ENVIRONMENTAL MATERIAL TOPICS

Environmentally Friendly Production Processes and Products

Management of Waste and Scrap Materialsfrom Production

Sustainable Use of Resources

Climate Change

Environmental Commitment

    QTC Energy Public Company Limited is committed to conducting its business in parallel with environmental responsibility under the framework of sustainable development. The Company recognizes that business growth must go hand in hand with the stewardship of natural resources and effective responses to climate change. It places strong emphasis on minimizing environmental impacts throughout the entire value chain—from manufacturing processes, efficient use of energy and resources, and waste management in accordance with the 3Rs principle, to pollution prevention and the conservation of biodiversity.

    In addition, the Company promotes the participation of employees, business partners, and all stakeholder groups in fostering a green organizational culture. Through continuous communication and the cultivation of environmental awareness, the Company seeks to jointly create economic value while caring for society and the environment, ultimately leading to stable and sustainable long-term growth.

     QTC Energy Public Company Limited places importance on conducting its business in parallel with environmental stewardship, as well as ensuring the safety and well-being of stakeholders throughout the value chain. The company is committed to developing efficient industrial operations and production processes by applying innovations and technologies to reduce energy consumption, waste, and environmental impacts. It also promotes the reduction of greenhouse gas emissions and the systematic conservation of natural resources, under environmental governance that complies with relevant standards and regulations. In addition, the company engages with stakeholders to create a balance between business growth, society, and the environment in a sustainable manner.

Risk, Opportunity, and Impact Assessment

Risks

Manufacturing processes and product development that are not environmentally friendly may adversely affect the health of stakeholders, ecosystems, and the environment through pollution, resulting in broader negative impacts on society. In addition, non-compliance with environmental laws and standards may lead to opposition from local communities, suspension or revocation of operating licenses, and adverse effects on the Company’s reputation, stakeholder confidence, and long-term competitiveness.

Opportunities

Enhancing environmentally friendly manufacturing processes and product development provides opportunities for the Company to build trust among communities, stakeholders, and regulatory authorities, while reducing legal risks and the potential for social opposition. It also strengthens the Company’s image as an environmentally responsible organization. In addition, such efforts help enhance competitiveness, enable access to new markets, and expand collaboration with business partners and customers who place importance on sustainability in the long term.

Financial materiality

+ Reduced risks of legal actions, suspension, or revocation of operating licenses
+ Enhanced reputation and confidence among customers, investors, and business partners
+ Increased competitiveness and market opportunities in sustainability-focused product segments
+ Support for business growth and long-term stability
– Short-term increases in investment costs for technology, machinery, or manufacturing process improvements
– Delays in adaptation may result in the loss of business opportunities
– Risks of fines, legal expenses, or operational disruptions
– Adverse impacts on operating performance and long-term competitiveness if environmental requirements cannot be met

Impact materiality

+ Reduced impacts on the health and safety of employees, surrounding communities, and stakeholders throughout the value chain
+ Reduced emissions, greenhouse gas emissions, and waste generated from manufacturing processes
+ Support for the conservation of ecosystems and biodiversity
+ Strengthened relationships with communities and reduced social conflicts
– Inadequate control and management may result in pollution and adverse impacts on community health
– Adverse effects on environmental quality and the degradation of natural resources
– Risks of complaints or opposition from communities and society
– Adverse impacts on stakeholder confidence regarding environmental responsibility

Strategy :

  • Eco-friendly and Compliant Manufacturing
  • Green Product Promotion Strategy

Management Approach :

  • Precautionary Principle: Focus on preventing and minimizing environmental impacts at the source, even in cases where risks have not yet clearly materialized.
  • ISO 14001 Environmental Management System: Applied to establish, manage, monitor, and continuously improve environmental performance in a systematic manner.
  • Life Cycle Thinking / Life Cycle Assessment (LCA): Environmental impacts are considered throughout the product life cycle, from raw material sourcing and manufacturing to product use and end-of-life disposal.
  • Legal & Regulatory Compliance: Operations are conducted in strict compliance with environmental laws and regulations, or beyond legal requirements where applicable.
  • Stakeholder Engagement: Promote engagement with employees, communities, business partners, and government agencies to enhance standards and reduce conflicts.
  • Support for Green Label Products and Promotion of Super Low Loss Transformers

Target 1 :

The air quality monitoring results from the exhaust stack for TSP, Xylene, and NOx were within the limits prescribed by law.

Performance :

In 2025, the monitoring results for TSP, Xylene, and NOx were within the limits prescribed by law.

Target 2 :

The proportion of procurement value for materials and equipment bearing the Green Label certification increases by at least 5% per year.

Performance :

In 2025, the procurement value of Green Label products decreased by 4.1% compared with 2024, resulting in the target not being achieved. This was due to price negotiations to revise the lease agreement for Green Label-certified photocopiers, resulting in a lower contract value.

Target 3 :

Confirmed cases of pollution impacts resulting from the activities of the Rayong plant

Performance :

In 2025, no environmental complaints from communities were reported, and the target was achieved.

Target 4 :

One hundred percent of employees received training and passed the knowledge assessment in accordance with the prescribed environmental training program.

Performance :

In 2025, 94.54% of employees attended the training and passed the assessment. The target was not achieved.

Target 5 :

Sales of “Super Low Loss” products account for more than 10% of the total number of transformers delivered during the year, based on volume.

Performance :

In 2025, Super Low Loss transformers accounted for 2% of the total transformer delivery volume. The target was not achieved.

Target 6 :

Maintain green space of not less than 10% of the area at all manufacturing facilities.

Performance :

In 2025, the Rayong plant had 4.5 rai of green space, representing 7.38% of the plant area. The facility is currently undergoing expansion. The Prachinburi power plant had a total of 20 rai of green space and forest area, representing 10% of the site area.

Target 7 :

Provide support for the conservation and management of community forests to promote biodiversity within local communities.

Performance :

In 2025, support for the operations of Khamong Khongman Community Forest continued for the third consecutive year (the project is scheduled to be completed in 2029).

Environmental Management System

     The Company is committed to conducting its business alongside environmental responsibility by applying the ISO 14001:2015 Environmental Management System as a framework for the systematic governance and continuous improvement of its operations. This includes the identification and management of material environmental issues, as well as related risks and opportunities throughout the value chain.

Certificates

Wastewater Quality

The company manages wastewater quality in accordance with standards to prevent impacts on the environment and the community.

Air Quality

The company controls air quality from production processes using standardized pollution control systems to reduce emissions and strictly comply with environmental regulations.

Biodiversity Conservation

The company promotes biodiversity conservation through efficient resource utilization, increasing green areas, and supporting sustainable environmental stewardship in the long term.

Green Procurement

The company supports green procurement by selecting environmentally friendly products and services, while promoting its partners to conduct business responsibly and sustainably.

Environmentally Friendly Products

The company focuses on developing and supplying super low loss transformers to enhance energy efficiency, reduce losses in electrical systems, and support sustainable energy use in the long term.

     The Company places importance on the systematic management of waste and production residues under the regulatory framework of the Department of Industrial Works and other applicable standards. Clear policies and governance processes have been established, covering the monitoring, measurement, and continuous review of performance. The Company also reports relevant information to government authorities and discloses information to stakeholders in a transparent manner, reflecting its commitment to good corporate governance and responsibility toward society and the environment.

Risk, Opportunity, and Impact Assessment

Risk

Ineffective waste management may result in environmental impacts throughout the value chain, including risks of soil contamination, impacts on ecosystems, and loss of biodiversity, which may adversely affect stakeholder confidence. From a financial perspective, such risks may lead to increased costs arising from non-compliance with legal requirements, investments required to remediate long-term impacts, or the loss of business opportunities amid increasingly stringent environmental regulations and rising stakeholder expectations.

Opportunity

Effective waste management helps reduce environmental impacts throughout the value chain. At the same time, it provides opportunities for the Company to reduce long-term costs, strengthen stakeholder confidence, and enhance its competitiveness through responsible business practices toward society and the environment.

Financial materiality

+ Reduced risks of legal non-compliance, penalties, and the suspension or revocation of operating licenses
+ Reduced long-term waste management costs through more efficient resource utilization
+ Enhanced competitiveness and business opportunities through a corporate image that reflects sustainable business practices
– Initial investments are required to develop more efficient waste management technologies, processes, and management systems
– Failure to manage waste in accordance with applicable standards may result in increased costs associated with remediation, regulatory penalties, or loss of confidence from customers and investors

Impact materiality

+ Reduced environmental impacts throughout the value chain
+ Promoted efficient resource utilization and environmentally friendly production practices
+ Enhanced stakeholder confidence in the Company’s environmental responsibility
– Ineffective waste management may result in contamination of soil, water resources, or the surrounding environment
– Failure to manage hazardous waste in accordance with applicable standards may adversely affect ecosystems and the fundamental health rights of people in surrounding communities

Strategy :

  • Resource Efficiency & Waste Reduction Strategy
  • Environmental Governance & Compliance Strategy
  • Transparency & Stakeholder Engagement Strategy

Management Approach :

  • ISO 14001 Environmental Management System: Applied as a framework for planning, managing, monitoring, and continuously improving environmental performance in a systematic manner.
  • Legal and Regulatory Compliance: Operations are conducted in strict compliance with applicable environmental laws, regulations, and standards, or at levels exceeding legal requirements where appropriate.
  • Application of the 3Rs Principles and Zero Landfill Approach: Implemented systematically to reduce the volume of waste sent to landfill, increase resource recovery and reuse, and minimize environmental impacts throughout the value chain.
  • Transparency and Information Disclosure: Waste management information is communicated and disclosed on a regular basis in a transparent and verifiable manner. The Company also promotes stakeholder engagement, particularly with surrounding communities, to foster understanding and alleviate concerns regarding potential environmental impacts.

Target 1 :

Hazardous Waste Intensity from Production Processes ≤ 0.01 Ton per Ton of Production Output (2022 Baseline)

Performance :

In 2025, hazardous waste intensity was 0.02 ton per ton of production output, exceeding the 2022 baseline level. As a result, the Company did not achieve its target.

Target 2 :

Reduce Non-Hazardous Waste Disposal to Landfill in Support of the Long-Term Zero Waste to Landfill Goal.

Performance :

In 2025, 0.75 ton of insulators was disposed of in landfill. As this waste category is exempt from the Company’s Zero Waste to Landfill requirements, the target was achieved.

Target 3 :

Zero Complaints or Negative Reports Related to Hazardous Waste Management (Zero Cases)

Performance :

In 2025, no complaints or negative reports related to hazardous waste management were reported. Therefore, the target was achieved.

Waste Segregation and Management

     Climate change is one of the most significant global challenges, affecting economic, social, and environmental stability. In response, the international community has established a collaborative framework under the Paris Agreement to limit the increase in global average temperature to no more than 1.5°C above pre-industrial levels through greenhouse gas emissions reduction and enhanced climate resilience. This approach is aligned with both international and national sustainable development agendas, including Nationally Determined Contributions (NDCs), the transition toward carbon neutrality, and the promotion of energy efficiency and clean technologies. These efforts are closely linked to Sustainable Development Goals (SDGs), particularly SDG 7 (Affordable and Clean Energy), SDG 12 (Responsible Consumption and Production), and SDG 13 (Climate Action).

Risk, Opportunity, and Impact Assessment

Risk

Climate change represents a material risk to the Company from both financial and impact perspectives. From a financial standpoint, the Company may face increased costs arising from greenhouse gas regulations, extreme weather events, and growing market expectations for a transition toward a low-carbon economy. At the same time, the Company’s operations have environmental and social impacts through energy consumption and greenhouse gas emissions, which require systematic management to ensure effective mitigation and long-term sustainability.

Opportunity

Climate change also presents strategic opportunities for the Company to develop innovations, products, and energy solutions that support the transition to a low-carbon society. These opportunities can enhance the Company’s competitiveness and create long-term market growth potential. Furthermore, improving energy efficiency and reducing greenhouse gas emissions can help lower operating costs, strengthen confidence among customers and investors, and improve access to sources of financing.

Financial materiality

+ Improving energy efficiency and reducing greenhouse gas emissions contribute to long-term cost savings.
+ The development of clean energy products and solutions creates new revenue streams and market opportunities.
+ Systematic climate management enhances confidence among customers, investors, and financial institutions.
– Operating costs may increase due to greenhouse gas reduction regulations, carbon pricing mechanisms, and climate-related reporting requirements.
– Risks associated with extreme weather events may affect operational continuity, assets, and supply chains.
– Competitiveness and access to financing may be adversely affected if the Company is unable to transition effectively toward a low-carbon business model.

Impact materiality

+ The implementation of greenhouse gas reduction and/or removal measures helps mitigate environmental impacts and supports climate change action.
+ Promoting energy efficiency and sustainable infrastructure creates shared value for society.
+ Stakeholder engagement throughout the value chain enhances awareness and supports sustainable development.
– Operations that consume energy and natural resources may result in greenhouse gas emissions, affecting the environment and ecosystems.
– The cumulative impacts of greenhouse gas emissions may increase pressure on communities and society over the long term.

Strategy :

  • Net Zero Pathway
  • Climate-related Opportunities
  • Value Chain Engagement

Management Approach :

Environmental management is conducted in accordance with ISO 14001, ISO 14064-3, the Corporate Carbon Footprint Assessment Guidelines issued by the Thailand Greenhouse Gas Management Organization (Public Organization) (TGO), and the Requirements and Guidelines for Net Zero Greenhouse Gas Emissions Certification issued by the Thailand Greenhouse Gas Management Organization (Public Organization) (TGO), among others.

Project 1 :

Five-Year Net Zero Pathway

Target 1 :

Reduce Scope 1, Scope 2, and Scope 3 greenhouse gas emissions by 21% by 2028, compared with the 2022 baseline year.

Performance :

ปี 2568 ไม่บรรลุเป้าหมาย เพิ่มขึ้นจาก Pathway ที่กำหนด 949 tonCO2eq. หรือสูงกว่าปีฐานร้อยละ 40.87

Project 2 :

Pathway to Carbon Neutrality

Target 2 :

Achieve a 5% Annual Reduction in Greenhouse Gas Emissions Intensity per Revenue (tCO₂e/million THB)

Performance :

In 2025, the target was not achieved. Greenhouse gas emissions intensity per revenue increased by 5.07% compared with the baseline year and by 46.97% compared with 2024.

Target 3 :

Achieve a Balance Between Carbon Dioxide Emissions and Removals from Operations (Scope 1–2) by 2035

Performance :

In 2025, Scope 1 and Scope 2 greenhouse gas emissions totaled 1,397 tCO₂e.
Carbon Offset: 1,397 tCO₂e (Serial Number: TH1-VER-S0146-40-2020-7670082-7671478-0-0)
The Company fully offset its Scope 1 and Scope 2 greenhouse gas emissions, achieving carbon neutrality ahead of its 2035 target. However, as of the reporting date, the Company has not yet applied for Carbon Neutrality certification from the Thailand Greenhouse Gas Management Organization (Public Organization) (TGO).

Project 3 :

Transition to Net Zero Greenhouse Gas Emissions

Target 4 :

Long-Term Net Zero Greenhouse Gas Emissions Target by 2050

Performance :

In 2025, total greenhouse gas (GHG) emissions across Scope 1, Scope 2, and Scope 3 amounted to 2,592 tCO₂e. (To achieve net zero residual emissions from unavoidable sources by 2050)

Greenhouse Gas Emissions Reduction Actions

     The company places importance on reducing greenhouse gas emissions and conducting business in alignment with the goals of the Paris Agreement. It has established a 5-year Pathway to Net Zero plan to achieve Carbon Neutrality and Net Zero Emissions by supporting resources, personnel, and systematic measures to reduce or remove greenhouse gases. The company aims to reduce greenhouse gas emissions in Scopes 1, 2, and 3 by 21% by 2028, compared to the 2022 base year, and targets achieving Carbon Neutrality by 2036 and Net Zero by 2050.

Greenhouse Gas Emissions Reduction Projects

Carbon Intensity per Unit

     A comparison of carbon intensity from the base year 2022 to 2025 shows that the company’s overall production efficiency has improved in several aspects, although total greenhouse gas emissions in 2025 increased in line with production expansion.

     Carbon intensity per unit of power capacity (MVA) decreased continuously from 1.60 tonCO₂eq./MVA in the base year to 1.20 tonCO₂eq./MVA in 2025, reflecting more efficient use of resources and energy in production. At the same time, carbon intensity per unit of product weight decreased from 0.47 to 0.38 tonCO₂eq./ton, indicating better control of production processes compared to the increased level of output.

     However, carbon intensity per unit of revenue in 2025 increased compared to the previous year, reflecting changes in the revenue structure and operating costs. The company will use this analysis as supporting information for planning and systematically determining approaches to reduce carbon intensity in the future..

    QTC Energy Public Company Limited recognizes that the efficient use of natural resources is a fundamental pillar of sustainable development in the energy industry. Amid the challenges posed by climate change, industrial expansion, and increasing stakeholder expectations, the Company places strong emphasis on resource management throughout its operations. Particular attention is given to the use of electricity, raw materials, water, and fuel, which are key resources in the production of transformers and the solar energy business operations of its subsidiaries.

Risk, Opportunity, and Impact Assessment

Risk

The continuous use of energy, raw materials, and natural resources in production processes and business operations may give rise to risks related to future resource scarcity, fluctuations in energy and raw material costs, and environmental impacts, including greenhouse gas emissions. Without effective resource management and continuous improvements in resource efficiency, these challenges may adversely affect the Company’s competitiveness and its ability to achieve sustainable business growth in the long term.

Opportunity

Effective resource management creates opportunities for the Company to reduce operating costs, improve production efficiency, and optimize resource utilization. It also supports the development of sustainable energy technologies and innovations, which enhance the Company’s competitiveness, minimize environmental impacts, and contribute to long-term business growth.

Financial materiality

+ Improving resource efficiency helps reduce energy, raw material, and operating costs, generating positive impacts on business performance and the Company’s competitiveness.
+ Sustainable resource management strengthens the Company’s reputation, enhances stakeholder confidence, and supports access to future financing opportunities and business growth prospects.
– Fluctuations in energy and raw material prices resulting from resource constraints may increase production costs and adversely affect profitability.
– Risks arising from environmental regulations and changes in energy policies may lead to additional adaptation and investment costs if the Company is unable to manage resource utilization efficiently.

Impact materiality

+ Reducing the consumption of energy and natural raw materials helps lower greenhouse gas emissions and alleviates pressure on natural resources and ecosystems.
+ Effective resource management supports sustainable production and consumption practices, reduces waste generation, and promotes efficient resource utilization across the industrial and energy sectors.
+ Stakeholder engagement throughout the supply chain helps raise awareness and supports sustainable development.
– The continuous use of energy, raw materials, and natural resources in production processes may result in unsustainable resource consumption and increased greenhouse gas emissions if not properly controlled and optimized.
– Heavy reliance on natural resources may contribute to long-term resource depletion and environmental degradation, including indirect impacts on surrounding communities and ecosystems.

Strategy :

  • Efficient and Sustainable Resource Management

Management Approach :

The Company manages quality in accordance with ISO 9001 and environmental performance in accordance with ISO 14001, while also applying energy management practices based on the ISO 50001 framework to enhance energy and resource efficiency. Environmental and greenhouse gas management policies serve as the governing framework for these efforts. The Company has established clear targets, key performance indicators, and regular management reviews to drive continual improvement and minimize environmental impacts throughout its operations.

Non-Renewable Electricity Consumption

Target 1.1

Maintain electricity consumption from the Metropolitan Electricity Authority (MEA) per employee at or below the 2021 baseline level (not exceeding 3,540 kWh/person).

Performance

In 2025 Electricity consumption was 1,823 kWh per employee, achieving the established target.

Target 1.2

Maintain electricity consumption from the Provincial Electricity Authority (PEA) per unit of production (kWh/MVA) at no more than 5% above the 2021 baseline level (not exceeding 1,413 kWh/MVA).

Performance

In 2025 Electricity consumption was 899 kWh/MVA, achieving the established target.

Target 1.3

Maintain electricity consumption from the Provincial Electricity Authority (PEA) per unit of electricity generated for sale (kWh/kWh) at or below the 2021 baseline level (not exceeding 0.0054 kWh/kWh).

Performance

In 2025 Electricity consumption was 0.0053 kWh/kWh, achieving the established target.

Thermal Energy Consumption – Fuel Oil

Target 2.1

Maintain diesel consumption per transported cargo weight in QTC’s road transportation activities at no more than 5% above the 2022 baseline level (not exceeding 66.87 L/t).

Performance

In 2025 Diesel consumption was 56 L/t, achieving the established target.

Target 2.2

Maintain diesel consumption per transformer unit in the Company’s service activities at no more than 5% above the 2022 baseline level (not exceeding 7.8 L/unit).

Performance

In 2025 Diesel consumption was 9.53 L/unit, did not achieve the established target.

Target 2.3

Maintain total fuel consumption per unit of electricity generated for sale (L/kWh) at or below the 2021 baseline level (not exceeding 0.00038 L/kWh).

Performance

In 2025 Total fuel consumption was 0.00034 L/kWh, achieving the established target.

Water Resource Management

Target 3.1

Maintain Metropolitan Waterworks Authority (MWA) water consumption per employee at the Bangkok office at or below the 2021 baseline level (not exceeding 17.7 m³/person).

Performance

In 2025 Water consumption was 9.65 m³ per employee, achieving the established target.

Target 3.2

Maintain groundwater consumption per employee at the Rayong manufacturing facility at or below the 2021 baseline level (not exceeding 42.6 m³/person).

Performance

In 2025 Groundwater consumption was 39.48 m³ per employee, achieving the established target.

Target 3.3

Maintain groundwater consumption per unit of electricity generated at Q Solar 1 at or below the 2021 baseline level (not exceeding 0.00045 m³/kWh).

Performance

In 2025 Groundwater consumption was 0.00029 m³/kWh, achieving the established target.

Energy Consumption

Electricity Consumption

The company promotes the use of renewable energy through solar rooftop systems, along with efficient electricity management, to support sustainable operations and reduce environmental impacts.


Thermal Energy – Fuel Consumption

The company uses thermal energy from diesel and gasoline in transportation, service operations, and internal activities to support continuous business operations and service delivery.


Water Consumption

The company uses water efficiently by focusing on water consumption for domestic use and necessary processes, while managing wastewater in compliance with relevant laws and environmental regulations.

Raw Material Consumption for Production

The company systematically manages raw materials and waste from production processes by promoting material reuse and disposing of waste in accordance with relevant environmental standards.