Climate Change Management

Climate change is one of the most critical and urgent challenges facing humanity in this century. The rising global temperatures, changes in rainfall patterns, the increasing frequency of natural disasters, and the impacts on food security and public health are clear warning signs that we must transition to more sustainable ways of living and economic systems.

The business sector—particularly the healthcare service industry—plays a vital role in both mitigating the impacts of climate change and adapting to the increasing risks. It is therefore essential that we manage our resources and operations prudently to reduce greenhouse gas emissions and build resilient systems capable of withstanding future crises.

Climate Change Management Policy and Commitment

Principal Capital Public Company Limited recognizes the intrinsic link between the climate crisis and its mission in healthcare, and is committed to playing an active and systematic role in addressing this global challenge.

The Company has adopted a policy to promote environmentally responsible business practices and is committed to continuously reducing greenhouse gas emissions. This effort is part of our contribution to the global goal of limiting the rise in average global temperature to no more than 1.5 degrees Celsius, in alignment with the Paris Agreement.

Organizational Commitment

  1. Driving operations in alignment with a low-carbon and environmentally friendly economy across all processes.
  2. Measuring and monitoring the carbon footprint, and setting carbon reduction targets.
  3. Promoting awareness of climate change risks both within internal processes and among business partners, suppliers, and other stakeholders across the value chain.
  4. Enhancing the energy management systems within affiliated hospitals to maximize efficiency and reduce the use of fossil fuels.
  5. Assessing and monitoring climate change-related risks to the business in the short, medium, and long term to enable strategic adaptation planning.
  6. Supporting the adoption of clean technologies, green building design, and environmental innovations.
  7. Encouraging employee engagement in daily carbon reduction efforts and fostering environmental awareness.
  8. Disclosing greenhouse gas (GHG) emissions data for Scope 1 and 2—and, in the next phase, Scope 3—with transparency, along with planning for third-party verification.

Climate Change Governance Structure

Roles of the Board of Directors and Board Committees

The Board of Directors has the following roles and responsibilities:

  • Define the organization’s direction and strategy : The Board of Directors is responsible for defining the company’s vision, approving key policies and strategies, and overseeing operational plans, budgets, and risk management frameworks. Environmental issues and climate change are regarded as core considerations to ensure effective and sustainable business operations.
  • Oversee enterprise-wide risk management : The Board of Directors appoints the Risk Management Committee and establishes a risk management policy that encompasses the entire organization, including environmental and climate-related risks—such as risks from natural disasters or changes in environmental legislation. The Board also regularly monitors and evaluates the effectiveness of the risk management practices.
  • Operate in accordance with ethical principles and social responsibility : The Board of Directors is responsible for promoting ethical business conduct among executives and employees, which includes environmental responsibility and efforts to mitigate the impacts of climate change.
  • Evaluate and review the corporate governance policy : The Board of Directors must continuously evaluate and review the corporate governance policy, including monitoring ESG performance and environmental impacts. This ensures that the company operates in alignment with international best practices and supports the achievement of its sustainability goals.

The Sustainability Committee has the following roles and responsibilities :

  • Set Climate Policy and Targets : Propose policies, strategies, and organizational targets related to climate change management for the Board of Directors’ approval, ensuring alignment with relevant laws, international standards, and sustainability practices at both national and global levels.
  • Oversee Climate Target Implementation : Monitor and oversee management’s progress in implementing actions aligned with the organization’s climate policy and targets, using a clear and measurable performance evaluation system.
  • Promote Transparent Climate-related Disclosures : Review and endorse the company’s approach and reports on climate-related disclosures to ensure alignment with international standards, thereby enhancing stakeholder confidence.
  • Monitor and Assess Climate-related Risks : Track climate-related trends, risk factors, and business opportunities, and provide strategic recommendations and risk management guidance to the Board of Directors and relevant management teams.
  • Foster a Net-Zero-Oriented Organizational Culture : Promote awareness among executives and employees at all levels regarding the importance of climate action and encourage continuous engagement with the organization’s sustainability goals, ultimately cultivating a culture of environmental responsibility.

The Risk Management Committee has the following roles and responsibilities :

  • Establish Climate-related Risk Management Policy : Propose risk management approaches and policy frameworks that encompass climate-related risks, including physical risks from natural disasters and transition risks arising from regulatory changes and the shift toward a low-carbon economy.
  • Develop a Climate-Responsive Risk Management System : Promote the implementation of an enterprise-wide risk management system that can effectively detect, monitor, and respond to climate-related warning signals in a timely manner.
  • Review Risk Reports from Relevant Departments : Examine and provide recommendations on risk reports, with a particular focus on environmental and climate-related risks that may affect business operations.
  • Report Climate-related Risks to the Board of Directors : Prepare reports on climate change-related risks and the company’s risk management performance, and present them to the Board of Directors in accordance with the scheduled reporting timeline.

Management’s Roles and Responsibilities

Wityavate Rakkulchon, M.D. and Mr. Kanut Sirisuwat

Roles and Responsibilities

  • Lead the strategic direction of the organization on climate-related issues by integrating Climate Action goals into the core business strategy.
  • Directly responsible for decision-making on resource allocation for climate change adaptation and mitigation efforts.
  • Oversee and monitor the implementation of climate-related policies across departments to ensure alignment with the climate policy approved by the Board of Directors.
  • Regularly report progress and key climate-related issues to the Board of Directors.

Ms. Atiya Awachanakarn - Chief Sustainability Officer

Roles and Responsibilities

  • Play a key role in analyzing, assessing, and monitoring climate-related risks and opportunities by utilizing both scientific data and policy trend insights.
    Develop climate change policies and strategies—such as Net Zero, Carbon Neutrality, and Climate Resilience—in collaboration with relevant internal departments.
    Oversee the organization’s climate-related disclosures to ensure compliance with international standards such as TCFD and ISSB.
    Support internal awareness-building and promote an organizational culture that prioritizes climate impact and responsibility.

Principal Capital Public Company Limited places high importance on environmental responsibility alongside business growth. As part of this commitment, the Company has established a task force to explore pathways toward achieving net zero greenhouse gas (GHG) emissions by 2049, and to reduce GHG emissions from its operations. The task force was formed to ensure the Company’s actions are effective and well-coordinated, and is composed of key executives from various divisions as follows:

  1. Managing Director – serves as Chairperson of the Task Force
  2. Chief Sustainability Officer and Chief Business Development and Expansion Officer – serve as Vice Chairpersons
  3. Hospital Directors from all affiliated hospitals – serve as Task Force Members

Roles and Responsibilities :

  1. Study and contribute to the formulation of the Company’s net zero GHG emissions target,
    ensuring alignment with the Paris Agreement, which aims to limit the global temperature increase to no more than 1.5°C,
    and in line with the Company’s strategic direction.
  2. Establish a base year and prepare the Company’s GHG emissions inventory.
  3. Define a GHG reduction roadmap to support the achievement of the net zero target,
    prioritizing actions in the following order: emissions reduction, carbon removal, and carbon offsetting.
  4. Report net zero GHG emissions data and communicate progress to legal entities within the Company’s value chain,
    stakeholders, and the public through various corporate communication channels.
  5. Develop, implement, and maintain monitoring, evaluation, and reporting systems at both the hospital level and the organizational level.

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In addition to defining the roles and responsibilities of management and corporate governance bodies, Principal Capital Public Company Limited has established greenhouse gas (GHG) emissions as one of the key performance indicators (KPIs) for organizational success. This KPI is directly linked to the performance evaluations of employees—from supervisory levels up to the Managing Director. The objective is to create motivation and encourage active participation at all levels in driving GHG emissions reduction in alignment with the Company’s established targets.

Climate-related Risks and Opportunities Relevant to the Business

The Company is currently in the process of studying and evaluating climate-related risks and opportunities, formulating strategies, and preparing disclosures aligned with the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. This effort is being led jointly by the Sustainability Management Division and the Risk Management Division. 

In 2024, the Company conducted a preliminary assessment of climate-related risks and developed initial response measures. This was carried out under the Low-Carbon and Climate-Resilient Hospital Project, following the Green and Clean Hospital standard, which was adapted from the WHO’s Climate Resilient Hospital Vulnerability Assessment Guide (2021). The assessment focused on climate vulnerability and impact, with key findings summarized as follows :

  1. Risk of Floods and Droughts : Several hospitals within the network are located in areas prone to flooding and drought, which may affect infrastructure, utilities, and medical services. Although the hospitals have not experienced direct impacts in the past, patient and staff access has been disrupted. The following measures have been implemented :
    • Conducting flood risk assessments for hospital locations
    • Planning and improving drainage and flood protection systems in high-risk hospitals
    • Preparing and maintaining Business Continuity Plans (BCPs) to ensure uninterrupted operations during climate-related disasters
    • Expanding telemedicine services and deploying mobile medical units to support patients unable to travel to hospital facilities
  2. Risk from Rising Temperatures and Energy Demand : Rising temperatures have led to increased energy consumption, particularly from air conditioning systems. This results in higher energy costs and poses risks of power outages or failures in backup power systems, which could disrupt medical services. The Company has implemented the following measures in response :
    • Developing Low Carbon Hospital guidelines and reducing non-essential energy consumption
    • Improving the efficiency of air conditioning and electrical systems
    • Installing solar panel systems and enhancing backup power capacity to reduce the risk of power outages
    • Piloting a Smart Energy System at PRINC Suvarnabhumi Hospital and planning to expand the initiative to other hospitals in the network
  3. Risk from Emerging Diseases and Healthcare Workforce Well-being : Climate change contributes to the emergence of new diseases—such as vector-borne illnesses—and increases health risks related to air pollution, including exposure to PM2.5. These impacts affect both patients and healthcare personnel. The Company has implemented the following measures to address these risks :
    • Strengthening collaboration with public health agencies for surveillance of emerging diseases
    • Developing staff health protection protocols to reduce risks associated with increased workloads and hazardous environmental conditions
    • Enhancing hospital capacity in risk management and planning to prevent shortages of essential medicines and medical supplies
    • Providing vaccination benefits for healthcare personnel in response to disease outbreaks during specific periods
  4. Risk Related to Water, Sanitation, and Healthcare Waste (WASH) : Natural disasters such as floods and droughts can disrupt access to clean water, medical waste management, and sanitation systems, increasing the risk of disease transmission within hospitals. The Company has implemented the following response measures :
    • Installing efficient water storage and wastewater treatment systems
    • Improving and upgrading operations in alignment with the Green & Clean Hospital standard to enhance hospital management capacity
    • Strengthening water quality monitoring systems and implementing additional sanitation measures within hospital facilities

Support for Climate Change Mitigation

The Company has expressed its commitment to mitigating the impacts of climate change by becoming a member of the Thailand Carbon Neutral Network (TCNN) and the UN Global Compact Network Thailand (UNGCNT). In addition, the Company submitted a Commitment Letter to the Science Based Targets initiative (SBTi) in early 2025, affirming its intention to set science-based greenhouse gas (GHG) reduction targets.

Currently, the Company is in the process of collecting data, analyzing its GHG emissions status, and formulating emissions reduction targets that align with SBTi criteria. The Company aims to finalize and announce its targets in the near future—demonstrating its commitment to conducting business with environmental responsibility and contributing to a sustainable transition toward a low-carbon economy.

Climate Change Management Goals

  1. Prepare the Carbon Footprint for Organization (CFO) report for all hospitals within the network annually.
  2. Ensure the CFO report is externally verified by an independent third party at least once per year. 
  3. Establish organizational GHG reduction targets and pathways using the Science Based Targets initiative (SBTi) framework, and integrate them into the Company’s environmental and sustainability strategy to support the long-term goal of achieving Net Zero emissions.
  4. Submit the GHG reduction target to SBTi for validation by 2030.
  5. Conduct climate-related training for employees and executives at least once per year.
  6. The internal, non-SBTi-validated target is to achieve Net Zero greenhouse gas emissions by 2049.
  1. Reduce Scope 1 and Scope 2 greenhouse gas emissions by at least 42% by 2030, compared to the 2023 base year, in alignment with the SBTi 1.5°C pathway.
  2. If Scope 3 emissions account for more than 40% of total emissions, set a target to reduce Scope 3 emissions by at least 20% by 2030.
  3. (Internal target, not yet validated by SBTi): Reduce GHG emissions per patient served by 5% annually compared to the previous year.

Performance Over the Past 3 Years

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  1. Expanded Data Collection Scope : The Company expanded its greenhouse gas (GHG) emissions data collection scope by including data from PRINC Mukdahan Hospital, which began operations in December 2024, as well as from the corporate headquarters. This expansion affects the calculation of emissions in both Scope 1 (methane from septic tanks) and Scope 2 (electricity consumption).

  2. Improved Scope 3 Reporting : The Company enhanced its reporting of Scope 3 greenhouse gas emissions, particularly in Category 1: Purchased Goods and Services and Category 2: Capital Goods, by utilizing procurement data from the PeopleSoft system. The improved reporting now covers key activities, including pharmaceuticals, medical supplies, software, medical equipment, electrical appliances, vehicles, furniture, and construction materials.

  3. Changed Base Year from 2021 to 2023 : To reflect changes in business activities and organizational structure over the past three years, the Company revised its GHG emissions base year from 2021 to 2023, as the previous base year no longer represented the current operational landscape.

  4. Unreported Scope 3 Categories:

    • Category 4 – Upstream Transportation and Distribution : Collecting data on packaging weight and transport distance remains impractical. This is due to the fact that the quantity of medication used for patients does not correspond proportionally to packaging weight. Additionally, deliveries from pharmaceutical distributors are often not made to a single hospital, leading to high levels of data uncertainty and a lack of practical representativeness.
    • Category 6 – Business Travel & Category 7 – Employee Commuting : Collecting accurate and complete data for these categories is challenging. The current limitations result in incomplete datasets and high uncertainty in distance estimations, which affects the accuracy of greenhouse gas emissions calculations.

  5. In 2024, the Company emitted a total of 16,738 tons of CO₂ equivalent (tCO₂e) under Scope 1 and Scope 2, representing a reduction from the 2023 base year, which recorded 16,816 tCO₂e. The decrease was particularly notable in the vehicle fuel consumption category, where total fuel usage dropped by more than 10% compared to the base year.

  6. The Company successfully achieved its target of reducing greenhouse gas emissions per service recipient by 5%, lowering the emission intensity from 0.020 tCO₂e/person/year in 2023 to 0.017 tCO₂e/person/year in 2024.

2022 2023 (Base Year) 2024
Scope 1 3,028 TonCO2eq 2,234 TonCO2eq 2,022 TonCO2eq
Scope 2 12,475 TonCO2 eq 14,582 TonCO2eq 14,716 TonCO2eq
Scope 3 8,106 TonCO2eq 12,479 TonCO2eq 12,621 TonCO2eq
Scope 1 and 2 15,503 TonCO2eq 16,816 TonCO2eq 16,738 TonCO2eq
Scope 1, 2, and 3 23,609 TonCO2eq 29,295 TonCO2eq 29,359 TonCO2eq
Number of hospitals within the network 12 14 15
Output
(Number of Service Recipients) 		1,101,822 person/year
*Higher service volume due to COVID-19 pandemic
 		855,467 person/year 959,976 person/year
Carbon Intensity
(scope 1 and 2) 		0.014 TonCO2eq/person/year 0.020 TonCO2eq/person/year 0.017 TonCO2eq/person/year
Carbon Intensity
(scope 1, 2 and 3) 		0.021 TonCO2eq/person/year 0.031 TonCO2eq/person/year 0.031 TonCO2eq/person/year
Independent Verification by an External Party Verified by NPC Safety and Environmental Service Co., Ltd. and certified by the Thailand Greenhouse Gas Management Organization (TGO).
Greenhouse Gas Emissions Offset Carbon Offsetting for Scope 1 and 2 Emissions No carbon offsetting has been carried out, as the Company is currently in the process of developing a roadmap to participate in the Science Based Targets initiative (SBTi). The SBTi framework emphasizes long-term emissions reduction through systemic investment, rather than annual standalone carbon offsetting.

Remark

  • In 2024, the calculation method for carbon intensity was revised — changing from a per AADC (Average Annual Daily Census) basis to per Adjusted Patient Days, to better reflect the actual level of service activity.
  • In 2025, the Company is considering changing the base year to 2024, as the data collected in 2024 is more complete and comprehensive compared to 2023.
Scope 3 Emissions by Category 2022 2023 2024
Category 1: Purchased Goods and Services 3,446.95 TonCO2eq 3,352.74 TonCO2eq 3,366.68 TonCO2eq
Category 2: Capital Goods Not reported due to incomplete data collection, which results in low data accuracy. 514.61 TonCO2eq 865.73 TonCO2eq
Category 3: Fuel- and Energy-Related Activities 2,730.25 TonCO2eq 3,027.32 TonCO2eq 3,022.57 TonCO2eq
Category 4: Upstream transportation and distribution Data collection on packaging weight and transport distance is practically difficult, as the amount of medication used for patients does not correlate with packaging weight. In addition, medicine delivery from distributors is not made exclusively to one hospital, resulting in high data uncertainty and limited practical representativeness.
Category 5: Waste Generated in Operations 15,503 TonCO2eq 16,816 TonCO2eq 16,738 TonCO2eq
Category 6: Business travel Not reported due to incomplete data collection, which results in low data accuracy.
Category 7: Employee commuting Not reported due to incomplete data collection, which results in low data accuracy.
Category 8: Upstream leased assets 23.62 TonCO2eq Not considered as emissions are minimal and not material to the organization’s operations.
Category 9: Downstream Transportation and Distribution 0.51 TonCO2eq Not considered as emissions are minimal and not material to the organization’s operations.
Category 10: Processing of sold products Not relevant to the company’s business activities.
Category 11: Use of sold products Not relevant to the company’s business activities.
Category 12: End-of-life treatment of sold products Not relevant to the company’s business activities.
Category 13: Downstream Leased Assets Not reported due to incomplete data collection, which results in low data accuracy. 476.82 TonCO2eq 674.21 TonCO2eq
Category 14: Franchises Not relevant to the company’s business activities.
Category 15: Investments Data not yet collected.


Relevant Projects

PRINCIPAL HEALTHCARE COMPANY LIMITED
Address : No.29 Bangkok Business Center,
23rd Floor Sukhumvit 63 Rd.
Klongton-Nua,Wattana,
Bangkok 10110
Phone: 02-714-2173
Email : [email protected]
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PRINCIPAL HEALTHCARE COMPANY LIMITED
Address : No.29 Bangkok Business Center,
23rd Floor Sukhumvit 63 Rd.
Klongton-Nua,Wattana,
Bangkok 10110

Phone: 02-0092015
Email : [email protected]

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