climate risks and opportunities
Climate Risks and Opportunities
TIPCO Asphalt Group acknowledges the significant impacts from global "Climate Change" while exploring potential new opportunities
Management Approach
According to the Global Report 2020 published by World Economic Forum, one of the top 5 Global risks involves climate risks which have become more extreme and unpredictable. These climate shifts result in natural disasters, severe floods or droughts due to higher temperatures and hence post big challenges for sustainable global economic growth. They also directly impact TIPCO Asphalt Group’s businesses across its value chain as well as related stakeholders. The Group recognizes this climate change and constantly revised our business model and operations accordingly to mitigate potential adverse impacts.
Policy : Environmental Policy (Link PDF)
Stakeholders :
Customer, Road user and Community
Short-term goals :
1.Design DUST CONTROL to solve dust diffusion problem
2.Can be applied anywhere while being friendly to environment
Long-term goals :
1.Setup targets for zero small dust particles in every community
2.Promote conservation of water resources, with most efficient use
Key Performances :
At present, climate change becomes more severe which results in natural disasters such as severe climate conditions, major floods, or drought. In addition, there have been pressures from institutional investors who promote the concept of low-carbon economy, international regulations on greenhouse gas emissions, along with recent consumer trend that prefer products that are friendly to environment. such aforementioned factors serve as risks to the Group’s businesses, in terms of production and distribution of products, operational results, and corporate reputation. The Group focuses on greenhouse gas management, while supporting Thailand’s national target on greenhouse gas emissions reduction in accordance with the Paris Agreement with the United Nations Framework Convention on Climate Change (UNFCCC). The Group formulates our climate change and energy management strategy that demonstrates our long-term commitment to greenhouse gas emissions reduction under the UN Sustainable Development Goal 13: Climate Action, with guidelines to manage climate change in line with Vision 2025 strategic plan.
Climate-Related Risks and Impacts on The Group
Risk Topics | Impacts to Economic/ Society/Environment | Control Measures | Timeline |
|---|---|---|---|
1 Energy use for product heating
during heavy rain season | More energy consumption for
product heating to reach right
temperature as per specification
and hence more energy costs | Improve sales plan revision in
sync with inventory management
in particular, high-temperature
asphalt products, to meet weekly sales
demands | Implemented in 2020 |
2 More severe dust,/air pollution
during summer season | Health hazard threats to life
quality of local
communities nearby
dust/pollution areas | Develop new innovated products
that minimize dust diffusion and
air pollutions, with affordable
prices | Implement in 2023 |
3 Inability to apply conventional
asphalt products on road surface
paving during heavy rain or flood | Constraint on days with heavy
rain as road contractor cannot
apply asphalt products for road
surface paving, hence causing
project delay and sales
opportunity loss | Develop innovated products that
can be applied across any weather conditions. Such new products must come from internal Innovation Solution Award contest | Implement in 2023 |