Materiality
Materiality 2024 (GRI 3-1, 3-2)
Materiality Identification Process
In 2024, CKPower conducted a Materiality Assessment to identify key sustainability issues relevant to its business, following an annual review process aligned with the Global Reporting Initiative (GRI) Standards. This year, CKPower adopted the Double Materiality approach under GRI Standards 2021, considering both:
Inside-Out Impact – How CKPower’s business activities affect the environment, society, and stakeholders.
Outside-In Impact – How sustainability factors influence CKPower’s business operations and financial performance.
Evaluating Both Positive and Negative Impacts – Including business opportunities and risks.
The Materiality Assessment process integrates Sustainability Impact and Financial Impact evaluations while considering value creation for all stakeholders. Human rights considerations are also incorporated into the assessment framework.
To ensure credibility and transparency, CKPower consulted external experts in the energy sector and sustainability during the assessment process. Furthermore, this report has undergone independent external assurance to verify the accuracy and reliability of the materiality assessment.
The sustainability material topics disclosed in this report have been approved by the Board of Directors, the Corporate Governance, Risk Management, and Sustainable Development Committee, and senior management. CKPower follows a five-step Materiality Assessment process, as outlined below:
Identifying Sustainability Issues in the Organizational Context
Assessing Actual and Potential Impacts
Stakeholder Engagement and Impact Validation
Prioritization of Material Sustainability Topics
- Environment
- Social
- Governance and Economic
Reporting, Review, and Continuous Improvement
| CKPower’s Material Topics | ||
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Environmental Dimension
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Social Dimension
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Governance and Economic Dimension
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Step 1: Identifying Sustainability Issues in the Organizational Context
CKPower considers various internal and external factors related to its business operations, including strategy, vision, objectives, and facility locations, as well as global and industry trends, risks, and opportunities that may impact future sustainability efforts. The assessment also incorporates universal human rights principles and historical events to analyze key and supporting activities throughout the value chain. This process helps identify stakeholder groups directly and indirectly affected—both positively and negatively—by CKPower’s operations. The value chain impact analysis results are detailed in Section 3 of the Annual Report 2024 (Form 56-1 One Report).
Following this, CKPower determines material sustainability issues that influence its long-term sustainability across environmental, social, governance, and economic (ESG) dimensions. The 2023 material topics were reviewed alongside the aforementioned internal and external factors. Additionally, CKPower benchmarked its sustainability priorities against those of other companies within the same industry at both national and global levels.
This benchmarking includes assessments from: Morgan Stanley Capital International (MSCI) ESG Ratings, Dow Jones Sustainability Indices (DJSI),Sustainability Accounting Standards Board (SASB), Sustainalytics ESG Risk Ratings, SET ESG Rating from Stock Exchange of Thailand ESG Ratings, United Global Compact and Sustainable Development Goals.
Step 2: Assessing Actual and Potential Impacts
CKPower analyzes the impacts on stakeholders throughout the value chain, identifying both current and potential effects across environmental, social, governance, and economic dimensions.
The assessment categorizes impacts into two types:
Financial Impact: Evaluating risks and opportunities associated with material sustainability topics that could affect profitability, business continuity, and shareholder value. Proactive management of these issues can unlock new business opportunities and drive long-term value creation.
Sustainability Impact: Assessing both positive and negative impacts of CKPower’s operations on the environment, society, and stakeholders.
Step 3: Stakeholder Engagement and Impact Validation
CKPower engages with key stakeholders to validate the impact of its business operations across environmental, social, governance, and economic aspects, as well as human rights considerations.
Following this, CKPower establishes qualitative and quantitative criteria for assessing sustainability impacts, including:
- Scope – The extent of the impact.
- Scale – The magnitude of the effect.
- Remediability – The ability to mitigate or reverse the impact.
- Likelihood – The probability of occurrence.
Impacts are evaluated based on Magnitude (level of impact) and Likelihood (probability of occurrence). This assessment prioritizes material topics and aligns sustainability strategies with business performance objectives.
Step 4: Prioritization of Material Sustainability Topics
CKPower ranks sustainability impacts by assessing their significance to stakeholders and business operations at high to very high impact levels. The financial impact assessment is categorized into five levels based on defined criteria.
- Materiality Topics – Issues with a significant impact on CKPower’s sustainability and business operations, requiring active management and strategic focus.
- Business Fundamental Topics – Essential topics that CKPower must manage in compliance with regulations, industry standards, and best practices to ensure operational efficiency.
The finalized material topics have been approved by the Board of Directors, the Corporate Governance, Risk Management, and Sustainable Development Committee, and senior management. The assessment results serve as the foundation for CKPower’s sustainability risk and opportunity management strategy.
Step 5: Reporting, Review, and Continuous Improvement
CKPower implements action plans to mitigate negative impacts and enhance the management of both material sustainability topics and business fundamental topics. The Materiality Assessment results are regularly reviewed by the Board of Directors, the Corporate Governance, Risk Management, and Sustainable Development Committee, the Sustainability Steering Committee, and senior management.
To ensure transparency, CKPower continuously discloses material sustainability topics in its Sustainability Report and updates them annually in response to evolving environmental, social, and economic conditions. This process allows the company to refine its sustainability strategies and management approaches effectively.
CKPower Materiality Topic result 2024
The assessment of stakeholder impacts and the prioritization of key sustainability issues have enabled CKPower to identify and categorize 14 key sustainability topics, covering the economic, social, and environmental dimensions. These topics are divided into two main groups:
- Materiality Topics: 7 Topics
- Business Fundamental Topics: 7 Topics
Materiality Topics
These topics have been identified based on their significant impact on CKPower’s business, considering both internal and external factors. They represent high to very high impact issues that require active management to align with CKPower’s sustainability strategy.
Additionally, these topics encompass key concerns raised by stakeholders during the assessment process, reflecting their growing expectations in 2024.
Following this, CKPower determines material sustainability issues that influence its long-term sustainability across environmental, social, governance, and economic (ESG) dimensions. The 2023 material topics were reviewed alongside the aforementioned internal and external factors. Additionally, CKPower benchmarked its sustainability priorities against those of other companies within the same industry at both national and global levels.
This benchmarking includes assessments from: Morgan Stanley Capital International (MSCI) ESG Ratings, Dow Jones Sustainability Indices (DJSI),Sustainability Accounting Standards Board (SASB), Sustainalytics ESG Risk Ratings, SET ESG Rating from Stock Exchange of Thailand ESG Ratings, United Global Compact and Sustainable Development Goals.
Business Fundamental Topics
These are essential topics that CKPower must manage in compliance with legal requirements, industry standards, and best practices at both the national and international levels. While they may not be categorized as high-impact sustainability issues, they are critical for maintaining operational efficiency, risk management, and business continuity.
If these fundamental topics are not effectively managed, the company may face challenges in achieving its short-term, medium-term, and long-term goals.
Effective and continuous management of these fundamental issues is a crucial factor in driving business sustainability and growth in the renewable energy industry. CKPower is committed to a comprehensive approach to ensure tangible outcomes, ultimately leading to genuine success across seven key areas.
Commitment to Long-Term Sustainable Growth
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Dimensions
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Material Topics
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Business Fundamental Topics
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Energy Management and Climate Change
Environmental Management
Biodiversity
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Social and Community Care
Respect for Human Rights
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Human Capital Management
Occupational Health and Safety
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Business Model Resilience
Risk and Crisis Management and Cybersecurity and Data Privacy
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Corporate Governance
Innovation Management
Customer Relationship Management
Supply Chain Management
System Reliability and Availability
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| Environmental Dimension | |
| Energy Management and Climate Change | |
| Biodiversity | |
| Environmental Management | |
| Social Dimension | |
| Social and Community Care | |
| Respect for Human Rights | |
| Occupational Health and Safety | |
| Human Capital Management | |
| Governance and Economic Dimension | |
| System Reliability and Availability | |
| Business Model Resilience | |
| Innovation Management | |
| Corporate Governance | |
| Risk and Crisis Management, Cybersecurity, and Data Privacy | |
| Customer Relationship Management | |
| Supply Chain Management | |
Changes in material topics compared to 2023 (12 Topic in 2023) are described below.
CKPower has identified 12 key sustainability issues along with 2 fundamental business issues, which include Customer Relationship Management and Supply Chain Management.
For 2024, CKPower has restructured its material sustainability topics, now defining 7 key sustainability issues and 7 fundamental business issues to align with its 2022-2026 sustainability strategy, which consists of five core strategies.
This adjustment was made based on stakeholder feedback and executive discussions, leading to the addition of two new key sustainability topics:
- Environmental Management – Reinforcing CKPower’s role in environmental conservation and minimizing ecological impact.
- Risk and Crisis Management, including Cybersecurity and Data Privacy – Addressing challenges related to technology security and data protection.
Other topics have been reclassified as fundamental business issues, ensuring that CKPower’s sustainability practices remain aligned with its business operations.
Environment Dimension
| Relevant Stakeholders | Impacts on Stakeholders | Types of Impact | Financial Impacts (On a scale of 5) | Actions | SDGs | |
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| Actual | Potential | |||||
| Environmental | ||||||
| Energy Management and Climate Change | ||||||
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Reduction of Greenhouse Gas Emissions through Renewable Energy Generation – CKPower’s renewable energy production significantly contributes to lowering greenhouse gas emissions, mitigating climate-related risks, and reducing environmental impact. Supporting Clean Energy Goals for Customers and Investors – CKPower aligns with the sustainability objectives of customers and investors seeking renewable energy investments by offering low-carbon electricity solutions that help drive the transition toward a greener economy.
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7.1, 7.2, 7.3
9.1, 9.4, 9.5
13.1, 13.2, 13.3
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Climate change may affect rainfall and sunlight, impacting electricity generation and overall business operations. Variations in precipitation and sunlight availability can directly influence power production efficiency.
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| Environmental Management | ||||||
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Effective environmental management enhances the company's operational efficiency while minimizing negative impacts on stakeholders.
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12.2, 12.4, 12.5, 12.6
13.1, 13.2, 13.3
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Without effective environmental management in power plant operations, there is a risk of negative impacts on surrounding communities, natural resource utilization, and the way of life of residents near the facilities.
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Implementing an efficient water resource management and forecasting system, alongside investments in innovation, enables the company to optimize reservoir water storage for hydropower plants. This proactive approach ensures water availability for future use, particularly in dry seasons, mitigating the risk of water shortages.
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The lack of effective water resource management for hydropower plants could lead to business risks, including water shortages or excessive water levels, potentially disrupting operations and impacting surrounding communities.
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| Biodiversity | ||||||
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Enhancing Biodiversity Management through Technology Integrating technology into biodiversity management helps mitigate risks and reduce negative impacts on ecosystems caused by business operations, reinforcing stakeholder confidence.
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15.1, 15.2, 15.3, 15.5, 15.9, 15.a
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Risks of Inadequate Biodiversity Management Failure to implement biodiversity management in hydropower operations could negatively impact surrounding ecosystems, erode stakeholder confidence, and create challenges for future projects.
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Social Dimension
| Relevant Stakeholders | Impacts on Stakeholders | Types of Impact | Financial Impacts (On a scale of 5) | Actions | SDGs | |
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| Social | ||||||
| Social and Community Care | ||||||
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Enhancing Community Engagement and Sustainable Development Building community awareness and understanding of power plant operations fosters positive relationships, supports local development, and creates job opportunities. This proactive engagement helps prevent conflicts and strengthens the company’s reputation.
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3.4, 3.9
8.8, 8.9
11.4, 11.6
13.1, 13.2
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Potential Impact on Community Well-being and Environment Power plant operations may affect local communities’ way of life, livelihoods, and environmental conditions.
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| Respect for Human Rights | ||||||
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Promoting Human Rights for Fair and Inclusive Business Practices Advancing human rights fosters fair treatment of all stakeholders while enhancing awareness and accountability throughout the supply chain.
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5.1, 5.5, 5.6
10.2, 10.3, 10.4
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Risks of Human Rights Violations Failure to uphold human rights practices may result in financial repercussions, such as fines or legal complaints, as well as loss of trust and corporate reputation.
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Governance and Economic Dimension
| Relevant Stakeholders | Impacts on Stakeholders | Types of Impact | Financial Impacts (On a scale of 5) |
Actions | SDGs | |
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| Actual | Potential | |||||
| Governance and Economic | ||||||
| Risk and Crisis Management and Cybersecurity and Data Privacy | ||||||
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Effective Risk and Crisis Management
A robust risk and crisis management system enables the company to effectively mitigate potential risks, particularly emerging risks that may impact future operations. Proactive risk management not only minimizes negative impacts but also strengthens stakeholder confidence across the value chain. |
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8.1, 8.6
16.3, 16.5, 16.6
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Cybersecurity and Data Privacy Risks
Inadequate cybersecurity measures and improper management of personal data may lead to information system disruptions, data breaches, and loss of stakeholder trust. Such incidents could impact overall business operations and reduce stakeholder confidence and satisfaction. |
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8.1, 8.6
16.3, 16.5, 16.6
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| Business Model Resilience | ||||||
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A resilient business model enables the Company to effectively adapt to dynamic market conditions, ensuring long-term business stability and sustainability. The ability to respond flexibly to evolving industry trends strengthens CKPower’s competitive position and enhances long-term business resilience.
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7.1, 7.2, 7.3
8.2, 8.4
9.1, 9.4
12.2, 12.6
13.1
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If CKPower lacks adaptability in its business operations and fails to mitigate future risks, it may lose its competitive edge and risk a decline in stakeholder confidence. A rigid business model could hinder operational efficiency and long-term sustainability, ultimately impacting trust and business continuity.
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human rights issues are taken into consideration
- Right to life
- Right to liberty and security (including freedom from arbitrary arrest, detention or exile)
- Right not to be subjected to slavery, servitude or forced labour
- Right not to be subjected to torture, cruel, inhuman and/or degrading treatment or punishment
- Right to recognition as a person before the law
- Right to equality before the law, equal protection of the law, non-discrimination
- Right to access to effective remedies
- Right to a fair trial
- Right to marry and form a family
- Right to own property
- Right to freedom of thought, conscience and religion
- Right to freedom of opinion, information and expression
- Right to freedom of assembly
- Right to freedom of association
- Right to participate in public life
- Right to social security, including social insurance
- Right to work
- Right to enjoy just and favorable conditions of work including rest and leisure
- Right to form trade unions and join the trade unions, and the right to strike
- Right to an adequate standard of living (housing, food, water and sanitation)
- Right to health
- Right to education
- Right to take part in cultural life, benefit from scientific progress, material and moral rights of authors and inventors
- Right to self-determination and natural resources
Commitment to the Sustainable Development Goals (SDGs) (GRI 2, GRI 3)
CKPower is committed to driving sustainability initiatives in a strategic and unified direction, ensuring long-term value creation for stakeholders across the value chain, while upholding its commitment to environmental and social responsibility.
The company integrates sustainability principles and responsible business practices across environmental, social, economic, and governance (ESG) dimensions, along with comprehensive human rights principles at both the national and global levels. These principles serve as the foundation of CKPower’s sustainability strategy, ensuring alignment with international standards and ensuring effective implementation.
CKPower incorporates the United Nations Sustainable Development Goals (SDGs) and the UN Global Compact (UNGC) principles into its sustainability framework. The company directly aligns with 13 out of 17 SDGs, setting clear targets and performance indicators that integrate with its:
✔ Vision and mission
✔ Business model and strategic plans
✔ Material sustainability topics
✔ Stakeholder expectations
By embedding SDGs into its sustainability strategy, CKPower ensures a comprehensive, measurable, and forward-thinking approach that delivers tangible positive impacts—driving meaningful progress toward a more sustainable future.
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Joining the United Nations Global Compact (UNGC)CKPower recognizes its vital role as a responsible global corporate citizen, committed to driving positive change and enhancing quality of life while upholding social and environmental responsibility. The company integrates sustainability principles into its operations, ensuring long-term value creation for stakeholders and fostering a more sustainable and equitable society. By joining the United Nations Global Compact (UNGC), CKPower reinforces its commitment to sustainable business practices in alignment with international standards, further demonstrating its dedication to corporate responsibility and long-term sustainability. As a UNGC corporate member, CKPower pledges to uphold the 10 universal principles covering human rights, labor standards, environmental protection, and anti-corruption. These principles serve as a foundation for the company's sustainability strategy, ensuring responsible business practices across all dimensions—economic, environmental, and social. |
Beyond compliance, CKPower is committed to elevating sustainability standards at both national and global levels. By aligning its operations with international sustainability goals, CKPower actively contributes to advancing sustainable development worldwide, reinforcing its role as a leader in the transition to a more responsible and resilient energy future.
Joining the United Nations Global Compact (UNGC)
Link : https://unglobalcompact.org/what-is-gc/participants/140065-CK-Power-Public-Company-Limited
