Policy on Environmental and Community Responsibility

The Company strictly conducts its business under laws, requirements, rules, and regulations relating to the environment, as well as the use of energy and natural resources, with an emphasis on natural conservation, systematic waste management, and awareness of the management, supervision, and control of environmental impacts of business operations, while encouraging employees to be conscious and participate in showing responsibility for the environment in terms of the use of valuable resources.

Environmental Policies and Practices

The Company is determined to develop production technology to reduce environmental impact by adhering to the improvement of procedures, including raising awareness among employees at all levels. There are guidelines to promote technology development by considering environmental impacts, promoting energy and natural resource conservation, promoting and complying with laws, promoting trust in society and communities, and promoting training to raise awareness of employees at all levels.

Practices

Strictly comply with environment-related laws, regulations and procedures.
Regularly review policies and handling methods, and monitor environmental performance.
Support the use of tools, technologies, and procedures that meet environmental standards by considering accurate and proper quantity control and waste management.
Disclose the Company’s environmental information accurately and transparently.
Educate and support activities that raise awareness among employees about being responsible for the environment.

Impact Assessment

The Company conducts business in the form of a palm oil production plant and relevant products. Therefore, at the beginning of the production, there will be a lot of water and electricity consumption in order for the production process to be able to continue. At the end of the production process, there will be waste, such as wastewater and palm waste. The Company has considered the impact and found that environmental issues have a serious impact on the Company. Accordingly, the Company has established guidelines to comply with strict occupational health and safety principles and laws, regulations, and procedures related to the environment.

Performance on environmental works

1) Water management

The Company realizes the importance of maximizing the use of water to achieve the best value. Therefore, 4 measures to save water and processes to care for the water system have been established as follows:

Measure 1 Maintenance measures for water pipelines and water distribution systems within the production process to reduce leakage.

Measure 2 Measures to classify the water inside the factory and classify the water suitable for use to achieve the maximum value usage of water.

Measure 3 Measures to bring wastewater from production process (Reject RO) back to use as tap water (Grade B water supply) in order to reduce the amount of raw water that comes into production.

Measure 4 Water monitoring measures – Water system administrator has a summary report of water consumption compared with the quantity of production in order to inform the water user department of the water consumption ratio of each department every month.

Water consumption target

The Company can reuse the wastewater from the production process (Reject RO) as water supply (Grade B Water Supply) to reduce the amount of raw water used in the production process.
The Company will use tap water from outside only in the case of machinery and equipment in the process of wastewater reuse (Reject RO) to be water supply (Grade B Water Supply) breakdown.

Performance in the Past Year

The company continues to be able to reuse reject reverse osmosis water (Reject RO) for both industrial processes and factory water, meeting its objectives
Implemented the same measures, such as reusing wastewater from the production process (Reject RO) as tap water for use in the production process and in the plant as targeted
Improved water supply lines and leak points to reduce the amount of water lost in the system
No external water supply is utilized.

Static use of raw water in production processes and applications in various fields

Details	Units	2024	2023	2022
external water consumption target	Cubic meters per year	0	n/a	n/a
external water consumption	Cubic meters per year	0	0	0
Used of raw water	Cubic meters per year	582,457	611,981	614,981
Using water from natural sources - Surface water	Cubic meters per year	582,457	611,981	614,981

Remark : The quantity of wastewater discharged from the production process in the year 2024 decreased compared to the previous year, attributed to a reduction in the quantity of fresh palm fruits entering the production process.

2) Wastewater Management

Due to the fact that some of the processed water cannot be reused in the process of Reject RO to be water supply (Grade B Water Supply). This water will be separated into wastewater wells for biogas production or as renewable electricity to be used in the manufacturing process or to be taken into the final treatment process, which contains high minerals for watering the gardens of the surrounding farmers who require water during the dry season. The Company has projects for biogas production technology and wastewater management for energy and environmental conservation, as well as a pipeline project for water that has passed the treatment process to animal feed development stations and farmers around the establishment to manage the Company’s water and wastewater.

Target

The Company does not release wastewater that exceeds standards and laws, and there have been no complaints or environmental complaints, or penalties.

Performance in the past year

The Company does not release wastewater that exceeds the standards and laws and has received no complaints or environmental complaints, or penalties.

2.1) Project : Biogas Production Technology and Waste Water Management for the Preservation of Energy and Environment

The company’s business operation involves employing CPO crushing mills and refinery plants. The company has comprehensive ranges of industrial agricultural business, with more than 39 years of business operation. And for a very long time, the major and recurring issue in the company business operation has always been waste water management. Polluted water resulting from the manufacturing process can cause serious environmental harms, generate health and hygiene pollutions such as bad odors and insect infestation. These can directly affect the surrounding communities and the production of the company as well as contribute or even exacerbate global warming situation as a result of the greenhouse gas emissions entailed in the production processes.

The company aware of the environment and the use of natural resources to their maximum advantage and continue to focus our attention on environmental conservation and make sure that they remain in good conditions well into the future. In accordance with policies as determined by the Ministry of Industry, the company has set up biogas system which is an anaerobic waste water management system in our continued effort to conserve energy and preserve the environment. The biogas resulted from the waste water management process will be reused as a renewable source of energy in the production system of the company’s refinery plants. The construction to expand and modify the production system was first initiated in 2006 with phase 2 of the modification completed in 2014. This is to ensure that the production cycle of the company’s business operation can handle waste water resulted from production process as efficiently and as effectively as possible.

Project Objectives and Goals for this project, It is to include biogas technology fermentation tank A+CSTRth (Appropriate + Completely Stirred Tank Reactor, Thailand) and other related components to handle waste water from Palm Oil production process. It is also to produce biogas as another source of renewable energy and to reduce pollution caused by waste water and waste water treatment system of the plants. In general, the company’s objectives for biogas technology application in waste water management shall be elaborated as follows.

1) To install biogas system with A+CSTRth and A+HCSRth fermentation tanks along with other applicable equipment in a water treatment system for waste water derived from fresh oil palm production which can reach up to 2,160 tons per day.

2) To produce and use Biogas products of 40,000 cubic meters. 60% of Methane gas derived can be used as biomass renewable energy as well.

3) To produce electricity and distribute them. The approximate quantity required per day is 3.36 Mkh.

4) To produce quality dry organic fertilizer for approximately 35 tons per day. The humidity of the produce shall range between 70-80%. They are to be used to improve soil materials components as chemicals-free fertilizer for Oil Palm plants within the company’s plantations

5) To produce water-based fertilizer of approximately 600-700 m3/day. They shall subsequently be used as fertilizer for the company’s agricultural products.

6) To send treated and purified water to Animal Food Development Station.

7) To reduce pollution problems especially those relating to odors, insect infestation and to ensure the commitment of the company to environmental conservation.

Biogas technology is used in the company’s waste water management in palm oil production. Biogas fermentation tank technology, A + CSTRth (Completely Stirred Tank Reactor + Appropriate, Thailand), and A + UASBth (Upflow Anaerobic Sludge Blanket, Thailand), A + HCSRth (Appropriate High Sludge Concentration, Reactor + Thailand), is the main water treatment technology which does not involve air as the main component to digest organic matters found in the contaminated water with high concentration of suspended matter and COD. With bacteria that can digest organic matter without air, the organic compounds with be transformed into biogas components which can then be collected and reused as another source of renewable energy within the production plant.

Waste water that has been treated via fermentation tanks from A+CSTRth, A+UASBth, and A+HCSRth values with reduced dirt in the form of COD for approximately 90 %. For sewage sludge from fermentation tanks, it is to be sent to filter out solid organic waste and can then be used as organic fertilizer. Treated water that goes through the filter will be passed over to even more advanced treatment system-in open pond system-in order to achieve proper quality of water that can be used as water-based fertilizer in future planting.

Benefits for the Production Plants : The total production costs are reduced as a result of renewable biogas as a much cheaper substitute for fuel oíl and other biomass. The technology and the products derived from it help with cost reduction. The company is no longer relying too much on using chemical-based fertilizer. With our own capacity for organic fertilizers production both as dry and as water-based, it can cut down a significant part of the production costs. The application of the technology ensures better quality of life and overall health of the company’s employees and with the technology, the company can lower pollution problems and prevent insect infestation that might spread germs.

Benefits for Surrounding Communities : The Biogas technology employed can help lowering insect infestation and other problems between communities with factories. The quality of life and mental health of the community shall be improved as well and possible contamination natural water sources can be minimized, if not entirely eradicated.

Benefits to the Environment : The technology helps with maintaining environmental quality by reducing air pollution in soil and in water and also limit water contamination problems to nature and the technology helps with the reduction of methane bass emissions to the atmosphere that is among the main contributing factors to global warming by using them as renewable energy sources.

Wastewater Management Statistics

Details	Units	2024	2023	2022
The amount of wastewater from the production process.	Cubic meters	201,133	227,418	280,898
Manufactured for electrical power	Mkh.	8,232	11,404	15,830

Remark: The amount of wastewater received from the production process in 2024 was decrease than the previous year due to the quantity of fresh palm produced fed into the production process being lower.

2.2) The Waste Water Treatment Pipelines Project, sending to Animal Foods and Agriculture Center Project and palm plantations of farmers who live around the factory

This project is a corporative attempt between three authorities, which are Chumporn Palm Oil Industry Public Company Limited, Animal Food and Agriculture Development Center, Chumporn Province and palm plantations of farmers who live around the factory. To send waste water that has gone through a final waste water treatment and filled with mineral nutrients to water Napier grass fields in Animal Food Development Station of Chumporn Province as animal food and as renewable energy and to send waste water that has gone through a final wastewater treatment to oil palm plantations of the farmers who live around the factory. This shall reduce the production costs because the reduced use of chemical fertilizer and also help alleviating water shortage problems.

Routes for Pipelines Distributing Cleaned Waste Water : The water pipes for water undergone the water therapy and the product after the biogas production systems will be sent to Animal food Development Station of 2.8 km distance and the water can be released into the oil palm plantation of the farmers in the area. This is an alternative to chemicals-based fertilizer. The pipelines end at Animal Food Development Station. The water send in the pipelines will be kept in 25 m³ in 2 tanks and will be used by the center to water napier grass which is a high quality food source for animals, both in terms of productivity and nutrients it provide. Additionally, the napier grass can be used to produce energy as well. It is considered a type of biomass. The grass is high in organic fiber and humidity. It can be used to produce energy by burning after initial humidity reduction process. It can also be fermented to produce biogas or Methane gas.

In addition, the water that has gone through therapy is also released into Angola grass fields within the center. Angola grass is a main food source for cattle. At the present, it is relatively rare and can be very expensive because the relevant government agencies have not been encouraging farmers to grow them continuously and systematically.

At present, the company still sends treated water to the Animal Food Development Station of Chumporn Province and palm plantation in Kantasaphr Village, Mhu 2, Tambol Salui, Amphur Ta-sae and palm plantations of farmers who live around the factory. This service we provide to the surrounding community has continued to receive good response because our water management process does not harm but greatly benefit the daily life of the people within the community.

The company is still committed to conduct business while paying close attention to the importance to the environment. Corporate social responsibility will continue to be our long-termed goals which allow for sustainable development and peaceful community forever.

Wastewater Treatment Management Statistics

Details	Units	2024	2023	2022
The amount of treated wastewater	Cubic meters	201,133	227,416	280,898
The amount of treated wastewater released for agriculture	Cubic meters	232,041	201,760	231,585
Water released into surface water sources	Cubic meters	0	0	0
Water released into groundwater water sources	Cubic meters	0	0	0
Water released into groundwater sea	Cubic meters	0	0	0
The amount of management cost when idling	Million Baht	35	30	34

Remark: The amount of wastewater received from the production process in 2024 was lower than the previous year due to the quantity of fresh palm produced fed into the production process being lower.

3) Energy management

Electricity is considered an important energy in the operation of the Company’s machinery and is considered a high cost if the Company has to purchase electricity from outside for use in the production process.

The Company supports and promotes energy conservation to achieve the cost-effective use of energy and create maximum benefits to the organization, support standards as required by law, along with raising awareness for employees to understand and participate in the sustainable energy management of the organization.

Electricity Consumption Target

The Company will use the electricity generated from the project of biogas production technology and wastewater management for energy and environmental conservation in the production process and other sections, and then the rest of the electricity will be sold to the Provincial Electricity Authority
The Company will purchase electricity from outside in the event of stopping the machine for an annual repair only.

Performance in the Past Year

The Company cannot generate electricity to be used in the production process and all other sections due to less fresh fruit palm than previous years and wastewater from the production process that was used to generate electricityhas decreased. In addition, the machines had beed shut down for repairs for longer than previous year.

Electricity Consumption Statistics

Details	Units	2024	2023	2022
External Consumption Target	Mwh	140	n/a	n/a
The amount of consumption of external electricity	Mwh	1,044	413	230
External electricity usage costs	Million Baht	5.92	3.81	2.40
Self-generated electricity consumption	Mwh	24,158	29,214	33,728
Total amount of self-produced electricity	Mwh	3,892	5,939	10,062
Income from selling electricity	Million Baht	14.02	24.00	34.33

Remark: The amount of external electricity consumption in 2024 increased from the target due to the decrease in fresh fruit palm, causing the production process to operate intermittently during some periods according to the fresh palm fruit season.

4) Managing to reduce problems of greenhouse gases

The Company pays attention to management to reduce greenhouse gas problems caused by various activities within the factory with the management to reduce greenhouse gas emissions as follows:

1) Using wastewater from the production process in the factory to produce biogas for use as biofuel, which is used in oil refineries and to generate electricity for use in palm oil extraction plants; the remainder is sold to the Provincial Electricity Authority.

2) The flue gas emitted by the generator is recovered as heat energy for the 10-bar boiler for use in the palm kernel oil production process.

3) Implementation of energy management practices, for instance, when light bulbs need to be changed, they are replaced with a type of light bulb that is more efficient and saves electricity; having an annual cleaning of the air conditioner to make the air conditioner work at full efficiency; conducting a shutdown to save energy at least 4 times a year or put a pause to the machines to accumulate raw materials in order to operate the machine at full efficiency, etc.

4) The Company practices energy management measures, such as measures to reduce electricity consumption by improving air conditioning in factories and upgrading the insulation of the fresh fruit palm steamer system to reduce heat loss in the production process.

Greenhouse Gas Reduction Capability reducing greenhouse gas emission

Details	Units	2024	2023	2022
Reduce greenhouse gas emissions	Tons of carbon dioxide	5,134.27	5,345.66	6,436.82

5) Roundtable on Sustainable palm oil (RSPO)

Roundtable on Sustainable Palm Oil (RSPO) is a sustainable palm oil production standard that is environmentally friendly and responsible for the community. Due to the global demand for palm oil which results in a continuous expansion of the palm plantation area, this activity has an impact on the society, environment, and local community. From the pressure of the consumers, the palm oil industry has come up with a sustainable palm oil production initiative to support the growth and sustainable use of palm oil produced from upstream to downstream.

There are seven established criteria for palm plantations according to the RSPO standard as follows;

1) Ethical and transparency: driving ethical business practices with transparency, building trust with stakeholders to establish sound and stable relationships.

2) Act legally and respect rights: use legal requirements as a fundamental principle of control actions.

3) Increase production efficiency, effectiveness, positive impacts, and flexibility. Carry out the operation according to the plan, procedures, and systems for continuous improvement.

4) Respect communities and human rights and deliver benefits: respect community rights, give equal opportunity to all, maximize the benefits of participation and ensure remedies are compensated when necessary.

5) Support smallholder groups: include smallholder farmers in the RSPO supply chain and improve smallholder livelihoods through fair and transparent partnerships.

6) Respect workers’ rights and conditions: protect workers’ rights and ensure safe and suitable working conditions.

7) Protect, conserve and strengthen the ecosystem and environment: protect the environment, conserve biodiversity, and manage natural resources sustainably. Each principle has its own criteria, indicators, and guidelines to apply for a certification for sustainable palm oil production.

The Company realizes the importance of society, community, and environment. Therefore, the practices have been adjusted at every step from upstream to downstream to meet the requirements and criteria of the RSPO and are submitted for Sustainable Palm Oil Production (RSPO) certification until the Company has received RSPO Certification since year 2019 as follows;

RSPO Principles and Criteria (Generic version 2018) for its scope concerning : Plantation and Palm Oil Mill : Production of FFB, Crude Palm Oil Module: Identity Preserved and Mass Balance.
RSPO Supply Chain Certification Standard (version 01/02/2020) for Refinery & Frationation : Module Identity Preserved, Segregated and Mass Balance, and Crushing Mill (CPKO) : Module Mass Balance.

6) CPI Learning Center

To be successful in a palm plantation, good management is considered very important no less than selecting good varieties of the palm trees. The company aims, therefore, that farmers can manage their plantation knowingly and effectively. This is the very reason why in 2013, we established “CPI Learning Center” to help local farmers to learn more and comprehensively about palm oil production. The materials provided at the Center include publications, academic papers both by the company’s research and from acquired experience from working in the industry for more than 40 years in more than 20,000 acres of oil palm plantation. The Learning Center is located in Amphoe Ta-SAE of Chumphon province and it consists of a learning center building. Pathways that visitors can take to observe a variety of oil palm trees. At the center, we also exhibit common barn owls. The center has been opened from 2014 onwards. The services provided are free of charge.

Target
• To encourage farmers or those interested in palm planting to have knowledge and understanding in caring for palm plantations in order to obtain good yields and a high percentage of oil.

Statistics on the number of visitors and training

Details	Units	2024	2023	2022
Visitiors	person	628	250	213
General trainees	person	5,720	2,142	1,565
Professional palm plantation management trainees	person	313	157	147

7) Using Common Barn Owl to eliminate rat in palm plantations Project

The company gives priority to the environment by providing a using common barn owl to eliminate rat in palm plantation project. This is to reduce the damage caused by a collapse on insects and pests population control without using chemicals, which would affect the ecological system. This project will help reduce the cost of using chemical substances and shall cause farmers to pay attention to and care more towards the natural, chemicals-free approach in dealing with pests and infestation. The company provides training courses for anyone who is interested from 2014 onwards.

Common Barn Owl is one of the local birds of Thailand. They are in every region throughout the country. They are nocturnal and often live near a human community. Normally, they use niche in a building, a nook or a roof space as their nests. Their preying behavior include catching preys in the open spaces like pasture fields, farm or especially in oil palm plantations. The mating period is often during the month of September to February. The number of eggs in each nests 5-7 eggs. The hatching takes about 30 days to hatch. Every day, the birds will incúbate the laid eggs for 18 hours. During this time, male bird will be the one preying and bring in foods to the nests for both the mother and baby birds every day.

From our study of the birds’ spew around the nests, we found that common barn owl living in oil palm plantation areas often take wild rats as their favorite food source to almost 100%. From this discovery, we then calculate that the birds can eat on average 1-2 rats of wild rat a year (or 350-700 rats). This large number of rats within plantation, if left alone, will induce loss to the palm production of more that 1.1-2.5 tons per acres, which amounts to Baht 5,500-12,500 per acre per year (Fresh Oil Palm Fruits Branch at Baht 5 per kg.) At the same time, farmers will have to pay for chemicals and other pests repellent products which will increase the production cost for more than Baht 700-1,400 per acre per year.

8) Waste Management
The company encourages employees to sort waste at the source in order to recover recyclable materials before disposing of the non-reusable waste. The company has established procedures for waste management to ensure proper control and handling in an appropriate and correct manner.

Waste Management Goal
• To ensure that waste is managed properly and in compliance with laws
• To reduce waste accumulation, which can become a breeding ground for pests and lead to contamination in products reaching consumers.

Performance in the Past Year
• Sort the waste into different categories, such as separating reusable and recyclable waste, as well as hazardous waste, from general waste, to ensure proper and appropriate management.
• Collect hazardous waste, such as light bulbs and chemical containers, and store them in a designated hazardous waste area with containers to prevent chemical spread, awaiting proper disposal by a licensed disposal company.
• Separate waste from the production process that can be reused, such as separating palm fruit fibers to be used as fuel, and separating bleached starch residue to be properly disposed of by a licensed waste disposal company.
• Collect the sorted waste in an area with good ventilation, sufficient lighting, and clear pathways. It should be located away from food preparation areas, dining areas, and drinking water sources.

Details	Units	2024	2023	2022
General waste quantity	Tons	54,800	59,160	67,790
Non-hazardous waste quantity for reuse	Tons	5,850	4,560	3,780
Hazardous waste quantity	Tons	0.9	1.2	2
Hazardous waste quantity for reuse	Tons	17.63	16.56	16.44