Biodiversity: A Strategic Imperative for Sustainable Business

Biodiversity encompasses the richness and variety of all life forms, from microorganisms, plants, and animals to humans, and the intricate web of interactions that bind them into life-sustaining chains. Sermsang Power Corporation (SSP) recognizes that this natural balance underpins both the economy and human well-being. Food, medicine, raw materials, clean air, and a conducive climate for life all stem from invaluable, often unseen, ecosystem services.

Since the Earth's genesis, nature has continuously adapted, fostering systems that sustain all life and creating a symbiotic relationship between living organisms and nature itself, thereby generating biodiversity for co-existence. A report from the Organisation for Economic Co-operation and Development (OECD) indicates that natural processes, such as pollination by bees and butterflies leading to agricultural yields, air purification by trees, and various elements within the food chain, have an estimated economic value of approximately USD 125 to 140 trillion annually. This figure significantly surpasses the combined global GDP.

The degradation of biodiversity escalates risks related to food security, natural disasters, and emerging diseases. Consequently, global organizations, including Sermsang Power, have formulated strategies to safeguard nature alongside business growth.

Why Businesses Must Drive This Initiative

In an era where investors, consumers, and regulators are scrutinizing ESG (Environmental, Social, Governance) factors rigorously, businesses that disregard biodiversity loss face substantial financial and reputational costs. Conversely, companies prioritizing ecosystem protection unlock new opportunities, including access to green finance, reduced regulatory risks, and enhanced public trust.

Sermsang Power stands as a prominent example of a Thai renewable energy company elevating 'nature' to a strategic position, akin to its clean energy objectives.

Sermsang: From Green Energy Developer to Biodiversity Guardian

Over the past decade, Sermsang Power has evolved from a solar farm business into a diversified portfolio spanning solar, wind, biomass, and rooftop solar, with a contracted capacity of 285 megawatts (MW) by the end of 2024. Guided by its FAIR values—Flexibility, Ambition, Innovation, and Responsibility—the company has achieved an SET ESG Rating of 'AA' and a 5-star CGR score, reflecting robust corporate governance and sustainable outcomes.

However, renewable energy generation alone cannot guarantee nature's protection. Therefore, Sermsang Power has elevated 'biodiversity' to a material issue within its environmental policy, establishing the 'Powering a Greener for Biodiversity' strategy. This strategy mandates that all energy projects coexist harmoniously with ecosystems, emphasizing the Mitigation Hierarchy (avoid, minimize, restore, and offset impacts) in accordance with the Taskforce on Nature-related Financial Disclosures (TNFD) framework and the Global Reporting Initiative (GRI) international standards.

Green Haven in Khok Samrong: A True Sanctuary for Coexistence

A significant highlight for Sermsang Power is the "SSP GREEN HAVEN: Protecting Life, Preserving Nature" project. Located at the Sermsang Energy (SPN) solar power plant in Khok Samrong District, Lopburi Province, this 889-rai (approximately 357 acres) site has been designated a "de facto bird sanctuary." A 2024 survey identified 335–470 birds of 18 species residing in or migrating through the area, including common Baya Weavers, egrets, and shikras.

Crucially, six of these species are listed as protected wildlife under the Wild Animal Preservation and Protection Act B.E. 2562 (2019): the Red-wattled Lapwing, Common Kingfisher, Shikra, White-breasted Waterhen, Little Cormorant, and Red Junglefowl. Consequently, the solar farm's design incorporates specific considerations for power lines, panel angles, and buffer zones to align with bird flight paths, feeding grounds, and nesting sites. Maintenance schedules are also adjusted to minimize noise during nesting periods. This exemplifies Sermsang Power's profound commitment to biodiversity.

Four Key Measures in Green Haven

1. Systematic Survey and Monitoring: Staff quarterly survey bird species and densities to track trends and analyze causes. A 2024 survey revealed a 21% decrease in bird population compared to the 2023 baseline, prompting plans to increase seasonal food sources.
2. Habitat Restoration: Planting native perennial trees, expanding green areas around reservoirs, and elevating earthen dikes to create habitats for amphibians. Artificial nest boxes are also installed to improve chick survival rates.
3. Avoidance of Critical Areas: Prior to construction, the environmental team conducts detailed Initial Environmental Examination (IEE)/Environmental Impact Assessment (EIA) reports. If a proposed project site poses excessive ecological risks, Sermsang Power opts to withdraw and select new locations, such as abandoned agricultural land, to minimize impact.
4. Community Engagement: Organizing "Bird Watching Citizen Science" activities, inviting students and local residents to record bird species using a mobile application, fostering a sense of shared responsibility for conservation. Workshops on cultivating local tree saplings for replanting are also conducted.

From Green Haven to Organizational Standards: Sermsang Power's Biodiversity Management System

For pilot projects, the target is "No Net Loss" of biodiversity in all new energy initiatives. Key operational guidelines include:

• Pre-Investment Screening: Utilizing TNFD and ISO 14001 criteria to identify protected areas, critical habitats, and restoration opportunities. Projects with high risks are not pursued.
• Ecological Design: Arranging power plant layouts to maintain continuous forest areas, bird flight paths, and waterways. Wildlife underpasses are incorporated in forest edge areas.
• Life-Cycle Monitoring: Regular surveys of indicator species, such as the Red-wattled Lapwing, serve as signals of ecosystem health.
• Supply Chain Communication: Establishing a shared commitment with suppliers to uphold ESG principles and procure sustainable materials, while mitigating biodiversity impacts.

Connecting Net Zero Goals with Nature Protection

While Sermsang Power aims for net-zero carbon dioxide emissions by 2050, biodiversity conservation also enhances "carbon stock" through forest areas and wetland ecosystems, reducing carbon credit costs, bolstering grid resilience, and creating new ecosystem services. These services include water retention and soil erosion reduction, which help extend the lifespan of electrical equipment in semi-arid regions.

Environmental metrics for 2024 demonstrate that biomass power plant areas maintained zero SO₂ levels, while PM and NO₂ emission concentrations were merely 0.51 and 1.47 kilograms per megawatt-hour, respectively. This highlights the efficiency of green technology and appropriate biomass fuel management.

Furthermore, Sermsang Power has secured THB 2,123 million in Green Loans to expand green projects, generating 674,597 MWh of electricity and preventing 464,025 tons of CO₂ equivalent emissions annually. These funds are linked to ESG metrics; if the company fails to meet its targets, interest rates automatically increase, serving as a positive mechanism to drive serious conservation efforts.

Lessons for Thai Businesses

Sermsang Power's journey illustrates that biodiversity conservation is not a "hidden cost" but an "investment" yielding lower capital costs, higher credibility, and enhanced business resilience. Key takeaways include:

1. Define Organizational Strategy: Clearly define No Net Loss or Nature Positive targets, establish Key Performance Indicators (KPIs), and link financial incentives.
2. Integrate into Core Processes: Embed the Mitigation Hierarchy principles into every project's EIA/IEE, from site selection to decommissioning.
3. Provide Transparent and Verifiable Data: Publicly report in accordance with GRI and TNFD to build confidence among shareholders, financial institutions, and communities.
4. Engage Stakeholder Networks: Create platforms for communities, academics, and NGOs to contribute to design, restoration, and monitoring efforts, alongside sharing Bird Database information.
5. Foster an Inclusive Culture: Instill the value of nature in employees at all levels through field training, green space enhancement activities, and dedicated biodiversity volunteer programs.

Sermsang's Next Steps

With "biodiversity" at the heart of a balanced coexistence between humanity and nature, Sermsang Power is committed to growth that nurtures ecosystems. The company is laying the groundwork for all its projects to advance alongside restoration and the promotion of all forms of life. Because when nature thrives, society can progress with stability and sustainability.