GHG Emissions

Significance

Climate change is a significant issue impacting the growth, stability, and stakeholder’s confidence in BPP during its energy transition. Furthermore, it is a concern on which the whole world is collaborating to control an increase of average global temperatures to not over 1.5 degrees Celsius, under the framework of the Paris Agreement. This may result in stricter GHG emissions policies and laws in many countries, as well as stakeholders’ rising expectations towards achieving the Net Zero target. This could have an impact on operations, and access to funding, including growth. Therefore, establishing clear transition directions and strategies, coupled with developing human resource competencies to support a fair transition, will enhance competitive advantages, strengthen organizational resilience and create new long–term business opportunities.

2025 Target

GHG emission intensity ≤ 0.549 tCO2e/MWh
- Combined heat and power plants ≤ 0.676 tCO2e/MWh
- Gas-fired power plants ≤ 0.441 tCO2e/MWh
Achieve at least 65% of EBITDA from non-coal businesses by 2030.

Management Approach

BPP enhances its data disclosure on climate change and GHG management to align with the International Sustainability Standards Board (ISSB) IFRS S2 guidelines, which covers four areas as following:

1. Governance

BPP defines the roles and responsibilities for governing those associated with climate change and GHG emissions, covering the Board, management, and operational levels so as to ensure that risks and opportunities related to climate change are managed effectively.

Executive Compensation Connected to Climate Change

BPP has designated GHG emission intensity as one of the key performance indicators (KPIs) for CEO and related executives. Performance assessments are conducted twice a year, of which results are used as part of executive compensation consideration to incentivize these executives to put efforts to reduce GHG emissions, improve operational efficiency, and support the energy transition.

2. Strategy

BPP assesses risks, impacts, and opportunity likelihood resulted from climate change, covering investments in all business units where it has significant investment proportion, or over 30% stakes. It defines the timeframe for risks impacts and opportunities associated with climate change into three phases as follows:

Short–term: 0–1 year or by 2025–2026

Medium–term: 1–5 years or by 2030

Long–term: More than 5 years or by 2050

Additionally, BPP utilizes climate change-related scenarios aligned with those employed by Banpu Group, as referenced by the International Energy Agency (IEA), to evaluate potential future risks and impacts. Specifically, RCP 8.5 and RCP 2.6 are applied to assess physical risks, while the Announced Pledge scenario and Net Zero Emissions by 2050 scenario are used to analyze transition risks.

Assessments of risks, impacts, and opportunities associated with climate change

Energy Transition Plan

BPP has strategized to drive its energy transition with the theme of “Pioneering Energy, Empowering Tomorrow,“ in order to support Banpu Group’s Net–Zero target by the year 2050. The focus is on optimizing efficiency of its investment portfolio and maintaining the performance of existing assets, in tandem with investing in combined cycle gas turbines (CCGT) power plants and energy transition businesses. The aim is to generate stable cash flow, foster growth, and enhance competitive advantages, while also refraining from further investment in coal–related businesses. Furthermore, BPP is committed to decreasing GHG emissions through increasing the proportion of clean energy and significantly reducing the coal–related business proportion, as well as managing assets responsibly until the end of projects.

3. Risk Management

BPP systematically integrates the climate change related risk management into its organizational risk mitigation process as follows:

1) Defining objectives in alignment with the organizational strategy, covering short–term (0–1 year), medium–term (1–5 years), and long–term (more than 5 years) periods to foster the climate change and energy transition.

2) Identifying risks by specifying risks and opportunities associated with climate change and integrating them into the organization’s various risk categories, including:

- - Physical Risks and Opportunities: Risks related to natural disasters, such as earthquakes, floods, storms, water shortages, etc., are classified as operational risks.
  - Transition Risks and Opportunities: Policy and regulatory changes on climate change pose risks, and GHG emissions are considered strategic risks.

3) Risks assessment by using the 5x5 Risk Matrix, which is considered from the probability and impact levels, using the same standards as the organization’s risk assessment.

4) Responding to risks: Relevant business units establish measures to control and mitigate climate related risks and report the results to the Sustainability and Risk Management Department for compilation and management at the organizational level, such as:

- - Employing a business continuity management (BCM) system to prepare for potential business disruptions due to natural disasters to ensure operational continuity or a rapid recovery, as well as to deliver products and services meeting customer’s expectations. The BCM drill has been conducted consistently, being certified by the ISO 22301 Business Continuity Management System.

- - Monitoring and forecasting regulatory changes, both at the local and international levels, to adapt to increasingly stringent environmental quality standards. We are also looking for investment opportunities in renewable energy businesses receiving more governmental subsidies.

- - Carbon pricing is incorporated into the decision-making process for different project investments. This internal carbon pricing serves as a shadow price, covering both direct and indirect GHG emissions (Scope 1 and Scope 2).

5) Monitoring and Reporting Risks: The Sustainable Development and Risk Management Manager reports a risk mitigation plan to the Risk Management Committee, Audit Committee, and ESG Committee quarterly to ensure that the climate – related risk management be appropriate and responsive to change.

4. Indicators and targets

BPP compiles GHG emissions, specifically for businesses in which it has direct control, by using the Global Warming Potential (GWP) as referenced in the Intergovernmental Panel on Climate Change (IPCC) Fifth Assessment Report (AR5). Meanwhile, the emission factors are based upon A Corporate Accounting and Reporting Standard (Revised Edition). The specific factors will be used when the regional emission factors are available. The gases used in the calculation include carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), and sulfur hexafluoride (SF6).

Since BPP operates the power and energy generation businesses, it consumes a significant amount of energy from fuel combustion. As a result, BPP focuses on reducing direct GHG emissions (Scope 1), primarily from fuel consumption, accountable for over 99% of total GHG emissions.

BPP has established GHG emissions reduction targets for Scope 1 and Scope 2 under the assumption that production sold remains equivalent to the 2023 base year. Under this assumption, the Company expects to achieve GHG emissions reductions as follows:

Short-term target (2026): Achieve a GHG emissions intensity of 0.459 tCO₂e/MWh, representing 1% reduction from the base year, equivalent to a total reduction of 57,716.83 tCO₂e.

Medium-term target (2030): Achieve a GHG emissions intensity of 0.441 tCO₂e/MWh, representing 5% reduction from the base year, equivalent to a total reduction of 265,497.40 tCO₂e.

Long-term target (2050): BPP will amalgamate with Banpu Group by 2026. Consequently, BPP’s long-term GHG emissions reduction target is aligned with the Group’s direction, aiming to achieve Net Zero GHG emissions by 2050. To support this, the long-term absolute GHG emissions reduction target is being developed, including the establishment of appropriate methodologies and calculation approaches. These will be regularly reviewed and refined to ensure alignment with the Company’s business plans, underlying assumptions, and evolving international standards.

2025 Performance

BPP recorded the GHG emission intensity (Scope 1&2) of 0.418 tonnes CO2e/MWh, 23.9% better than the target of <0.549 tCO2 e/MWh and meeting the GHG emission target. Scope 1 emissions was 5,537,335 tCO2e and Scope 2 GHG emissions was 5,222 tCO2e.

- The CHP plants in China posted the GHG emission intensity of 0.474 tonnes CO2e/MWh or 29.9% better than the target of ≤ 0.676 tCO2e/MWh due to BPP’ s continuous improvement of power plant’s efficiency. Several innovation initiatives are currently in progress, including efforts to reduce energy and water losses within the system, enhance boiler capabilities to accommodate fuels with a broader spectrum of calorific values, and implement co-firing of biomass and coal to decrease greenhouse gas emissions. Last year, all CHP plants in China were able to control their GHG emissions to meet the government–mandated standards. They also had the opportunity to sell or retain the Carbon Emission Allowance (CEA) totaling 258,800 tonnes CO2e, generating revenue of over RMB 20.17 million.

- CCGT power plants in the U.S. recorded the GHG emission intensity of 0.378 tonnes CO2e/MWh, 14.3% better than the target because the power plants undergo annual management and maintenance regularly. This has enabled BPP to cut energy and water losses and lower GHG emissions in production.

Achieved EBITDA proportion of 38% from non–coal related businesses, an increase of 11% from the previous year, with the target of at least 65% by 2030.

Set up a target to reduce GHG emissions by 5% in 2030, compared to the year 2023 baseline, and a target of GHG emission intensity for 2026–2030 based on power plant’s categories, to appropriately measure the performance of each power plant type.

Invested under Banpu NEXT in the battery energy storage systems in Japan through the Tono Project with a production capacity of 58 MWh, which commenced commercial operation in June 2025.

Through Banpu NEXT, BPP entered into a joint venture with BKG Holdings Corporation to develop and invest in a solar rooftop project in Vietnam, with an initial target capacity of no less than 390 MW.

Invested in the 120-MW Jinhu Qianfeng Solar Farm in Jiangsu Province, China. The project integrates battery energy storage and is located in an aquaculture area with high electricity demand. Commercial operation is scheduled for 2026.

Invested in the Carbon Capture, Utilization, and Storage (CCUS) business through the Cotton Cove project in the Barnett Shale, Texas, the U.S., with a 49% stake. The project is currently under development, with commercial operations expected to begin by 2026.

Other Indirect GHG Emissions (Scope 3)

Since 2023, BPP has assessed other indirect GHG emissions (Scope 3) throughout the supply chain by using the criteria in accordance with the World Resource Institute (WRI) Greenhouse Gas Accounting Standards to determine the relevance of activities in 15 categories. In 2025, other indirect GHG emissions (Scope 3) totaled 13,640,488 tonnes CO2e from following activities:

Activities	Association with BPP	The Amount of GHG Emissions (Tonnes CO₂e)	Calculation Methodology
Category 1 Purchased goods and services	Being involved with the procurement and production process of raw materials and chemicals used in the power plants and service from contractors.	No calculation is performed due to the minimal proportion compared to other activities.	–
Category 2 Capital goods	Being involved with the procurement and production process of capital good purchased such as machinery, spare parts, vehicles and construction materials used in the power plants and offices.	240,254	Spend–based calculation methodology Information regarding costs of goods and services procured by the organization. Coefficients from the database of environmental impact models from the Environmentally Extended Input–Output (EEIO)
Category 3 Fuel- and energy related activities	Being involved with the production procurement process and transportation of purchased fuels and energy, such as natural gas, coal, oil, and electricity	1,060,459	Average–data calculation methodology Data of the amount of fuel and electricity purchased for production. Coefficients from The UK Government GHG Conversion Factors for Company Reporting and EIA Life Cycle Upstream Emission Factors 2023 (Pilot Edition) The Ponder Solar Power Plant is excluded, as it imports only a negligible amount of electricity for consumption.
Category 4 Upstream transportation and distribution	Being related to the transportation of power plant’s raw materials and machinery carried out by partners or contractors.	There is no calculation since natural gas is delivered via pipelines, while other fuels, such as coal and oil are from various trading partners. This activity is, therefore, only a small portion when compared with other activities.	–
Category 5 Waste generated in operations	Being associated with production’s waste management.	No calculation is performed due to the minimal proportion compared to other activities	–
Category 6 Business travel	Being involved with employee’s business trips via airplanes, trains, and cars.	No calculation is performed due to the minimal proportion compared to other activities	–
Category 7 Employee commuting	Being related to BPP employees commuting from their residences to the offices by their own cars, or other public transportation.	No calculation is performed due to the minimal proportion compared to other activities	–
Category 8 Upstream leased assets	BPP does not lease any assets for production, but it only rents the office spaces.	No calculation is performed due to the minimal proportion compared to other activities	–
Category 9 Downstream transportation and distribution	Not relevant since BPP does not own the power transmission lines. BPP started construction steam pipeline of Zouping Power Plant at the end of 2025.	–	–
Category 10 Processing of sold products	Not relevant since BPP’s products are in the energy form, such as electricity, steam and hot water. As a result, these products are not processed.	–	–
Category 11 Use of sold products	Since BPP’s products are in the form of energy, such as electricity, steam, and hot water, the customers’ energy use is an indirect GHG emission (Scope 2).	–	–
Category 12 End of life treatment of sold products	Not relevant because BPP’s products are in the form of energy, such as electricity, steam, and hot water. As a result, there is no waste disposal process for the products.	–	–
Category 13 Downstream leased assets	Not relevant because BPP does not operate an asset rental business and does not have any assets available for rent.	–	–
Category 14 Franchises	Not relevant, as BPP does not operate a franchise business.	–	–
Category 15 Investments	Being related to an investment in joint – venture companies, consisting of BLCP, HPC, SLG power plants and Banpu NEXT.	12,339,775	Investment–specific calculations style Scope 1 and 2 GHG emissions data of companies, in which BPP has invested and BPP’s shareholding proportion.

Remarks: Data as of 27 February 2025, but the data of Category 15, which must collect GHG emissions from joint–venture companies, are currently being verified by the external agency.

Key Activities and Projects

Scenario For Climate Risk Assessment

BPP assesses potential future risks and impacts, including Transition Risks and Physical Risks, using climate related scenarios based on the International Energy Agency (IEA), as follows:

	Transition
Scenario	Announced Pledge scenario	NZE emission by 2050
Description	A scenario which assumes that all climate commitments made by governments and industries around the world as of the end of August 2023, including Nationally Determined Contributions (NDCs) and long-term net zero targets will be met in full and on time.	A scenario which sets out a pathway for the global energy sector to achieve net zero CO₂ emissions by 2050. It does not rely on emissions reductions from outside the energy sector to achieve its goals.
Temperature Alignment	2.6 °C in 2100	1.5 °C in 2100

	Physical
Scenario	RCP 8.5	RCP 2.6
Description	Mean Radiative forcing at earth surface is 8.5 W/m² Low effort on the implementation of decarbonization High intensity & high frequency in extreme weather	Mean Radiative forcing at earth surface is 2.6 W/m² High effort on the implementation of decarbonization Medium intensity & low frequency in extreme weather
Temperature Alignment	4.3 °C in 2050	1.6 °C in 2050

Internal Carbon Pricing

Internal carbon pricing has been integrated into our new business evaluations to promote low-carbon investments and shape our strategy and financial planning. Our internal carbon pricing, which serves as a shadow price, covers emissions from Scope 1 and 2.

For countries or operations without established carbon pricing regulations or taxes, we have set prices:

Emerging economies and developing countries: $2 per tonne of CO₂e
Advanced economies: $15 per tonne of CO₂e

This internal carbon pricing is applied to all business decision-making processes.

Market Opportunity

BPP strives to conduct its business to support the energy transition to create the long–term sustainable growth, in alignment with global trends in energy consumption structure. In addition, it is seeking investment opportunities in power generation and renewable energy businesses utilizing stable, highly efficient technologies and reducing GHG emissions, in tandem with developing opportunities for growth in new businesses related to future technologies. The emphasis is placed on advancements related to Data Center technologies and energy innovation, including battery energy storage systems (BESS), online energy trading platforms, and retail electricity business operations.

Furthermore, BPP strengthens collaboration within Banpu Group by leveraging its business ecosystem to connect an access to markets, technologies, and business partners, as well as sharing knowledge and expertise in the energy sector.

Key Achievements

Total power generation capacity based on overall equity was  3,468 MWe, comprising 3,174 MWe from conventional power plants, and 294 MW from renewable power plants.

BPPUS Power Trading is entering the U.S. electricity trading market by initially focusing on Congestion Revenue Rights (CRR). CRR is a financial tool used to manage transmission congestion risks in the merchant market, and it supports additional value creation for power generation businesses.

Expanding the steam pipeline network of Zouping Combined Heat and Power (CHP) Plant in China to broaden its industrial steam customer base.

Successfully implementing the biomass co–firing project at Zhengding CHP Plant, which helped in reducing GHG emissions by 70,000 tonnes CO2e/ year and generating revenue through selling the Carbon Emission Allowance (CEA).

Successfully investing in the Megamouth project, a battery energy storage system (BESS) in the U.S.

The Megamouth BESS Project

Banpu Power US Corporation (BPPUS), a subsidiary of BPP, has invested in the Megamouth project, a BESS with a power capacity of 100 MW and an energy storage capacity of 200 MWh, which is located in Houston, Texas, USA. This project is connected to the power grid of CenterPoint Energy, the primary transmission provider in Houston and sells electricity on the electricity merchant market (Electric Reliability Council of Texas or ERCOT). This is driven by a continuous increase in electricity demand due to data centers growth. The project is expected to commence its commercial operations in the 4th quarter of 2027.

Objectives

Seeking opportunities to store renewable energy for use during the high electricity demand periods.

Investment Details Approximately USD 90 million, or approximately THB 2,835 million.

Benefits

Generating revenue from energy management and power trading in the merchant market.
Managing risks and balancing BPP’s US investment portfolio.

Environmental Contributions

Reducing electricity production losses during daytime hours when renewable energy production is high, but electricity demand is low.
Decreasing overall GHG emissions.

Social Contributions

Improving the efficiency, stability, and security of the Texas State power grid.

Banpu NEXT’s Clean Energy Business towards Future Technology

Banpu NEXT operates the future technology business, focusing on developing clean energy technologies and energy innovations connected to data centers to support the transition to a low-carbon society. It encompasses three core business pillars:

Infrastructure Service encompasses utility-scale renewable energy projects involving both solar and wind generation, battery energy storage systems (BESS) integrated with the power grid to enhance energy security, and energy trading activities conducted via platforms to optimize value derived from market price differentials.
Net Zero Solutions Service provides integrated energy management solutions for business and industrial customers. This service is ranging from Net Zero advisory to designs and installation of solar rooftops, solar carparks, and solar floating, as well as increasing energy efficiency in buildings and factories, such as centralized chiller and refrigerant systems, environmentally-friendly smart transportation solutions and electric vehicle charging stations, which are integrated with AI, IoT, and smart technologies to improve energy efficiency, reduce costs, and decrease GHG emissions.
New Business and Investment is driving growth through continuous investments and business partnerships to deliver clean energy and help customers sustainably reduce GHG emissions. This service focuses on the electric vehicles battery business and the energy storage systems (ESS), inclusion of manufacturing, distribution, reuse, and recycling. It aims to create values for battery business throughout the product lifecycle, coupled with joint investments with experts in the clean energy industry and technology, both domestically and internationally so as to enhance competitive advantages, drive the energy transition in the industrial sector, and create new business opportunities in the future.

Objectives

Driving BPP growth in clean energy and related businesses to foster the future energy transformation.

Investment Details

In 2025, Banpu NEXT successfully expanded its business through an investment in several business projects, such as:

Installed a 4 MW solar rooftop and solar carport at BITEC BURI, Bangna.
Established a joint-venture company to expand solar power generation business in Vietnam, with an initial target of at least 390 MW.
The Tono Project, a 58 MWh battery energy storage system (BESS), commenced its commercial operation in Japan.
Jointly invested in a 227 MW solar rooftop project within the Amata Industrial Estate in Vietnam.
Collaborated with DHL Supply Chain (Thailand) Co., Ltd. to provide integrated electric fleet solutions to serve industrial customers.

Benefits

Banpu NEXT’s Production Capacity (as of 31 December 2025)

Infrastructure Service	Net Zero Solutions Service	New Business and Investment
Renewable energy power plant business: 673 MW. Battery energy storage systems business: 1,150 MW. Energy trading business through platforms:  6,593 GWh.	Solar rooftop power generation system business: 319 MW Energy efficiency management system business: 41 projects. Environmentally friendly smart transportation business recorded a cumulative electricity sales volume of 4 million kWh from electric vehicle charging stations.	Electric vehicle battery manufacturing business: 3.2 GWh.

Environmental Contributions

Products and services for efficient energy management and sustainable reduction of GHG emissions.

Social Contributions

Generating clean energy and investing in technologies to drive the energy transition towards a low-carbon society.

Innovations to reduce GHG emissions in Combined Heat and Power (CHP) plants in China.

BPP has set a target to reduce GHG emissions by 5% by 2030, compared to the 2023 base year. It has also determined the GHG emission intensity for the period of 2026-2030 to provide a framework for driving the organization towards Banpu Group’s Net Zero target.

For the CHP plants, BPP focuses on increasing power generation efficiency to reduce fuel consumption, while simultaneously increasing proportion of renewable and clean fuels in the production system. This has been achieved through the following key projects:

Projects	GHG Reduction Amount in 2030
1. Biomass co-firing project at Zhengding Power Plant and Zouping Power Plant.	221,691 tonnes CO2e
2. Waste heat recovery project.	10,713 tonnes CO2e
3. Oxidation fans retrofit for improved boiler energy efficiency.	102 tonnes CO2e

Objectives

Improving energy efficiency.
Reducing GHG emissions.
Supporting the energy transition and achieving the climate change targets

Investment Details  

Total investment for the three projects:

Total capital expenditure (CAPEX): RMB 8.754 million
Operating expenditure (OPEX): RMB 0.56 million per year

Benefits

Reducing GHG emission risks.
Being able to apply the knowledge gained for building upon and expanding to other power plants in the future.

Environmental Contributions

Reducing GHG emissions of approximately 232,000 tonnes CO2e/year from the operation of all three projects.

Social Contributions

Promoting the efficient use of resources and energy.

Power Plant Improvements for Biomass Co-Firing with Coal

To support the energy transition and align with the Chinese Government’s carbon neutrality policy, Zouping Combined Heat and Power (CHP) Plant has initiated a pilot project to upgrade the fuel feeding systems of small, low-efficiency coal-fired boilers. This initiative enables the co-combustion of biomass fuel with coal, eliminating the need for investment in new power plant construction.

Objectives

Reducing GHG emissions.
Decreasing the quantity and cost of coal fuel by partially replacing coal with biomass.
Conducting a study on technical feasibility and economic viability of using biomass to scale up operations.

Investment Details The cost of upgrading fuel feeding systems and related equipment to accommodate biomass fuel is RMB 2.28 million/year, with a payback period of 2 years.

Benefits

Generating an additional RMB 2.1 million in revenue from the sale of Carbon Emission Allowances (CEAs).

Environmental Contributions

Reducing GHG emissions by 37,500 tonnes CO2e/year.

Social Contributions

Generating income for local communities by purchasing agricultural waste materials in the areas surrounding the power plant.
Reducing air emissions, such as particulate matters caused by burning agricultural waste in open areas.

Project for Utilizing Heat from Cooling Water

In the normal process of electricity generation, cooling water in a closed system absorbs heat from various pieces of equipment and releases it into the atmosphere at the cooling tower. This results in the loss of thermal energy that is not utilized, as well as water loss due to evaporation. Therefore, Zhengding Combined Heat and Power Plant has adopted heat pump technology to capture heat from the cooling water and transfers it, increasing the temperature of the water to a suitable level, which can then be distributed to residential customers. Commercial operations will begin at the end of 2025.

Objectives

Reduce heat energy loss in the cooling water system and efficiently recover the energy for reuse.

Investment Details

Installation cost for pumps and control systems: approximately 1.81 million RMB, with a payback period of 2.09 years.
Electricity cost for operating the pumps: approximately 667,000 RMB per year.

Benefits

Increase revenue from hot water sales: approximately 1.73 million RMB per year.
Reduce greenhouse gas emissions by 3,200 tons per year, and sell Carbon Emission Allowances (CEA), generating additional revenue of approximately 210,000 RMB per year.
Reduce water consumption by around 5,800 tons per year, equivalent to approximately 30,000 RMB per year.

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