Supply Chain Sustainability
EGAT places importance on the responsible management of suppliers and contractors in order to prevent risks, mitigate negative impacts, and create positive environmental, social, economic, and governance outcomes, thereby extending its sustainability efforts from the organizational level to the supply chain level.
| Targets for 2025 | Performance |
| ● 90% of domestic procurement and contracting counterparties with contract values of 300 million baht or more are required to sign an acknowledgment of the EGAT Supplier Code of Conduct. | ● 100% of domestic procurement and contracting counterparties with contract values of 300 million baht or more signed an acknowledgment of the EGAT Supplier Code of Conduct. |
Policy and Commitment
EGAT has established a Fair Competition Policy, which includes provisions on fair and non-discriminatory procurement in relation to suppliers and contractors. Under this policy, EGAT selects suppliers and contractors in a systematic, fair, and transparent manner, with strict controls to ensure compliance with the established system. EGAT also supports suppliers and contractors that conduct business ethically, demonstrate social and environmental responsibility, respect human rights, and comply with regulations related to procurement and inventory management.
Operational Structure
EGAT’s Central Procurement and Inventory Management Division is responsible for procurement and inventory management for central units, ensuring that such activities are carried out efficiently, in accordance with standards, and aligned with the organization’s strategy, objectives, and policies.
Management Approach
EGAT is committed to promoting sustainability throughout its supply chain by encouraging suppliers and contractors to operate with good governance and social and environmental responsibility, while also supporting local suppliers, through the following key management practices:
Good Procurement Practices
EGAT regularly reviews and updates its good procurement practices in line with the Fair Competition Policy, particularly the principle of fair and non-discriminatory procurement, to ensure that EGAT’s procurement and inventory management processes are fair, transparent, and strictly implemented. These practices also support suppliers and contractors that conduct business ethically, demonstrate social and environmental responsibility, and respect human rights.
EGAT Supplier Code of Conduct
EGAT has issued a Supplier Code of Conduct, when its contents and scope are framed within relevant regulation, directive and applicable laws, as a guideline for EGAT’s suppliers. This code serves as a guideline for all supplier and contractors engaged in business activities with EGAT. It is intended to ensure that EGAT’s suppliers conduct business ethically and with good governance principle, taking into account environmental and social responsibility complying with the law, and respecting human rights.
In 2025, EGAT expanded its target group and increased awareness of the EGAT Supplier Code of Conduct by attaching the code to every procurement invitation document. For domestic procurement and contracting with a value of 300 million baht or more, counterparties are required to sign an acknowledgment of the Supplier Code of Conduct and submit it to EGAT together with the execution of the contract.
Human Rights Requirements
EGAT requires all procurement projects valued at 500 million baht or more must include human rights requirements or to undergo a human rights assessment. In 2025, 100% of such procurement activities incorporated human rights requirements or had completed human rights assessment. Additionally, human rights issues were presented during EGAT’s annual supplier engagement activities.
Corporate Governance of Supplier
EGAT conducts governance assessments of its suppliers to encourage strict compliance with contractual obligations and corporate governance principles. EGAT collects data on violations of governance standards, which include:
- Document falsification
- Obstruction of fair competition
- Refusal to sign the contract within the required timeframe without valid justification
- Breach of contract
- Human rights violations such as employing women in prohibited jobs (e.g., mining or construction work conducted underground, underwater, in caves or tunnels) or employing children under the age of 15
Violations under items (1) to (4) are subject to penalties, including being classified as a defaulting contractor. For violations under item (5), EGAT will notify the contractor to take corrective action. If no action is taken, EGAT will report the matter to the relevant authorities for further consideration.
Outstanding Supplier Awards
EGAT selects and grants Outstanding Supplier Awards to promote sustainable practices among suppliers and contractors. In 2025, a total of 42 suppliers received awards. Selection criteria for outstanding suppliers in both domestic and international procurement/contracting are as follows:
- Qualified Suppliers
- Governance: Suppliers must not have violated governance principles according to the supplier governance violation assessment form used by EGAT, must not have the status of a defaulting contractor, and must not be declared bankrupt.
- Safety: For contracts subject to contractor safety performance evaluation, suppliers must achieve a contractor safety competency score of at least 75%.
- Suppliers must achieve a supplier performance evaluation score of at least 80% in terms of their ability to perform in accordance with the contract.
Furthermore, EGAT actively communicates its policies, code of conduct, operational practices, and complaint and feedback management mechanisms to suppliers to enhance their awareness and strengthen confidence in its procurement system. Consequently, in 2025, no complaints related to the transparency of procurement and inventory management were determined to be valid upon review, and the supplier satisfaction survey for EGAT’s procurement practices exceeded the established threshold, achieving a score above 80%.
