สารจากกรรมการผู้จัดการ รู้จักกลุ่มสหโคเจน . ครอบครัวสหโคเจน . การด�าเนินธุรกิจที่ยั่งยืน . โครงสร้างองค์กร นโยบายด้านความรับผิดชอบต่อสังคม ความรับผิดชอบต่อชุมชน สังคม และสิ่งแวดล้อม . กิจกรรมภายในองค์กร . CSR เพื่อสังคมภายนอกองค์กร การสื่อสาร และการเผยแพร่นวัตกรรม รางวัลแห่งความภาคภูมิใจ

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Messege from the Managing Director Sahacogen and Affiliates . Sahacogen Family . Sustainable Business Operation . Organization Structure Corporate Social Responsibility Policy Community, Social and Environmental Responsibilities . Sahacogen Activities . Participation in Developing Communities and Society Communication and Innovation Dissemination Awards and Recognition

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Table of Content

ต้นกล้า

กระถินเทพณรงค์(Acacia Hybrid.)

“โครงการไม้โตเร็วเพื่อพลังงาน”

MESSAGE FROM THE MANAGING DIRECTOR

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Thesignificantfactors influencingonthesuccessofenergybusinessoperationofSahacogen(Chonburi)PublicCompanyLimitedarethedeliberatelyimplementationundergoodcorporategovernance,efficientlycontroloftheenvironmentalimpacts,contributiontosociety,establishmentof community involvement to itsoperationetc.Consequently,businessexpansionsthroughestablishingitssubsidiariesandjointventuresarefocusedonbusinessoperationassocialbusinessenterprise.Thesocialresponsibilityactivitiesareassimilatedtobeapartofbusinessimplementationcontinuouslyandsustainably. Sahacogen’sbiomassbusinesshelpsmitigatingsmogpollutionandglobalwarmingissue.Ouroperationisbasedonthegovernmentpolicyandalsothebasicprincipleofhelpingthelocalcommunities.Specifically,thesocialresponsibilityactivitiesthatpromotethelongtermrelationshipwithlocalcommunities.Sahacogenhireslocalpeopletoworkonthefastgrowingtreeplantationswhicharetheresourcesofproducingbiomassfuel.Thetasksincludenurseryseedlings,harvesting,collectingprocess,transforminganddistributingbiomassfuel.Suchoperationsarecommonlyconductedwithgoodgovernance.Bythismeans,Sahacogenhelpsthelocalcommunitiesbycreatingjobopportunitiesforindividuals.Therefore,thebiomassenergybusinessesofSahacogenarerecognized.Sahacogen(Chonburi)anditssubsidiariesareopenedtovisitorsandthepublicwhoareinterestedinourbusinesstotakeadvantageontheenergyproducingactivities,thounsandsofvisitorsfromlocalcommunities,educationinstitutes,governmentagencies,andfarmersinthevicinityareasvisitedourofficesyearly. Sahacogenanditsaffiliatesreceivedandbestowedawardsandcertificationse.g.thesystemcertificationISO9001,ISO14001,TIS18001andBSOHSAS18001,EIAMonitoringAwards,GreenIndustryAwards,EnvironmentalGovernanceAwards,CorporateGovernanceAwards,CrownStandardtoCleanDevelopmentMechanismAward,CSR-DIW,ThaienergyAwards2012,andalsoASEANEnergyAwards2013,etc.AlltheseawardsandcertificatesaretheprovenevidencesofSahocogenandAffiliates’successinoperatingourbusinessinaccordancewiththeprudentcareofsocialresponsibility.We,executivesandemployees,committothisprinciplebyrunningourbusinessesincompliancewiththeprinciplesofgoodgovernanceandsustainablebusinessintegration.

(Mr.VirojTheeravatvatee)ManagingDirector

SAHACOGEN AND AFFILIATES

SAHACOGEN FAMILY

Sahacogen,anaffiliatedcorporationofSahaGroup,isapowerproducerinthecategoryofSmallPowerProducer(SPP)andVerySmallPowerProducer(VSPP).Sahacogen(Chonburi)PCL.wasestablishedin1996locatedatSrirachaSahaGroupIndustrialPark,Chonburiprovince.Itisacombinedcyclecogenerationplantwithanelectricitycapacityof122MWand40tonsofsteamperhour.ThisplantusesnaturalgasasrawmaterialandproducespowertomeetthedemandonelectricityandsteamoffactoriesatSrirachaSahaGroupIndustrialPark.TherestissoldtotheElectricityGeneratingAuthorityofThailand.Ithascommerciallyproducedelectricityandsteamsince1999,andregisteredtobeapubliclylisedcompanypnOctober4th, 2002.In2004,productioncapacitywasexpandedto174megawattsofelectricityand81tonsofsteamperhour. Intheinterestofbusinessexpansion,SahacogenbegantoproducecleanpowerfrombiomassfuelsatSahaGroupIndustrialPark-Lamphunin2006underthemanagementofSahacogenGreenCo.,Ltd.withtheelectricitycapacityof9.6megawattsand25tonsofsteamperhour.TheelectricityhereissuppliedtotheProvincialElectricityAuthority,whilethesteamisdeliveredtofactoriesatSahaGroupIndustrialPark-Lamphun.ThebiomasspowerplantherehasbeenincommercialoperationsinceMarch2011.Toensuregreateravailabilityofbiomassfuels,SahacogenalsoinitiatedtheFastGrowingTreePlantationprojecttoaugmentavailablefuelsupplies. Buildingontheachievementsofbiomasspowerplantdevelopmentprojectsandfastgrowingtreeplantations,Sahacogenhasstartedtouseeucalyptuswoodbark-aresiduefrompaperpulpproductionfromtheassociatedSiamCementcompany-andlocalagriculturalresiduesasfuelforelectricitygeneration.TheSahagreenForestCo.,Ltd.wasestablishedatthePhranKrataidistrict,Kamphaengphetprovince;itconsumesthesefuelstoproduce7.5megawattsofelectricity,whichitsellstotheProvincialElectricityAuthority.IthasbeeninoperationsinceDecember2012.Additionally,SahacogenhasenhanceditsrenewablebusinessbyestablishingSahagreenEnergyCo.,Ltd.,locatedatKabinburidistrict,PrachinburiprovinceinMarch2012toproducebiomasspellets fromfastgrowingtreeplantations. ItcommencedcommercialproductioninJune2013with5tonperhourcapacity.

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SUSTAINABLE BUSINESS OPERATION

Vision

“Wewillbealeadingsmallpowerproducerandrelatingbusinesseswiththecontinuousandsustainabledevelopmentstomaximizethesatisfactionofstakeholders.”

Mission

Produceanddistributehighqualityandreliableenergytomeettherequirementsandsatisfactionsofcustomers.Enhancecapabilityandcompetencewithcontinuousdevelopment.Complytogoodgovernanceprincipleswithrespecttosociety,counterpartiesandemployees.Operatethebusinesswithconcernsregardingsafety,occupationalhealthhazardsandenvironmentissues.

Corevalue

PositiveThinkingInitiativeProactiveEntrepreneurshipTeamwork

Sahacogendefinesitsvision,mission,andcorevaluetooperatethebusinesssustainablyasfollows:

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Adherence to the United Nations Global Compact

Human Rights

1.Businessshouldsupportandrespecttheprotectionofinternationallyproclaimedhumanrights.

2.Businessshouldmakesuretheyarenotparticipatinginactivitiesabusinghumanrights.

•Thecodeofconductdefines“humanrights”accordingtoitscorporategovernancepolicy.•Equalopportunityemployer:avoidsdiscriminationbasedongender,skincolor,race,religion,personalbelief,age,disability,orothercharacteristicsnotrelevanttothejobscope.•Providescommunicationchannelsforemployeeswhowanttopetitionclaimsofinequita

bletreatmentorinfringementonhumanrights.Allclaimsareprocessedfairly.

Labor

3.Businessshouldupholdthefreedomofemployees’associationandtheirrightstoclaimforgroupnegotiation.

4.Businessshouldeliminateallformsofforcedandcompulsorylabor.

5.Businessshouldstopabolitionofchildlabor.

6.Businessshouldstopdiscriminationinrespectofemploymentandoccupation.

•Underthelegalframework,allemployeeswillbetreatedwithrespect,dignityandallbasicrightsintheworkplace.

•Allemployeeswillbegivenanequalopportunityforgrowthandpromotionthroughen couragedtrainingandexchangeofknowledge.

•Compensationisbasedonanemployee’sknowledge,competence,position,responsibilityandperformance.Theperformanceevaluationwillbeconductedfairly.

•AWelfareCommitteewillbeestablishedtoconsiderwelfarebenefitsforemployeesatalllevels.Thisincludesmedicaltreatment,providentfunding,andwelfareextendingtofamilymembers.

•Allfacilitieswilloperateunderasafe,hazardfreeenvironment.•Strictlyprohibitsforcedlabor,childlabor,andillegallaborinallmannersofbusiness.

Environment

7.Businessshouldsupportaprecautionaryapproachtoenvironmentchallenges.

8.Undertakeinitiativestopromote greater environmentalresponsibility.

9.Encouragethedevelopmentanddiffusionofenvironmentallyfriendlytechnologies

•SettingCompany’svisionasbeingaleadingsmallpowerproducerandrelatingbusinesseswithafocusonmitigatinganydischargeandabsorptionofcarbondioxidetotheenvironment.

•SettingCompany’smissiontoadheretogoodgovernancewithrespecttosociety,counterpartiesandemployees;andalsorespondtoanyconcernsregardingsafety,occupationalhealthhazardsandenvironmentconcerns.

•TheCSRCommittee,SafetyHealthOccupationCommittee,andtheSafetyCommitteewillconductcomplianceregularly.

•Informationwillbetransparent,accurate,inplainlanguage,andwillbedisclosedinatimelymanner.Feedbackandimpactsonnearbycommunitieswillbehandledinatimelymanner.

•BuildandcultivateCSRandenvironmentalawarenesstoemployeesatalllevels.Resourceswillbeusedefficientlyandsustainably.

•Supportthedevelopmentandtheuseofenvironmentalfriendlytechnology.

Anti-Corruption

10.Bus iness should workagainstcorruption inall itsforms, includingextortionandbribery.

•Policiesarerequiredtocomplywiththelaw.Anti-corruption,givingandreceivinggifts,entertainment,andsupport/donationsmustbeinlinewithpoliciesanddisclosedtomanagement.

•Promotetheorganizationculturetoactwithintegrity.•Managementcontrolsandinternalauditswilloperateefficientlyandeffectively.•Organizationandpresentationoffinancialreportsmustbeaccurateandtransparent.•Establishcommunicationchannelsforissuesrelatingtocorruption.Ensuresafety,anonymity,

andprotectionforanyonewhocomesforward.AuditCommitteewillinvestigateallcasesinatransparentandequalmanner.

The 10 Principles Sahacogen’ s Operation

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Basedongoodcorporategovernanceprinciple,Sahacogenrealizesontheimportanceofpursuingitsbusinessesonthebasisofcorporateresponsibilitytothesociety.ThecompanyhassetapolicytoappointtheCSRCommitteein2014.ThecomitteewillbeselectedfromtheBoardofDirectors,theexecutives,andtheexperiencedpeoplewhoiscapableforpublicre-lation.ThisCSRCommitteeisresponsibleforCSRdevelopmentandgovernance.Currently,theCSRSub-committeeistakingcareofthesocialresponsibilitytasks.Thesub-committeecomprisedofthefollowingmembers:

1.Mr.VirojTheeravatvatee TheChairmanoftheCSRSub-committee2.Mr.ApipongVischuveskamin ViceChairmanoftheCSRSub-committee3.Mr.TeerayuthKaewcoon TheCSRSub-committee4.Mr.UranRoempluk TheCSRSub-committee5.Mrs.UthoompornSinprajackpol TheCSRSub-committee6.Mr.ThanawatKamsri TheCSRSub-committee7.Mr.SutasBoonsoi TheCSRSub-committee8.Mr.AmornpongLaomatana TheCSRSub-committee9.Mr.PornsakChuamuangphan TheCSRSub-committeeandsecretary

Moreover,theCSRrepresentativegroupsareformedforeachlocationaddressingoftheSahacogenandaffiliates,totally4groupscurrently.

ORGANIZATION STRUCTURE

Basedongoodcorporategovernanceprinciple,Sahacogenrealizesontheimportanceofpursuingitsbusinessesonthebasisofcorporateresponsibilitytothesociety.ThecompanyhassetapolicytoappointtheCSRCommitteein2014.ThecomitteewillbeselectedfromtheBoardofDirectors,theexecutives,andtheexperiencedpeoplewhoiscapableforpublicre-

ORGANIZATION STRUCTURE

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• Good Governance Sahacogendoesbusiness in accordancewith the good corporate governanceprinciples, ethics,moral, socialbenefitsandstakeholdersfairtreatment.Thecompanyalsofocusesonincreasingitsvaluesandsupportingthecompanysustainablegrowth.

• Anti-Corruption Transparency,integrityandjusticearetheessenceofSahacogen’sbusinessoperation.Illegalandimmoralpracticesarenotacceptable.

• Human Rights Sahacogensupportsthehumanrightsprotection.Allstakeholdersandotherpeoplewillbeequallytreatedregardlessofgender,skincolor,race,religion,personalbelief.

• Labor Practices Sahacogenprovidesfairemployeebenefitsandwelfaresaccordingtothelaborlawsandoccupationalhealthandsafetymanagementprinciples.

• Consumers and Suppliers Sahocogeniscontinuallydevelopingtheoperationalsystemtoefficientlydelivergoodqualityproductsandservicestocustomers.Wetreatoursupplierswithfairtrades.Moreover,wearefocusingonbuildinglongtermrelationshipswithcustomersandsuppliers.

• Environment Sahacogenpromotestheresourcesmanagementforsustainability.Weensurethecomplianceinenvironmentalfriendlyprocedurestoreducetheriskandnegativeeffectsfromouroperation.Wealsohelptopreservethelocalecologysystemsandcommunitiesenvironmenttobesustainable.

• Community Involvement and Development Sahacogensupportsthelocaldevelopmentintermsofeducation,economyandlivingquality.Weencourageourstafftoregularlyparticipateinpublicbenefitandlocaltraditionalactivities.

• Innovation and Dissemination Sahacogengivescollaborativesupportstolocalcommunitiesandlocaleducationalinstitutionstoconductstudiesinrawmaterialproductivityimprovement,usingby-productsincreatingnewinventions,andalsopracticallypromotesuchideasandpracticestothelocalcommunities.

CORPORATE SOCIAL RESPONSIBILITY POLICY

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Community, Social and Environmental Responsibilities

SAHACOGEN ACTIVITIES

SAHACOGEN HAPPY FAMILY

Sahacogenandaffiliatesprovidesfringebenefitstoourmanagementsandemployees.Thedetailsareaslistedhere.

Happy Health

Intermsofhealthwelfare,weprovidelifeinsuranceandhealthinsurancepackagesforemployeesandtheirfamilymembers.

Wepromotetheexerciseregularlybyencouragingouremployeestousethesportfacilitiesprovided.

Wehaveannualhealthcheckupservice.Internalknowledgesharingrelatingtohealthcareareorganizedconsistently.Forexample,weprovidefirstaidtrainingandnegativeeffectsfromdrugsseminar.Additionally,medical suppliesandmedicinesareavailableforemployeeuponrequests.

Sportdayactivitiesarearrangedregularlythroughouttheyear.Weusuallyhavesportactivitieswithourtradecounterparties,localcommunitiesandotherorganizations.

Wehave“SafetyandOccupationalHealthWeek”activitiesaimingtostimulatesafetyawarenessinworkplaceanddailylife foremployees.Theactivities, forexample, includeexhibitions,trainingandseminar,campaigningfordrivingsafety.

. Happy Health

. Happy Heart

. Happy Brain

. Happy Soul

. Happy Family

. Happy Society

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ReferringtoanactivitywiththeEngineeringInstituteofThailandunderH.M.theKing’sPatronage,wehavebuiltuptheweirsand irrigationsystems inordertocelebratedthe80thAnniversaryofHisMajestytheKing’sBirthday.Wedonotstoponlyonbuildinguptheweirs,sowehavearrangedtheactivitiestomonitorandassesstheresultoftheprojectsinMaeLongvillage,Bantabsub-district,MaeChaeamdistrict,ChiangMaiprovince.

“SharingtoChildren”projectisourcollaborationwiththelocalmediaassociationandpartnerstoregularlyprovidescholarships,sportequipments,lunchandarranginglearningactivities to students inschools located nearby the powerplants. Happy Hน�า้ใจ)

“WarmHug and Smile by Sahacogen” project is forhelping socially disadvantaged people. This project hasbeenannuallyheldbygivingfinancialsupports,foodsandnecessary items to orphans, peoplewith disabilities andelderpeopleinthewelfarefosterhomes.

BlooddonationprojectcollaboratedwiththeThaiRedCrossSocietyhasbeenheldmonthly.

Sahacogenshowsourcaresandconcernstoemployeeswhoaresickorduringtheirsickleave.Wehaveourrepresentativestovisitthemattheirhouseorhospital.

Happy Heart Happy Brain

Sahacogencontinuouslyprovidesemployeestrainingsandseminars.Wehavebothinternaltrainingsandalsosessionswithexternalspeakers.Weaimtodevelopouremployees’knowledgeandcompetencyinallfunctions.

Theemergencydrillsandfireevacuationrehearsalareregularlyconductedsothatemployeeshaveexperienceonhowtorespondtounplannedincidents.

“SafetyTalk”isasharingactivityallowsemployeestotalkaboutsafetytipsandshowingtheircaretocoworkers.Safetytips inworkplaceanddaily lifecouldbediscussed.Weencourageemployeestousethisactivityastheopportunitytogiveinputsonsomesortoftheactionsoreventsthatcouldcausethedanger.

“SafetyWeek”isawhole-weekactivitypromotingsafetyandenvironment.Itisusuallyheldonceayeartopromotesafetyawarenessinworkplacewithaninvolvementofem-ployeesatalllevels.

Weencourageouremployeestostudyinhigherlevelorstudyforeignlanguages.

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“SahacogenFamilyDay” isheld tostrengthentherelationshipandbuildingup the tightenbondsamongemployees’familymembers.Sahacogenbelievesthatgoodfamilyisthebasicfactorincreatingqualitypeople.Weorganizeactivitiesonthe“FamilyDay”,forexample,areSahocogenkidscontest,familyportraitscontest,sportactivitites.

NewYear’sEvepartyisheldforemployeesandtheirfamilyeveryyear.

SahacogentripisanannualactivityforemployeesandtheirfamilymembersallowingthemtospendaqualitytimetogetherandsupportingThaitourismindustry.

Happy Soul

“CharityforReligion”projectistosupporttheBuddhismandencourageemployeestobemerciful.Wehaveactivityfor offering foods formonks once amonth and also onBuddhismholydays.

Wehaveactivitiestomakemeritintemplesthroughouttheyeare.g.cleaningtemples,offeringbigcandletobeusedinthetempleduringtherainingseason(lent),andtreesplanting.

SongkranFestivalcelebrationisnormallyheldbyallowingemployeestopourwaterontheBuddhastatute,pourwaterto executives (elder people) for blessing. All this activitiesaredone according toThai traditions inorder topreserveourThaiheritage.

Wehaveannuallymeritmakingandchantingactivitiesateachofourgroupoffices.

Happy Family

SahacogenhavemadeanagreementwithGovernmentHousingBanktoofferlowinteresthousingloanforemployees.Weaimtosupportouremployeesofhavingahouseandbuildinguptheirfamily.

Providentfundandsocialsecurityfundareprovidedaccordingtolaws.Wealsoofferpatronizingmoneyforlifeeventse.g.weddingceremony,ordinationceremony,housewarmingceremonyandfuneral.

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“Sahacogen Anti-Drug” Project is the effort to stimulate employees’ concerns about negative effects from using drugs. The “White Factory” event is held to support this project with various activities such as exhibitions, anti-drugs slogan contest, drug detection testing, professional advisory service for smoke quitting.

“Sahacogen Helping Mind for Goodness” Project promotes our organization culture in encouraging employees do good deeds to themselves, their families, organization, and society. The trophies are awarded to employees who are outstanding in doing volunteer activities and to inspire other people of doing so.

Happy Society

“Global Warming to Green Energy” Project is aiming to create awareness of energy conservation. We have the monitoring and reporting of the energy usage in organization. The assessment will lead to cost reduction and global warming prevention. All the procedures are encouraged to be implement in households and employees’ daily life.

“Energy Day” Project is an activity to build up the awareness of energy conservation among our employees. We have exhibitions, slogan contest, photo contest, and the energy saving demonstration.

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Participation in Developing Communities and Society“Sahacogen operates its businesses for sustainable growth with

responsibility to thesociety in all angles”

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SahacogenandAffiliatesareagroupofcleanpowerproducers.Wearefocusingondevelopingourenergybusinessesinaccordancewithgoodcorporategovernanceprinciples,businessethics,socialresponsibilityandenvironmentconcerns.Wealsofostertheseprinciplesinourorganizationandpromotingthisvaluetoouremployees. SahacogenandAffiliateshavebeenpayingourattentiontoourstakeholders.In2013,wehaveexecutedprojectsaccordingtoourvisionandmissionaimingtobealeadingcompanyamongothersmallpowerproducers.These projects and activit ies could be categorized and l isted as shown in the table below.

TYPE PROJECT AND ACTIVITY

Education

- SahacogenKnowledgeSharingtotheYouth- SahacogenScholarships- SahacogenOpenHouse- EnergyTreesPlantationforLunchSponsorship- YouthandEnergyProject- EnergyinDrawingProject- YoungGenerationandSustainableEnergyConservationProject- ResearchforAddingValuetoBiomassAshes- SupportingforSocialStudies

Sport- SahacogenFootballCupProject- CustomerSportDayProject- Anti-DrugSportsforLocalCommunitiesProject

Quality of Life- GoodHealthtoCommunityProject- VillageHealthVolunteerDevelopmentProject(VHV)- PublicHealthVolunteerLeaderNetworkProject- GoodHealthIsNotForSaleProject

Environment

- FertilizertoForestConservationProject- PlantationforRoyalFamily’sGlorificationProject- CleanCanalandEnvironmentCareProject- StopBurningforSmogReductionProject- WasteBankforEnvironmentProject- EnergyConservationinWorkplaceProject- GreenAreaProject- CleanEnergyforCommunityProject- CO2ReductionProject

Religion, Culture, and Local Traditional

- SongkranFestival- BuffaloRacingFestivalandFishingandEatingFestival- PouringWaterontoRelicsoftheLordBuddhaTradition- InvitingtheGoddessofRicetoRiceFieldsTradition- PayingtheRespecttoSpiritsoftheSourceofRiversTradition

Public Benefit

- IrrigationsystemmaintenanceinMaeLongVillageProject- CommunityDevelopmentVolunteerProject- BiomassAshBricksDonation- PublicBuildingRenovationProject- DisasterAidingProject

Economy

- CommunityAgroforestryProject- FastGrowingTreesPlantationforEnergyProject- GreenWasteCompostProject- CareerCreationforLocalCommunityProject- AgricultureProductivityEnhancementUsingBiomassAshesProject

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Energy Trees Plantation for Lunch SponsorshipSahacogen has collaboration with the government agencies, such as the Provincial Office of Natural Resources and Environment, Primary Educational Service Area Office, and Provincial Administrative Organizations. It is the trees plantation project aiming to teach kids about planting and using the empty space within their school efficiently. The fast growing plants will be sold as the biomass resource. The money they earned is to subsidize their lunch. In 2013, Sahacogen selected 10 schools to participate in this project.

Young Generation and Sustainable Energy Conservation ProjectSahacogen gives an importance to the study and development regarding to country’ energy issues, especially the use of renewable energy. Therefore, Sahacogen has been focusing on education for the youths. We expected to have at least 500 teenagers participating in our activities each year. The knowledge sharing methods include trainings, seminars, site visit, and camping.

Education

Sahacogen Knowledge Sharing to the Youth Education is the key fundamental in living quality development. Sahacogen allocates our budgets for sponsorship to schools. This money is for books, educational items, sport equipments and computers. It has been 6 years since our first start. In 2013, there are 18 schools got sponsored by this project.

Sahacogen Scholarships Sohacogen has a group of scholarship committee screening and selecting kids from poor families, or ones with disadvantaged opportunity. We provide 80 scholarships each year, bringing to the local communities’ leaders and school principals. The total amount is over THB 500,000. Moreover, we also provides sponsorships through other activities e.g. painting competition, lunch sponsorship, Thai Children Day activities.

Sahacogen Open HouseSahacogen has set a policy to open our plants to be the community learning center. We are welcome many visitors from government agency organizations, educational institutions, and local government offices. We are very pleased to share our knowledge and innovation for the further integration. Each year we have approximately 3,000 people coming to visit us.

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The Quality of Life

Good Health to Community ProjectSahacogenandAffiliatessupportsthehealthcareactivitieswithcollaborationfromtheProvincialPublicHealthOffices.Weoffer freeofchargehealthcheckupservicesonthemobilebuses to thevillages.Eachyear,wehavebeenprovidingservicestomorethan5,000villagers.

Research for Adding Value to Biomass Ashes Referringtotheenvironmentalmanagementpolicy,SahacogenandAffiliateshavebeenemphasizingonwastereduction.Wealsopromotetheusewastesfromproductionprocessastherecycleitemsorascomponentsinreproduction.Sahacogenhassponsoredandprovidedequipmentstoschoolsforbiomassashesresearchconducting.Theexampleofstudytopicsarelistedbelow.

“Theuseofbiomassashesfrompowerplantstoproducetheconstructionmaterials”byFacultyofEngineeringing,ChiangMaiUniversity

“Theuseofbiomassashesfrompowerplantscombiningwiththetreetrimmingresiduesinorganicfertilizerproduction”byFacultyofEngineering,ChiangMaiUniversity

“Mulchproductionforgroundprotection”bySchoolofAgricultureandNaturalResources,UniversityofPhayao

“Theeffectfromusingbiomassashestothegrowthofriceandcorn”byFacultyofSciencesandAgricualturalTechnology,RajamangalaUniversityofTechnologyLannaLampang,Lampangprovince

Supporting for Social StudiesSahacogenandAffiliatesaretheinformationsourcesforre-searchesandstudiesregardingharmonizationoffactorieswithlocalcommunities.Wehavebeensupportingthestudyin“CSRofBiomassenergyPowerPlantMeditateonCorporateImage,CustomerSatisfactionAmongRiskSocietytowardsMarketingSustainabilityinNorthofThailand”donebyMr.NitithornWongchetha,theDoctoratestudentofMarketingDepartment,UniversityofMalaysia,Terengganu,Malaysia.

Sport

Sahacogen Football Cup Project / Customer Sport Day Project / Anti-Drug Sports for Local Communities ProjectTo strengthen the relationshipbetweenSahacogenandlocal communities, and other stakeholders, we organizesportactivitieseverymonth.Thisisalsotheencouragementforhealthconcernsandtheproductivefreetimemanagement.Notonlysportactivitiesthatweorganized,butwealsosponsorsport equipments for local communities nearby our sites.Theexampleofthesuccessfulsportprojectsareanti-drugfootballmatch, Sahagreen Forest Football Cup, Customerrelationshipfootballmatch.

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Environment

The environment is the basic element for the living quality. Sahacogen and Affiliates have been paying attention on business development in accordance with hazard controls, environmental friendly principles and social sustainability creation through the variety of activities and projects as follows:

Fertilizer to Forest Conservation Project and Plantation for Royal Family’s Glorification ProjectThisprojecthasbeenheldwiththecollaborationfromthelocaladministrativeofficesandthelocalcommunities.Wesupportthegovernmentproject,“Forestationof800millionseedlingstocelebratethe80thanniversaryofHerMajestytheQueen’sBirthday”.Thisprojectaimstocreateandpreservetheforestareaaccordingtotheroyalideas.Wehaveconductedtheprojectsboth inthewoodsandmangroveforests. Inaddition,Sahacogenemployeeshavebeencultivatingrareplantsanddistributingthemtogrow inthestateagencyoffices,temples,andpublicareas.Wehavebeencontinuingthisprojectfor3years,during2011-2013.Thirtythousandyoungplantshavebeendistributedaccordingtotheproject.

Clean Canal and Environment Care ProjectSahacogenandAffiliatesincollaborativeactionwiththelocaladministrativeoffices i.e.TheFisheriesStation, theroyalirrigationinKamphaengphetprovince,andlocalfarmershavehelpedtocleanWangChaocanalinWangTabaksubdistrictandKhuiBanOngsubdistrict,Phrankrataidistrict,Kamphaengphetprovince.Thiscanal is servingas themain resource foragriculturalactivitiesinthisarea.Wehavedredgedthecanal,gotridofthesewages,releasedthefishesandplantedthetreesonthecanalbank.Thisprojecthasbeenimplementedin2013andexpectedtobecontinued.

Village Health Volunteer Development Project

(VHV)Sahacogen has collaborated with local hospitals andlocaladministrativeofficestoeducatetheyouthsaboutbasichealth concerns, first aids and basicmedical sciences in“VillageHealthYouthVolunteerorVHV”project.

Public Health Volunteer Leader Network ProjectSahacogenandAffiliatesjoinwiththeprovincialadministrativeofficesandProfessorDr.SomboonVacharotaiFoundationtoorganizeworkshopsforyouthvolunteersandentrepreneurs.Theobjectiveofthisproject isaimingtopromotehealthconsciousness,mentalhealth,qualityeatinghabitsandregularexcise.Thekeyvolunteerleadersfrom7communitieshaveparticipatedinthisproject,totally150people. Good Health Is Not For Sale ProjectSahacogenandaffiliatessponsorcommunitiesnearbythepowerplantsinordertoorganizehealthactivitiese.g.aerobicdancing,Petanquecompetition;andtraditionaldancingcontestforladies,housewives,andelderly.Theparticipantsintheseactivitiescamefromdifferentcommunities,totally1,000people.

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Waste Bank for Environment ProjectIndustrial and household wastes are also one of the environment issues. Sahacogen and Affiliates emphasize on waste separation, implementing in both offices and operating sites. The wastes will be sold the professional waste treatment service providers to be recycled. We also encourage our employees to implement the waste separation methods in their house as well. Money from wastes selling will be donated to other charity projects. We are able to collect approximately 20 tons of wastes each year and indirectly help in reducing pollution.

Stop Burning for Smog Reduction ProjectThe northern part of Thailand has been countering with smog issue. Sahacogen and Affiliates have been helping the local administrative offices to campaign the reduction of agricultural residue firing after the harvest. This project is aimed to diminish smog pollution and global warming problems. It has been 3 years since our first initiation.

Energy Conservation in Workplace ProjectTo support the government policy on energy conservation, Sahacogen and affiliates has appointed the energy conservation working group to campaign the energy consumption reduction culture among employees. In 2013, we are successful in reducing the electricity usage by 3,357.40 units and water consumption 2,282.00 cubic meters. We also promote other means of reduction e.g. two-sided paper usage policy and carpool policy.

Electricity used in workplace 2012-2013

12,721.30 kwh 9,363.90 kwh

22,505.70 cubic meters

20,223.70 cubic meters

2012

201220132013

Water resource used in workplace 2012-2013

Energy Conservation in Workplace Project

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Green Area ProjectSahacogenandAffiliatesallocateourworkingspacetobegardeningareasaccordingtotheregulations.Weusewaterfromproductionprocesstowatertheplantsinourgardensandalsodistributethewatertohouseholdsnearbyfortheirkitchengardencultivation.ThispracticeallowsustousewaterresourceefficientlyaccordingtoSahacogenandAffiliatespolicy.

Clean Energy for Community ProjectSahacogenandAffiliatescommittodevelopingcleanenergywhichisenvironmentalfriendly.Weuseadvancedtechnology,equipmentsandefficientmachinesinouroperation.Wehaveprofessionalsrunningourprocess.Wealsofocusonmonitor-ingandassessmentofthesystem’senvironmentimpact.Wealwaysconductthepollutiontestandsendreportstothecommunityrepresentativestwiceayear.

CO2 Reduction ProjectSahacogenandAffiliatesputtheresponsibilitytoenvironmentasapartofourbusinessintegrity.WehavebeencollectingdataregardingtoCabondioxidereductioninouroperatingprocesssincewefirststartedourbusiness.Thisisbasedonourbeliefondoingbusinessforgoodenvironmentandthatisbenefitingtosociety.benefitingtosociety.

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Irrigation system maintenance in Mae Long Village ProjectReferring toanactivitywith theEngineering InstituteofThailandunderH.M.theKing’sPatronage,wehavebuiltupweirsandirrigationsystemsin2009sothatthecommunityhascleanwaterforconsumption.Sincethen,wehavebeenarrangingtheactivitiestomonitorandassesstheresultoftheprojectsinMaeLongvillage,Bantabsub-district,MaeChaeamdistrict,ChiangMaiprovinceeveryyear.

Community Development Volunteer ProjectSahacogenandAffiliateencourageouremployees toparticipateinvolunteeractivities.We,therefore,motivateourstafftoparticipateinpublicactivitiesintemples,andpublicbuildinginmanyoccasions.

Biomass Ash Bricks DonationBricksmadeofbiomassashesaretheproductsmadeofashesfromourpowerplants.Thesebrickscanbeusedaswalkwayandcarparkingrevetment.SahacogenandAffiliatesdonatethisinnovativeproducttotemplesandlocaladministrativeofficesclosetothepowerplants. Intotal,wehavegiven75,000bricksto10places,totalvalueofTHB450,000bath.Thisprojecthas juststartedin2013,andexpectedtobecontinuedeveryyearfromnowon.

Public Building Renovation ProjectWeallocateourbudgetingtorenovatesomepublicbuildingsandconstruction.Theoldconstructionsarebusstopshelter,newspapercorner,sportareas,publicbuilding,etc.Therefore,SahacogenandAffiliateshassponsoredandcoordinatedwiththecommunitiestorestoreandrenovatethemtobeingoodcondition.

Disaster Aiding ProjectIn2013,SahacogenandAffiliatesallocatebudgetforhelpingvictimsfromnaturaldisasterssuchasfloods,fire,andthecoldweatherduringwinter.WehelpbydonatingmoneyandconsumerproductstovictimsinChonburi,Prachinburi,Lamphun,andKamphaengphetprovince,whichareareaswhereourpowerplantsiteslocatedon.

Religion, Culture, and Local Traditional

Religion, culture and local traditions heritance fundamentally helps in strengthen the relationship among people in communities. Sahacogen and Affiliates support many organizations in arranging activities for local communities in different events.

Songkran FestivalSahacogenandAffiliatessponsortoarrangeactivitiesonSongkrandaybyhavingwaterpouringactivitieswithvillagerslivingclosetoourpowerplantsites.Wealsohaveour representativeparticipating inpouringwaterontheBuddhastatute,andpouringwatertocommunityleadersforblessing.Thisactivityhasbeenarrangingonceeveryyear.

Buffalo Racing Festival and Fishing and Eating FestivalToretainthelocaltraditionsandpromoteThaitourismindustry,SahacogenandAffiliatessponsorthebuffaloracingfestivalandalsofishingandeatingfestivalheldbythelocaladministrativeofficesannually.

Pouring Water onto Relics of the Lord Buddha TraditionTocarryonthereligiousandLannatraditions,SahacogenandAffiliateshasbeenconstantlyparticipating inPouringWaterontoRelicsoftheLordBuddhatraditionandPoiLuangceremonywhichhavebeenheldbythecommunitiesaroundSahacogenpowerplant.

Inviting the Goddess of Rice to Rice Fields TraditionTogetclosertothefarmers’livelihoodandthevalueofrice,SahacogenandAffiliatessponsorandparticipateinthelocalcustomofpayingrespecttothegoddessofrice.ThisistheannualactivityincollaborationwithfarmersandvillagersinThunggradvillage,Srirachadistrict,Chonburiprovince.

Paying Respect to Spirits of the Source of Rivers TraditionWeknowwateristheessenceforagricultureandhouseholdconsumption.Therearemanyactivitieslocalpeoplearrangetoshowtheirrespecttothespiritoftheriver.Forexample,thecustomofpayingrespecttothespiritoftheriver,askingforthecontinueflowofwaterthroughouttheyear.SahacogenandAffiliatesjointhisactivitytocreatethemoralsupportandalsotherelationshipbondingamongthelocalcommunitymember.

Public Benefit

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Green Waste Compost ProjectSahacogenandaffiliatesjoinwithMaeJoUniversityinChiangMaiprovincetopromotethereductionofburningactivitytoreducesmogpollutionintheNorthernpartofThailand.Wehavefinanciallysupportedstudents,trainedthemandcreatedavideopresentation.Weusethisvideoasamediatoeducatefarmerstomakecompostfromagriculturalresiduesinsteadofburningthemafterharvesting.Wepurchasebackthefertilizertouseinourplantationbusinessofferingbetterratecomparingtomarket.Wehave15groupsoffarmersjoiningintothisproject.Theycanproduce450tonsoffertilizervalueTHB1.35millionintotal.

Career Creation for Local Community ProjectSahacogenandAffiliatessponsortotrainextraskillsaimingtocreatemoreopportunityforlocalpeople.Wehavejointedcollaborationwithgovernmentoffices.Forexample,DepartmentofSkillDevelopmentheldtrainingsessionstoteachabouthandicraft,cooking,herbalmedicine,basketmaking,organicrice,etc.Moreover,wealsoarrangethefleamarketsasthesellingchannel.Thisprojecthelpslocalpeopleindevelopingskillsandcreatingextrahouseholdincome.

Agriculture Productivity Enhancement Using Biomass Ashes ProjectBiomassashisaby-productfromtheenergyproductionofthebiomasspowerplants. Itsqualification isanalkalinesubstancecomposingof14%potassium.Itisusefulfortheuseinagriculturalactivities.Ashescouldbeusesasmaterialforgroundcovering.SahacogenandAffiliateshasestablishedalearningcenteraboutbiomassashes.Itisopentolocalfarmersandanyvisitors.Thereareatleast20peopleusingbiomassforcultivationproductivityenhancement.

Economy

Our renewable energy business has created jobs for local people allowing them to earn more from selling agriculture residues to be used in our production. Each year we generate cash flow of THB 200 million. We also try to support job creation and revenue generating activities which could be elaborated as follow.

Community Agroforestry ProjectTopromotethemostefficientusageoflandresourceandcareercreation,SahacogenandAffiliatesallowthelocalvillagerstoadoptAgroforestryprinciple.Theycangrowtreecropse.g.beanplants,cornsandotherdrycropsinSahacogen’sland.Theresiduefromharvestcouldbesoldtoproducebiomassfuel.Currently,wehave40registeredmembersplantingon1.6millionsquaremetersoflandyieldingthemadditionalTHB2millionayear.“CommunityAgroforestry”createsbalancebetween3componentswhichareenvironment,economy,andsocialsustainability.

Fast Growing Trees Plantation to Energy ProjectTomaximizebenefitofexistingresources,SahacogenandAffiliatesgavethefastgrowingplantyoungplantstogrowinthecommunity’sunoccupiedarease.g.alongtheroadside,inthevillage,cremationplaces,abandonedschools,etc.Plantationgivesthecommunityopportunitytoenjoytheplantsshadesandscenery.Moreover,thewoodcouldbeusedinthefuture.

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Saha Group Fair Exhibition No. 17Wepresentedourachievementsandenergyinnovations,

basedonthetheme“Fromusertoproducer,usingenergyefficiently,searchingforthesustainableenergy,andreturningtothesociety”.ThefairwasheldatQueenSirikitNationalConventionCenter.

Renewable Energy Expo to honor His Majesty the King

TheExpowasheldbytheSenateCommitteeonEnergyCooperationtogetherwiththeMinistryofEnergyundertoconceptof“RenewableEnergyasthesolutionforThailand”,whichwasheldattheExhibitionandConference, IMPACTMuangthongThani,Nonthaburiprovince.

Mobile Opportunity DayTheStockExchangeofThailandandMaybankKimEng

SecurityPublicCompanyLimitedheldtheMobileOpportunityDayandinvitesSahacogenandAffiliatestojoinandgivinginformationtothelocalinvestorsfortheirinvestmentdecision.ThiseventwasheldonMay31st,2013inChiangMaiprovince.

Company Visit Sahacogenpresenteditsinformationandbusinessplans

toinvestorsfortheirinvestmentdecisiononSeptember20,2013atthemeetingroomofSrirachaSahaGroupIndustrialPark,Chonburiprovince.

Analysts and Investors Meet Saha GroupSahacogen’sexecutiveshavejoinedtheinformationgiving

sessionwiththeother13 listedcompanies inSahaGroup.ThiseventwasheldonJune28th,2013allowingcompaniestogiveshortbriefsofcompany’sstrategyandfutureplanstoinvestors,analysts,andpublicmedia.Thiseventhasbeenarrangedonceayear,5yearsconsecutivelyat theQueenSirikitNationalConventionCenter.

Television and Online Media“Thai Energy and Conservation” program on TNN2

ChannelhostedbytheOfficeoftheSecretary,MinistryofEnergypresentedthestoriesofrenewableenergybusinessshowing a feature story about Biomass Power Plants ofSahacogenGreenCompanyLimitedandSahagreenForestCompanyLimited.

News Family, Asia Connect Section on Channel 3presentedabouttheachievementofthecompaniesreceivingtheASEANEnergyAwards2013.

General News on Channel 9 presented about theachievementofthecompaniesreceivingtheASEANEnergyAwards2013.

COMMUNICATION AND INNOVATION DISSEMINATIONSahacogen and a ffi l i a te s u s ing ou r webs i te

(www.sahacogen.com),Intranet,GreenEnergyMagazines,Sahacogennewsletters,exhibitionandannualreportasourmaincommunicationchannelsinternallyandexternally.In2013,wehavecorporatecommunicationandpublicrelationactivitiesaslistedhere.

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Printing PublicationTheCompanypresenteditsvisiononrenewableenergybusinessesandtheawardswinningfromThailandenergyAwards2013andASEANEnergyAwards2013throughthefollowingpublications:

Marketeermagazine,volume14,No.163inSeptember2013ThaiPostnewspaper,X-citesectiononOctober29th,2013PimThainewspaper,FirstsectiononOctober30th,2013BanMuangnewspaper,sectiononNovember5th,2013BangkokTodaynewspaper,sectiononNovember5th,2013

Moreover, theCompanypublished information,details, knowledgeonenergy,PRactivities, andCSRprojectsof Sahacogenthroughthelocalmediaasfollows:

Lamphunnewspaper,LamphunprovinceFCSportNewsnewspaper,LamphunprovinceSBLMagazine,routesandtourismindustrialofChonburiGreen Energy Magazines

This isaquarterlymagazineaboutenergyinformationandactivitiesbetweenSahacogenandlocalcommunities,aswellastheinnovationsforlearning.

MCOT radio station, Lamphun provincepublicizedinformation,data,renewableenergyknowledge,PRactivities,andCSRprojectsofSahacogen

Company Website www.sahacogen.com

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Awards and RecognitionSahacogen has a proven success as a very small power producer recognized by

many organizations for its transparency, integrity and commitment to clean energy development. We put the value to the local community engagement and returning the benefit to the society.

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Clean Energy to Community AwardsSahacogenGreenCompanyLimitedwas

awardedasthegoodprivateenterprisefortheattemptinpromotingtheuseofenergysufficiencycommunityprinciples.

Crown Standard CDM Project 2013SahagreenForestCompanyLimitedwasreceiveda

trophyandthecrowncertificatefromGreenhouseGasManagementOrganization(PublicOrganization)(TGO)toguaranteethecompany’sstandardmanagementofcleanenergyproduction.

Thailand Energy Awards 2013 SahacogenGreenCompanyLimited

wasawardedtheoutstandingbiomassfiredcogenerationplant,whichwasorganizedbytheDepartmentofAlternativeEnergyDevelopment(DEDE),MinistryofEnergy.

CSRI Recognition Awards 2013Sahacogen(Chonburi)PublicCompanyLimited

receivedCSRI Recognition 2013 awards ingeneralcategory,heldbytheCorporateSocialResponsibilityInstitute(CSRI),theStockExchangeofThailandtohonorandinspirelistedfirmswhichhaveshowntheircommitmenttoconsistentlyrunningtheirbusinessesforsociety’sbenefit.

ASEAN Energy Awards 2013SahacogenGreenCompanyLimited

won theASEANEnergyAwards2013 forenergyconservationandrenewableenergydevelopmentinASEAN,onthecategoryofBiomassFiredCogenerationPlant,heldatBali,Indonesia.

Sahacogen(Chonburi)PublicCompanyLimitedreceivedCSRI Recognition 2013 awards ingeneralcategory,heldbytheCorporateSocialResponsibilityInstitute(CSRI),theStockExchangeofThailandtohonorandinspirelistedfirmswhichhaveshowntheircommitmenttoconsistently

wasawardedtheoutstandingbiomassfiredcogenerationplant,whichwasorganizedbytheDepartmentofAlternativeEnergyDevelopment(DEDE),MinistryofEnergy.

SahagreenForestCompanyLimitedwasreceivedatrophyandthecrowncertificatefromGreenhouseGasManagementOrganization(PublicOrganization)(TGO)toguaranteethecompany’sstandardmanagementofclean

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ASEANEnergyAwards2013

ThailandEnergyAwards2013

CSRIRecognition2013

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Award for Outstanding Corporate Good Governance TherewardisgiventoSahacogenandAffiliatesforthe

recognitiononconductingbusinessesaccordingtogoodcor-porategovernanceprinciplesandethics.ThisawardisgrantedbytheDepartmentofBusinessDevelopment.

Green Industrial Factory Award, level 2 (Green Activity) Ministryof IndustryhascertifiedthatSahacogenand

Affiliates have successfullymitigated impacts of theenvironmentcomplyingwiththecommitmentregardingtotheenvironmentalandhealthoccupationalpolicy.

CSR-DIW AwardThis rewardwas thecertification for the industrial

factoriesdedicatingtosustainableenvironmentandsoci-etyheldbyMinistryofIndustry.

Good Environment Governance CertificationMinistryof IndustrycertifiedSahacogenandAffilates

asagroupofcorporatethatimplementtheenvironmentalgovernanceprinciplesinitsoperation.

The Certification of Prevention and Resolution on Drugs Problem in the Workplace according to the White Factory Project

MinistryofLaborcertifiedSahacogenandAffiliatesforitspreventionandresolutionofdrugproblemsintheworkplacecomplyingwiththestandards.

Theresultofqualityassessmentonholdingtheannualgeneralshareholders’meetingin2013wason“excellent”levelundertheassessmentofThaiInvestorsAssociation.

TheevaluationonthereportofListedCompanies’GoodCorporateGovernance(CG)in2013,conductedbyThailandInstituteofDirectors(IOD),showedSahacogenandAffiliateswerescoredin“verygood”level.