Supply Chain Management
Importance and Mission
The significance of a sustainable and responsible supply chain: As a renewable energy operator, the Group recognizes that sustainable and responsible supply chain management is a critical factor influencing the success of the organization and all stakeholders. Renewable energy operations rely heavily on collaboration with suppliers and business partners across the entire value chain, from sourcing equipment and technologies for solar, wind, and biomass power plants to maintenance activities and end‑of‑life material management.
The Group places strong emphasis on these issues, particularly in ensuring that procurement and sourcing processes are environmentally and socially responsible. Procurement activities are conducted in a systematic, transparent, auditable, and efficient manner, in alignment with and with due consideration for product quality, the environment, environmental management, social responsibility, as well as sustainable procurement practices, leading to positive outcomes for the organization and across the entire supply chain.
SDGs in the Supply Chain Management
Goals and Performance Highlights
Goals
Code of Conduct Communication: Communicate the Supplier Code of Conduct for Sustainable Business Development through the formal distribution of relevant ESG documents and requirements to every supplier with purchase orders via the official email system.
All new suppliers with an initial purchase value exceeding THB 500,000 must undergo an assessment using the “New Supplier Screening Form”, which evaluates potential environmental and social impacts. The target coverage is 100%.
All existing suppliers identified as Critical Tier-1 Suppliers and Critical Non-Tier-1 Suppliers must be assessed using the “SUPPLIER ESG AUDIT QUESTIONNAIRE”. The target coverage is 100%.
Performance Highlights 2025
In 2025, 100% of new suppliers with purchase orders exceeding 500,000 baht, evaluated by using ESG selection criteria.
This table can be scrolled horizontally
| New Suppliers Screened Using Environmental/Social Criteria | 2023 | 2024 | 2025 |
|---|---|---|---|
| Number of New Suppliers Requiring Environmental/Social Evaluation* | 3 | 12 | 14 |
| New Suppliers Approved Based on Environmental and Social Criteria | 3 | 12 | 14 |
*For the selection of suppliers (vendors/contractors) with initial orders exceeding 500,000 baht, an evaluation of environmental and social criteria is required. Suppliers must meet these criteria in order to proceed with the order/contract. After the process is completed, a re-evaluation will be conducted. If the supplier does not meet the criteria, they will be removed from the approved vendor list.
The Group conducted an assessment of the potential negative impacts across the supply chain, evaluating both actual and anticipated environmental and social impacts that could be of significant concern. This assessment was carried out for Critical Tier-1 Suppliers and new suppliers, totaling 24 suppliers. No significant negative impacts on the environment or society were identified from these suppliers.
This table can be scrolled horizontally
| Negative Impacts Across the Entire Supply Chain | 2023 | 2024 | 2025 |
|---|---|---|---|
| Number of Suppliers Assessed for Environmental Impact | 3 | 20 | 24 |
| Number of Suppliers Found to Contribute to Significant Actual and Potential Negative Environmental Impacts | 0 | 0 | 0 |
| Number of Suppliers Assessed for Social Impact | 3 | 20 | 24 |
| Number of Suppliers Found to Contribute to Significant Actual and Potential Negative Social Impacts | 0 | 0 | 0 |
Management Approach
The Group is committed to managing its supply chain in a sustainable and responsible manner, guided by the principles of Integrated Risk Management and Supply Chain Resilience to effectively respond to global risks and changes while strengthening strategic partnerships with suppliers.
The Group places strong emphasis on assessing economic, environmental, social, and human rights impacts throughout the value chain by selecting suppliers that demonstrate responsible business practices, comply with applicable laws, and uphold ethical standards. The Board of Directors provides policy oversight, while the Procurement Department is responsible for policy implementation, including integrating ESG considerations into employee performance evaluations and buyer training programs.
The Group has established the 8 Pillars of the Sustainable Supplier Code of Conduct as the standard for selecting and evaluating new suppliers and Critical Tier-1 Suppliers. The operational pillars are as follows:
01
Sustainability: Integrating ESG dimensions into procurement and business decision-making processes to deliver positive impacts across the supply chain.
02
Transparency & Accountability: Ensuring procurement processes are fair, competitive, free from conflicts of interest, and fully auditable.
03
Compliance with Laws: The Company and its partners must strictly comply with laws, regulations, and rules related to procurement.
04
Human Rights: Respect for internationally recognized human rights, including non-discrimination and freedom of association.
05
Labor Standards: Ensuring fair treatment of workers, respect for freedom of association and collective bargaining, appropriate working hours, payment of a living wage, occupational health & safety (OHS), and zero tolerance for child labor, forced labor, or human trafficking.
06
Environmental Protection: The Company and its partners must operate with consideration for environmental conservation, sustainable resource use, biodiversity protection, reducing environmental impacts, controlling pollution, particularly reducing greenhouse gas emissions, and efficient waste management.
07
Anti-Corruption: Implement and enforce anti-bribery and anti-corruption policies.
08
Social Responsibility: Encouraging suppliers to contribute to improving the quality of life of local communities and supporting sustainable social development
The Group's Approach to Managing a Sustainable Supply Chain
The Group recognizes that a strong supply chain is fundamental to sustainable business operations. To support this commitment, the “SSP Supplier Code of Conduct for Sustainable Business Development” has been established and communicated as a framework for responsible supplier practices aligned with the Group's environmental, social, and governance (ESG) commitments. The Group encourages suppliers to integrate these principles into their procurement processes and promote cascading implementation by applying the same standards to their subcontractors and Tier-2 suppliers. The Code of Conduct encompasses 6 operational pillars, as follows:
01
Business Ethics: Suppliers must operate transparently, comply with applicable laws and regulations, respect intellectual property, prevent conflicts of interest, and prohibit corruption, bribery, and unfair competition.
02
Human Rights & Labor Practices: Suppliers must respect human rights, treat workers fairly, prohibit discrimination, child labor, forced labor, and human trafficking, support freedom of association and collective bargaining, and provide appropriate working conditions, welfare, and fair wages.
03
Occupational Health & Safety (OHS): Suppliers must provide a safe working environment, comply with occupational health and safety laws, provide adequate personal protective equipment (PPE), establish emergency preparedness plans, and ensure appropriate safety training.
04
Environment & Climate Change: Suppliers must manage resources, energy, pollution, and waste efficiently, reduce greenhouse gas (GHG) emissions, protect biodiversity, prevent deforestation, and promote environmentally responsible products and services.
05
Community Development: Suppliers must consider their impacts on communities and stakeholders, and contribute to improving quality of life and community development where appropriate to support sustainable and inclusive growth.
06
Innovation Collaboration: Suppliers are encouraged to develop innovative products, technologies, and processes that reduce environmental impacts and create social value, while promoting the Code of Conduct throughout their supply chain, including subcontractors.
Selection of New Suppliers
The Group has established criteria for selecting new suppliers to ensure that they can deliver products/services that meet the organization's standards or requirements, through an evaluation process that covers the following aspects:
- Quality Products/Services with Environmental Friendliness (e.g., recyclable materials, non-toxic ingredients), certified by relevant industry standards or other trusted certifications.
- Reasonable and Competitive Pricing for products/services.
- The supplier conducts business in accordance with environmental standards, whether international or legal, such as having a systematic approach to waste disposal and avoiding activities that cause pollution.
- The supplier conducts business with respect for social issues, ensuring no discrimination, compliance with labor laws, corporate social responsibility, and respect for human rights.
For the Group's biomass power plant business, operated by Uni Power Tech Company Limited (UPT), the fuel used for production consists of agricultural waste or by-products, such as wood chips, bark, and other forms of biomass fuel. When selecting suppliers of fuel for production, the source of the fuel is carefully considered to ensure that it is sourced legally and does not negatively impact the environment. Suppliers providing wood chips and bark must be certified by FSC (Forest Stewardship Council), ensuring that the wood is sourced from sustainably managed forests or plantations, in line with internationally recognized standards, promoting environmental protection and reforestation.
In addition to the requirement for suppliers to hold FSC Certification for the fuel source used in production, biomass power plants also face potential environmental impacts on surrounding communities. Therefore, UPT’s supplier selection process is stringent and includes the requirement that suppliers be certified with ISO 9001 for quality management systems and ISO 45001 for occupational health and safety management systems as part of the evaluation criteria.
Supplier Development
The Group prioritizes the development of suppliers and contractors within its supply chain, particularly key partners in the renewable energy sector, such as solar, wind, and biomass power plants. This effort aims to reduce social and environmental risks, as well as mitigate the risk of non-compliance with relevant laws and regulations. Additionally, the Group supports improving the operational efficiency of its suppliers and contractors to ensure alignment with its standards. For example, the Group encourages suppliers and contractors who provide core products and services to implement business process improvements and achieve certification for management systems in accordance with international standards, such as ISO 9001, ISO 14001, and ISO 45001.
Payment to Suppliers
The Group recognizes that suppliers' financial liquidity is essential to strengthening supply chain resilience and supporting sustainable business growth. The Group therefore adopts transparent, fair, and appropriate payment practices to foster long-term business opportunities and partnerships with suppliers.
The Group has established a payment term of no more than 60 days to help mitigate suppliers' financial risks and support the liquidity of small and medium-sized enterprises (SMEs). However, payment terms may vary depending on the nature of the business, the type of goods and services, contractual agreements, and quality requirements to ensure suitability for both parties.
