Supply Chain Sustainability  

EGAT’s operations involve a diverse range of partners, contractors, and business allies. Therefore, fostering and enhancing the capabilities of the supply chain to operate responsibly, with consideration for economic, social, and environmental impacts, and supporting local suppliers through continuous raw material procurement processes are key elements in driving both the organization and society toward sustainable development. 

Targets for 2024	Performance
● 100% of domestic partners were informed of EGAT’s Supplier Code of Conduct	● 100% of domestic partners were informed of EGAT’s Supplier Code of Conduct

EGAT places great importance on promoting and engaging in the capacity building of its partners, contractors, and business allies to ensure responsible business practices that minimize negative economic, social, and environmental impacts. The organization also supports local suppliers both directly and indirectly to help strengthen local economy and foster positive relationship with local communities. These efforts are carried out through procurement management and mechanisms that aim to promote and drive sustainability throughout EGAT’s supply chain. In 2024, key initiatives were implemented as follows: 

EGAT’s Supplier Code of Conduct 

EGAT has established and implemented a Supplier Code of Conduct, which is framed within relevant regulations, directives, and applicable laws. This Code serves as a guideline for all suppliers and contractors engaged in business activities with EGAT. It aims to ensure that EGAT’s partners conduct their business ethically and with good governance, while also considering environmental and social impacts, complying with legal requirements, and respecting human rights principles. 

Human Rights Requirements 

EGAT mandates that all procurement projects valued at 500 million baht or more must include human rights requirements or undergo human rights assessments. In 2024, 100% of such procurement activities incorporated human rights criteria or had completed human rights evaluations. Additionally, human rights topics were presented during EGAT’s annual supplier engagement activities to promote shared understanding. 

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: 

1. Document falsification  
2. Obstruction of fair competition  
3. Refusal to sign the contract within the required timeframe without valid justification  
4. Breach of contract  
5. 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. 

In addition, EGAT strictly enforces compliance with procurement guidelines, the Code of Conduct for procurement personnel, and fair and non-discriminatory procurement requirements which are part its Fair Competition Policy. The organization also communicates its policies, codes of conduct, operational guidelines, and feedback and complaint mechanisms to suppliers to foster awareness and build trust in EGAT’s procurement processes. 

As a result, in 2024, there were no substantiated complaints related to transparency in procurement and inventory management. Furthermore, the supplier satisfaction survey for EGAT’s procurement activities exceeded the target, achieving a score above 80%. 

Proportion of Expense with Local Deliverers  

Area	2024		2023		2022
	Amount   (Million Baht)	%	Amount   (Million Baht)	%	Amount   (Million Baht)	%
Overseas	5,597.90	21.05	49,406.73	51.10	7,465.56	18.77
Local	20,991.17	78.95	47,283.37	48.90	32,314.62	81.23
– Headquarters	15,828.62	59.53	41,170.34	42.58	26,854.77	67.51
– Regional	5,162.55	19.42	6,113.03	6.32	5,459.85	13.73
Total	26,589.07	100	96,690.10	100	39,780.18	100

Note:  

• Percentage of the local procurement budget is calculated in comparison with the total procurement budget of the organization in a year  
• Overseas: Partner’s establishment which is located overseas  
• Domestic: Partner’s establishment which is located locally  
• Central: Partner’s establishment which is located in Bangkok Metropolitan  
• Regional: Partner’s establishment which is located outside Bangkok Metropolitan