True Corporation Public Company

Limited

Climate-Related Risk Management

Summary Report 2022

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Table of Contents
Chapter Description Page
1 Climate-related Risk and Opportunity Assessment in Accordance with the Task 1
Force on Climate-related Financial Disclosures (TCFD)
1. Governance
2. Strategy
3. Risk Management
4. Metrics and Targets
2 Climate Risk Assessment - Physical Risks 20
1. Case Study: Climate Change Physical Risk Assessment
2. Case study: Financial Impact of Physical Risks
3 Climate Risk Assessment - Transition Risks 29

4 Physical Climate Risk Adaptation 32

Disclaimer: Chapters 2 to 4 contain information relating to the future up to 2050. The analyses conducted in this
report do not reflect any views of True Corporation on future impacts from climate change, and instead reflect the
results of scientific investigation from IPCC and other parties. As climate-related scenario analysis is still in its
infancy for telecommunication companies globally, these analyses are provided for the reader to communicate
the company’s pilot exercise on scenario analysis and to communicate True’s commitment to understanding the
impacts of climate change to the company’s finances. Therefore, these analyses are not yet recommended for
any further analysis by third parties. Over time, True is committed to improving these analyses to meet TCFD
ultimate requirements to help contribute to markets where companies are able to disclose climate-related
information for financial institutions’ decision making.
 Chapter 1 Climate-related Risk and Opportunity Assessment in Accordance with the Task Force on
Climate-related Financial Disclosures (TCFD)

Climate change is one of the major challenges nowadays and everyone around the world pays very much
attention to. As climate-related risks and opportunities could impact with the business operation, True Group
has analyzed and assessed both potential risk and opportunities from climate-related issues according to the
Task Force on Climate-related Financial Disclosures (TCFD) framework which includes four elements as shown
in the Figure 1 below.

Figure 1: Core Element of Recommended Climate-Related Financial Disclosures

Governance
The organization’s governance around climate-
related risks and opportunities
Strategy
The actual and potential impacts of climate-related
risks and opportunities on the organization’s
businesses, strategy, and financial planning
Risk Management
The processes used by the organization to identify,
assess, and manage climate-related risks
Metrics and Targets
The metrics and targets used to assess and manage
relevant climate-related risks and opportunities

Recommendations and Supporting Recommended Disclosures

1. Governance 2. Strategy 3. Risk Management 4. Metrics and Targets
Disclose the Disclose the actual and Disclose how the Disclose the metrics and
organization’s potential impacts of organization identifies, targets used to assess and
governance around climate-related risks and assesses, and manages manage relevant climate-
climate-related risks and opportunities on the climate-related risks. related risks and
opportunities. organization’s opportunities where such
businesses, strategy, information is material.
and financial planning
where such information
is material.
Source: Implementing the Recommendations of the Task Force on Climate-related Financial Disclosures, October 2021

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Disclosure Aligned with Force on Climate Related Financial Disclosure (TCFD) Framework

Governance
Recommendation disclosure Sources
1. Describe the board’s oversight of climate-related Page 4-7
risks and opportunities. True Corporation Annual Report 2021 Page 151, 154-
2. Describe management’s role in assessing and 156, 199
managing climate-related risks https://www.true.th/true-
and opportunities. corporation/site/assets/truecorp/pdf/en/true-ar2021-
en.pdf
Sustainability Report 2022 P.31
https://www.true.th/true-
corporation/site/assets/truecorp/pdf/en/true-
sustainability-report-2022-en.pdf
True Sustainability Webpage: Environment
https://www.true.th/true-corporation/site/sustain-
environment

Strategy
Recommendation disclosure Sources
1. Describe the climate-related risks and Page 7, 9-11
opportunities the organization has identified over
the short, medium, and long Term
2. Describe the impact of climate related risks and Page 9-11
opportunities on the organization’s businesses,
strategy, and financial planning.
3. Describe the resilience of the organization’s
strategy, taking into consideration different climate-
related scenarios, including a 2°C or lower
scenario.

Risk Management
Recommendation disclosure Sources
1. Describe organization’s processes for Page 7
identifying and assessing climate-related risks. Sustainability Report 2022 Page 31-33
2. Describe the organizations’ processes for https://www.true.th/true-
managing climate-related risks. corporation/site/assets/truecorp/pdf/en/true-
3. Describe how processes for identifying, sustainability-report-2022-en.pdf
assessing, and managing climate-related risks are

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 integrated into the organization’s overall risk
management

Metrics & Targets

Recommendation disclosure Sources
Disclose the metrics used by the organization to Page 12,16
assess climate related risks and opportunities in
line with its strategy and risk management
process.
Disclose Scope 1, Scope 2, and, if appropriate, Page 13-15
Scope 3 greenhouse gas (GHG) emissions, and Sustainability Report P.74
the related risks. https://www.true.th/true-
corporation/site/assets/truecorp/pdf/en/true-
sustainability-report-2022-en.pdf
True Sustainability Webpage: Environment
https://www.true.th/true-corporation/site/sustain-
environment
Describe the targets used by the organization to Page 16-26
manage climate-related risks and opportunities
and performance against targets.

1. Governance
True Group has established the Corporate Governance Board Committee, which consists of experienced board
members who have expertise in ESG operation and management, to oversee all sustainability and climate
related issues of organizations. Moreover, True group also established Innovation and Sustainability Committee
and Working Group on Environmental Management to implement and follow up sustainability and climate
strategies to achieve the predefined objectives and sustainable growth. To manage the climate-related issue
and impact effectively, The Board of director of True Group is directly responsible on the climate strategy and
climate-related risk management plan which are proposed by Corporate Governance Board Committee, Audit
Committee and Innovation and Sustainability Committee.

Moreover, we have the Strategic Development and Risk Management Committee. They are responsible for
identifying, assessing, and managing climate-related risks and opportunities, as well as preventing potential
impacts.

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Figure 2: Sustainability Management Structure and Risk Management Structure

· Sustainability Management Structure · Risk Management Structure

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 Board’s Oversight of Climate-related Risks and Opportunities
Governing Body Roles and Responsibilities Meeting
Frequency
Board of Director The Chairman has the duties and responsibilities of the chief of the Board of
Directors to supervise, follow up and monitor the due performance of the Board of Quarterly
Directors and other Board-committees to achieve business objectives and plans.
Authorities and Responsibilities of The Board of Directors for Sustainability,
Climate-related Risks and Opportunities:
• Oversee compliance of the conducting of the Company’s business with the
applicable laws, objectives and Articles of Association of the Company and
resolutions of the Shareholders’ meetings.
• Oversee the Company’s Corporate Governance for long-term ESG &
Climate Related Issue which consist of (1) Annually review and approve
visions, strategy, missions, business plans and financial target and monitor
the implementation thereof, (2) Evaluate the performance of the Company,
Chairman of the Executive Committee and the President (Co), (3) Ensure
senior management succession, (4) Adopt policies regarding business
ethics and codes of conduct, disclosure, related party transactions and
insider trading, and monitor compliance with those policies adhering to
moderation, reasonableness and self-immunity system and (5) Oversee
compliance with accounting standards, risk management, financial and
other controls and applicable laws;
Executive Authorities and Responsibilities of the Executive Committee for Sustainability, Quarterly
Committee Climate-related Risks and Opportunities:
• Formulate business direction, mission, strategies, business plan and
financial goals and submit to the Board of Directors for approval including
ensure President (Co) and Executives have the effective implementation of
the Company’s business plan in accordance with relevant laws and
regulations.
• Review and approve matters related to the business such as Investments,
Budget and Expenditure, Organization Management Matters, Sustainability
and Climate Related Matters etc. that subject to authority delegated from
the Board of Directors.
• Scrutinize issues and tasks prior to their submission to the Board of
Directors for consideration, except where the tasks are under the
responsibility or authority of other sub committees, they will be scrutinized
by such related Committees prior to being directly submitted to the Board of
Directors.

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Governing Body Roles and Responsibilities Meeting
Frequency
• Acknowledge of internal audit reports concerning preventive and audit
measures. Damage or possible loss which could severely affect the
company must be immediately reported by the Group Internal Audit to the
Executive Committee
• Consider or approve any issues which are assigned by the Board of
Directors.
Corporate The Corporate Governance Committee is responsible directly to the Board of Quarterly
Governance Directors in accordance with the duties and responsibilities assigned to them.
committee Additionally, the Board of Directors is also responsible to third parties for the
operation of the Company
Authorities and Responsibilities of the Corporate Governance Committee for
Sustainability, Climate-related Risks and Opportunities:
• Propose corporate governance policy of the Company to the Board of
Directors
• Advise the Board of Directors on matters concerning corporate governance
• Ensure that the duties and responsibilities of the Board and management
comply with corporate governance policy
• Review the corporate governance policy of the Company and propose
recommendation for revision to the Board of Directors to continuously
ensure consistency and compatibility with the businesses of the Company
Audit Committee The Audit Committee has duties and responsibilities to review the internal control Annually
procedure relating to the compliance with the Company’s measure and this also
included climate-related issue, strategy, and target. In this regard, the Audit
Committee assigns Internal Audit team to review the process and operation of the
business to ensure that they follow the measures, policies, codes of conduct,
authority, regulations and requirements of the supervisory agencies, and relevant
laws. The Internal Audit team reports the review result to the Audit Committee
regularly and annually.

Management’s Role in Assessing and Managing Climate-related Risks and Opportunities

Governing Body Roles and Responsibilities Meeting

Frequency
Innovation & Overlooked by Chief Innovation and Sustainability Officer, Sustainability Committee Monthly
Sustainability oversees corporate-wide ESG & climate-related activities and reports to the
Committee Corporate Governance Committee. The Innovation and Sustainability Committee also
have a Working Group on Environmental Management who are responsible for

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Governing Body Roles and Responsibilities Meeting
Frequency
ensuring that our environmental management practices achieve the annual
sustainability targets and contribute to the Sustainability Goals 2030.

Strategic The Company has established the “Strategy Development and Risk Management Bi-annual
Development & Committee” and officially announced “Risk Management Policy and Framework”, in
Risk Management order to integrate risk management with its business strategy and operations. The
Committee Management complied with the policy and reported to the Audit Committee on a
regular basis. Risk and crisis management is important to True Group and
stakeholders. It is the tool for managing and making plans to respond quickly to
changes in the business environment, including disruption in the telecommunications
industry, consumer demand for more connectivity, cybersecurity, market and political
tensions, delays in the supply chain, climate change issue and loss of customers due
to emerging diseases, and other emerging risks, which may have positive and
negative impacts on the Company’s business operations.
Chief Innovation Authorities and Responsibilities of the Chief Innovation and Sustainability Officer for Quarterly
and Sustainability Sustainability, Climate-related Risks and Opportunities:
Officer • Advise the Board of Directors on matters concerning corporate wide-ESG and
climate related issues.
• Review the corporate wide-ESG and climate-related issues, monitoring and propose
recommendation for revision to the Corporate Governance committee to continuously
ensure consistency and compatibility with the businesses of the Company

Climate-related Public Policy Engagement

TRUE Group aims to actively contribute towards limiting global warming to below 1.5 degrees and achieving
net zero emissions in alignment with the Paris Agreement This will be accomplished through engagement with
trade associations. TRUE GROUP is a member of the Thailand Carbon Neutral Network (TCNN), actively
collaborating with other private companies, government agencies, and communities to ensure alignment with
the Paris Agreement. Moreover, TRUE Group develops a comprehensive management system that covers all
of our jurisdictions in order to support Climate-related Public Policy, as outlined below.

1. Review: conduct an analysis comparing the current policies and public policies to determine their alignment
with the goals of the Paris Agreement, specifically focusing on direct climate-related activities and trade
associations.
2. Monitoring: Regularly track and communicate detailed policy changes to address and reduce misalignments
with the climate change policy positions of trade associations.
3. Engagement: Engage with internal and external stakeholders to enhance a shared perspective on climate
policy alignment.

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4. Disclosure: Actively report on climate-related direct engagement activities and the climate policy positions
and activities of trade associations.

2. Strategy
True Group embraces the digital era while operating the business to achieve a balance between economy,
society, and the environment under the circular economy principles. For create the efficient climate strategy
and energy management plan in accordance with TCFD recommendations, we have established 3 range of
timeframes to analyze climate-related risks, the related financial implications and potential opportunities which
are short-term (1-2 years)/ mid-term (3-5 years and long term (>5 years). These results substantially reflect the
management measures, technology adaptation plans and financial planning.

Also align with our goal in Carbon Neutral 2030 and Net Zero 2050, we strive to use available natural resources
efficiently and minimize environmental impacts of our business activities through the 5Rs Strategy (Re-
Education, Reduce, Recycle, Replace and Reinvent) and in compliance with the Climate Change and
Environmental Management Framework. Moreover, we have set environmental policies and targets, including
greenhouse gas emissions, water reuse, and waste management, and developed the environmental
management system (EMS) according to ISO 14001: 2015 standard. We also have the Innovation and
Sustainability Committee and Working Group on Environmental Management who are responsible for ensuring
that the company’s environmental management practices achieve the targets.

In addition, we apply Climate Change and Environmental Impact Management Framework throughout the
supply chain and regularly assess risks, opportunities, and impacts. In parallel, the same framework is also
applied to all stage of our value chain of company’s products with risks, opportunities and impacts assessed
as well. We have then set strategy and sustainability targets, create policies, implement, measure and
communicate stakeholders, accordingly.

Figure 3: Climate Change and Environmental Impact Management Framework

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Initiatives for Greenhouse Gas reduction
Climate change may affect business operations of True Group, if resources are used inefficiently or are not
prepared for impacts such as severe droughts, extreme weather. We have taken action to mitigate the impacts
of climate change and reduce greenhouse gas emissions through various projects and activities (Figure 4),
including adaptation plans and actions as following,

Initiatives Adaptation Plans and Actions

Reduce GHG emission from operations Support and engage with stakeholders to
develop adaptation action plans
Improve energy efficiency e.g. Increase awareness and capacity building
• High Efficiency Chiller along value chain
• High Efficiency Air Inverter
• High Efficiency Lighting
• Power management system
Increase renewable energy use e.g. Invest in renewable energy for producing clean
• Solar Energy energy at cell sites, office building, and data center
• PPA (Power Purchase Agreement building to help reduce emissions from energy
consumption
• i-REC (Renewable Energy Certificate)
Reduce waste in supply chain Improve infrastructure to cope with events
• E-waste Treatment & Recycling That might be occurred from climate change
• GHG Capture and Utilization

Promote sustainability logistics Reduce transportation, promote use of low emission

• Electric Vehicles & Charging Stations transportation and invest in potential commuting
• Promote mass transportation service technology.
Carbon Neutrality Events & Programs Invest in high quality certified offsetting programs to
offset residual emissions in each region i.g. buying
carbon credit, solar roof installation at community,
and planting/ reforestation
Digital technology adaptation Improve ICT infrastructure Data allocation to cloud
• Data allocation on cloud and encourage the customer to use on application
• e-bill instead paper advertising.

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 Figure 4. Net-zero carbon activities

Greenhouse Gas Reduction and Low-Carbon Strategies

In 2022, The Company has implemented plans to reduce GHG emissions and low carbon projects under the
Projects or Activities as outlined below;
· Renewable Energy: Company continued to install solar cell panels at more base stations and mobile
switching center (MSC). In 2022, True install 40 additional solar cell base stations, saving more than 1,971
MWh/Year and reducing greenhouse gas emissions up to 877 tonCO2e/Year. There were a total of 4,712
solar cell base stations, saving 31,176 MWh/Year and reducing greenhouse gas emissions up to 13,905
tonCO2e/Year
· Energy Efficiency: We installed energy saving equipment or change some equipment at base station
and exchange nodes by changing network equipment that save more energy, closing unused network
frequencies with no impact to customers, painting the exchange node buildings with thermal insulation
coating and changing inverter air conditioning systems at the transmission nodes and chillers. In 2022,
we saved up to 31,827 MWh/Year of electricity and reduced 14,195 tonCO2e/Year of greenhouse gas
emissions. For office buildings, we upgraded the air conditioning system to a variable refrigerant volume
(VRV) or variable refrigerant flow (VRF) system and changed to use the elevator regenerative drivees,
which saved up to 137 MWh of electricity and reduced 61 tonCO2e of greenhouse gas emissions.
· Innovation in GHG Emissions Reduction: We adopt digital platform for both internal and external
operation such as reducing internal paper usage by switching to digital approval platform via True Connect
application and replacing customer paper-based billing with the True e-billing and True e-Tax Invoice
systems, which reduced paper consumption up to 247 million sheets, equivalent to 2,592 tonCO2e of
greenhouse gases emissions reduction in 2022. We also provided customer services through True
iService, including online troubleshooting and other services such as balance check to reduce fuel
consumption customers need to travel to True Shop. In addition, we promoted the use of True Virtual
World or True VWORLD for internal and external conference calls with internal units and external
organizations to save fuel consumption needed for traveling.

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 · Forestation for Carbon Absorption: Creating a digital society and promoting planting trees through the
We Grow application, which allows users to monitor tree growth and carbon dioxide adsorption. In 2022,
11,600 trees were planted, adding up to 33,740 to date. This helps restore the ecosystem and creates
habitats for wildlife, as well as increasing green spaces to absorb carbon dioxide and achieve our goal of
being carbon neutral by 2030 and reaching net zero by 2050.
· Internal Carbon Pricing (ICP): We adopted internal carbon pricing (ICP) to set a shadow price at 600
THB/tonCO2e to support assessments and making decisions to invest in low-carbon projects at an initial
phase. We conducted a training session for employees to educate them for acknowledgement and
understanding.
· Carbon credits: Regarding to our goal in Carbon Neutral 2030 and Net Zero 2050, we purchased 1,000
tCO2e of carbon credits in 2022 to offset our greenhouse gas emissions along our route to our committed
near-term and long-term goals.
· Renewable Energy Certificate (REC): Apart from implementing measures to reduce greenhouse gas
emissions from corporate activities, we have also actively supported the use of renewable energy.
In 2022, we purchased the renewable energy certificates (market-based) to offset 265,000 MWh of
electricity consumption from the Hydropower Plant of the Electricity Generating Authority of Thailand.

As greenhouse gas emissions have increased steadily in recent years, global temperature continues to rise,
resulting in severe climatic variability, extreme weather events, and sea level rise. True Group has analyzed
and assessed the risks and opportunities that may affect the company’s business and finance according to the
TCFD framework in two scenarios as detailed in the table below.

Climate Scenario Description Impact to Business Time

Related Risks horizon*
Transition Risk
*Policy & Legal Business as As Thailand has pledged the Nationally Reputation and recognition All time
Usual (BAU) Determined Contribution (NDC) to the from environmentally conscious frames
UNFCCC to reduce greenhouse gas consumers.
emissions by 20-25% compared to the
business as usual by 2030,
aiming to reach carbon
neutrality by 2050, and net
zero greenhouse gas emissions by or
before 2065. The Company may have to
take part in the efforts to reduce
greenhouse gases to achieve the national
emissions target.

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 Climate Scenario Description Impact to Business Time
Related Risks horizon*
1.5 °C The Climate Change Act is expected to · Reputation and recognition All time
*Current be enacted in the near future, which from environmentally conscious frames
regulation, requires the Company to report consumers.
Emerging greenhouse gas emissions, reductions, · Cost of climate change
regulation and and adaptation to climate change. The operations throughout the supply
legal risk following legal liabilities challenge from chain
climate change impact is also expected to · Legal liabilities challenge from
be assessed and monitored for the climate change impact
businesses’ need to adapt and mitigate
the impacts.
Technology BAU No change or regress in technologies that Lose opportunities to invest in Medium-term
reduce greenhouse gas emissions. new energy and cost saving
technologies.
1.5 °C New technologies that can reduce Cost of improving or changing Medium-term
greenhouse gas emissions more technologies, which must be
effectively. implemented earlier than
anticipated.
Market BAU Financial market disruption and climate Revenue from customers Short-term
change impact. decreases through lower
carbon competitors.
1.5 °C Stakeholders are becoming more aware Cost of producing low-carbon Medium-term
and conscious of climate change, causing goods and services, as well as
the demand for low-carbon goods and research and development of
services to increase. services that help mitigate
greenhouse gas emissions to
respond to customer needs.
Reputation BAU Stakeholders expect green business Reputation and recognition All time
operations. from environmentally conscious frames
consumers.
1.5 °C Stakeholder expect the Company to set The Company’s reputation and All time
and achieve greenhouse gas emissions brand value may be affected or frames
reduction targets or conduct activities to revenue may decrease if the
reduce climate change impact. Company does not have a
clear direction or take part in
the efforts to drive climate
change goals.
Physical Risk

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 Climate Scenario Description Impact to Business Time
Related Risks horizon*
Acute BAU Abrupt physical impacts and severe · Damages from business Short and
natural disasters may cause business disruption. medium-term
disruption. · Cost of repairing or replacing
damaged equipment.
· In 2011, TRUE Loss 133
Million Baht from major floods.
1.5 °C Abrupt physical impacts, natural disasters, Cost of repairing or replacing Short and
damages to equipment. damaged equipment. medium-term
Chronic BAU Equipment damages due to climatic · Damages from business Medium and
conditions, such as damages to the disruption. long-term
cooling system due to rising · Cost of repairing or replacing
temperatures, may cause business damaged equipment such as
disruption. batteries shortened lifespan.
1.5 °C Temperature rise may shorten equipment Cost of preventive measures or Medium and
life spans. new technologies. long-term
Remark: Short-term (0-3 years), Medium-term (3-6 years), Long-term (6-10+ years)

Climate Related Scenario Description Impact to Business Time horizon

Opportunities
Resource Efficiency BAU Improve energy efficiency and Reduce energy cost and Medium and
and Energy Source use renewable energy in consumption but lose opportunities long-term
business operations. to increase efficiency.
1.5 °C Improve energy efficiency and · Reduce cost by saving energy and Medium and
choose clean fuels or increase increasing energy efficiency. long-term
renewable energy proportion. · Reduce cost by choosing
renewable energy such as solar
energy, biomass, etc.
Products and Service BAU Promote low-carbon services Earn a reputation for the Company. All time
such as solar cells installation at frames
base stations, major exchanges
and transmission nodes.
1.5 °C Promote and develop more new · Gain a good reputation for the All time
low-carbon services. Company. frames
· Revenue from environmentally
conscious customers increase.
· Development of climate-related
innovations.

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 Climate Related Scenario Description Impact to Business Time horizon
Opportunities
Markets BAU Market interest in low-carbon Opportunity to increase Medium-term
products and services. competitiveness.
1.5 °C Enhance competitiveness in low- · Communicate with stakeholders to Medium and
carbon product and service increase brand value and participate long-term
market or the government has in reducing greenhouse gas
climate-related incentives. emissions.
· Opportunities to increase revenue
from environmentally conscious
customers.
· Access to new market segments.
Resiliency BAU Prepare for climate change. Investment in design and Medium and
construction of structures to protect long-term
against impacts of climate change
such as flooding.
1.5 °C Prepare for climate change and · Investment in design and Medium and
government’s rules and construction of structures to protect long-term
regulations related to climate against impacts of climate change
change adaptation. such as flooding.
· Set a plan to adapt or prevent
business disruption from climate
change.
Remark: Short-term (0-3 years), Medium-term (3-6 years), Long-term (6-10+ years)

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3. Risk Management
The company has established the Strategic Risk Management Committee and Business Continuity
Management Committee to be in charge of risk identification & assessment and setting a risk management
framework and strategies as well as risk management plan to prevent any impact that may occur from the
business disruption. The risk and crisis management framework covers eight categories of risks which are in
line with the Committee of Sponsoring Organization of the Treadway Commission (COSO) Enterprise Risk
Management (ERM) – Intergraded Framework 2017 and ISO 22301.

Figure 5: Risk and Crisis Management Framework

A risk matrix is created to identify or classify risks in eight areas. Impact severity and the likelihood of
occurrence are taken into consideration when selecting material risks for developing a risk management plan.
Figure 6: Risk Rating and Risk Rating Definition

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4. Metrics and Targets
True Group is aware of sustainable development and has set its sustainability goals 2030 according to the UN
Sustainable Development Goals (SDGs). The climate-related target is of our goals under HOME
(environmental) dimension. We have set a challenging goal to achieve a carbon neutral organization by 2030
and joined the Thailand Carbon Neutral Network (TCNN) to support the country in achieving its national
emissions reduction target and we made a commitment with the Global Compact Network Thailand (GCNT)
members to prevent and solve problems of climate change including the global warming crisis with the goal of
achieving Net Zero by 2050 or at the latest by 2070. Moreover, we have set yearly target to reduce Scope 1
& 2 greenhouse gas emissions per revenue by 8.4% compared to the base year 2020. We also have publicly
committed to efficient resource use and set the target to achieve net zero carbon emissions of organization
(Scope 1 & 2) or Carbon Neutral by 2030 and commit to reduce Greenhouse Gas Emissions to Net Zero by
2050 according to the Science-Based Target Initiative (SBTi) which is in line with the Paris Agreement, the UN
Sustainable Development Goals (SDGs).True have set company’s target to reduce 42% of absolute
Greenhouse Gas Emission Scope 1 & Scope 2 and 25% of absolute Greenhouse Gas Emission Scope 3 by
2030 from a 2020 base year (Figure 7). True’s Greenhouse Gas Emission performance was also reported and
disclosed as a part of Charoen Pokphand Group (CPG), which their Near-term target was already verified by
Science-Based Target Initiative (SBTi).

Figure 7: Greenhouse Gas Emission Target from base year 2020 to 2030. (1) Blue line represents Greenhouse gas emission target of
Scope 1 & Scope 2 (Market Based) which will be reduced 42% by 2030 and (2) Red line represents Greenhouse gas emission target of
Scope 3 which will be reduced 25% by 2030

To achieve these targets, TRUE group also initiates projects and set the target for short, medium and long
term period such as energy efficiency projects, renewable energy investment, zero landfill e-waste and
reforestation for carbon offset project, etc. Additionally, we have participated in the Business Sector Emissions
Reduction Science-Based Target Project sponsored by the Thailand Greenhouse Gas Management
Organization (Public Organization) to reduce greenhouse gas emissions in an effort to keep the global average
temperature increase below 2˚C and limit global warming to below 1.5˚C in line with the Paris Agreement and
UN Sustainable Development Goal 13: Climate Action.

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Figure 8: True sustainability Goals 2030

Remarks:
The Sustainability Goal is one dimension of corporate KPIs and the remuneration of all employees
(executives and staff) is aligned with and shared together. True Sustainability Goals 2030 are embedded
into individual, team, department and corporate KPIs.
Targets 2022 Performance 2022
- Reduce Scope 1 and 2 greenhouse gas - Scope 1 and 2 greenhouse gas emissions per
emissions per revenue by 8.4 percent revenue was reduced by 18 percent compared to
compared to the base year 2020. the base year 2020.
- Reduce water consumption per revenue by 4 - Water consumption per revenue was reduced by
percent compared to the base year 2020. 30 percent compared to the base year 2020.
- Limited greenhouse gas emission scope 1 and - 320,115 tCO2e Emission for greenhouse gas
2 at 328,500 tCO2e or below. scope 1 and 2.
- Achieve zero landfill e-waste and 20 percent - Zero landfill e-waste and 57.35 percent
recyclable or biodegradable packaging. recyclable or biodegradable packaging were
achieved.

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Figure 9: Climate-Related Performance 2022 (Energy consumption and Climate Change, Water
Management and Waste Management)

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 Source: Sustainability Report 2022, Page 74-79
https://www.true.th/true-corporation/site/assets/truecorp/pdf/en/true-sustainability-report-2022-en.pdf

Chapter 2 Climate Risk Assessment - Physical Risks

Thailand is expected to face increasing climate-change related risks in terms of intensity of natural hazard
events. These impacts will impact nearly all organizations including the telecommunication industries. However,
as telecommunication services are vital to the well-being and security of the general public, potential impacts
are expected to be significant to True Group. Therefore, to prepare for these impacts, a scenario analysis of
climate-related physical risks to identify climate change-related risk vulnerabilities across True Group’s
operations and upstream activities. The results from this assessment will be used to develop a climate change
adaptation plan (refer to Chapter 4) with mitigation measures that are planned ideally so that context-specific
factors are considered.

The following Representative Concentration Pathways (RCP) scenarios have been selected.
· RCP 2.6 (Very Stringent) scenario which corresponds to a <2°C temperature rise by the end of the century
due to global efforts to reduce missions; and
· RCP 8.5 (Business as Usual) scenario which corresponds to a 3.7°C temperature rise by the end of the
century due to minimal to no effort to reduce emissions.

The timeframes selected for this assessment are 2030 (short-term time frame, in line with SBTi), 2040 (medium-
term timeframe) and 2050 (long-term timeframe where physical impacts are more pronounced, and for transition
risk Net Zero is expected on a global level).

Both quantitative and qualitative climate-related scenario analyses have been conducted including:
1. Case Study 1 - Climate Change Physical Risk Assessment
Qualitative assessment conducted at a provincial level, covering Bangkok and the top 10 provinces
outside of Bangkok, by revenue, that True operates in. The coverage of this assessment by percentage
of revenue is 55%. A physical risk assessment for True’s upstream activities have also been
conducted.

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 2. Case Study 2 - Financial Impact of Physical Risks
Quantitative assessment estimating the impacts of the physical climate-related risks identified in terms
of financial impacts.

Case study 1 - Climate Change Physical Risk Assessment

Physical Risk Assessment Scope:
The scope of this assessment covers True’s operations and upstream activities.
Operations
True’s operations are based in Thailand and comprise 3 major types of assets:network operation
(base station and transmission and major exchange), data centers, and office buildings. These major assets
are distributed across Thailand, categorized into the following regions as shown in Figure 10.

Figure 10: True Operational assets across Thailand

To assess potential physical risks to True’s operations, a physical risk assessment was conducted at the
provincial level to determine risks from natural hazards. Bangkok and the top 10 provinces outside of
Bangkok, by revenue, is considered. The coverage of this context-specific assessment is 55 percentage of
revenue (covering majority of assets).
The following provinces, Bangkok and top 10 provinces by revenue, were covered in this assessment:
1. Bangkok 2. Chiang Mai

21
 3. Chonburi 8. Rayong
4. Khon Kaen 9. Samut Prakarn
5. Nakhon Ratchasima 10. Songkhla
6. Nonthaburi 11. Ubon Ratchathani
7. Pathumtani
Upstream
In addition to conducting a physical risk assessment for True’s operations, the physical risk of True’s top 3
critical suppliers in 2022 (in terms of spending) was also conducted at a provincial level based on factory
location. The following provinces were covered as part of True’s upstream physical risk assessment:
1. Guangdong, China
2. Henan, China
3. Jiangsu, China

Method:
Historical baseline data, representing risk likelihood, and climate projection data, representing risk intensity, for
2030 (short-term), 2040 (medium-term) and 2050 (long-term) timeframes under the RCP 2.6 and RCP 8.5
scenarios were evaluated to determine risk trends (i.e. increasing or decreasing risk intensity in different
scenarios). Natural hazards assessed include: water scarcity, urban floods, riverine floods, coastal floods,
extreme heat, landslides, and cyclones.

Natural Hazard Categorization

Natural Hazard Baseline Categorization Indicator (Projected Data)
Water Scarcity Hazard was classified based on catchment Water Stress (SPEI Drought Index).
level Water Stress, which is the ratio of water
withdrawal to available renewable water
resource.
Riverine Floods River flood and urban flood hazards were 5-Day Maximum Rainfall (mm).
classified using a threshold of “area flooded to
Urban Floods damaging intensity threshold of 0.5m. The 1-Day Maximum Rainfall (mm).
area threshold is 1% of the Administrative
(ADM) unit for river flood, and 4% of the ADM
unit for urban flood.
Coastal Floods Hazard was classified using a similar rationale Sea Level Rise (cm above 2000 level).
to riverine and urban floods.
Extreme Heat Extreme heat hazard classification was based Maximum Temperature (°C).
on heat stress as indicated by daily maximum
Wet Bulb Globe Temperatures.
Landslide Hazard was classified based on the frequency 5-Day Maximum Rainfall (mm).
Hazards of rainfall-induced landslide events.

22
 Cyclone Cyclones were classified using wind speed, Change in sustained wind speed
provided as frequency-severity data. The compared to baseline figures (%).
damaging intensity threshold is 80km/h.

Summary of Projection for Key Climate Variables:

Results of the physical risk assessment for True’s operations and upstream activities are presented in terms
of risk trends indicating changes to risk intensity under the RCP 2.6 and RCP 8.5 at 2030 (short-term), 2040
(medium-term) and 2050 (long-term) timeframes using the following scale (increase or decrease relative to
baseline levels):
-3 -2 -1 0 1 2 3
Significant Moderate Slight No Change Slight Moderate Significant
Decrease Decrease Decrease Increase Increase Increase

Operations:
Baseline (Risk Likelihood)

RCP 2.6 Scenario

Hazard Water Scarcity Urban Floods Riverine Floods Coastal Floods Extreme Heat Landslides Cyclones
Indicator Water Stress (SPEI Drought Index) Change in 1-Day Rainfall (mm) Change in 5-Day Rainfall (mm) Sea Level Rise (cm above 2000 level) Change in Avg Max Temperature Change in 5-Day Rainfall (mm) Sustained Wind Speed
Province BSL 2030 2040 2050 BSL 2030 2040 2050 BSL 2030 2040 2050 BSL 2030 2040 2050 BSL 2030 2040 2050 BSL 2030 2040 2050 BSL 2030 2040 2050
Chiang Mai 1 1 1 -1 3 -3 -3 -3 3 3 3 3 N/A N/A N/A N/A 2 1 2 2 3 3 3 3 1 1 1 1
Chonburi 1 1 1 -1 3 -2 -2 -2 3 -1 1 2 3 1 1 1 2 1 2 2 2 -1 1 2 3 1 1 1
Khon Kaen 1 1 1 -1 3 -3 -3 -3 3 -2 -1 -1 N/A N/A N/A N/A 2 1 2 2 1 -2 -1 -1 1 1 1 1
Nakhon Ratchasima 2 1 1 -1 3 -3 -2 -1 3 2 3 3 N/A N/A N/A N/A 2 1 2 2 2 2 3 3 1 1 1 1
Nonthaburi 2 1 1 -1 3 -3 -3 -3 3 2 3 3 N/A N/A N/A N/A 3 1 2 2 1 2 3 3 2 1 1 1
Pathum Thani 2 1 1 -1 3 -3 -3 -3 3 2 3 3 N/A N/A N/A N/A 3 1 2 2 1 2 3 3 2 1 1 1
Rayong 1 1 1 -1 3 -1 -1 1 3 3 3 3 3 1 1 1 2 1 2 2 2 3 3 3 3 1 1 1
Samut Prakarn 2 1 1 -1 1 -3 -3 -3 2 2 2 3 3 1 2 2 3 1 2 2 1 2 2 3 3 1 1 1
Songkhla 1 1 1 -1 3 1 1 1 3 3 3 2 3 1 1 1 2 1 2 2 3 3 3 2 3 1 1 1
Ubon Ratchathani 1 1 1 -1 3 -1 -1 -1 3 -1 1 3 N/A N/A N/A N/A 2 1 2 2 1 -1 1 3 3 1 1 1
Bangkok 2 1 1 -1 2 -3 -3 -3 2 2 2 3 3 1 2 2 3 1 2 2 1 2 2 3 3 1 1 1

RCP 8.5 Scenario

Hazard Water Scarcity Urban Floods Riverine Floods Coastal Floods Extreme Heat Landslides Cyclones
Indicator Water Stress (SPEI Drought Index) Change in 1-Day Rainfall (mm) Change in 5-Day Rainfall (mm) Sea Level Rise (cm above 2000 level) Change in Avg Max Temperature Change in 5-Day Rainfall (mm) Sustained Wind Speed
Province BSL 2030 2040 2050 BSL 2030 2040 2050 BSL 2030 2040 2050 BSL 2030 2040 2050 BSL 2030 2040 2050 BSL 2030 2040 2050 BSL 2030 2040 2050
Chiang Mai 1 1 -1 -1 3 -3 -2 1 3 3 3 3 N/A N/A N/A N/A 2 1 2 2 3 3 3 3 1 2 2 3
Chonburi 1 1 -1 -1 3 -3 -2 1 3 2 3 3 3 1 1 2 2 1 2 2 2 2 3 3 3 2 2 3
Khon Kaen 1 1 -1 -1 3 -3 -3 -3 3 -1 -1 -2 N/A N/A N/A N/A 2 1 2 2 1 -1 -1 -2 1 2 2 3
Nakhon Ratchasima 2 1 -1 -1 3 -3 -3 -3 3 1 1 1 N/A N/A N/A N/A 2 1 2 2 2 1 1 1 1 2 2 3
Nonthaburi 2 1 -1 -1 3 -3 -3 -3 3 2 3 3 N/A N/A N/A N/A 3 1 2 2 1 2 3 3 2 2 2 3
Pathum Thani 2 1 -1 -1 3 -3 -3 -3 3 2 3 3 N/A N/A N/A N/A 3 1 2 2 1 2 3 3 2 2 2 3
Rayong 1 1 -1 -1 3 -1 1 1 3 3 3 3 3 1 1 2 2 1 2 2 2 3 3 3 3 2 2 3
Samut Prakarn 2 1 -1 -1 1 -3 -3 -3 2 2 3 3 3 3 3 3 3 1 2 2 1 2 3 3 3 2 2 3
Songkhla 1 1 -1 -1 3 -2 -1 1 3 -1 2 3 3 1 1 2 2 1 2 2 3 -1 2 3 3 2 2 3
Ubon Ratchathani 1 1 -1 -1 3 -2 -2 -1 3 -1 1 3 N/A N/A N/A N/A 2 1 2 2 1 -1 1 3 3 2 2 3
Bangkok 2 1 -1 -1 2 -3 -3 -3 2 2 3 3 3 3 3 3 3 1 2 2 1 2 3 3 3 2 2 3

23
Upstream (Suppliers):
Baseline

RCP 2.6 Scenario

Hazard Water Scarcity Urban Floods Riverine Floods Coastal Floods Extreme Heat Landslides Cyclones
Indicator Water Stress (SPEI Drought Index) Change in 1-Day Rainfall (mm) Change in 5-Day Rainfall (mm) Sea Level Rise (cm above 2000 level) Change in Avg Max Temperature Change in 5-Day Rainfall (mm) Sustained Wind Speed
Province BSL 2030 2040 2050 BSL 2030 2040 2050 BSL 2030 2040 2050 BSL 2030 2040 2050 BSL 2030 2040 2050 BSL 2030 2040 2050 BSL 2030 2040 2050
Guangdong 2 1 1 1 3 2 2 3 3 1 1 2 3 1 1 1 3 1 1 2 3 1 1 2 3 1 1 1
Henan 3 1 1 1 3 1 2 2 3 1 2 3 N/A N/A N/A N/A 3 2 2 2 2 1 2 3 3 1 1 1
Jiangsu 3 1 1 1 3 2 2 1 3 3 2 2 3 1 1 1 3 2 2 2 1 3 2 2 3 1 1 1

RCP 8.5 Scenario

Hazard Water Scarcity Urban Floods Riverine Floods Coastal Floods Extreme Heat Landslides Cyclones
Indicator Water Stress (SPEI Drought Index) Change in 1-Day Rainfall (mm) Change in 5-Day Rainfall (mm) Sea Level Rise (cm above 2000 level) Change in Avg Max Temperature Change in 5-Day Rainfall (mm) Sustained Wind Speed
Province BSL 2030 2040 2050 BSL 2030 2040 2050 BSL 2030 2040 2050 BSL 2030 2040 2050 BSL 2030 2040 2050 BSL 2030 2040 2050 BSL 2030 2040 2050
Guangdong 2 1 1 1 3 2 3 3 3 -1 1 1 3 1 1 1 3 1 2 2 3 -1 1 1 3 2 2 3
Henan 3 1 1 1 3 2 2 3 3 1 2 3 N/A N/A N/A N/A 3 2 2 3 2 1 2 3 3 2 2 3
Jiangsu 3 1 1 1 3 1 3 3 3 2 3 3 3 1 2 2 3 2 2 3 1 2 3 3 3 2 2 3

The results of the physical risk assessment can be determined by the risk trend of each hazard. The general
trends under each climate scenario and timeframe can be summarized as follows:

Operations
Baseline (2021): Urban floods, riverine floods, coastal floods, and cyclones were identified as high risk hazards
with high risk likelihood.
Scenario 2030 (Short-term) 2040 (Medium-term) 2050 (Long-term)
RCP 2.6 Moderate to significant Significant increase: Significant increase:
increase: • Riverine flood • Riverine flood
• Riverine flood • Landslide • Landslide
• Landslide

RCP 8.5 Moderate-significant Significant increase: Significant increase:

increase: • Riverine flood • Riverine flood
• Riverine flood • Landslide risk • Landslide
Moderate-slight increase: Moderate increase: • Cyclone
• Cyclones • Extreme heat
• Landslide • Cyclone
• Extreme heat

24
Upstream (Suppliers)
Baseline (2021): Water scarcity, urban floods, riverine floods, coastal floods, extreme heat, and cyclones
identified as high risk hazards with high risk likelihood.
Scenario 2030 (Short-term) 2040 (Medium-term) 2050 (Long-term)
RCP 2.6 Moderate increase: Moderate increase: Moderate significant increase:
• Urban flood • Urban flood • Urban flood
• Extreme heat • Riverine flood • Riverine flood
• Extreme heat Moderate increase:
• Landslide • Extreme heat
• Landslide
RCP 8.5 Moderate increase: Significant increase: Significant increase:
• Urban flood • Urban flood • Urban flood
• Extreme heat Moderate increase: • Riverine flood
• Cyclone • Riverine flood • Extreme heat
• Extreme heat • Landslide
• Cyclone • Cyclone
Natural Hazard Implications to True’s Operations
General potential significant risks to True’s operations have been identified.
Natural Hazard Potential Risks to True’s Operations
Water Scarcity · True’s operations is not heavily reliant on water availability. However, the unavailability of
water for domestic use at True’s assets will impact day to day operations.
Riverine Floods · Increased cost for replacement or repair of damaged assets, especially electrical
equipment and components that may be damaged upon contact with water.
Urban Floods · Impact on safety and ability for employees to come to work.
Coastal Floods · Will only affect coastal provinces. The loss of land due to permanent inundation at the
asset location will require True to relocate the asset entirely.
· Impact on accessibility (i.e. the asset may become temporarily stranded).
· Increased cost for replacement or repair of damaged assets, especially electrical
equipment and components that may be damaged upon contact with water.
· Impact on the safety and ability for employees to come to work.
Extreme Heat · Overheating and breakdown of equipment.
· Reduced efficiency of equipment such as batteries in network facilities causing increase
in replacement frequency.
Landslide · Increased cost for replacement or repair of damaged assets.
Hazards · Impact on safety and ability for employees to come to work.

Cyclone · Increased cost for replacement or repair of damaged assets such as cell towers.
· Impact on accessibility (i.e. the asset may become temporarily stranded).
· Impact on safety and ability for employees to come to work.

25
Summary of Potential Financial Impacts to True
Financial Impact RCP 2.6 RCP 8.5
Revenue Low: It is unlikely that any physical risk impact would affect revenue as users would still
(downstream) need to use True’s telecommunication and data services, especially during any acute
physical risk event (e.g. flooding) where people will want to be in contact with family and
friends. This has been confirmed by our financial analysis based on past flooding events
in Case Study 2, where even under RCP 8.5 financial impacts to revenue from flooding
are limited.
CAPEX Low to Medium: All natural hazards Medium: RCP 8.5 increases the frequency of
have an overall similar effect: damage to extreme events. However, given True has
True’s assets, especially already adapted to some of these events, it is
telecommunication equipment that is out unlikely that any severe damage will occur to
in the open such as base stations and True equipment, for example in flooding it is
mobile towers. Any damaged equipment expected that most equipment will be moved
will be need to be replaced or repaired. to higher locations.
However, in RCP 2.6 most severe
events are limited and any such
damages become less frequent than in
RCP 8.5 case.
OPEX Low: There are limited impacts to OPEX Low: Even with rising temperatures, overall
(operational, as additional energy required to cool impact to air conditioning and cooling costs is
energy) equipment and offices is limited to due likely to be limited as our energy costs are
global average temperature rise being mostly for our base station equipment
limited to <2°C. (excluding cooling) and any incremental
increase on air is unlikely to make any
material impact to overall energy costs.
OPEX Upstream Low: Even though our suppliers are Low: With suppliers, we will be able to
Suppliers located in areas with high risk, we have identify high risk suppliers and find
(purchased not yet experienced any severe impacts substitutes over time. Even in the case
goods) to our supply chain to date. Under RCP where there are supply chain interruptions,
2.6, impacts are likely to be similar as revenues from product sales only make
for present day. around 10% of our total revenue.
Additionally, any impacts to our major
suppliers of mobile phones (e.g. Apple,
Samsung) would affect our competitors
equally.

26
Case study 2 – Financial Impact of Physical Risks
Operations:
As shown in Case Study 1 (Climate Change Physical Risk Assessment), riverine floods were identified as a
high likelihood hazard at baseline level with intensity projected to significantly-moderately increase in 2030
(short-term) and 2040 (medium-term). Also, there is significantly increase in 2050 (long-term). Historically,
Thailand suffered from a major flooding event in 2011 which affected 65 provinces from October 2011 to
January 2012.
We have used the 2011 flood event to estimate the potential financial impact to our Operations. In 2011, the
flood impacted True Group’s operations by damaging True’s assets and consequently affecting the ability for
True to fully provide services. This impact is reflected in True’s revenue from services in Q4 of 2011 which
decreased by -0.6% (quarter on quarter) as a result from the flood, mainly from impacts to pay TV and online
segments. This translates to a loss in revenue from services by approximately 86 million baht. We have
estimated the potential financial impact under the assumption that the percentage change in 5-day maximum
rainfall (compared to baseline rainfall) is equal to the change in amount of damage from the baseline impacts
of -0.6% from the 2011 baseline impacts (as indicated by loss in service revenue).
The following results represent service revenue loss estimated for 100% of our operations (True Move, True
Online, True Visions), with the percentage change in rainfall calculated based on 10 provinces that represent
55% of our revenue as included in Case Study 1. Impacts are also in line with our projected revenue to
EBITDA growth. In line with our Enterprise Risk Management criteria these risks are all classified as
“insignificant” in 2030, “insignificant” in 2040, and “minor” in 2050 in terms of financial impact.

Service Revenue Loss Percentage Service Percentage Loss of Profit

(million baht) Revenue Loss (EBITDA)
Scenario 2030 2040 2050 2030 2040 2050 2030 2040 2050
RCP 2.6 209.5 235.6 264.8 -0.16% -0.16% -0.17% -0.09% -0.02% -0.01%
RCP 8.5 210.9 241.3 275.6 -0.16% -0.17% -0.17% -0.09% -0.02% -0.01%

Upstream (Suppliers):
In addition to providing telecommunication services, True also sells an extensive range of mobile handsets
(mostly smartphones and smart devices) and related accessories which are bought from suppliers. Therefore,
delays in product shipment from suppliers due to impacts from natural hazard events can potentially impact
True’s operations. With reference to Case Study 1 (Climate Change Physical Risk Assessment), baseline risk
likelihood levels for True’s suppliers are categorized as high. Under the RCP 8.5 scenario, hazard intensity
increase more severely for 2030, 2040, and 2050 timeframes compared to the RCP 2.6 scenario for several
natural hazards. Therefore, we can expect greater financial impact under the RCP 8.5 scenario where more
suppliers are being simultaneously impacted by natural hazards (due to increased hazard intensity) and an
increase in the frequency of shipment delays with longer delay periods.

27
We have conducted this assessment based on the assumption that True’s top 3 suppliers as presented in
Case Study 1 (suppliers from China in Guangdong, Henan, Jiangsu) will contribute 30% (10% each) to the
revenue from product sales. Future revenue from product sales was projected up to 2050 using average growth
in revenue from product sales from 2017-2021. The potential financial impact that may occur was estimated
under 3 scenarios where up to 3 suppliers may be impacted at the same time causing delays in shipment
between 1-21 days. Under the worst case scenario where all 3 suppliers are simultaneously impacted with a
delay in the shipment of products by 21 days, the estimated financial impact is approximately 1.2 billion baht
in 2030, 4.1 billion baht in 2040, and 14 billion baht in 2050. From our analysis, days delayed of 1-3 days
roughly approximates to the RCP 2.6 scenario, while delays of 7-21 days roughly correlates to RCP 8.5.
Impacts are also in line with our projected revenue to EBITDA growth.
In line with our Enterprise Risk Management criteria these risks are all classified as “minor” to “serious” in 2030
and “minor” to “critical” in 2040 depending on the number of suppliers simultaneously impacted. These risks
are considered “critical” in 2050 regardless of the number of suppliers simultaneously impacted, in terms of
financial impact.
Scenar Days Loss of Revenue from Product Sales (million baht)
io Delayed 1 Supplier Impacted 2 Suppliers Impacted 3 Suppliers Impacted
2030 2040 2050 2030 2040 2050 2030 2040 2050
RCP 1 19.4 66.4 228.1 38.7 132.9 456.1 228.0 456.1 684.1
2.6 3 58.1 199.3 684.2 116.1 398.6 1,368.3 174.2 1,368.3 2,052.5
RCP 7 135.5 465.1 1,596.4 271.0 930.2 3,192.7 406.5 3,192.7 4,789.1
8.5 14 271.0 930.1 3,192.7 542.0 1,860.3 6,385.4 813.0 6,385.4 9,578.2
21 406.5 1,395.2 4,789.1 813.0 2,790.5 9,578.2 1219.4 9,578.1 14,367.2

Scenario Days Percentage Loss of Revenue from Product Sales

Delayed 1 Supplier 2 Suppliers 3 Suppliers
RCP 2.6 1 0.03% 0.05% 0.08%
3 0.08% 0.16% 0.25%
RCP 8.5 7 0.19% 0.38% 0.58%
14 0.38% 0.77% 1.15%
21 0.58% 1.15% 1.73%

Scenar Days Percentage Loss of Profit (EBITDA)

io Delayed 1 Supplier Impacted 2 Suppliers Impacted 3 Suppliers Impacted
2030 2040 2050 2030 2040 2050 2030 2040 2050
RCP 1 0.01% 0.01% 0.00% 0.02% 0.01% 0.01% 0.03% 0.02% 0.01%
2.6 3 0.03% 0.02% 0.01% 0.05% 0.04% 0.03% 0.08% 0.06% 0.04%
7 0.06% 0.04% 0.03% 0.12% 0.09% 0.07% 0.18% 0.13% 0.10%

28
 RCP 14 0.12% 0.09% 0.07% 0.24% 0.18% 0.13% 0.36% 0.27% 0.20%
8.5 21 0.18% 0.13% 0.10% 0.36% 0.27% 0.20% 0.53% 0.40% 0.30%

Chapter 3 Climate Risk Assessment - Transition Risks

Transition Scenario Analysis – Climate Impact on Electricity Cost: 2030 (short-term), 2040 (medium-
term) and 2050 (long-term)
Introduction:
Sensitivity analysis is conducted for 2030 (short-term), 2040 (medium-term) and 2050 (long-term) to prepare
True for the possible impact from the upcoming regulatory carbon price in Thailand.

Assumptions: The carbon price used in this scenario analysis was selected according to the International
Energy Association (IEA) forecast report on world energy model. The model forecast carbon price in 2
scenarios: Stated Policies (STEPS) and Sustainable Development (SDS). As the report did not forecast
specifically for Thailand, the carbon price selected in this calculation is based on China's Carbon price scenario
as China is the closest related country referred to by IEA.
Source: https://www.iea.org/reports/world-energy-model/macro-drivers

Impacts in baseline scenario (STEPS): carbon pricing in baseline in line with IEA STEPS scenario are around
930 THB/tCO2e in 2030 and 1,395 THB/tCO2e in 2040 and 1,705 THB/tCO2e in 2050. This has a relatively low
impact to True because the total amount paid to carbon price is approximately 719 THB million which is 0.31%
compared to our projected EBITDA in 2030 and approximately 1,255 THB million which is 0.12% compared to
our projected EBITDA in 2040 and approximately 1,717 THB million which is 0.04% compared to our projected
EBITDA in 2050 .

Impacts in SDS scenario: under SDS carbon prices are around 1,240 THB/tCO2e in 2030 and 3,410 THB/tCO2e
in 2040 and 4,960 THB/tCO2e in 2050. This causes payment to government around 3 times higher than in
baseline, therefore our costs are also increased around 3 times. In overall view, this has a relatively low impact
to True because the total amount paid to carbon price is approximately 959 THB million which is 0.42%
compared to our projected EBITDA in 2030 and approximately 3,068 THB million which is 0.29% compared to
our projected EBITDA in 2040 and approximately 4,994 THB million which is 0.10% compared to our projected
EBITDA in 2050.

Quantitative impact:
Financial Impact to Cost (THB Million)
Scenario 2030 (short-term) 2040 (medium-term) 2050 (long-term)
Baseline (STEPS) 719 1,255 1,717
SDS 959 3,068 4,994

29
 Change due to carbon price 240 1,813 3,277

Mitigation Measures:
· If True wishes to mitigate the cost of carbon under carbon price of THB1,240 per tCO2e (under SDS scenario)
in 2030, it must reduce linear growth use of electricity to below than 10% and use renewable electricity with
lower price than grid electricity.
· If True wishes to mitigate the cost of carbon under carbon price of THB 3,410 per tCO2e (under SDS scenario
in 2040, it must reduce linear growth use of electricity to below than 10% and use renewable electricity with
lower price than grid electricity.
· If True wishes to mitigate the cost of carbon under carbon price of THB 4,960 per tCO2e (under SDS scenario
in 2050, it must reduce linear growth use of electricity to below than 10% and use renewable electricity with
lower price than grid electricity.

Apart from True conducting climate transition risk assessment on its own operation, True also conduct for their
upstream and downstream activities.

Upstream transition risks:

We have evaluated qualitative impact of transition risk to our suppliers. The primary transition risk that we
identified was carbon pricing. We did not view this as a risk since our competitors will also face the same
impacts of carbon pricing. In addition, many suppliers such as Huawei and Apple have GHG targets in place
and are unlikely to face heavy carbon pricing.

Downstream transition risks:

Our consumers have limited impact since they do not face any direct impact from carbon pricing. In addition,
True works with its suppliers to ensure that its products are environmentally friendly, so there is limited impact
that demand for True's products and services will reduce due to changes in market.

Transition Scenario Analysis – Thailand’s carbon tax impact: 2030 (short-term), 2040 (medium-term)
and 2050 (long-term)
Introduction:
Thailand’s Excise Department will impose a carbon tax scheme on energy, transport, and industrial sectors to
help the country reach carbon neutrality target by 2050 and net zero target by 2063. The carbon tax
establishment and enforced will be a significant financial risk because the limitation of greenhouse gas emission
and also the carbon tax rate are raising while the business is expanding.
Scenario analysis is conducted for 2030 (short-term), 2040 (medium-term) and 2050 (long-term) to prepare
True for the possible impact from the upcoming carbon tax scheme in Thailand.

Assumptions: Since Thailand’s carbon tax scheme is now in progress of studying and law enforcement
processes, Thai's implementation of taxing carbon emissions will be done in line with Singapore's carbon tax

30
structure. According to the SDS scenario, Thailand will implement a carbon tax in the next five years (by 2028),
while in the STEPs scenario, it will start in the next seven years (by 2030), with a preparation period (Thai will
charged only 40% of first stage of Singapore Carbon Tax) of ten years from 2030 to 2039., thereby providing
a broad-based price signal to encourage companies to reduce their GHG emissions. If TRUE does not take
action to reduce their scope 1 and 2 GHG emissions since 2020, company will face a significant amount of
carbon tax that will directly impact on operational cost.
Source:
https://carbonherald.com/thailand-to-introduce-carbon-tax-in-3-major-industries/
https://www.niskanencenter.org/singapores-manufacturing-friendly-carbon-
tax/#:~:text=The%20tax%20is%20currently%20set,gray%20line%20in%20figure%20below).

Impacts in baseline scenario (STEPS): Baseline for carbon tax price is aligned with carbon tax rate
scenario for 2030 (short-term), 2040 (medium-term) and 2050 (long-term). Estimated carbon tax rate are
around 51 THB/tCO2e in 2030, 127 THB/tCO2e in 2040 and 1,143 THB/tCO2e in 2050. This has a relatively
low impact to True because the total amount paid to carbon price is approximately 43 THB million which is
0.02% compared to our projected EBITDA in 2030 and approximately 218 THB million which is 0.02%
compared to our projected EBITDA in 2040 and approximately 4,001 THB million which is 0.08% compared
to our projected EBITDA in 2050.
Impacts in SDS scenario: Baseline for carbon tax price is aligned with carbon tax rate scenario for 2030
(short-term), 2040 (medium-term) and 2050 (long-term). Estimated carbon tax rate are around 127
THB/tCO2e in 2030, 1,143 THB/tCO2e in 2040 and 1,270 THB/tCO2e in 2050. This has a relatively low
impact to True because the total amount paid to carbon price is approximately 108 THB million which is
0.05% compared to our projected EBITDA in 2030 and approximately 1,969 THB million which is 0.19%
compared to our projected EBITDA in 2040 and approximately 4,446 THB million which is 0.92% compared
to our projected EBITDA in 2050.
Quantitative impact:
Financial Impact to Cost (THB Million)
Scenario 2030 (short-term) 2040 (medium-term) 2050 (long-term)
Baseline (STEPS) 43 218 4,001
SDS 108 1970 4,446

Mitigation Measures:
· If True wishes to mitigate the cost of carbon tax of THB127 per tCO2e (under SDS scenario) in from 2028-
2030, it must reduce greenhouse gas scope 1 and 2 emission to zero, offset the use of electricity by i-REC
purchasing and use renewable electricity than grid electricity.

31
· If True wishes to mitigate the cost of carbon tax of THB1,143 per tCO2e (under SDS scenario) in from
2028-2030, it must reduce greenhouse gas scope 1 and 2 emission to zero, offset the use of electricity by i-
REC purchasing and use renewable electricity than grid electricity.
· If True wishes to mitigate the cost of carbon under carbon price of THB 1,270 per tCO2e (under SDS
scenario in 2050, it must reduce greenhouse gas scope 1 and 2 emission to zero, offset the use of electricity
by i-REC purchasing and use renewable electricity than grid electricity.
Apart from True conducting climate transition risk assessment on its own operation, True also conduct for
their upstream and downstream activities.
Upstream transition risks:
We have evaluated qualitative impact of transition risk to our suppliers. The primary transition risk that we
identified was the responsibility for paying carbon tax. We did not view this as a risk since our suppliers do
not responsible in Greenhouse Gas scope 1 and 2 emission and not responsible for carbon tax paying of
TRUE group. In addition, TRUE group’s suppliers such as Huawei and Apple have GHG targets in place and
TRUE group also plan to update the supplier policy every year as well.

Downstream transition risks:

Our consumers have limited impact since they do not face any direct impact from carbon tax in a short term.
But for medium and long term the carbon tax policy and enforcement from government might have an effect
to consumers by additional tax or vat for product and service purchasing. However, True works with its
suppliers to ensure that its products are environmentally friendly and have the lowest impact on consumers.

Chapter 4 Physical Climate Risk Adaptation

Introduction:

From the physical risk assessment identified in Chapter 2, True has prepared an adaptation plan to address
the adverse effects of climate change and taking appropriate action to prevent or minimize the damage they
can cause or taking advantage of opportunities that may arise.

From Case study 1 (Climate Change Physical Risk Assessment), as riverine flooding was categorized as a
high risk hazard, True have prepared a flood adaptation plan including response measures and implementation
timescales for True’s assets as shown in Table below.

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 Responses Description Implementation
Timescale (Baseline
2023)
Asset Level Impact Undertake an asset level flood risk assessment to identify and Within 1 year
Assessment quantify the risks to flooding, key vulnerable areas, assets at
risk and High Flood Level (HFL). Use this information to
develop a hazard mitigation plan. This also involves review of
the current waste rock disposal practices.
Flood Forecasting Implementation of flood forecasting, early warning and 3-5 years
and Monitoring monitoring systems to ensure adequate action within a
reasonable time to minimize flood related losses.
Stakeholder This includes implementation of training, awareness and 1-3 years
Capacity building capacity building programs within the communities for disaster
management during natural hazards and construction of
shelters for protection against flooding.
Storm Water Evaluate the areas across the asset which are prone to Within 1 year
Drainage and localized inundation. Construct storm water drainage for a
Management higher return period (50 years). Desilting and maintenance of
storm drains at regular intervals.
Flood Walls or Hard Wall such as Cement Concrete or rubble masonry or 1-3 years
Bunds earthen bund to prevent ingress of storm water into critical
areas.
Plantation or Plantation of trees or green cover to minimize run-off related 1-3 years
Afforestation soil erosion and destabilization of slopes.

Chapter 5 Climate Related Opportunities

With the commitment of TRUE group to be a carbon neutral organization by 2030 and Net-zero by 2050, our
business measures need to be adjusted for the alignment of these targets, based on our SBTi commitment
plan. Our plan consists of: (1) 42% reduction of our greenhouse gas scope 1 and 2 emission and (2) 25%
reduction of our greenhouse gas scope 3 emission. To achieve these goals, TRUE group need essential actions
to manage the direct sources of our emissions. TRUE group aim to uplift the management of energy sources,
usage, and efficiency, and it is a good opportunity to improve energy efficiency and the use of renewable
energy in our business operations. Moreover, there is an opportunity to increase the ratio of low-carbon products
and services, which will be a good preparation for our long-term business as well.
The detail of TRUE group’s major climate opportunities can be described as following:

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Opportunity 1: Resource efficiency and energy sources
Description: Regarding to TRUE group’s greenhouse gas emission goals and the upcoming carbon tax
consideration in Thailand, we make approaches to install the energy saving tools and equipment at our network
infrastructure and also started switching to use more solar power to help reduce the greenhouse gas emission
and the regulatory impacts on business operation cost in near future.
TRUE group installed energy saving equipment or change some equipment at base station and exchange
nodes by changing network equipment that save more energy, closing unused network frequencies with no
impact to customers, painting the exchange node buildings with thermal insulation coating and changing inverter
air conditioning systems at the transmission nodes and chillers. For office buildings, we upgraded the air
conditioning system to a variable refrigerant volume (VRV) or variable refrigerant flow (VRF) system and
changed to use the elevator regenerative drivees
In addition, solar investments could provide long term return on investment, eventually making the electricity
cheaper than purchasing from the grid. This also increases its independence from external electricity suppliers.
In 2022, we have grown to a total of 4,712 solar cell base stations.
Estimated total avoided emissions per year:
We saved up to 31,827 MWh/Year of electricity and reduced 14,195 tonCO2e/Year of greenhouse gas
emissions in 2022 by energy saving equipment installation in our network part. For office buildings, we saved
up to 137 MWh of electricity and reduced 61 tonCO2e of greenhouse gas emissions. For solar cell source, we
can save 31,176 MWh/Year and reducing greenhouse gas emissions up to 13,905 tonCO2e/Year.

Total cost saving: For solar cells that have been installed at base stations & transmission to reduce GHG as
well as to save electricity costs (10 years). We estimate the value of 1.2 billion Baht cost calculated from the
electricity generation from solar cell x avg. cost of electricity x 10 year. With this calculation We estimated the
investment of 583.87 million Baht, calculated from solar cell installation cost at base stations & transmission
across the country.
Opportunity 2: Low emission services
Description: True Group expects Core Telecommunication businesses to continue its upward momentum along
with GDP rebound and to capture ample growth potential from the digital arm or New S-Curve capitalizing on
its comprehensive digital platform and ecosystem. True has continued the development and trial of new
products and services which address issues related to climate change, its VROOM (VDO conference service/
solution) can reduce fuel consumption from transportation to reduce Scope 3 emissions and attract more
customers who need our services such as retail service, conference, training, or work from home through the
VROOM Application especially during the Covid-19 period. True VROOM platform can reduce fuel consumption
of both the company and customers. VROOM could save the corporate cost of VDO conference software

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licenses and R&D expenses. In addition, the software allows cost reduction in operations e.g., from 50%
reduction in office building rents and employee travel expenses are reduced by 60% due to the Work from
Home (WFH) policy. Therefore, this implies the reduction of emissions from employees commuting, resulting
in a positive environmental impact. We also adopt the digital platforms for both internal and external operation
such as reducing internal paper usage by switching to digital approval platform via True Connect application
and replacing customer paper-based billing with the True e-billing and True e-Tax Invoice systems.
Estimated total avoided emissions per year:
The avoided emission from True VROOM usage can be calculated based on the following information and
assumption: (1) Total True employee in 2022: half of True employee is 5,892 persons with 50% Work from
Home (WFH) policy at least have 1 meeting per day, (2) Assume that the round trip distance between company
and employee’s house is 10 km., (3) The gasoline consumption rate of 1500-cc automobile (IPCC Vol.2 table
3.2.1, 3.2.2, DEDE) and (4)The annual average price of gasohol95 E20 in Thailand amount in 2022.
In conclusion, the estimated avoided emission by TRUE vroom is 2,701 tCO2e/year, while True e-bill program
help reduced paper up to 247 million sheets, which equivalent to 2,592 tonCO2e of greenhouse gases
emissions reduction.
Total revenues from climate change product(s) in FY:
1. “True VROOM” VDO conference service/ solution can reduce fuel consumption from transportation. We
estimated revenue from providing VROOM service of at least 93.06 million Baht (Package price x No. of users).
2. e-Billing Program: We provide important information for customers to change their traditional billing invoices
(hard copy) to e-Billing Program, which reduced paper up to 247 million sheets and cost saving 38.11 million
Baht (paper cost x No. of sheets).
Opportunity 3: True iService
Description: True group has continued to develop the mobile payment channels for prepaid and postpaid
customers. True iService is one of the Company’s services along with TrueMoney Wallet and TrueID
application, which allow customers to: (1) Check their balance & data usage (2) Easy and secure payment
transaction and (3) Manage their services via the application or website Therefore, by using True iService, the
GHG emissions generated from customer travelling to shops and paper billing are avoided.
Estimated total avoided emissions per year:
The avoided emissions generated from customer travelling to shops can be calculated based on the following
information and assumptions by using Estimated Number of usage (App & Website) 17,474,522 transactions
in year 2022, the average distance of true shop and potential customers and The gasoline consumption rate
of 1500-cc automobile (IPCC Vol.2 table 3.2.1, 3.2.2, DEDE). The estimated avoided GHG emissions from
customer travelling by using True iService is 953.78 tCO2e/year

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Total cost saving:
The cost saving can be calculated based on the following information and assumptions: (1) Estimated Number
of usage (App & Website) 17,474,522 transactions in year 2022, (2) the average distance between True shop
and potential customers and The gasoline consumption rate of 1500-cc automobile (IPCC Vol.2 table 3.2.1,
3.2.2, DEDE) and (4) The annual average price of gasohol95 E20 in Thailand amount in 2022.
In conclusion, the estimated avoided GHG emissions from customer travelling by using True iService is 247
Million THB/year

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GREENHOUSE GAS EMISSION AND SOCIAL COST OF CARBON
Greenhouse Gas (GHG) Emission and GHG Intensity*
3.56 3.47 3.41
3.15
3.44
3.22
2.80 2.80
Total GHG 388,938 417,508
337,189 320,115
Emission
Scope 1&2
(tonCO2e)

20192019 2020
2020 20212021 2022 2022
Target Intensity

QUANTIFICATION OF SOCIAL COST OF CARBON

True Group has studied, analyzed, and estimated the cost of carbon from operational
emissions (causing negative social impacts) and the cost of carbon emissions reduction
(creating positive social impacts) in order to use these assumptions to consider the
projects to reduce its green house gas emissions. The study is summarized as follows:

• POSITIVE IMPACT
Category 2022
Reduction through energy efficiency (MWh) 5,077
Reduction through use of solar power (MWh) 29,333
Renewable Energy Certificate (MWh) 265,000
Reduction through Paperless Project (tCO2e) 2,592
Total GHG reduction (tCO2e) 152,267
Social Cost of Carbon 2022 (THB/tCO2e) Ref. Y2022 1,275
Social Cost of Carbon: Positive Impact (THB) 194,140,425
•NEGATIVE IMPACT
Year 3% Average Cost Average Cost Actual Scope 1 +2 Social Cost of
(USD) of Carbon Emissions (tCO2e) Carbon (THB)
(THB/tCO2e)
2017 39 1,157 302,013 349,307,094
2018 40 1,186 328,543 389,733,934
2019 41 1,216 388,939 472,913,162
2020 42 1,246 436,897 544,182,562
2021 42 1,246 337,189 419,989,789
2022 43 1,275 368,428 469,826,039
Year 3% Average Cost Average Cost Forecast Scope 1 +2 Social Cost of
(USD) of Carbon Emissions (tCO2e) Carbon (THB)
(THB/tCO2e)
2023 44 1,305 402,691 525,462,134
2024 45 1,335 440,270 587,555,009
2025 46 1,364 481,484 656,834,210
2026 47 1,394 526,680 734,109,791
2027 48 1,424 576,242 820,281,053
2028 49 1,453 630,590 916,346,221
2029 49 1,453 690,183 1,002,944,890
2030 50 1,483 755,527 1,120,305,104
Total 2017-2020 (average cost) 1,206 1,456,392 1,756,136,752
Total 2021-2030 (average cost) 1,392 5,209,284 7,253,654,241
Total 2017-2030 (average cost) 1,352 6,665,675 9,009,790,993

METHODOLOGY
The Social cost for True Group’s operation are calculated based on the EPA Social
Cost of Carbon referencing from Table A1: Annual SC-CO2 Values: 2010-2050
(2007$/metric ton CO2).
• POSITIVE IMPACT
True used EPA’s social cost of carbon to quantify the positive social impacts from
their GHG reductions measures in monetary terms. The GHG reductions measures
included in this calculation are the following:
 Solar cells installed in their base stations and transmission
 Paper reductions schemes
 Energy efficiency measures such as installing energy saving equipment
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