The Company has taken a strategic step forward by assembling a cross-border team dedicated to leveraging AI to enhance the profitability in the energy trading business in Australia. This AI showcase is designed to maximize the future battery revenue and improve outcomes of trading business with focus on 2 key goals:<br><br>Forecasting the electricity dispatch price to optimize battery dispatch strategy.<br>Predicting anomalies in pricing to mitigate risks associated with volatile market conditions.<br><br>This initiative has undergone a thorough analysis, revealing an opportunity to boost the business profit by 4.6 million AUD, based on a 22-month back-test result. Such potential gains underscore the transformative power of AI in revolutionizing energy trading business. Currently, the physical battery investment is under final assessment.

The spending analysis has been performed in each country to understand the distribution of expenses within different sectors. From the history records, analysis revealed that 63% of spending in Indonesia is directed towards mining contractors. While in China, 77% of spending is utilized for coal as an energy source.

The Company has a systematic approach to classifying workers who are not employees. This classification encompasses all workers engaged with the Company, primarily the contractors.<br>Referring to the standards, the number of contractors is counted by headcount. However, there are specific exceptions in mining business in Australia and renewable power business in Japan, where full-time equivalent (FTE) is employed for tracking.

The Company has integrated ESG criteria into the supplier screening and selection process. The standard has been developed and deployed across the organizations. This standard outlines the flow process seamlessly from initial engagement with suppliers to the final awarding of contracts.<br>Building upon existing practices, the Company has streamlined the pre-qualification form. The criteria include social aspects such as health & safety and community impact, environmental aspects such as waste management, and governance aspects such as business ethics. While a self-assessment questionnaire serves as a tool for suppliers to evaluate their ESG performance, with scores evaluated based on evidence-supported responses.<br>Simultaneously, the development of supplier ESG assessment standard is underway. This standard is crucial for identifying any significant actual or potential negative impacts that may arise during work and providing a basis for improvements. This is essential for the Company to identify, monitor, and address impacts throughout the entire supply chain.<br>

The CG Storytelling Contest, themed "Every Story Needs to Be Told," is an innovative approach to deepen employee engagement with corporate governance (CG) best practices. Participants are invited to share their experiences and impressions of colleagues who embody these principles, highlighting real-life examples of integrity and ethical conduct across the Company. The top three stories, celebrated for their inspiration, will be brought to life through video clips and showcased on CG Day.

While the customer satisfaction survey is regularly conducted, the Company tailors customer relations approach to stay aligned with customer’s thoughts and expectations in each business context. In practice, the approach varies from detailed satisfaction surveys to on-site visits, and from sharing know-how to providing quarterly updates and hosting open houses.

The Company places great importance on supporting and investing in the development of communities and society with the goal of balancing beneficial value across stakeholders. To ensure a clear direction on community investment, the Company has applied the London Benchmarking Group (LBG) framework as a guideline in categorizing the corporate community investment.

To ensure the effectiveness of compliance risk management, the Company has adopted three lines of defense practice. This model structures the roles and responsibilities across the organization to ensure comprehensive oversight and control.<br><br>First Line: Operational departments, which are at the forefront of daily business operations ensure that operations are conducted without being exposed to unnecessary risks by adhering strictly to the policies and guidelines.<br><br>Second Line: Compliance department, which plays an important role in strengthening business units by formulating and assessing policies to align with both laws & regulations and organizational objectives. Besides, when any business concerns arise, the compliance team collaborates closely with the legal department to provide advice for execution.<br><br>Third Line: Internal audit function, which provides an independent assessment of the performance of both the first and second lines, ensuring all business processes are functioning effectively. The Audit Committee oversees this function to ensure alignment with best practices and regulatory requirements.<br><br>In addition, the compliance department promotes awareness and alignment with laws and regulations, fostering a culture of adherence to both internal policies and external regulations. 

The Company maintains environmental and occupational health and safety (OHS) management systems across all business units, with annual internal audits conducted by specialists from headquarters. In addition, the Company engages third parties to conduct independent assessments in selected business units. These certifications are in accordance with ISO 14001: 2015 for environmental management and ISO 45001:2018 for OHS management.

To address ESG-related challenges, the Company held the ESG Summit 2023 on October 10th, under the theme “Sustainability Horizons: Pioneering Decarbonization and Data Privacy & Cybersecurity”. The summit was graced by the ESG committee and senior executives from all business units, unified in exploring 2 main topics: climate change & carbon reduction and data privacy and cybersecurity. At the summit, the Company welcomed external experts to share value insights under the topic “Strengthen Cyber Readiness” focused on cyber attacks.<br>

Recognizing the importance of ESG awareness across all levels, the Company embarked on an internal communication newsletter to provide employees with comprehensive knowledge about ESG principles in user-friendly infographics. 

The Company has established "Banpu Digital Academy" since 2018. The core mission is to elevate digital awareness and capabilities across the organization, fostering a “Digital Savvy” competency among employees. Banpu Digital Academy carries out a comprehensive journey of digital transformation that spans learning, action, and recognition phases, designed to embed digital fluency across all levels of the organization. <br><br>Learning: Employees are offered curated learning paths to deepen their digital knowledge via the Udemy online learning platform. The top 5 courses include 1) Design Thinking in 3 Steps, 2) Scrum 101-A Fundamental Look at the Agile Scrum Master Role, 3) Lean Management: Reduce Waste and Boost Efficiency, 4) Creativity, Design Thinking, and Innovation for Business, and 5) Product Management Fundamentals.<br><br>Action: Through activities like “Unbox iDeas”, employees are encouraged to apply their digital knowledge by developing innovative digital products that enhance work efficiency. The Hackathon event further promotes team collaboration and problem-solving through digital tools and techniques.<br><br>Recognition: “Banpu Global Innovation Award” serves as a platform for knowledge sharing and recognition. This platform provides an opportunity for frontline staff from different countries to share their digital transformation use cases and initiatives.<br> <br>Looking ahead, the Company plans to expand the UnBox iDeas program to other countries in 2024. This expansion underscores our commitment to driving digital excellence and innovation across global operations.

In 2023, the mining business conducted a customer satisfaction and engagement survey. The feedback was overwhelmingly positive showcasing highly satisfaction with the coal quality, customer service, and communication. The customers highlighted that products and services are key to their concerns when conducting business with the Company. This feedback affirms a commitment to being a reliable and responsible supplier.<br>

CG Day 2023 took place on October 17, 2023, marking an annual event to enhance employee awareness and engagement on CG best practices and Code of Conduct. This year, the top three stories from the CG Storytelling Contest shared their impression through CG stories centered around the theme of “integrity”.

"CG Focus" is a featured section in “Banpu Synergy E-Magazine”, a quarterly e-journal reaching employees across all countries where the Company operates. These articles shine a light on CG best practices within the organization and share updates on the updates on CG progress in order to foster understanding and awareness among the employees.