Banpu Co., Ltd

CSR Awards Interview September 1, 2014

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Our Operations

29 Mt

20 Mt

1.5Mt

248 MW

1,434 MW

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Australia coal

Indonesia coal

Thailand

• Output 29 Mt

• 5 Mines : Indominco, Trubaindo, Jorong,Kitadin and Bharinto

• Output 20 Mt

• 10 Coal mines

Mines

Power plant

China

• BLCP power 1,434 MW

1,878 MW

6Mt

Power project

• Gaohe Mine: 6 Mt

• Hebi Mine: 1.5 Mt

• 3 Power Plants 248 MW

Mongolia

Hunnu Coal development

• Tsant Uul

• Altai Nuurs

• Unst Khudag

Laos • Hongsa Power 1,878 MW

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Vision Missions

To be an energetic Asian energy of quality products & service and be recognized for its fairness, professionalism, and concerns for society and environment

1. To develop business in the fields of energy in pursuit of Asian leadership position.

2. To diversify and invest in strategic business to enhance competitiveness.

3. To provide a variety of quality products and services with commitment, reliability, and flexibility.

4. To conduct business in socially, ethically and environmentally responsible manner.

5. To build sustainable value for shareholders, customers, business partners, employees, local communities, and to be a good citizen to host governments.

Our Vision & Missions

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SD Management

Government & Regulator

Employee

Customer

Business Partner

Community

Financial Community

Local knowledge transfer, Tax, Regulatory compliance, Good Corporate Governance

Benefit, Capability development, Career path

Quality Product, Appropriate price

Integrity, Good corporation

Less impact, Improve quality of life

Transparency, Appropriate financial return

Stakeholder Engagement

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Competitiveness

Localization

License to Operate

BANPU SD Framework • Health & Safety • Environment • Community

Development

• Good Governance • Business Ethics • Compliance • Good Corporate

Citizen • People Development • Operational Excellence • Technology

Key Enablers

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Sustainable Development Committee

Major Issues • Natural Resources Conservation (e.g. Energy Management, Land Use, Mine

Rehabilitation, Biodiversity)

• Environmental Impact Management (e.g. Acid Mine Drainage, Climate Change, Air Emission, Waste Management)

License-to-Operate: Environment

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• Coal Indonesia to reduce Carbon emission by 5% in 2015 (2010 as

baseline)

• The target can be achieved by Energy Management initiatives,

machinery efficiency improvement, etc.

• Participate in Carbon Disclosure Project (CDP)

• New Energy Business Development (e.g. Ethanol, Wind, etc.)

License-to-Operate: Environment (Carbon Emission)

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Community Sustainability

Infrastructure Economic Health & Sanitary

Education Social

Culture Capacity Building

Community Consultative Committee (CCC)

License-to-Operate: Community Development

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• Infrastructure (irrigation canal ,

building, etc.)

• Economic (fabric dying, vegetable

farming, etc.)

License-to-Operate: Community Development

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• Health (Medical checkup, maternal

and child health care training, etc.)

• Education (Learning and teaching

equipment, scholarships for nursing

college, etc.)

License-to-Operate: Community Development

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CSR in Thailand

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Power Green Camp (PWG)

• Started in 2006, 9th consecutive year this year

• Strategic partner : Faculty of Environment and Resource Studies of Mahidol University, environmental and resources government agencies, NGO and local community

• Target: 11th grade students throughout the country

• Objectives: o Educate and broaden youth understanding about

environmental science o Build sustainable environmental awareness and a

conservation conscience for future generations o Strengthen Banpu Brand on environmental concern

• Result: In eight years, there have been about 535 participating

students and also developed around 120 youth leaders who

have had the opportunity to exercise their leadership skills in

the environmental sector with strong network.

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Banpu Champions for Change (BC4C)

Submit SE Proposal

10 projects were selected and executed

Phase I Selection Process

4 projects were selected

Lesson learnt and project wrap-up summary

6 months

3 months

Phase II Selection Process

• Started in 2011, this year continues as 4th consecutive year

• Strategic partner : Change Fusion Institute (organizing NGO) and several NGOs focusing on social leaders & capacity building (Ashoka, Spring Professional- a recruitment firm, Embassy of Canada, Chulalongkorn University, Asian Leadership Academy, etc.)

• Target: Thai youth interested in Social Enterprise

• Objectives o Supporting development of the next generation in social

entrepreneurship. o Grooming the youth in SE and business management skills,

addressing social issues. o Strengthening Banpu Brand in supporting national

direction

• Results o Since 2011, BC4C has supported 31 social enterprises to

run trial operations (phase I) based on the project owners’ concepts and interest. 12 outstanding projects were further sponsored (phase II) to develop into sustainable

social enterprises.

• Business model training / Coaching / Mentoring

• Funding 50,000 Baht per project

• Business management training / Coaching / Mentoring

• Funding 200,000 Baht each

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Banpu Table Tennis Club (BTTC)

• Started in 2008, this year continues as 7th consecutive year program

• Target: Youth talent with high potential in table tennis

• Objectives o Athletes’ self-development in both physical and mental health through various

activities. o Forming new management systems and standards of table tennis clubs in

Thailand (systematic operation and individual development emphasizing on ethics, discipline and teamwork- other than sports capacity.

o Promoting relationship with Chinese local community and authority (linkage of Thailand and China)

• Mechanics: o Daily training by coaches (former national players) o Exchange program to China Zhengding TTC o Training in Thailand by Chinese coach o Participation in national and international tournament competition

• Results: o Many BTTC players won prizes and captured high ranking in both national and

international matches, with a number of players successfully entered to national team

o BTTC have been well recognized among table tennis sports society on the unique team management and fast growing with quality.

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Banpu Post-Flood Rehabilitation Project at Ban

Khao Samorkhon, Lopburi Province

Immediate (2012)

• To help community affected from 2011 flooding in the restoration and rehabilitation stage, ensuring them return back to normal condition as soon as possible.

Medium & Long Term

(2013 -2016)

Baan Khao Samorkhon development project demonstrates Banpu’s community development model aiming at community’s better quality of living, sustainable development with participation/ involvement of community and network partners.

Short & Medium

Term (2012-2013)

• To support community development for self-reliance and well-prepared for any future incidents.

• To create self-sufficient community model for the long-term sustainability development by emphasizing the involvement of the community, knowledge and capacity building, and civil society networks.

House Repairing for Moo 3

2nd Crop Organic Rice

Farming

Phoenix Oyster Mushroom Producing project

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Banpu Employee Volunteering Program

30 Years, 30 CSR Ideas

• Special project to celebrate Banpu 30th Anniversary, running in 2013-2014

• Target: Banpu employees from all BUs and operational sites in Thailand

• Objectives: o To commemorate Banpu’s 30th Anniversary by inviting

employees to propose and implement CSR ideas and/or volunteering activities

o To encourage cross-functional team working by enabling staff with different skills and backgrounds to collaborate in their project throughout the whole process

o To enhance awareness and commitment in CSR among employees

• Fund: Totaling amount of THB 560,750 for all 50 projects

• Result: 50 projects with very good feedback from employees.

Banpu Punfun Punyim

• Strategic partner: Banpu employees in Thailand

• Target: Ban Don Yai Nong Sanoh School in Korat and its nearby communities

• Objectives: o To raise awareness of CSR among employees at all levels,

aiming at higher Banpu CSR brand o To encourage cross-functional team working o To enhance relationship among Banpu employees

(engagement)

• Fund: Banpu provided THB 300,000 financial support for school building while Banpu staff donated THB 93,016 for student’s lunch fund and learning media.

• Result: 73 Banpu employees Over 150 teachers & students Over 250 community members.

THANK YOU