Climate Strategy

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The Company is committed to reducing greenhouse gas emissions and building a sustainable future through investments in clean energy, energy efficiency improvements, low-carbon product innovation, and the exploration of carbon capture and storage opportunities. We set ambitious targets and report progress transparently to maintain our leadership in climate action

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Climate change is intensifying globally, creating economic, environmental, and social impacts. Economically, it may disrupt operations, supply chains, and markets, leading to potential financial losses. Environmentally, it directly and indirectly contributes to greenhouse gas emissions, resource depletion, biodiversity loss, and ecosystem degradation. Socially, vulnerable populations—including children, elderly, women, indigenous peoples, and migrant workers may face heightened risks to health, livelihoods, and access to essential resources. As an energy and petrochemical company, IRPC’s operations and business relationships might contribute to these impacts through carbon emissions and resource use. Recognizing this, the company monitors, assesses, and seeks to reduce its climate-related impacts while supporting sustainable, low-carbon solutions that benefit society and the environment

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 at all levels from the Chief Executive Officer and 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, and Vice President Meeting. As for other indicators, i.e., reduction of the greenhouse gas 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 systematic governance and management structure for climate change, covering the Board, management, and operational levels to ensure that climate-related risks and opportunities are integrated into the Company’s strategic direction and business operations. The Company has announced a Climate Change Policy as a unified governance framework to guide climate-related operations across the organization. The policy covers greenhouse gas (GHG) management, climate-related risk and opportunity management, target setting, performance monitoring, and transparent disclosure. The policy has been approved by the Board of Directors and cascaded to all levels of the organization to ensure effective implementation. At the Board level, the Board of Directors defines the vision, targets, and policies related to climate change. The Corporate Governance and Sustainability Committee (CGSC), together with the Risk Management and Internal Control Committee, is responsible for overseeing, monitoring, and evaluating the effectiveness of climate-related risk and opportunity management to ensure alignment with corporate policy, business direction, and evolving external contexts. At the management level, the Management Committee (MC) is responsible for defining, reviewing, and driving climate-related policies, approaches, and targets in alignment with the Board’s directives. The Sustainability Development Committee (SDC) integrates climate-related actions into operations, monitors progress, and regularly reports performance to the CGSC.

To ensure effective implementation, the Company has established an Organizational Greenhouse Gas Inventory Working Group comprising representatives from all relevant functions. The Working Group is responsible for preparing and reviewing the Carbon Footprint for Organization (CFO), covering Scope 1, Scope 2, and Scope 3 emissions, including data collection, analysis, monitoring, and continuous improvement under the established policy framework. Under this governance structure and policy framework, the Company has upgraded its target to achieve Net Zero GHG emissions from 2060 to 2050 and has discontinued the use of Carbon Neutrality as its primary framework. This aligns with the direction of the PTT Group, Thailand’s NDC 3.0, and international climate commitments. The Company emphasizes actual emission reductions across the value chain.

The Climate Change Policy further promotes improvements in energy efficiency, eco-efficiency, and the advancement of the circular economy, alongside the adoption of renewable energy, technology and innovation deployment, stakeholder collaboration, employee and partner awareness building, and transparent disclosure to ensure that climate-related performance is measurable, monitorable, and verifiable.

SDC AnnouncementDownload

Climate Change PolicyDownload

Climate Change Strategy and Target

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

Climate Change Management and Performance

ERA Strategy Implementation

In accordance with the target of achieving net-zero Scope 1 and Scope 2 greenhouse gas emissions by 2050, the Company has allocated the proportion of its greenhouse gas reduction potential from operations under the ERA strategy as follows:

E : Eco-Operation and Technology

In the pillar, the Company targets a 50% reduction in Scope 1 and Scope 2 greenhouse gas emissions (from total emissions) by 2050, comprising 20% from energy efficiency and energy conservation initiatives and 30% from the transition to clean energy sources.

Energy Intensity Index: 83.16% EII

Energy saving: 362,139 GJ

GHG Reduction: 23,176 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 3 reservoirs primarily designated for water supply production, with solar panels installed on the earthen surfaces of the reservoirs, measuring approximately 200 rai. 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 25-30 years lifespan.

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 CO₂equivalent per year over the 7-year carbon credit calculation period from 1 January 2021 to 31 December 2027.

Holistic Steam Management

The Company has adopted a Holistic Steam Management approach to enhance system stability, reduce operating costs, and improve overall energy efficiency. Priority is given to equipment capable of rapidly stabilizing the system at lower cost.

A feasibility study on increasing 25-bar steam supply from Steam Generation Unit 4 demonstrated reduced steam production costs and improved system stability from the additional steam output. This was particularly significant following the shutdown of the coal-fired power plant, as the unit now functions effectively as an auxiliary boiler, enhancing overall steam system flexibility.

The key objective of energy management at Steam Generation Unit 4 is to increase boiler load through 25-bar steam export. This improves boiler efficiency from 77% to 82%. The efficiency improvement reduces fuel consumption by approximately 15,464 GJ per year and decreases greenhouse gas emissions by approximately 952 tCO₂eq per year.

This initiative reflects the Company’s commitment to enhancing energy efficiency while reducing greenhouse gas emissions and supporting tangible energy management and climate change objectives.

Reduce Excess Oxygen in the Heater Furnace

The Company implemented a project to reduce excess oxygen in the heater furnace with the objective of improving fuel energy efficiency and enhancing combustion performance. This was achieved by upgrading the flue gas damper control system to enable more precise and accurate adjustment of the opening and closing positions.

Prior to the project implementation, the flue gas control equipment had limitations in adjustability, preventing further reduction of the damper opening beyond a certain level. As a result, excessive air was drawn into the heater furnace, leading to higher excess oxygen levels in the combustion process and suboptimal fuel energy efficiency.

Following the equipment upgrade, the Company is now able to more effectively control the amount of air entering the heater furnace, reduce excess air, and improve the completeness and stability of the combustion process. Consequently, heater efficiency increased from 82% to 86%.

The efficiency improvement has resulted in fuel energy savings of approximately 43,705 gigajoules per year and a reduction of greenhouse gas emissions by approximately 2,810 tons of carbon dioxide equivalent per year (tCO₂eq/year). This translates into an estimated economic benefit of approximately 15-22 million Baht per year. The project demonstrates an effective initiative to enhance energy efficiency while reducing environmental impacts and supporting the Company’s long-term energy conservation policy.

Main Fractionator Heater Coating (VGOHT Unit) to Improve Energy Efficiency

The Company implemented a coating project for the Main Fractionator Heater in the VGOHT unit with the objective of improving fuel energy efficiency and reducing heat loss from the furnace. This was achieved by applying a special high-temperature coating to the inner furnace walls, enhancing heat distribution and reflectivity within the combustion chamber.

The improvement enabled more efficient utilization of heat and reduced heat loss to the surroundings, resulting in a reduction in fuel gas consumption of approximately 4.6%. This corresponds to total energy savings of approximately 10,173 gigajoules per year and net cost savings of approximately 2.56 million Baht per year.

The project required an investment of approximately 1.56 million Baht, with a payback period of around nine months, demonstrating strong economic viability. In addition, it contributes to a reduction of approximately 543 tons of carbon dioxide equivalent per year (tCO₂eq/year), supporting the Company’s greenhouse gas reduction targets and long-term sustainable business operations.

R: Reshaping Portfolio

The potential to reduce Scope 1 and Scope 2 greenhouse gas emissions accounts for 10% of total emissions by 2050, driven by the development of low-carbon and environmentally friendly products

Progression plan: 100%
CFP registration: 70 CFP products

Low Carbon Product Development

As a company with expertise in innovation, IRPC strives to 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:

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.
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 Thailand Greenhouse Gas Management Organization (TGO). 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 2025, a total of 73 products, were remaining certified with the Carbon Footprint of Product (CFP) label by the Thailand Greenhouse Gas Management Organization: TGO (Public Organization).

A: Absorption and Offsetting

Greenhouse gas reduction potential in Scope 1 and Scope 2 representing 40% of total emissions by 2050. This comprises 30% from carbon capture and storage initiatives and 10% from greenhouse gas removals through forestry-based absorption

CCS Project study: 100% vs plan

Reforestation Project: 12,106 Rais

Carbon Capture and Storage: CCS

IRPC Public Company Limited, in collaboration with the PTT Group, is advancing a Carbon Capture, Utilization and Storage (CCUS) initiative, achieving significant progress in regulatory development, commercial readiness, and technical collaboration. The project has evolved from a conceptual study into the establishment of a clear strategic framework to support long-term greenhouse gas (GHG) emissions reduction.

On the regulatory front, the project received approval from the National Energy Policy Committee (NEPC) on 7 August 2025 to proceed with seismic surveys and is currently awaiting final approval from the Cabinet. The Company has formally expressed its preliminary demand for carbon dioxide storage services to the PTT Group to confirm joint implementation and demonstrate the project’s commercial development potential.

In addition, the PTT Group has completed a Carbon Capture Technology Roadmap and is advancing Carbon Capture and Utilization (CCU) initiatives into the negotiation and feasibility study phases. A structured internal collaboration framework has also been established across the Group. Projects are being continuously evaluated to assess suitability, economic viability, and alignment with the organization’s climate change objectives.

In the next phase, the project is transitioning from planning to operational preparation. This includes commercial aspects, such as developing preliminary service fee structures and benchmarking carbon capture costs, as well as technical considerations, including detailed analysis of onshore transportation logistics and carbon capture requirements. Preparations for pilot capture units are also being studied to enable tangible implementation of CCUS projects in the future.

Sustainable Reforestation Project

IRPC is committed to achieving net zero greenhouse gas emissions by 2050 while conserving natural resources, protecting the environment, and enhancing biodiversity. To support this commitment, IRPC implements our Sustainable Reforestation Project in collaboration with the Mae Fah Luang Foundation under Royal Patronage, the Royal Forest Department, and the Department of Marine and Coastal Resources.

Reforestation activities include land preparation, firebreak construction, weed control, and fertilization. Planting has been completed, and the project is currently in the monitoring and maintenance phase, including wildfire surveillance, survival rate assessment, and replanting, with an average survival rate of 93%, exceeding the target of 85%. In 2025, IRPC expanded reforestation efforts with the Royal Forest Department in Chiang Rai Province, covering an additional 2,400 rai. The total forest area under the project now reaches 34,506.45 rai, comprising 106.45 rai of mangrove forest in Satun Province, 4,400 rai of terrestrial forest in Chiang Rai, and 30,000 rai of community forests managed by the Mae Fah Luang Foundation across Chiang Rai, Chiang Mai, Nan, Lampang, Yasothon, and Amnat Charoen Provinces.

Beyond environmental benefits, the project supports local livelihoods and community well-being, helps mitigate natural disaster impacts, and strengthens community awareness and stewardship in forest conservation. IRPC also utilizes the Smart Forest Platform by Varuna (Thailand) Co., Ltd. for field data collection, wildfire monitoring, and estimation of carbon dioxide sequestration

Organizational Carbon Footprint and Carbon Label Certification

IRPC recognizes the importance of preparing a greenhouse gas (GHG) inventory in compliance with national standards and applicable laws and regulations. Accordingly, the Company implemented a Carbon Footprint for Organization (CFO) in accordance with the standards and guidelines of the Thailand Greenhouse Gas Management Organization (TGO). A CFO working team comprising representatives from relevant functions was established, with technical support from the Carbon Institute for Sustainability (CBiS), Faculty of Engineering, Chulalongkorn University. The GHG inventory was verified by SGS (Thailand) Limited and certified by TGO.

The CFO covers all key organizational activities, including production, transportation, energy consumption, and waste management, and accounts for GHG emissions across Scopes 1, 2, and 3. Total GHG emissions in the reporting year amounted to 17 million tons of CO₂equivalent, with Scope 1, Scope 2, and Scope 3 contributing approximately 18%, 3%, and 79%, respectively, highlighting the significance of value chain-related emissions.

Based on the CFO results, the Company identified opportunities to further enhance its GHG management system, including improving the completeness and structure of Scope 3 data, expanding analysis in material Scope 3 categories, and utilizing CFO outcomes to support value chain GHG reduction planning aligned with the Net Zero 2050 target. The Company also plans to enhance monitoring efficiency through the development of a GHG emissions dashboard. To support effective implementation, the Company provided training and workshops for the CFO working team and relevant personnel to strengthen understanding of GHG accounting principles, data collection, and basic GHG calculations for Scopes 1, 2, and 3, and collaborated with CBiS to develop knowledge-sharing materials for broader dissemination.

The Company has been awarded the Carbon Label certification by the Thailand Greenhouse Gas Management Organization (Public Organization) (TGO), covering the Carbon Footprint for Organization (CFO) at the corporate level of IRPC Public Company Limited, including its water production plant and central wastewater treatment plant. This certification reflects the Company’s capability to systematically manage and report greenhouse gas emissions in a transparent and verifiable manner, in accordance with internationally recognized standards. It further reinforces the Company’s commitment to continuously reducing greenhouse gas emissions and advancing its business operations towards the Net Zero target.

IRPC has launched the Whitepaper Guideline “IRPC CFO Scope 3,” developed in collaboration with the Carbon Institute for Sustainability, as a standardized framework for assessing and managing organizational carbon footprints related to indirect greenhouse gas emissions (Scope 3) within the business sector. This initiative demonstrates a proactive role in driving industry-wide Net Zero ambitions by enhancing knowledge and supporting effective greenhouse gas management. It reflects the Company’s commitment to extending emissions reduction efforts across the entire value chain, beyond its own operational boundaries.

The Whitepaper was officially introduced at the “Arun Sarates Memorial 2026” event, a platform dedicated to knowledge exchange on greenhouse gas management. On this occasion, IRPC delivered a sustainability vision, highlighting the Company’s role in steering the industry towards a low-carbon economy and achieving Net Zero targets. The event also featured discussions on best practices in Scope 3 management in collaboration with relevant stakeholders.

Internal Carbon Pricing

IRPC implemented internal carbon pricing (ICP), also known as a shadow price, across the Company to integrate carbon emission costs into decision-making. Since 2021, ICP has been applied alongside other financial tools, such as internal rate of return (IRR), in the evaluation of green investments and infrastructure projects. The ICP is applied across all business decision-making processes and covers Scope 1&2 emissions, ensuring that the full carbon cost is considered in project evaluation and strategic planning. Its application supports cost—benefit analysis, drives energy efficiency and low-carbon investments, incentivizes the consideration of climate-related issues in decision-making and risk assessment, helps identify low-carbon opportunities, informs strategy and financial planning, supports navigation of emerging regulations, encourages efforts to reduce value chain emissions, facilitates alignment with climate-related policies and targets, provides a basis for considering carbon offsets, and enables stress-testing of investments under varying carbon-cost scenarios.

IRPC set 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 for PP Plant, VDU Heater Energy Efficiency Improvement for Lube Plant, Meltblown expansion project for Polypropylene, Global Hygiene: Spunbond Expansion project for Polypropylene, etc.

GHG Emissions Performance Summary

IRPC has set the target to reduce direct and indirect GHG emissions to not more than 3.77 tCO₂eq in 2025. This year’s actual performance reflects emissions of 3.71 tCO₂eq, which are 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 assessment that evaluates exposure across likelihood and impact in Economic, Social, and Environmental dimensions. This approach ensures a well-balanced ESG risk profile. The company conducts annual assessments and sensitivity analyses of climate-related risks and carbon reduction projects, considering costs, GHG reductions, and potential effects on financial performance, operations, and reputation.

Our documented climate risk management process systematically identifies and evaluates all major climate-related risks, including current and emerging regulation, technology, legal, market, reputational, acute physical, and chronic physical risks, across the full value chain, covering operations, upstream suppliers, and downstream clients. Assessments are conducted over short-, medium-, and long-term horizons, and climate-related opportunities are incorporated to support strategic decision-making.

IRPC aligns our climate-related risk and opportunity assessments with recommendations of the Task Force on Climate-related Financial Disclosure (TCFD) and has prepared its climate-related risks and opportunities report in accordance with the IFRS S2 Climate-Related Disclosures Standard (International Financial Reporting Standards). Full details of methodologies, assessments, and management approaches are available in the publicly accessible IRPC IFRS S2 Climate-Related Disclosures Report on our website.

IFRS S2 Climate-Related Disclosures ReportDownload

Climate Scenarios

IRPC conducts climate-related scenario analysis using both qualitative and quantitative methods to assess physical and transition risks, as well as associated opportunities. Physical risks are evaluated under SSP2-4.5 (RCP4.5) and SSP5-8.5 (RCP8.5) scenarios, reflecting “middle of the road” and high-emission pathways, and consider impacts such as flooding, extreme weather events, and long-term temperature changes on operations, financial performance, and reputation.

Transition risks and opportunities are assessed using NGFS-aligned scenarios, including Net Zero 2050 (Orderly), Delayed Transition (Disorderly), and NDCs, which incorporate carbon pricing, regulatory changes, technology evolution, and market dynamics. The same scenarios are applied to assess climate-related opportunities, including renewable energy adoption, energy efficiency improvements, and circular economy initiatives. Assessments cover the full value chain—upstream suppliers, operations, and downstream client.

over short-, medium-, and long-term horizons. Impacts are classified according to IRPC’s Enterprise Risk Management criteria. Full details on methodologies, scenario analyses, and results are available in the publicly accessible IRPC IFRS S2 Climate-Related Disclosures Report.