Page 76 - Amata-one-report2020-en

Risk from Change in Environmental Law and Regulations

Risk from change in environmental law and regulations

Industrial estate development business can directly affect the business, if it does not have prudent management.
Hence, the Company places importance on this matter and it is regarded as one of the sustainable issues which have
strong impact to business operations. The Company has evaluated risks and impacts caused by business operations
throughout the supply chain as well as oversaw activities of the operators in all Amata industrial estates which may

cause negative impacts to the Company’s stakeholders. The Company emphasizes on strictly compliance with the laws
relevant to environment and industrial estate business operations, including the measures set out in the environmental
impact assessment report and the environmental standards in every country that the Company invested in.

Risk Factors

Mutual awareness of the global community is a key factor that make all countries pay attention and place more
importance to environmental impacts from industrial sectors because environmental impacts destroy ecosystem which
directly impact to sustainability of natural resources, water, and food resources. Activities of human and industrial
sectors emitted greenhouse gases which were the main factor of climate change, as they contributed to higher average
temperature of the world, and heightened severity of natural disaster. Therefore, each country tried to supervise, control

and oversee environmental management by enacting new environmental laws and regulations or amend the existing
environmental laws and regulations to make them conform to the global community and the government’s policy of
each country.

Risk Incurred

From monitoring policies of various countries, it was found that their governments have tendency to improve laws and
regulations of environmental management and to drive the private sectors to take more responsibility on environment,
particularly the developed countries. The Company may have risks from the change of environmental laws and
regulations because the foreign factory operators in Amata industrial estates have to comply with the policy of their head
offices located in foreign countries, which changes their laws and regulations to be stricter. As a result, those factory
operators may have demand on usage of energy, utilities and industrial services with higher environmental standards
or need to improve usage of resources in their production processes to have better efficiency in order to conform to

the policy of their head offices abroad. In addition, quality and standard of utilities and industrial services which conform
to the laws and regulations may be one of important factors that the foreign investors may consider for investment.

Risk Impact

The Company’s recurring revenue from providing utilities and industrial services may be impacted if the factory
operators have to improve usage of resources in their production process to have better efficiency, reduce usage of
energy and water resources, reduce generation of waste in order to lessen environmental impacts, reduce emission of
carbon dioxide from the production, and attempt to increase ratio of reused resources, such as reused treated waste
water, thus usage volume of utilities and industrial services of the Company may have been decreased.

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