Page 68 - Amata-one-report2020-en

During 2020, summary of material risk management activities, duties performed, and performance was as follows:

1. Defined risk management operating guidelines, standard criteria and reporting format which conform to the
Company’s risk management policy.

2. Assessed the Company’s material risk factors at organizational level which affected business objectives
and sustainability of the organization, by considering entire risks throughout the business chain value, such
as strategic risks, operation risks, and emerging risks which may affect sustainability of the organization.
Risk prevention and mitigation methods have been proposed to keep risks in acceptable level (risk appetite).

3. Monitored, assessed risk management results during the past year, and improved the operation plans to reduce
risks continually and make them suitable with the business operation conditions.

4. Reported risk management assessment results and risk mitigation operations for the Risk Management
Committee’s acknowledgement constantly.

5. Encouraged learning, trainings, and disseminating of knowledge about risks and risk management to the
Company’s personnel at all levels and cultivated risk management corporate culture.

Strategic Risks

Risks from Circular Economy

Currently, the Company has revenue from real estate sales and rental business and recurring income from providing
utilities services, i.e., tap water, wastewater treatment service, electricity, natural gas and industrial services, i.e., waste
management to more than 1,400 customers who operate manufacturing activities in Amata industrial estates, both in
Thailand and Vietnam.

Risk Factors

As the world has tendency to pay more attention to environmental and social responsibility of the industrial sectors,
such as emission of greenhouse gas of industrial sectors and sustainable consumption to preserve the limited
natural resources. Thus, circular economy concept which focuses on maximum usage of natural resources gain more
popularity in many countries, particularly in countries of the leading international companies. Those companies integrated

circular economy concept in their business operations, by changing business model or development of manufacturing
process, products, and services by applying circular economy principle. Consequently, it led to the changes of raw
material usage, improvement, and development of manufacturing process to reduce natural resources consumption
or reduce waste from manufacturing process or reuse/recycle waste, as per 3Rs principles.

The operators do not only place importance on their own manufacturing processes, but they also place importance
on selection of manufacturing locations which must have public utilities or properties that can effectively support
business operations under circular economy concept.

68 56-1 One Report 2020