Vgi Public Company Limited · SET:VGI

Vgi Public — ESG Presentation (June 2024)

48 slides from Vgi Public's sustainability presentation, June 2024

  1. Slide 1: TCFD Report 2023/24

    TCFD Report 2023/24

  2. Slide 2: Contents

    CONTENTS Executive Summary 3 Introduction 5 1 Governance 9 2 Strategy 13 31 3 Risk management 39 4 Metrics and targets References 46 2 TCFD Report 2023/2024

  3. Slide 3: Executive Summary

    EXECUTIVE SUMMARY VGI focuses on managing risks and opportunities resulting from climate change, such as the dramatic changes in extreme weather conditions and natural disasters that may affect VGI’s business activities. This year VGI first Taskforce on Climate-related Financial Disclosures (TCFD) r

  4. Slide 4: Executive Summary: Structure of This Report

    EXECUTIVE SUMMARY Structure of This Report This report is structured in line with TCFD recommendations, in four sections. 1. “Governance” section explains how climate-related risks and opportunities are incorporated into our governance and management frameworks 2. “Strategy” section focuses on our c

  5. Slide 5: Introduction

    INTRODUCTION VGI was established in 1998 and started its business as a media rental company focused on traditional Out-of-Home ("OOH") advertising in the Bangkok area. However, the company's vision for sustainable growth prompted it to expand its media network across Thailand through strategic partn

  6. Slide 6: Introduction

    INTRODUCTION Climate change is undeniably a global problem, therefore, as an Offline-to-Online ("O2O") solution service provider, VGI is committed to addressing challenges and opportunities arising from climate change and energy conservation. VGI not only intends to address the greenhouse gas emissi

  7. Slide 7: Introduction

    INTRODUCTION VGI also focuses on managing risks and opportunities resulting from climate change, such as the dramatic changes in extreme weather conditions and natural disasters that may affect VGI's business activities. Therefore, to address these climate change risks, VGI has implemented a corpora

  8. Slide 8: TCFD Summary

    TCFD SUMMARY Section Recommendation Page a) Describe the Board’s oversight of climate-related risks and opportunities 10 Governance b) Describe management’s role in assessing and managing climate-related risks and opportunities. 11 a) Describe the climate-related risks and opportunities the organiza

  9. Slide 9: Governance

    GOVERNANCE 9 TCFD Report 2023/2024

  10. Slide 10: Governance Structure

    Governance Strategy Risk management Metrics and targets GOVERNANCE STRUCTURE ORGANISATION CHART The Board of Directors and management structure, along with individually designed roles and responsibilities, play a crucial role in ensuring transparency and public disclosure regarding investments at VG

  11. Slide 11: Board Committee Responsibilities

    Governance Strategy Risk management Metrics and targets BOARD COMMITTEE RESPONSIBILITIES VGI’s board-level committees take responsibility of addressing climate-related risks at various levels. This includes establishing protocols for handling climate-related issues, determining the frequency of repo

  12. Slide 12: Management Committee Responsibilities

    Governance Strategy Risk management Metrics and targets MANAGEMENT COMMITTEE RESPONSIBILITIES The management of climate change impacts is an integral component of VGI's broader sustainability approach and the overseen sustainability working team. Management committee Reporting line Climate considera

  13. Slide 13: Strategy

    STRATEGY 13 TCFD Report 2023/2024

  14. Slide 14: Time Horizons

    Governance Strategy Risk management Metrics and targets TIME HORIZONS When considering climate-related physical and transition risks, VGI assesses them through the following short-, medium-and long-term time horizons Explanation for the choice of Time horizon Start year End year time frame Developed

  15. Slide 15: Physical Risk Identification (1/2)

    Governance Strategy Risk management Metrics and targets PHYSICAL RISK IDENTIFICATION (1/2) PHYSICAL RISKS Acute Climate risk identification is a common element found in TCFD reports; however, the • Coastal flood • Extreme heat categorization of these risks often lacks consistency. In our assessment,

  16. Slide 16: Physical Risk Identification (2/2)

    Governance Strategy Risk management Metrics and targets PHYSICAL RISK IDENTIFICATION (2/2) Physical risks applicability to VGI Medium- Risk Sub- Short-term Long-term Climate-related risks Climate-related risk description term type type (2023-2030) (2040-2050) (2030-2040) Increased severity of Increa

  17. Slide 17: Scenario Analysis (Physical Risk) (1/3)

    Governance Strategy Risk management Metrics and targets SCENARIO ANALYSIS (PHYSICAL RISK) (1/3) Scenario Analysis Scenario information Component Name of Scenario Risks Modelling Scenario Time Horizons and Intervals Tools Component provider evaluated assumptions Aqueduct, Short term: 2023-2030 Climat

  18. Slide 18: Scenario Analysis (Physical Risk) (2/3)

    Governance Strategy Risk management Metrics and targets SCENARIO ANALYSIS (PHYSICAL RISK) (2/3) Tropical cyclone Scenario Analysis Output Business and Financial Impacts Component Name of Output Metric Output Value Business impacts Financial impacts Component The increase in likelihood - Cost of main

  19. Slide 19: Scenario Analysis (Physical Risk) (3/3)

    Governance Strategy Risk management Metrics and targets SCENARIO ANALYSIS (PHYSICAL RISK) (3/3) River Flood and Coastal Flood Scenario Analysis Output Business and Financial Impacts Component Name of Component Output Metric Output Value Business impacts Financial impacts RCP 2.6 Change in number of

  20. Slide 20: Summary of Physical Risk Assessment (1/2)

    Governance Strategy Risk management Metrics and targets SUMMARY OF PHYSICAL RISK ASSESSMENT (1/2) Physical risks applicability to VGI Risk type Sub-type Climate-related risks Climate-related risk description Changes from Baseline Increased severity of extreme RCP 2.6 Increased frequency and severity

  21. Slide 21: Summary of Physical Risk Assessment (2/2)

    Governance Strategy Risk management Metrics and targets SUMMARY OF PHYSICAL RISK ASSESSMENT (2/2) TROPICAL CYCLONE SUMMARY OF PHYSICAL RISK The increased frequency and severity of climate-driven events have varying impacts ASSESSMENT based on location, weather conditions, and season. In Bangkok, met

  22. Slide 22: Transition Risk Identification (1/2)

    Governance Strategy Risk management Metrics and targets TRANSITION RISK IDENTIFICATION (1/2) TRANSITION RISKS Policy and legal • Carbon pricing mechanism VGI has placed its focus on sustainability, directing efforts towards areas where we • Current and Emerging regulation can make the most significa

  23. Slide 23: Transition Risk Identification (2/2)

    Governance Strategy Risk management Metrics and targets TRANSITION RISK IDENTIFICATION (2/2) Transition risks applicability to VGI Short-term Medium-term Long-term Risk type Sub-type Climate-related risks Climate-related risk description (2023-2030) (2030-2040) (2040-2050) Policy and Carbon pricing

  24. Slide 24: Scenario Analysis (Transition Risk) (1/3)

    Governance Strategy Risk management Metrics and targets SCENARIO ANALYSIS (TRANSITION RISK) (1/3) Scenario Analysis Scenario information Component Name of Scenario Risks Time Horizons and Scenario Tools Modelling assumptions Component provider evaluated Intervals Short term: The Net Zero 2023-2030 C

  25. Slide 25: Scenario Analysis (Transition Risk) (2/3)

    Governance Strategy Risk management Metrics and targets SCENARIO ANALYSIS (TRANSITION RISK) (2/3) • The scenario analysis is increasingly included in disclosures, the information provided in the analysis focuses on a particular business segment (media, movie and entertainment sector ). • Electricity

  26. Slide 26: Scenario Analysis (Transition Risk) (3/3)

    Governance Strategy Risk management Metrics and targets SCENARIO ANALYSIS (TRANSITION RISK) (3/3) Electricity price Scenario Analysis Output Business and Financial Impacts Transition Component Factors relevant Name of Business Financial for consideration Output Metric Output Value Component impacts

  27. Slide 27: Summary of Transition Risk Assessment (1/2)

    Governance Strategy Risk management Metrics and targets SUMMARY OF TRANSITION RISK ASSESSMENT (1/2) Transition risks applicability to VGI Change from baseline Risk type Sub-type Climate-related risks Climate-related risk description (2022) Policy and legal Carbon pricing Low potential direct impact

  28. Slide 28: Summary of Transition Risk Assessment (2/2)

    Governance Strategy Risk management Metrics and targets SUMMARY OF TRANSITION RISK ASSESSMENT (2/2) ELECTRICITY PRICE SUMMARY OF TRANSITION RISK ASSESSMENT The uncertainty of electricity in the future can be considered in two different scenarios: Our assessment indicates that transition the Net Zero

  29. Slide 29: Opportunity Identification (1/2)

    Governance Strategy Risk management Metrics and targets OPPORTUNITY IDENTIFICATION (1/2) OPPORTUNITIES Resource Efficiency • Use of recycling The way in which the world responds to climate change and transitions to a low- • Use of more efficient production and distribution processes carbon economy h

  30. Slide 30: Opportunity Identification (2/2)

    Governance Strategy Risk management Metrics and targets OPPORTUNITY IDENTIFICATION (2/2) Opportunities Opportunity Climate-related Short-term Medium-term Long-term Climate-related opportunities description type opportunities (2023-2030) (2030-2040) (2040-2050) Use of recycling Using recycled materia

  31. Slide 31: Risk Management

    RISK MANAGEMENT 31 TCFD Report 2023/2024

  32. Slide 32: Risk Management: Risk Identification Process

    Governance Strategy Risk management Metrics and targets RISK MANAGEMENT : RISK IDENTIFICATION PROCESS VGI places importance on risk management within the organization, which the Company realizes is crucial in driving the Company to achieve its goals according to its business plans, strategies and vi

  33. Slide 33: Risk Management: Risk Identification Process

    Governance Strategy Risk management Metrics and targets RISK MANAGEMENT : RISK IDENTIFICATION PROCESS VGI determines to address both of the challenges and the opportunities presented by climate change and energy conservation in its materiality assessment. The processes of identifying, assessing, and

  34. Slide 34: Risk Management: Risk Identification Process

    Governance Strategy Risk management Metrics and targets RISK MANAGEMENT: RISK IDENTIFICATION PROCESS The processes for risk identification, which vary both across and within VGI's business. Risk identification process aims at standardizing information through the use of general risk identification i

  35. Slide 35: Risk Management: Risk Assessment Process

    Governance Strategy Risk management Metrics and targets RISK MANAGEMENT: RISK ASSESSMENT PROCESS VGI discloses the process by which they assess risks in the table below. Organizational Activities Segmentation of Risk prioritization Climate risks assessed level considered assessment Enterprise All Si

  36. Slide 36: Process for Managing Risks

    Governance Strategy Risk management Metrics and targets PROCESS FOR MANAGING RISKS Risk management processes can be disclosed through the lens of enterprise risk management framework components Organizational Governance and Internal control Risk considered Risk appetite statement Roles and responsib

  37. Slide 37: Integration into Overall Risk Management

    Governance Strategy Risk management Metrics and targets INTEGRATION INTO OVERALL RISK MANAGEMENT Aligned with the risk management process, this table shows risk integration by incorporating essential components of the enterprise risk management framework. Organizational level Risk consideration Stra

  38. Slide 38: Integration into Overall Risk Management

    Governance Strategy Risk management Metrics and targets INTEGRATION INTO OVERALL RISK MANAGEMENT Risk type Sub-type Climate-related Climate-related risk description Maturity of Market risk Operational risk risks integration ST MT LT ST MT LT Transition Market I-REC price The uncertainty of I-REC pri

  39. Slide 39: Metrics and Targets

    METRICS AND TARGETS 39 TCFD Report 2023/2024

  40. Slide 40: Metrics and Targets

    Governance Strategy Risk management Metrics and targets METRICS AND TARGETS VGI has established a set of targets/measures concerning climate Sustainability target by maintain 2023 performance change impacts, as well as broader sustainability progress to adapt to climate related risks for all operati

  41. Slide 41: Risk Exposure

    Governance Strategy Risk management Metrics and targets RISK EXPOSURE The result of risk assessment has only one significant risk exposure which is tropical cyclone. The table below shows the sum of potential financial impact from tropical cyclone under RCP 2.6 and 8.5 scenarios Exposure Financial I

  42. Slide 42: Opportunity Exposure

    Governance Strategy Risk management Metrics and targets OPPORTUNITY EXPOSURE The way in which the world moves to lower-carbon practices creates potential risks and also opportunities. Some are common to many businesses, such as developments in electricity price and I-REC price. Other impacts are par

  43. Slide 43: Forward-Looking Metrics

    Governance Strategy Risk management Metrics and targets FORWARD-LOOKING METRICS Business unit Cross-industry Metric Output value Methodology Coverage climate related metric category Transition risks Market Changes in I-REC IEA: NZE, STEPS 100% of media price advertising Climate-Related Energy sourci

  44. Slide 44: GHG Emissions Inventories

    Governance Strategy Risk management Metrics and targets GHG EMISSIONS INVENTORIES 44 Source: VGI Sustainability Report 2023/2024 TCFD Report 2023/2024

  45. Slide 45: Internal Operations Goals

    Governance Strategy Risk management Metrics and targets INTERNAL OPERATIONS GOALS Internal operations goals table Goal type Goal description Baseline Baseline year Goal target Target year Goals value status Electricity Maintain the level of electricity 3,769.29 MWh 2022 10 % 2024 100% consumption co

  46. Slide 46: References

    References 46 TCFD Report 2023/2024

  47. Slide 47: References

    Governance Strategy Risk management Metrics and targets References Intergovernmental Panel on Climate Change (2023), IPCC AR6 Synthesis report Climate Change 2023 , Retrieved from AR6 Synthesis Report: Climate Change 2023 (ipcc.ch) UNEP FI (2023), Sectoral Risk Briefings: Insight for Financials Inst

  48. Slide 48: VGI Public Company Limited

    VGI PUBLIC COMPANY LIMITED 21 TST TOWER, 9TH FLOOR, VIPHAVADI-RANGRIT ROAD CHOMPHON, CHATUCHAK, BANGKOK 10900 THAILAND TEL: +66(0) 2273 8884 FAX: +66(0) 2273 8883 48

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