Significance

Legal compliance is a fundamental principle to which BPP has adhered in running its businesses. It is also a major challenge for BPP since it has operated business in many countries where regulations are varied and changing rapidly nowadays. These include laws and policies associated with climate change and air quality improvement in large cities, which are the major driving force in rapidly changing environmental laws in the power industry. If BPP cannot adapt itself promptly, its business operations will be inevitably effected.

BPP operates businesses involved with various applicable laws and regulations to which it has to fully comply, such as the environmental and safety laws, the labor laws, the trade and investment laws, the security and exchange regulations as well as various permits, etc. This also includes operating businesses by adhering to code of conduct, for example, anti corruption, fair competition, human rights principle compliance, and non-discrimination. Therefore, failure to comply with those applicable laws will affect BPP’s sustainable business operations.

 

Management Approach

To prevent risks possibly having a severe impact on business operations, and to build confidence among all groups of stakeholders that BPP is operating businesses in accordance with external laws and regulations, the Global Internal Audit & Compliance (GIA&C) has been set up as a major force to coordinate and monitor legal compliance with 2 major duties, including:

1. The Internal Audit has a duty to assess internal control systems, including compliance with policies, regulations, and operational practice guidelines within the organization.
2. The Corporate Compliance is responsible for promoting, monitoring, and examining operational performances in alignment with applicable laws and external regulations.

Auditing of Internal Control System and Compliance with Policies and Regulations Within the Organization

To ensure that all departments have operated in accordance with policies, applicable laws, regulations, and operational practice guidelines, BPP has continuously examined the operational performance and internal control systems within the organization and its subsidiary companies. Such inspections cover major legal and regulatory compliances. BPP’s internal audit has been carried out based on the framework of the “Committee of Sponsoring Organizations of the Treadway Commission” or COSO, consisting of 5 areas, including internal control, risks assessment, operational control, information and communication technology system, as well as monitoring system.

Subsequently, the Internal Audit Department has been established as an independent body, with a duty to examine and assure that BPP has an effective internal control system and appropriate legal compliance. The Internal Audit Department is reporting directly to the Audit Committee and the Board of Directors.

Surveillance of Environmental Quality, Safety, and Labors as Required by Laws

BPP set up a surveillance system to monitor environmental qualities to comply with legal requirements and to observe legal change possibility in order to adjust itself promptly. This has implemented through a follow up carried out by the central Corporate Compliance and the internal units of its business entities. This is one of the quality, safety, and environmental management system’s requirements.
Additionally, the operating performance in the areas have also been continuously examined via following activities:

• Internal audits implemented through BPP’s measurement systems, such as the Continuous Emission Monitoring (CEM) system and the water quality monitoring system, etc.
• Auditing by external agencies, such as measuring water and air quality by external agencies, inspecting the implementation of environmental impact mitigation measures in accordance with the Environmental Impact Assessment (EIA) report, and examining the environment and workplace safety, etc.

Quality Assurance Review (QAR)

BPP together with Banpu Group has assigned all supporting units under the supervision of the Corporate Services Department, namely the Department of Occupation Health, Safety, Environment, and Community Engagement, the Information Technology Department, the Legal Affairs, the Procurement and General Administration as well as the Business Process Management Department, to assess operational qualities and legal compliance. The Quality Assurance Review (QAR) working group from Bangkok Office has been set up to inspect the operational performances of BPP’s subsidiary companies in each country. Meanwhile, the QAR working group of each subsidiary will conduct a regular audit of all business units located in that country at least once a year. Since 2020, the review benchmarks have been revised, in alignment with the international standards, while a remote assessment in the form of self-audit and interviews, including a remote evidence verification were used during the COVID-19 epidemic. These benchmarks have been applied for quality assurance review up to present.

BPP has employed standardized criteria for auditing the legal compliance quality to be proper for its business operations, consisting of 5 dimensions.

Operational Audits by the International Certified Body

BPP has consistently applied the international standards to its operational management in order to improve the operational standards and build confidence among all groups of stakeholders. Hence, BPP has employed the internationally recognized operating standard systems in its business units in order to create internal control and continuous development, namely the ISO 9001 Quality Management System Standard, the ISO 14001 Environmental Management System Standard, the ISO 45001 Occupational Health and Safety Management System, the ISO 22301 Business Continuity Management Standard, and the ISO 27001 Information Security Management System, and the occupational health and safety management systems in the United States of America, regulated by the Occupational Safety and Health Administration (OSHA).

Legal Compliance Audits at Joint Venture Companies

Because BPP has no direct control in the joint-venture companies, it has cooperated with its business partners who have invested in such a business to audit legal compliance and internal management at least once a year. Moreover, the audits are required to be carried out through the risk reports covering legal compliance every quarter.

Compliance Audits For Major Suppliers

BPP audits legal compliance of suppliers delivering critical products and services, such as maintenance and operations contractors, engineering and construction contractors. The legal compliance audit is specified in the selection and hiring conditions, while an inspection on suppliers when operating is carried out. If any defects are found, BPP will work with such a supplier to plan for corrective actions in line with applicable laws and best practices. This is part of BPP’s management system standards. If any supplier’s operations are found of legal violations, such suppliers will be counted as breaching the terms of employment. BPP will notify the suppliers to make improvements or may cancel the contract.

 

Performance

• • All business entities, in which BPP has management control operated in accordance with the internal audit and legal compliance systems.
  • None of business entities, in which BPP has direct control and jointventure companies as well as suppliers operating in BPP’s operational areas, failed to comply with applicable laws.
  • Joining hands with business partners to inspect internal operations and legal compliance of joint-venture companies, including monitoring and solving defects to meet the standards.

 

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