BPP and Its Commitment to ESG – Leads to Solid and Sustainable Growth
Sustainable development is today a megatrend and taking center stage around the world as the environment has changed mainly affected from actions of human beings. If we continue to live or operate our businesses without taking account of the environmental impacts, nature will continue to send us more serious warnings.
This is one of the reasons why an increasing number of companies have adopted Environmental, Social and Governance (ESG) practices in operating their businesses. Consumers are also taking note: According to PWC, 83% of consumers believe that companies should put every effort into shaping their ESG policies, and 86% prefer to work with companies with the same ESG values as themselves (reference: 2021 ESG Consumer Intelligence Series: PwC). This is because such policies reflect the company’s vision and responsibility towards society rather than merely seeking profit.
BPP, a power-generating company for the sustainable world
Under the ESG principles, Banpu Power Public Company Limited or BPP is operating its business according to the Greener & Smarter strategy and aiming to provide greener and smarter power in line with its stance of “We ARE Power for the Sustainable World”. The Company focuses on balancing portfolio from both thermal and renewable power according to the principles of energy sustainability, reflecting the Company’s responsibility and commitment to delivering quality electricity which is Affordable, Reliable, and Eco-friendly.
Mr. Kirana Limpaphayom, Chief Executive Officer of Banpu Power Public Company Limited, said, “BPP is committed to operating business in line with the UN Sustainable Development Goals (SDGs) by incorporating 6 of the SDGs into its business strategy, such as by setting a power generation capacity target of 5,300 MWe of which renewable energy contributes at least 800 MW within 2025, and by improving energy efficiency and availability of power plants, which are aligned with the 7th SDG – Affordable and Clean Energy. BPP also focuses on a safe working environment by setting a goal of zero fatal accidents and occupational illnesses for both employees and contractors, aligns with the 8th SDG – Decent Work and Economic Growth. Responding to the 9th SDG – Industry, Innovation, and Infrastructure, BPP has set an ultra-low emission rate in thermal power plants and strictly follows the regulations on the environment and society. It has also set a determination rate of greenhouse gas emissions intensity per unit of product and established business continuity management to match the 13th SDG – Climate Action. In addition, as one of the flagship companies of the Banpu group, BPP adheres to the same business credo that “An industry will be strong only when it is developed in tandem with social and environmental responsibility”, which has been applied as a practice in all 7 countries where we do business, namely Thailand, Lao PDR, China, Japan, Vietnam, Australia, and the U.S., by considering the suitability of each area and different needs of the surrounding communities. Being a good citizen in every country where we operate is one of BPP’s strengths that helps smoothly manage projects, power plants, and a relationship with the surrounding communities. In this regard, BPP has formulated ESG policies that are consistent and in line with Banpu group, and has Banpu Power Sustainable Development Committee to oversee and govern the implementation of the goals to create balanced benefits for all groups of stakeholders.”
Environment is at heart for BPP
The “greenhouse gas issue” is one of the most urgent concerns BPP has prioritized and always focused on. It is the reason that the Company has chosen to invest in greener energy businesses to respond to the decarbonization trend, including both gas-fired and renewable power plants. In addition, BPP is expanding investment in the energy technology business through “Banpu NEXT,” covering solar rooftop, energy storage, electric vehicles, smart city development, and energy technology solutions to respond to the future energy trend. Because the demand and the readiness to transform to renewable energy are different in each country, BPP is continuing to operate thermal power plants with the responsibility to the customers by integrating High Efficiency, Low Emissions (HELE) technologies to increase the efficiency of the power plants and generate more environmentally friendly electricity. BPP aims to achieve the target capacity of 5,300 MWe with more than 800 MW generated from renewable energy by 2025 while set a rate of greenhouse gas emissions intensity per unit of product by less than 0.676 tonnes CO2e/ MWh.
Caring for employees, focusing on community development, and giving back to society
For business to grow sustainably, development needs to start from the inside. Therefore, BPP is focusing on employee competency and leadership development to respond to the new skills needed that are in line with the business direction of the future through an individual development program and succession planning of important positions for continuity in management. Through the ‘Banpu Heart’ corporate values, BPP not only connects but also brings together employees of different nationalities and different cultures. Community development programs are implemented around the power plants in parallel with CSR projects to give back to society, such as granting scholarships to students at Luannan Banpu Special Education School, which has been providing education for students with physical disabilities, including visual impairments, auditory impairments, and intellectual challenges for more than 13 years. BPP has also supported athletes’ training and competitions at the Zhengding National Table Tennis Training Center for more than 17 years. Other CSR projects include the improvement of quality of life and livelihood of people in the area surrounding the power plant, conducting social activities through “CSR Ideas of the Year” program in Thailand, and participating in the agreement on disaster emergency power supply of the Nari Aizu solar power plant in Japan.
Moreover, during the COVID-19 crisis, BPP has also proactively supported society in preventing and controlling the spread of COVID-19 in the area around the power plants and in the countries where BPP operates. This has been conducted in several ways, such as by providing funds and necessities to support the work of government officials in the fight against COVID-19 around the 3 combined heat and power (CHP) plants in China, and by supporting survival kits through the Royal Thai Embassy, Tokyo to distribute to Thai people in Japan who were affected economically from the pandemic.
Governance with ethics and adopting digital technology in the era of COVID-19
Business ethics and anti-corruption of all kinds are fundamental to BPP’s priorities. One of the 10 designed behaviors of ‘Banpu Heart’ focuses on adhering to integrity and ethics. This ensures that employees at all levels will drive the organization in the right direction based on business ethics. During the pandemic, the Company has been able to operate continuously and efficiently thanks to its ability to adapt to changes, prepare for and choose digital technology such as implementing the ISO 22301 business continuity management system (BCMS) before any crisis occurs, determining preventive measures and mitigation plans in response to the COVID- 19 situation in each country, allowing the working team to prepare a cloud system to support employees to work from anywhere. Due to intimate preparation and protection, BPP power plants in all areas have maintained continual production efficiency as planned. Because electricity is a utility that is necessary for all sectors, BPP, as a power generation and distribution company, recognizes the need for stability and continuity in ensuring a reliable power supply.
In 2021, BPP was selected as one of the sustainable stocks on the Stock Exchange of Thailand (SET) or ‘Thailand Sustainable Investment’ (THSI) for the fourth consecutive year and received the Rising Star Sustainability Awards at the SET Awards 2021 in the Sustainability Excellence category with a market capitalization of THB 30-100 billion. Additionally, it was ranked one of the top 268 Listed Companies with Excellent Corporate Governance Scoring, according to the Corporate Governance Report of Thai Listed Companies 2021. The report was developed by the Thai Institute of Directors Association (IOD). These recognitions demonstrate the commitments of BPP to creating sustainable growth taking account of the Environmental, Social and Governance (ESG) principles.
For BPP, doing business under ESG principles is not just a trend to follow, but at the very heart of business operations. The Company places emphasis on being a good corporate citizen in every country where it operates, including giving back to the community and society in a sustainable way.
About Banpu Power
Banpu Power Public Company Limited is a leader in power generation and distributor in Asia-Pacific, including in Thailand, Lao PDR, China, Japan, Vietnam, Australia and USA with a position of We ARE Power for the Sustainable World. For more than two decades, BPP has been committed to operational excellence to achieve efficient power generation while deploying High-Efficiency, Low-Emissions (HELE) technologies which are safe and environmentally sound in accordance with its Greener & Smarter strategy. We are continuously moving forward to reach a total equity-based power generation capacity of 5,300 MWe within 2025.