Biodiversity

Impact on Business

CKPower recognizes potential impacts on biodiversity and ecosystems arising from its business operations, including compliance risks associated with environmental regulations and international standards, such as IFC Performance Standards and Equator Principles. Non-compliance could result in penalties or project cancellations, potentially affecting business continuity and stability
To address these risks, the Company emphasizes proactive risk assessment and analysis to develop preventive policies and measures for impact mitigation, while also actively promoting the implementation of technology and innovation for sustainable biodiversity conservation and restoration.
Furthermore, CKPower prioritizes collaboration with surrounding communities and stakeholders in environmental conservation efforts to maintain a balance between business growth and ecosystem protection. This approach not only advances the Company’s corporate sustainability goals but also enhances its credibility as an organization committed to biodiversity stewardship.
Challenges and Opportunities

Biodiversity holds paramount importance for business operations, as the CKPower faces challenges in regulatory compliance, natural resource management, and meeting increasing expectations from investors and society regarding ecological impacts in operating sites.

Furthermore, technological advances in data management and monitoring have necessitated the development of transparent and standardized biodiversity disclosure frameworks. In response to these challenges, CKPower has developed the biodiversity framework focusing on prevention and impact mitigation, as well as sustainable ecosystem conservation and restoration.

This approach aligns with Sustainable Development Goal 15 (SDG 15), which focuses on protecting, restoring, and promoting the sustainable use of terrestrial ecosystems. In addition, the Company implemented the Taskforce on Nature-related Financial Disclosure (TNFD) framework in 2024 to elevate its biodiversity management practices to meet international standards.

These initiatives not only enhance CKPower’s corporate credibility but also create business opportunities by attracting ESG-focused investors and strengthening the Company’s competitive advantage in sustainability-oriented markets.

Commitment

CKPower is committed to achieving “No Net Loss (NNL) of Biodiversity and Ecosystem Services” by 2040. To prevent and reduce potential impacts on biodiversity, the Company has developed a biodiversity action plan and integrated these objectives into the corporate sustainability strategy while also placing emphasis on effective natural resource protection and management.

Key initiatives undertaken include:

  • Environmental Monitoring Program: Conducting systematic monitoring and assessment of environmental impacts in operating sites
  • Biodiversity Strategy and Roadmap: Establishing guidelines for biodiversity protection and restoration
  • Adoption of the Taskforce on Nature-Related Financial Disclosures (TNFD) reporting and disclosure: Ensuring transparent disclosure of nature-related financial data.

Furthermore, CKPower conducts biodiversity impact assessments encompassing both its own operations and those of suppliers. This comprehensive evaluation provides valuable insights for developing and enhancing the Company’s long-term biodiversity impact management guidelines in a sustainable manner.

Operational Guideline

Biodiversity Management Policy
Biodiversity Management Policy
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Strategies and Strategic Plans

Biodiversity and Ecosystem Management

CKPower acknowledges the critical importance of biodiversity and ecosystems and is committed to conducting business in strict accordance with its Biodiversity Management Policy to support sustainable conservation of natural resources and the environment. The Company places emphasis on innovation and the implementation of environmentally friendly technologies in its operations to create positive impacts and minimize negative effects on ecosystems.

Awareness Building

CKPower actively promotes awareness and fosters understanding about the importance of biodiversity and ecosystems among employees at all levels and stakeholders throughout the supply chain to build a sustainable corporate culture and strengthen collaboration among all stakeholders. In addition, the Company actively implements biodiversity restoration and conservation projects that promote community and social engagement to support sustainable development.

Biodiversity Management Framework

In its power generation operations, CKPower implements a comprehensive biodiversity framework that spans from project design to operational management across all facilities. This framework incorporates the following Mitigation Hierarchy:

Mitigatizon Hierarchy
Avoid
Minimize
Restore and Offset
  • Mitigation Hierarchy: Operate with due circumspection in conjunction with biodiversity conservation throughout project design, construction, and operational management across all company facilities to maintain biodiversity at every level.
  • Avoid: Avoid activities in areas that may result in adverse impacts or damage to biodiversity.
  • Minimize: Establish measures to reduce and limit potential impacts to the least extent feasible.
  • Restore and offset: Carry out restoration and offsetting initiatives in relation to ecosystem services and biodiversity to ensure No Net Loss of biodiversity.
Biodiversity Roadmap

CKPower has developed Biodiversity Roadmap Phase 1, spanning five years (2023-2027), to strive toward achieving No Net Loss of biodiversity and ecosystem services by 2040. This plan establishes clear annual targets and implementation guidelines to create positive biodiversity impacts and support both corporate and global sustainability goals.

Phase 1 (2023-2027): Key Action Plan

Year 2022

  • Initiated Biodiversity Road map Development
  • Established preliminary guidelines for biodiversity management.
  • Developed a biodiversity management policy

Year 2023

  • Launched the Environmental Monitoring Program to assess and monitor impacts in operating sites.
  • Developed Phase 1 of the Biodiversity Action Plan (2023-2027).

Year 2024

  • Conducted a Critical Habitat Assessment (CHA) and developed the Biodiversity Action Plan (BAP) framework for CKPower’s critical operating sites. (Xayaburi Hydroelectric Power Plant)
  • Prepared a Taskforce on Nature-related Financial Disclosures (TNFD) report for transparent nature-related disclosure.
  • Developed the Biodiversity Action Plan (BAP) for Xayaburi Hydroelectric Power Plant

Year 2025

  • Expand Biodiversity Action Plan (BAP) development to all critical operating sites.
  • Complete the Biodiversity Action Plan (BAP) for Xayaburi Hydroelectric Power Plant.

Year 2026

  • Implement the Biodiversity Action Plan (BAP) at all of CKPower’s critical operating sites
  • Phase 2 (2026-2040): Continuous Monitoring and Implementation
  • Continuously implement the Biodiversity Action Plan (BAP) across all operating sites
  • Regularly monitor and evaluate operating sites.
  • Review and adjust biodiversity management guidelines as appropriate

Monitoring

  • CKPower monitors and inspects terrestrial and aquatic biodiversity as per the Environmental and Social Management and Monitoring Plan during the Operation Phase (ESMMP-OP) in accordance with environmental impact prevention and mitigation measures as well as biodiversity risk assessment.
    • For Nam Ngum 2 Hydropower Plant and related regulations, monitoring encompasses construction and operational activities, with biodiversity management in operational areas aimed at maintaining aquatic biodiversity as much as possible, particularly regarding sediment quality, water quality, fish species, and fish eggs. All power plants will conduct environmental quality measurements in compliance with legal requirements and established standards.
    • Xayaburi Hydroelectric Power Plant regularly monitors key environmental quality indicators in the Mekong River, such as sediment volume, water quality, fish species, and fish eggs in the area under monitor, which spans both the upstream and downstream sections flowing through the power plant. This includes active participation in preserving both upstream and downstream ecosystems to maintain their natural state as much as possible, ensuring continuous sustainability. Additionally, the plant actively contributes to the conservation of forest areas.
  • Deforestation
    • No stage in the production process of any of the Company’s power plants involves deforestation, and none of the Company’s power plants are situated within protected areas, including reserved forest areas and world heritage areas.
  • Hunting
    • All power plants, during both the construction and operation phases, have established strict measures prohibiting wildlife hunting and aquatic animal capture within the power plant premises, surrounding areas, as well as in conservation, reserves and protected area.
  • Contamination
    • Each power plant is equipped with a comprehensive system to monitor, manage, and mitigate environmental contamination from operational waste. This system covers all types of waste, including wastewater and air pollutants. The continuous implementation of this control system, along with the fish passing system, has succeeded in preserving the natural processes of terrestrial and aquatic ecological systems in relevant areas.

Study

  • CKPower conducts ecosystem and species biodiversity research as well as assessment of protected or conservation areas and species protected by the International Union for Conservation of Nature (IUCN) by 2024.
  • Currently, none of the Company’s operational facilities and offices are located inside IUCN Category 1-4 protected areas, forest reserves, and World Heritage sites.

Assessment

CKPower conducts an evaluation of the residual risks and impacts assessments on biodiversity from the operations of all business units it manages, with the goal of formulating a plan to restore and offset as well as to prevent the overall loss of ecosystem services and biodiversity. The Company is committed to such endeavors despite the fact that some of its major operations are located in industrial estates, with minimal ecological impact.

Management

  • In formulating a biodiversity management plan, CKPower has adhered to International Finance Corporation Guidance Performance Standard 6: Biodiversity Conservation and Sustainable Management of Living Natural Resource (IFC Guidance PS 6). The plan specifies affected areas and assesses the threat of power plant activities to biodiversity, including changes in the natural characteristics of the habitat and threats from invasive species.
  • The Company has developed a biodiversity management plan encompassing critical biodiversity areas.
  • The Company prepares nature-related financial disclosures in compliance with TNFD reporting standards.

Support

CKPower enhances stakeholder engagement, promoting animal conservation projects and supporting community livelihoods around its power plants, reinforcing its commitment to biodiversity preservation and sustainable operational practices.
Hybrid Fish Passing and Fish Locks System in Xayaburi Hydroelectric Power Plant

CKPower operated the Hybrid Fish Passing and Fish Locks System which designed to protect the Mekong River aquatic biodiversity in association with the Xayaburi Hydroelectric Power Plant. The Xayaburi HPP is a 1,285 MW power plant located on the Mekong River between Xayaburi and Luang Prabang in Lao PDR with an operational area of 564,000 hectares. During the design and construction phases, the Company conducted studies to ensure the facilities would be suitable for the local fish species and assessed the extinction risk of marine species based on the IUCN Red List before launching the operation of the facilities.

The Hybrid Fish Passing and Fish Locks System at the Xayaburi Hydroelectric Power Plant comprises of a vertical-slot fishway and large fish locks with the size of 18 meters in width and 16 meters deep at the deepest part. The design of the facilities has been tailored specifically to the sizes and behavior of the fish in the Mekong River, which usually migrate upstream during the breeding and spawning season, in order to preserve the diversity of the fish species and their life cycles. As such, the facilities have enabled the Xayaburi Hydroelectric Power Plant to operate while also maintaining the natural balance of the Mekong River Basin.

Fish Passing and Fish Locks System VDO
Long-term targets, 2024 targets, and 2024 achievements
Biodiversity
Biodiversity
(GRI 304)
Long-term Targets
Development of a Biodiversity Management Plan
2024 Targets 2024 Achievements
Biodiversity Action Plan (BAP) Framework for Xayaburi Hydroelectric Power Plant
100%
100%
Completed Critical habitat assessment (CHA)
100%
100%
SDGs
Biodiversity
Biodiversity
(GRI 304)
Long-term Targets
Assessment of residual impacts at all operating sites by 2026
100%
 Achieve No net loss (NNL) of biodiversity and ecosystem services by 2040
No Net Loss
2024 Targets 2024 Achievements
Biodiversity data collection and assessment of protected areas and species according to IUCN for Xayaburi Hydroelectric Power Plant
100%
100%
Completed Taskforce on Nature-related Financial Disclosures (TNFD) report
100%
100%
Fish to migrate upstream safely, maintaining or exceeding the 2023 level
>125
species
132
species

Project Highlight 2024

In alignment with the corporate sustainability goals for 2024, CKPower set out to prepare the Taskforce on Nature-related Financial Disclosures (TNFD) report to assess risks and opportunities arising from the operations of the Company and its affiliated companies in relation to biodiversity. To this end, CKPower collaborated with consulting firm AFRY Thailand Ltd. in preparing the TNFD report with reference to and in compliance with two international frameworks for nature-related financial disclosures:

  1. Recommendations of the Taskforce on Nature-related Financial Disclosures Guidance (September 2023) for general reporting
  2. Additional Sector Guidance on Electric Utilities and Power Generators for industry-specific operations

Process:

CKPower gathered data through a questionnaire covering four key areas of the TNFD Guidance:

Assessment results:

CKPower has a strong governance structure and is committed to sustainability, encompassing issues such as:

  • Freshwater usage in power plants
  • Environmental contamination prevention
  • Minimization of impacts of production processes on biodiversity, such as through water management in hydroelectric power plants and flood prevention in operating sites.

The key power plants considered in the biodiversity disclosure report include:

  1. Xayaburi Hydroelectric Power Plant

    The Xayaburi Hydroelectric Power Plant is a run-of-river hydroelectric power plant that relies on the Mekong River and impacts coastlines, wildlife, and surrounding communities. CKPower has conducted risk assessments for potential threats, such as severe weather conditions that could damage the power plant. Risk management measures include robust structural design and an emergency response plan.

  2. Nam Ngum 2 Hydroelectric Power Plant

    The Nam Ngum 2 Hydroelectric Power Plant is a storage-type hydroelectric power plant that requires impounding water from the Nam Ngum River in a reservoir. This has transformed the reservoir area and affected its resident organisms. As a result, a Biodiversity Action Plan (BAP) has been developed to study and assess impacts, along with biodiversity management measures, with completion scheduled for 2025.

In addition, CKPower’s solar power plants and cogeneration facilities have undergone comprehensive assessment and review, with emphasis on monitoring greenhouse gas emissions, pollution discharge, wastewater release into natural water sources, and prevention of hunting or logging within project areas and surrounding key biodiversity areas. This ensures CKPower implements sustainable development principles across all relevant projects.

Key Biodiversity Area (KBA) Risk Assessment and Findings:

As part of biodiversity studies and data collection for the 2024 TNFD report, risk assessments were conducted for Keys Biodiversity Areas (KBAs) in all power plants. Most KBAs include temporary habitats for migratory birds from China and Russia and conservation areas in various national forest reserves. Findings from the 2024 assessment of KBAs near power plants are as follows:

  • Nam Ngum 2 Hydroelectric Power Plant is located approximately 50 kilometers from Phou Khao Khouay National Park (classified under IUCN Category VI – Protected Area with Sustainable Use of Natural Resources) in Xaysomboun, Vientiane, and Bolikhamxay Provinces, Lao PDR. The power plant’s operations do not impact this conservation area.
  • Some power plants are situated in areas where protected migratory birds may alight. Each facility has established anti-hunting measures.

CKPower is committed to operations guided by consideration for biodiversity and sustainability goals at both corporate and international levels through TNFD reporting. This represents a significant step in building confidence among stakeholders and ESG-focused investors while also supporting future project development with minimal ecosystem impact.

Additional details are available in the Task Force on Nature-related Financial Disclosures (TNFD) report.

TNFD Report 2024
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Results of Key Biodiversity Area Risk Assessment for Each Power Plant

To monitor the effectiveness of the hybrid fish passing system, CKPower utilizes the innovative Passive Integrated Transponder (PIT) Tag System, which involves implanting microchips in fish to study their migration behavior. Additionally, Hydroacoustic Adaptive Resolution Imaging Sonar (ARIS) cameras are employed for 24-hour monitoring of fish movement around the power plant. These technologies have been in use since the Xayaburi Hydroelectric Power Plant commenced operations in 2019.

Outcomes for 2024:

  • 132 Fish species have been able to migrate upstream safely.
  • The fish passing system maintained a balance between electricity generation targets and unimpeded fish migration.

IUCN Red List Species and National Conservation Lists

CKPower has conducted of the IUCN Red List species and national conservation lists within the Nam Ngum 2 Hydroelectric Power Plant area. In 2024, the effort was focused on collecting additional data from other hydroelectric power plants to enhance the comprehensiveness and sustainability of CKPower’s biodiversity management guidelines.

Additional Initiatives

CKPower will conduct further KBA assessments and data collection at power plant sites to support long-term biodiversity management.