIW Continuous Awards 2011

The Department of Industrial Works, Ministry of Industry, and the Management System /��]*�~/�^

The Department of Industrial Works, Ministry of Industry, and the Management System /��]*�~/�^

EGAT’s Mae Moh power plant and the Southern Region ��]~��^��?��of recognition for their CSR in business operation practices. EGAT two departments were among 96 industrial enterprises from the overall 111 enterprises passing the ��!"#"$

*��*��?�� CSR-DIW Awards 2010 for our continual practices �� ?�� *�~/�� inspection. EGAT’s Southern Region power plant (Surat ��^��$�� from the communities which involved with EGAT in power plant development and operation were also invited by MASCI to attend the award presenting ceremony, and Mr. Sumeth Yenmark, chairman of Khao Hua Kwai Tambon Authority Organization accepted the award on behalf of both parties.

The Department of Industrial Works, in close collabora-��*��~��/��(MASCI), have organized the CSR-DIW (Corporate Social Responsibility, Department of Industrial Works) award presenting ceremony to promote the practices of CSR among industrial sector enterprises with an aim to encourage them to apply the ISO standard to integrate the socially responsibility behavior into the organizations.

In 2011, EGAT’s power plants and departments of 11 ��?��of their social responsibility practices and behaviors which were divided into the CSR-DIW awards 2011 and the CSR-DIW continuous awards 2011.

EGAT power plants which won the CSR-DIW Awards 2011 consisted of 9 dams and power plants, namely Nam Pung, Bhumibol, Rajjaprabha, Sirikit, Sirindhorn, Chulabhorn, Srinagarind, Ubol Ratana, and Lam Takhlong Jolabha Vadhana hydropower plant. EGAT power plants receiving the CSR-DIW Continuous Awards 2011 included Mae Moh and Surat Thani power plants.

��!"##�� inspections criteria regarding the practices of social responsibility conducted by DIW expert committee were 117 locations out of the total 133 locations applying to receive the awards.




EGAT’s Mae Moh Mine has won two star awards in recognition of our outstanding environmental management in the category of an excellent grinding mill award and an excellent mining award for four consecutive years.

EGAT’s Mae Moh Mine entered the star awards for mining and quarry plant contest in the category of grinding mill and mining in 2007 and won the outstanding grinding mill ��$��excellent grinding mill award in 2008 and two excellent awards in both categories in 2009 and 2010.

The Star Awards for Mining and Quarry Plants has been developed by the Pollution Control Department (PCD) to provide incentives for Thai entrepreneurs in grinding mills and mining industry to recognize the environmental impacts from their operations which affect the well-being of communities and the environment while promoting them to observe and practice the environmental impacts mitigation measures required by laws.

In 2011, EGAT’s quality control (QC) groups under the transmission system command line won prizes from the Thailand Quality Prize 2011 contest. The prizes which were divided into categories included the following; 1. The Young’s Express Group receiving the Diamond

Award Service QCC Prize, 2. The Prueksa Ngarm Group winning the Golden

Award Service QCC Prize, 3. The Hed Kradang, Rak Muang Tak and Ruam

Palang Pattana FDG Groups winning the Golden Award Manufacturing QCC Prizes,

4. The DSM Center and Ruam Khor Songkwae Groups receiving the Golden Award Task Achiev-ing QCC Prizes, and

5. The QCC Promoter Award. EGAT Deputy Governor-Transmission System, Thana Putarungsri, received the award on behalf of EGAT top management for his contribution to the successful implementation of QCC activities within the organization.

In 2011, 17 locations of EGAT dams, power plants, and regional operation departments, were awarded plaques �� +�� @��Accident Campaign 2011. The awards included 1. A Zero Accident Award 2011 (Gold Level) for

organizations which operate for more than 10 ��+��injury and lost time accident. EGAT’s Chulabhorn dam won this award.

Star Awards for Mining and Quarry Plants 2010

Thailand Quality Prize 2011

7��?��/��RecognitionFor Zero Accident Campaign 2011

The Pollution Control Department, Ministry of Natural Resources and Environment

Technology Promotion Association (Thailand-Japan)

Occupational Safety and Health Bureau, Department of Labour Protection and Welfare, Ministry of Labour and Social Welfare



2. A Zero Accident Award 2011 (Silver Level) for organizations which operate for 3-9 million work hours without lost time accident and injury. EGAT’s dams which won this award level included Vajiralongkorn , Bhumibol and Ubol Ratana.

3. A Zero Accident Award 2011 (Bronze Level) for organizations which operate for 1-2.9 million work hours without lost time accident and injury. EGAT’s dams and power plants receiving these awards were Tha Thung Na dam, Lan Krabue power plant, Nam Pong power plant, Wang Noi power plant, Surat Thani power plant, Bang Pakong power ��/��*��[��\ ��>��Region Operation Department.

4. A Zero Accident Award 2011 (Honorary Level) for ��{�� ?�� {��+��years. EGAT’s dams and power plants receiving the award were namely Lam Takhlong Jolabha Vadhana power plant, Nam Pung dam, and three high voltage substations including Nakhon Ratchasima, Sakon Nakhon and Ubol Ratchathani.

In 2011, EGAT received the crown standard award for Thai CDM (Clean Development Mechanism) projects from Thailand Greenhouse Gas Management Organization (TGO) for the development of irrigation valve based micro hydro projects installed at Mae Ngat Somboon Chon dam in Chiang Mai province and at Kaeng Krachan dam in Petchaburi province.

EGAT’s irrigation valve based micro hydro projects were recognized by TGO for their outstanding performance in environmental conservation, including in the promotion of community involvement and development. The projects have been carried out in response to the principles of sustainable development, in particular being the schemes which do not generate impacts upon the environment. They also help reduce the greenhouse gases, strengthen the security of power supply in the areas, and enhance the economic well-being for local people by generating income from tourism.

EGAT’s Director of Sirikit dam and power plant Somkid Khaengraeng received the “Rakhang Thong” or Person of the Year Award 2011 in the category of outstanding organizational developer as a civil servant and state enterprise employee. The award contest has been organized for four years in order to grant these prestigious awards to outstanding civil servants and state enterprise employees in recognition of their contributions to the well-being of society.

Crown Standard Award for Thai CDM Projects

“Rakhang Thong” (Person of the Year) Award 2011

Thailand Greenhouse Gas Management Organization (TGO)

Broadcaster and Journalist’s Assembly of Thailand and the Government Public Relations Department


Electricity Generating Public Company Limited (EGCO)

EGCO was established as an associated company by EGAT in accordance with the government’s privatization policy to relieve the public sector burden and promote the private sector participation ��:��$\��/\�� which sell electricity to EGAT and individual customers under long-term PPAs.

Ratchaburi Electricity Generating Holding Public Company Limited (RATCH)

RATCH was established as a holding company to invest in subsidiaries and joint ventures. As a holding company, RATCH derives its main income from dividends received from its invested companies.

EGAT International Company Limited (EGATi)

EGATi is EGAT’s subsidiary company established to directly invest or set up subsidiaries to invest in power development projects in neighboring countries in order to acquire and supply energy to Thailand.

District Cooling System and Power Plant Company Limited (DCAP)

DCAP is a joint venture business co-founded by EGAT, PTT Public Company Limited and the Metropolitan Electricity Authority (MEA). DCAP’s objective is to generate and sell electricity and cooling water to Suvarnabhumi International Airport.

EGAT Diamond Service Company Limited (EDS)

EDS is a joint venture business co-founded by EGAT, Mitsubishi Heavy Industries (MHI), Mitsubishi Corporation (MC) and Ratchaburi Electricity Generating Holding Plc. (RATCH). The company’s objective is to provide refurbishment work for the Hot Gas Path Parts of Gas Turbine in 18 countries of service areas.

CSR PERFORMANCE OF EGAT’S SUBSIDIARIES AND AFFILIATES

;��!"##��%��

��:�� always recognized the importance of CSR implementation and organized numerous social and environmental activities �� :�� /~�goals. During 2011, EGAT International Company Limited or EGATi, in which EGAT holds 99.99 percent stake, organized the public hearings to listen to comments and suggestions from the stakeholders affected by the projects invested by EGATi. The company also joined force with the Thai people nationwide to provide relief and assistance to the affected people during Thailand’s ��'��$*��EGAT’s other two public companies, the Electricity Generating Public Company Limited or EGCO and Ratchaburi Electricity Generating Holding Public Company Limited or RATCH, continued their commitments as stated in their corporate social responsibility and environmental policies by implementing a wide range of activities to promote, among the public in general, the social awareness on environmental conservation and community development.

Electricity Generating Public Company Limited

(EGCO)

The Electricity Generating Public Company Limited or EGCO Group has established a policy to enhance its business growth in parallel with the commitment on the environmental care and development. At present, EGCO’s social and environmental schemes have been implemented under the following concepts.

Paths for Preservation of the “Watershed Forest”

Under this concept, EGCO Group has provided support for the watershed forest conservation by founding and supporting the Thai Forest Conservation Foundation (TFCF) for the implementation of sustainable watershed forests conservation countrywide. EGCO also initiated “A Watershed Forest, A Source of Energy for Life” project, in conjunction with the Department of Alternative ��;�� ];�;�^�*��Energy, with an aim to promote the development of mini hydropower plant projects at the community level.


Paths for Promotion of Learning and Building

a Public Consciousness in “Youths”

��/\�� organizes learning activities in schools while providing real-life experiences for children at elementary and secondary schools including students at high school levels. EGCO’s CSR projects launched under this concept include the

- EGCO forest youth camp project, % ��:��:��

living project,- Green learning project, and the- EGCO green blood project.

Paths for Promotion and Development of

Community’s “Quality of Life”

EGCO Group always recognizes the quality of life of communities in the vicinities of its Headquarters and power plants. Numerous social and environmental programs have been developed ranging from educa-tion, occupation, health and safety, to the environmental safeguarding. EGCO’s projects implemented with aims at taking care of the community environment and improving the well-being of life include the

- Breeding of blue swimming crab project,- New home for undersea livings project (using

��^�- Health market project,- Vocational students helping people project, and the- Local wisdom learning centre by Roi Et Green

project.

Ratchaburi Electricity Generating Holding Public

Company (RATCH)

During 2011, RATCH has implemented many social and environmental projects. The company’s outstanding environmental projects were as follows:

- RATCH, in collaboration with the Royal Forest Department, Ministry of Natural Resources and Environment, has since 2008 implemented the “Love the Forest and the Community Project”. This 5-year natural resources conser-vation project (2008-2013) has a focus on the development of community forests in order to prompt actions and promote the appropriate community forest management ��:��well-being of communities following the philosophy of �� $��}��public awareness upon the importance of forest conserva-tion among communities and the Thai society at large. In 2011, RATCH also implemented the 84 Community Forests Reforest for the King Project, held in honor of His Majesty the King on His 84th birthday on December 5, 2011.

- RATCH has also developed projects to be implemented under a concept to reduce carbon dioxide emissions to mitigate the impact of global warming. RATCH’s reforestation scheme under this concept is the planting of teak trees project to honor His Majesty the King. Teak trees of 99,784 have been cultivated following by the maintenance work for another six years to ensure their growth as these trees will serve as good sources of carbon dioxide absorption. Moreover, RATCH has also developed the “Spirulina Algae for a Green World” program for the cultivation of Spirulina algae for global warming reduction. This research was conducted at Ratchaburi power plant, using the emitted carbon dioxide to grow Spirulina algae. It was found that algae cultivated in a 1-rai area can absorb approximately 9.59 tons of carbon dioxide.

EGAT International Company Limited (EGATi)

EGATi organized an exhibition to disclose informa-tion on the development of Hajji dam project across the Salween River in Myanmar. A public hearing was also held at Sop Moei district of Mae Hong Son province to listen to comments and suggestions from project stakeholders including the people affected by project. During January and August 2011, EGATi and EGAT participated in organizing activities to provide relief for '��'��$

District Cooling System and Power Plant

Company Limited (DCAP)

DCAP organized activities to enhance the well-being of communities living around the power plant which included the Children Day, the Family Day and the religious ��$;��'��donated building materials to the affected people. Power plant visiting programmes were provided for community members and young students. During June to September 2011, DCAP organized the public hearings to open for suggestions relating to health impact assessment (HIA) from the satkeholders and the public in general.

EGAT Diamond Service Company Limited

(EDS)

In April 2011, the company began the commercial operation of its repairing facility for the hot gas path parts of gas turbine generators. During October-December 2011, EDS’s operating facilities were severely affected :��'��under implemented. Nevertheless, EDS has still put prime importance to its social responsibility efforts by preparing the CSR plans in place for future implementation.

EGAT expects to publish a report which can serve as a tiny force to move the Thai society �� one. Our report was produced from the best quality green paper mixed with deinked pulp and with the use of chemical-free soy ink in the printing process. We select the use of license-free Thai national font for our Thai version report. We also distribute an electronic version of the printed report to reduce the use of paper.

Bang Kruai, Nonthaburi 11130, ThailandTel. +66 (0) 2436 4600Fax. +66 (0) 2436 4695

Power for Thai HappinessEGAT

Documents

Corporate Social Responsibility Report 2011 · To create and improve the quality of life ... while endorsing the participatory ... public awareness and understanding related to EGAT’s