Message from the Chairman

Dear shareholders,

Over the past several years, countries around the world have been aware of and responded to climate change, including increases in global temperatures, melting of glaciers, and changes in weather patterns that become more severe. These factors not only affect businesses and industries, but also have a significant impact on ecosystems, economies, and lives and wellbeing of everyone around the world. The importance of climate change is widely recognized by powerful countries around the world. Such factor plays a role in leading to proactive actions and determination of various policies to reduce the impact on the weather. For instance, the 28th United Nations Climate Change Conference or COP28 was organized as a forum for leaders and government representatives to discuss and find ways to prepare for and reduce the impacts of future global climate change. This emphasizes the need to strengthen international cooperation to combat the global warming crisis. One of the measures designed to help fight climate change is Carbon Border Adjustment Mechanism (CBAM), which is one of the measures adopted by the European Union (EU). The EU is considered one of the regions that places great importance on reducing greenhouse gas emissions. This measure will, therefore, be used to equalize the cost of carbon prices between goods within the EU for which the EU's Emission Trading System (EU ETS) is applicable and goods produced outside the EU will be subject to carbon price adjustment to accelerate the need for the EU’s partner countries to focus on and seriously reduce greenhouse gas emissions. It also supports investment in clean technology and development of processes using clean energy to become efficient. This measure is a mechanism that has the potential to change the way the world manages greenhouse gas emissions by creating economic incentives to reduce emissions and supporting transition to more sustainable production models through decentralizing responsibilities in preventing climate change to producing and exporting countries. This will greatly enhance the global commitment to combat climate change.

As for business in Thailand, there has been a widely discussed concept called ‘Bio-Circular-Green Economy: BCG Model’, which is a development approach that focuses on integration between conservation of natural resources, promotion of responsible use of resources, and use of innovation to create sustainability in all dimensions, including economy, society, and environment. This can help reduce the impact of climate change. For instance, promoting the use of biological resources and sustainable agriculture helps reduce deforestation. Forests act as lungs of the earth, absorbing CO2 efficiently, reducing reliance on fossil energy, and reducing greenhouse gas emissions by using renewable energy. Other methods of the model include development of innovation in sustainable technologies, including development of alternative materials and waste management technology, and promoting circular economy, which reduces waste and promotes efficient use of materials.

As for Sakol Energy Public Company Limited “the Company”, which is a company that has operated in clean energy for many decades. In conducting the business, the Company places importance on changes in climate, environment, and society and the Company’s growth must be alongside with environmental and social sustainability, such as the main private natural gas station business, which was the starting point of the Company. The Company provides natural gas compression service, which is considered cleaner energy compared to traditional fossil fuels, such as diesel and gasoline, as natural gas emits less CO2, toxins, and air pollution. This affects both public health and air quality. Mae Krating Biomass Power Plant is also considered a source of clean energy production compared to traditional fossil fuels, such as coal and oil, as it has less greenhouse gas emissions and pollution. Management of waste or unused materials that are not hazardous by sorting and producing RDF is clearly considered part of the Bio-Circular-Green Economy: BCG Model through many dimensions, especially in the areas of circular economy and sustainable resource management, such as turning waste that can no longer be recycled into fuel to support the circular economy and reduce dependency on fossil fuels and other natural resources for energy production, reducing greenhouse gas emissions when compared using RDF with fossil fuels, reducing landfills that will produce a large amount of greenhouse gases, and supporting innovations in the waste and energy management industry. In respect of bioeconomy, even though the business does not directly manage plants or other living things, but the process of using waste to fuel is part of responsible and sustainable resource management. During the past year and into the future, the Company sees various environmental and social benefits from stepping into the waste management business. Therefore, we hope to achieve growth and development in the waste management business, along with conserving the environment, promoting the circular economy, increasing quality of life by eliminating garbage problems for citizens, and taking a part in caring for and preserving the world by transitioning to a clean energy economy.

On behalf of the Company, I wish to express gratitude to shareholders, customers, partners, related persons, and people who have provided support and assistance in the Company's works. Finally, the Company wishes to confirm our commitment and gives confidence that we will manage our operations under the principles of good governance and good management for sustainability of the Company. I would like to take this opportunity to thank the Board of Directors, management team, employees, and personnel of the Company for cooperation and performance to the best of their ability and taking responsibilities for their own duties. In the following year, all of us will continue to work together to achieve organizational growth, along with creating a sustainable society and environment.

 

 

Prof. Emeritus Dr.Direk Lavansiri
Chairman / Independent Director