IRPC Annual Report 2023

Absorption and Offsetting 20,000 Reforestation project (Rai) 50% Success rate in CCS Hub Model In the area of absorption and offsetting, IRPC has collaborated with PTT Group in two pivotal projects. These initiatives encompass: 1) Reforestation project designed to counterbalance carbon dioxide emissions, and 2) Comprehensive study to assess the viability of applying carbon capture and storage technology (CCS) or the CCS Hub Model. This strategic collaboration underscores IRPC’s unwavering commitment to environmental stewardship, as these projects are tailored to not only absorb carbon emissions but also explore cutting-edge technologies for capturing and storing carbon dioxide. A: Absorption and Offset 5. Products that have Carbon reduction label (HDPE, PP, PS and EPS) which are applicable for various products, for instance, plastic bag, electrical appliance, heat insulation, etc. IRPC developed these products in terms of energy saving and chemical usage reduction in the production process and registered Carbon Reduction Label. 6. Gasohol 7. Bio Diesel 8. RMAXX L-Cement is a plastic product with mixture of cement for easy and quick cementation 9. Bio-based Polystyrene product which is a mixture of Polystyrene plastic and flour 10. P301K a product used in the plastic sheets of floating solar project which uses lower quantities of HDPE In addition, IRPC also addresses the transition of a low carbon economy operating within our own operations through several projects. For example, 1. Expandable Polystyrene (EPS) for Construction is the energy saving product for construction. It is a special heat insulation used in the construction of buildings that need temperature control. 2. CHPI (Combine Heat and Power Project), which uses natural gas as a fuel and totally cancelled out the use of fuel oil boiler resulting in a reduction of carbon dioxide emission of more than 260,000 tons of carbon dioxide equivalent per year. Internal carbon pricing To incorporate the consideration of carbon emission costs into the company’s decision-making, IRPC implemented the concept of internal carbon pricing (ICP), also known as shadow price, in evaluation and decision-making on green investments and infrastructure projects, in addition to other financial tools, such as internal rate of return (IRR) since 2021. IRPC set an ICP US$20/tCO2eq in accordance with the guidelines on the determination of carbon pricing and low carbon investment recommended by Thailand Greenhouse Gas Management Organization (TGO) in collaboration with World Bank. IRPC has applied the ICP in our Renewable projects and Energy Efficiency Improvement. More than 12 projects are using shadow pricing, for example, Floating Solar Phase II for PP Plant, VDU Heater Energy Efficiency Improvement for Lube Plant, Meltblown expansion project for Polypropylene, Global Hygiene: Spun bond Expansion project for Polypropylene, etc. Concurrently, the implicit price is reflected in IRPC’s investment in CSR activity aimed at emission reduction, such as installing solar cells for pumps and other equipment to develop smart farming at Nong Yang village, Buriram Province, Development Center for Disabilities, Sri Wattana Village, Udonthani Province. 138 Business-Driven Sustainability IRPC Public Company Limited

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