Climate Strategy

“

IRPC is committed to reducing our carbon footprint and building a sustainable future. We will invest in low-carbon technologies, promote circular economy practices, and support our communities. By setting ambitious targets and transparent reporting, we aim to maintain our leadership position in climate action

”

Management Approach

IRPC recognizes the direct and indirect impacts of climate change throughout our businesses’ supply chain. IRPC has in place the climate change management approach by determining strategy, setting direction and reviewing strategy in accordance with the changes of situation, monitoring performance index regarding significant climate change.

GHG reduction target and Energy Efficiency Index is set as an indicator for performance assessment among staff of all levels from the President to employees in the production line and supporting of related production lines. The performance is reported to the Board of Environmental Management, to the Management and the Board of Directors meeting. As for other indicators, i.e., reduction of the greenhouse emission and water management which are considered as an indicator for the operation unit, the result is reported to the Corporate Governance and Sustainability Committee (CGSC), Management Committee (MC) and Sustainability Development Committee (SDC)

Climate Change Governance and Policy

IRPC has established a clear framework for managing climate change, with responsibilities defined by the Board to operational levels. The Board has defined overarching goals, directions, and policies for climate change management. The Corporate Governance and Sustainability Committee, along with the Risk Management Committee (RMC), is tasked with overseeing and assessing the effectiveness of governance related to climate risks and opportunities. At the management level, the Management Committee (MC) has the responsibility of determining and reviewing sustainability policies, approaches and goals as well as considering implementing guidelines based on the Board’s directives, with the Sustainability Development Committee (SDC) providing quarterly performance reports to the Corporate Governance and Sustainability Committee.

To drive implementation, the SDC has entrusted the Corporate Strategy and Sustainability Department with carrying out climate change-related initiatives in alignment with the set goals and strategies, while regularly reporting progress to the SDC for continuous improvement. Additionally, IRPC is enhancing climate risk management by integrating climate-related metrics into our corporate KPI framework, ensuring accountability across all levels. The CEO and President are accountable for KPIs focused on GHG reduction, and energy intensity, while functional executives will be assigned KPIs related to emission reduction and energy efficiency improvements. Performance evaluation and compensation for both the CEO and the president are linked to the achievement of these climate-related KPIs, fostering a sustainability-driven culture and promoting a climate-conscious mindset throughout the organization.

IRPC has established a Climate Change Policy to address climate challenges, aiming for a 20% reduction in greenhouse gas emissions by 2030 from the 2018 baseline of 4.18 tCO2eq, achieving carbon neutrality by 2050 and reaching Net Zero by 2060.

The policy focuses on improving energy efficiency, eco-efficiency, and circular economy, while adopting renewable energy, and integrating innovative technologies. It also emphasizes collaboration with stakeholders, raising awareness among employees and partners, and ensuring transparent monitoring to guarantee accountability and measurable progress.

SDC AnnouncementDownload

Climate Change PolicyDownload

Climate Change Strategy and Target

IRPC is actively pursuing its goals of achieving Carbon Neutrality by 2050 and Net Zero Emissions by 2060 through the implementation of its ERA strategy.

Climate Change Management and Performance

ERA Strategy Implementation

E : Eco-Operation and Technology

Energy Intensity Index: 82.67% EII

Energy saving: 296,391 GJ

GHG Reduction: 155,890 tCO2eq

Emission Reduction Programs

IRPC is committed to optimizing energy efficiency and reducing environmental impacts through the continuous enhancement of our production processes. This includes efforts to improve efficiency in heat and steam management, reduce electricity consumption, enhance logistic management, as well as engaging in collaborative initiatives with PTT Group.

As part of this commitment, IRPC has implemented a program covering 2 categories of activities aimed at energy saving and CO2 emission reduction. These consist of Operational Control projects and Process Improvement projects.

Operational Control Projects, covering reduction of electricity consumption, reduction of internal heat loss and steam consumption in the operation process.
Process Improvement Projects, covering equipment installation, electricity production facilities improvement.

Solar Floating Project

The project utilizes Reservoirs 3, 4, and 5, primarily designated for water supply production, with solar panels installed on the earthen surfaces of the reservoirs, measuring approximately 74, 61, and 65 rai, respectively. Solar panels will be installed on the water surfaces of these reservoirs, with a total installed capacity of 12.5 MW and a peak of 8.5 MW. The panels generate direct current electricity, which is converted by an inverter into alternating current. This is then sent to a transformer, where the voltage is increased from low voltage to high voltage (6.6 kV), passing through an electricity meter before being transmitted to the electricity system of the project and distributed to the factories in the IRPC industrial zone. The system operates 24 hours a day for the project’s 25-year lifespan. However, the selected solar panels have an expected lifespan of approximately 30 years.

IRPC’s 12.5 MW Solar Floating Plant was awarded the Thailand Voluntary Emission Reduction (T-VER) certificate by the Thailand Greenhouse Gas Management Organization (TGO). The project is registered as a T-VER project and is expected to reduce greenhouse gas emissions by an average of 9,459 tons of CO2 equivalent per year over the 7-year carbon credit calculation period from January 1, 2021 to December 31, 2027.

R: Reshaping Portfolio

Progression plan: 100%
CFP registration: 70 CFP products

Low Carbon Product Development

Innovate and develop products that cater to diverse customer needs while prioritizing environmentally friendly solutions. This opens more business opportunities and enables IRPC to adapt to changes in the economy, society, and environment, paving way for sustainable growth.

To address the concerns of environmentally conscious users, IRPC provides alternative solutions through the development of environmentally friendly products. Some of the highlighted products include:

POLIMAXX Green ABS, in which synthetic rubber is replaced by a natural rubber. The uses of the product can reduce GHG emission.
POLIMAXX Green PS, an innovative product made from 20-50% styrene mixed with natural rubber. The development of this product is a co-project between IRPC and a customer with the aim of developing a traffic cone made from plastic rubber composite which can reduce the use of synthesis rubber by 30%. The new traffic cone is strong, durable, flexible and impact resistant.

POLIMAXX Wood Plastic Composite is a plastic product with a mixture of wood powder, blending outstanding properties of plastic and wood perfectly. IRPC focuses on developing products that can be used in consumer packaging and furniture. In the case of consumer packaging, all requirements from Food Contact EU Regulation (FDA) had already been passed.

POLIMAXX Natural Pigment Color Compound is categorized as an environmentally friendly plastic. It is developed by mixing plastic with natural color extracts instead of synthetic colors. The method does not compromise the physical property of the plastic and is under international quality control. There are 3 colors, which are green from spinach, red from shellac, tomatoes, or strawberries, and yellow from turmeric, bell peppers, or carrots. This product is an alternative to the growing number of health and safety conscious consumers in Thailand and abroad.

Products that have Carbon reduction label (HDPE, PP, PS and EPS) which are applicable for various products, for instance, plastic bags, electrical appliances, heat insulation, etc. IRPC developed these products in terms of energy saving and chemical usage reduction in the production process and registered Carbon Reduction Label.
Gasohol
Bio Diesel
RMAXX L-Cement is a plastic product with mixture of cement for easy and quick cementation.
Bio-based Polystyrene product which is a mixture of Polystyrene plastic and flour.
P301K a product used in the plastic sheets of floating solar project which uses lower quantities of HDPE.
Expandable Polystyrene (EPS), which is produced using styrene monomers as feedstock and pentane as the blowing agent, with no ozone-depleting CFCs involved in the process.

Carbon Footprint of Products (CPF) Registration to TGO

IRPC has conducted a carbon footprint assessment for our products to apply for the registration of carbon footprint labels from the Greenhouse Gas Management Organization Committee. This enables transparent labeling to help consumers make informed choices about the environmental impact of their purchases, while enhancing IRPC’s competitiveness by demonstrating our commitment to climate change mitigation.

In 2024, 3 of IRPC’s product-Polystyrene Pellets, Polypropylene Compound Pellets, and Polypropylene Pellets successfully obtained the “Carbon Footprint of Product (CFP)” certification from the Greenhouse Gas Management Organization (Public Organization).

A: Absorption and Offsetting

CCS Project study: 100% vs plan

Reforestation Project: 12,106 Rais

Reforestation Projects

The reforestation project targets expanding forest areas within PTT Group’s land by 2 million rai and partners with the Mae Fah Luang Foundation (MFLF) to manage carbon credits in forests for sustainable development. This initiative enhances the role of forests in storing GHG and encourages local communities to protect and maintain them, contributing to the reduction of global warming, forest fires, and improving the quality of life for the surrounding communities.

1. Collaboration with the Mae Fah Luang Foundation

IRPC is implementing a forest carbon credit management project for sustainable development under the Community Forest Act of 2019. This Act allows communities to utilize forests in a balanced and sustainable manner, based on the principle that communities have strong mechanisms to care for natural resources and the environment.

The project emphasizes co-benefits from the community. The Foundation not only considers forests but also the well-being of the community and biodiversity. In implementing the project, project staff will go to community forest areas to create public participation, build knowledge in forest plot measurement according to academic principles for carbon credit sequestration, career development, and efficient fund management. This is achieved by creating incentives for forest fire prevention. Additionally, the project establishes forest firebreaks, develops a close forest fire situation monitoring system in collaboration with GITSDA, and establishes a fund for sustainable community development. These initiatives aim to instill a sense of love and care for the forest in youth and surrounding communities, while also generating income from forest products to improve the quality of life and ensure sustainable forestry. In the phase from 2023 to 2025, the company joined the project covering 20,000 rai in 5 provinces: Chiang Rai, Chiang Mai, Amnat Charoen, and Yasothon, and has now received full T-VER registration. In the phase from 2024 to 2026, the company has joined the project covering 10,000 rai in 4 provinces: Lampang, Chiang Mai, Chiang Rai, and Nan. A total of 142 communities has been selected, representing a potential project area of 112,721.2 rai eligible for T-VER registration by December 2024. In November, the project team went to Nan province to exchange strategies on community participation and forest conservation projects combined with coffee planting. This approach aims to address the problem of forest encroachment for agricultural land while improving the quality of life of nearby communities.

2. Collaboration with the Mae Fah Luang Foundation

reforestation project in Chiang Rai province, covering an area of 2,000 rai. The planting progress has reached 60%. Additionally, a mangrove forestation project is being carried out in Satun province, covering 106.5 rai, in partnership with the Department of Marine and Coastal Resources. This project has been successfully completed with a planting rate of 80%. A dedicated team is monitoring the progress of these projects on-site and engaging with local communities to raise awareness and understanding about the importance of forest conservation.

Carbon Emissions Management Certification

IRPC is committed to actively contributing to the global and national efforts to reduce greenhouse gas emissions, participating in the Conference of the Parties to the UN Framework Convention on Climate Change. The Company has applied for Carbon Footprint of the Organization (CFO), aiming to manage carbon emissions from the Company’s operations, reduce resource costs, and create new opportunities for growth and competitive edge.

IRPC has continuously participated in the Carbon Footprint for Organization (CFO) project, organized by the Federation of Thai Industries with financial support from Thailand Greenhouse Gas Management Organization (TGO). The project aims to reduce GHG emissions from various organizational activities, such as electricity consumption, waste management and transportation.

IRPC Adopts CFO Platform for Effective Greenhouse Gas Management and Achieving Net Zero Emissions IRPC has adopted the Carbon Footprint for Organization (CFO) platform, developed by the Greenhouse Gas Management Organization (Public Organization) or TGO, to reduce greenhouse gas emissions towards achieving Net Zero Emissions. This platform serves as a tool to accurately, conveniently, and quickly assess CFO in line with international standards. It also allows for verification by data auditors (Verifiers) on the platform. TGO can monitor and communicate operational data with reporting organizations and verification bodies throughout every step via the developed platform. This will enable IRPC to effectively plan its greenhouse gas reduction efforts and progress toward its Net Zero goals.

Internal Carbon Pricing

To incorporate the consideration of carbon emission costs into the Company’s decision-making, IRPC implemented the concept of internal carbon pricing (ICP), also known as shadow price, across the Company. This is used in the evaluation and decision-making on green investments and infrastructure projects, alongside other financial tools such as internal rate of return (IRR) since 2021. IRPC set an ICP 90 USD/tCO2eq (3,060 Baht/tCO2eq) in accordance with the guidelines on the determination of carbon pricing and low carbon investment recommended by Thailand Greenhouse Gas Management Organization (TGO) in collaboration with World Bank. IRPC has applied the ICP in our Renewable projects and Energy Efficiency Improvement. More than 12 projects are using shadow pricing, for example, Floating Solar Phase II 9.0 MW for PP Plant, VDU Heater Energy Efficiency Improvement for Lube Plant, Meltblown expansion project for Polypropylene, Global Hygiene: Spun bond Expansion project for Polypropylene, etc.

Concurrently, the implicit price is reflected in IRPC’s investment in CSR activity aimed at emission reduction, such as installing solar cells for pumps and other equipment to develop smart farming at Nong Yang village, Buriram Province, Development Center for Disabilities, Sri Wattana Village, Udonthani Province.

GHG Emissions Performance Summary

IRPC has set the target to reduce direct and indirect GHG emissions to not more than 155,890 tCO2eq in 2024. This year’s actual performance reflects emissions of 140,000 tCO2eq, which is below the target, driven by the successful implementation of energy efficiency projects and process improvement initiatives.

Climate Change Risks and Opportunities Assessment

IRPC integrates climate-related risks into our corporate risk portfolio, prioritizing them through a comprehensive risk matrix that evaluates composite exposure across Risk Likelihood and Impact in Economic, Social, and Environmental dimensions. This approach ensures the development of a well-balanced ESG risk portfolio. The Company conducts annual assessments of climate change risks and performs sensitivity analyses to evaluate carbon dioxide reduction projects, considering both costs and GHG reductions.

IRPC aligns our climate-related risk and opportunity assessments with recommendations of the Task Force on Climate-related Financial Disclosure (TCFD), while also adhering to the requirements of the Stock Exchange of Thailand (SET) and the Dow Jones Sustainability Index (DJSI) reporting guidelines. Additionally, IRPC is working to align our climate-related risks and opportunities report with the IFRS S2 Climate-Related Disclosures Standard (International Financial Reporting Standards).

Our analysis indicates that IRPC’s businesses may face potential financial impacts from the risks outlined in the following table:

However, we have also identified potential opportunities arising from climate change, in alignment with the global goal of limiting the temperature rise to no more than 2°C. With the shift in consumer behavior towards electric vehicles (EVs), we anticipate that the increase in new vehicle purchases, driven by government policies and incentives to promote manufacturing and adoption of EVs, will lead to a rise in the sales of petrochemical products, such as Polypropylene Compound & Composite, which are used in the production of both interior and exterior automotive parts. Additionally, the demand for battery manufacturing will drive higher supply needs for Acetylene. Considering these opportunities, IRPC estimates a potential increase to 0.43% in the Company’s operating profit (EBITDA) by 2030.

Climate Scenarios

Through our risks and opportunities analysis, we have explored the potential impacts on our businesses across 2 hypothetical scenarios as follows:

IRPC is committed to combating climate change through initiatives such as the Solar Floating project, Internal Carbon Pricing, and the Carbon-Neutral. We focus on reducing greenhouse gas emissions and applying circular economy principles by recycling industrial plastic waste in collaboration with partners. Additionally, IRPC has set a target to reduce GHG emissions by 20% by 2030, with a long-term goal of achieving Net Zero Emissions by 2060.