Energy and Greenhouse Gas Management

Energy is a crucial factor in the operation of hotel and resort businesses. Therefore, the Company always believes that efficient energy management is key to developing the Company towards sustainability and being able to fully meet the needs of stakeholders. Thus, the Company has outlined a sustainable energy management approach focusing on efficiency, improving, and developing energy management systems to meet international standards. This includes promoting the use of clean energy to replace coal energy and encouraging employees and guests to participate in reducing unnecessary energy consumption. This not only helps the Company reduce costs, but also supports the reduction of greenhouse gas emissions, mitigates environmental and health impacts on stakeholders, and prepares for increasingly severe climate changes each year.

Business Challenges and Opportunities

Currently, the climate has visibly changed, resulting in higher global temperatures. Therefore, the trend of energy use in the business sector has increased along with the changing climate. The company has collected and compiled energy usage data and analyzed it to develop short-term and long-term energy management plans to promote energy savings and related costs. Additionally, the company sees opportunities to use renewable energy in hotels and resorts to achieve Carbon Neutrality by 2030. This includes reducing reliance on coal energy and minimizing greenhouse gas emissions. The company has installed solar panels to generate electricity within hotel and resort premises, such as Santiburi Koh Samui, SAii Laguna Phuket, and SO/ Maldives.

Climate Change Strategies

The Company has formulated strategies for energy management and climate change, focusing on reducing greenhouse gas emissions (GHG Scope 1 and Scope 2), including other measures, such as:

• Increasing the proportion of renewable energy use and ensuring efficient energy use by emphasizing the value of energy.
• Applying modern technologies to conserve energy.
• Organizing activities that naturally absorb carbon, such as increasing green areas through reforestation.

Goals

Achieving Carbon Neutrality by 2030 Increase the proportion of renewable energy use that is environmentally friendly in all hotels managed and operated by the company to align with the goals of reducing greenhouse gases.

Performance

Reduce Energy Consumption 17.65 %

Reduce Greenhouse Gas Emission 10.71 %

Energy consumption per guest (Megajoules/person)

2022	2023 Target (10% Reduction)	2023	2024 Target (10% Reduction)
235.12	211.6	193.62	174.26
Note: This target applies to 4 hotels and resorts in Thailand and CROSSROADs.

Greenhouse gas emissions per guest (tCO2/person)

2022	2023 Target (5% Reduction)	2023	2024 Target (10% Reduction)
0.051	0.049	0.046	0.044
Note: This target applies to 4 hotels and resorts in Thailand and CROSSROADs.

Long-term Goals

The Company aims to increase the proportion of renewable energy use (such as solar energy) that is environmentally friendly in all self-managed hotels to align with the goals of reducing greenhouse gases and achieving Carbon Neutrality by 2030.

Management and Operational Approach

SHR is committed to applying energy practices in business operations and the daily routines of all levels of management and employees (e.g., turning off lights when not in use) to ensure appropriate energy use. The Company also promotes the participation of employees and guests in reducing energy use in hotels. Every hotel collects data to monitor and control energy use throughout the hotel.

- Smart Thermostats: Install systems to cut off electricity if doors or windows are left open beyond a specified time to reduce energy loss from electrical appliances, such as air conditioners.

- Automatic Lighting Control: Use motion sensors and timers to ensure lights are only on when it is necessary and turn off when not in use.

- Energy-Efficient Appliances: Install energy-saving appliances and equipment within hotels, such as switching to LED bulbs that save more energy and have a longer lifespan than traditional light bulbs. Use Energy Star-certified appliances that consume less energy.

- Regular Maintenance and Inspections: Ensure equipment is in continuous operational readiness to monitor energy use and provide a database for energy management within the hotel. Additionally, the Company has a team of engineers capable of quickly resolving electrical and energy issues if the power generation systems or backup power systems encounter problems or malfunctions.

- Integration of Renewable Energy: Install solar panels within hotels and resorts in Thailand and the Maldives to use as a renewable energy source, helping the Company reduces greenhouse gas emissions with a production capacity of 2,710.11 kW, and an additional 1,010.46 kW in the SO/ Maldives project.

- Guest Participation Program: Encourage guests to participate in the hotel's energy-saving programs, such as promoting the reuse of towels and bed linens for 1-2 days to save water and electricity from washing, washing small amounts of laundry by hand to save electricity, and turning off lights and electronic devices when not in use. The company provides communication through door hanger signs or hotel applications to promote energy-saving practices among guests, ensuring they do not leave lights or appliances on in the room or use electricity by leaving the key card inserted.

- Employee Training on Energy Conservation: The Company promotes employee training in energy conservation practices and regularly updates energy knowledge to ensure that management and employees at all levels can apply and use these practices as work standards.

Benefits of Using Renewable Energy in Hotels and Resorts

• Safe, standardized, and cost-effective for energy expenses
• Low repair costs and minimal maintenance required
• No pollution emissions into the atmosphere, avoiding health issues

Reforestation Project

The Company has joined the " Plook Pa Duay Plai New" reforestation project sponsored by Singha Estate Public Company Limited, aiming to create 1 million square meters of forest area at Singha Park in Chiang Rai province. This area is a crucial watershed forest in the northern provinces, significant for the ecosystem and climate, as it hosts a diversity of plant and wildlife species.

Improvements and innovations in energy

Modification project of electric golf carts, switching from lead-acid batteries to lithium batteries.

Engineers team from Santiburi Resort on Koh Samui has implemented a project to modify electric golf carts by modifying and replacing the old lead-acid batteries with lithium batteries (Golf Cart Lithium Battery). This helps the resort save on battery replacement costs and ensures a consistent power supply. The Santiburi Resort has modified a total of 5 golf carts. Additionally, this project promotes job creation in the local community on Koh Samui, with local labor being hired for the modifications and materials being purchased locally.

Benefits of switching to lithium batteries

• Lighter weight: Lithium-ion batteries weigh approximately 600 grams, lighter than lead-acid batteries.
• Reduced lead contamination: Lithium-ion batteries do not contain lead, reducing soil and water pollution.
• Reduced waste: Lithium batteries have a longer lifespan, reducing the number of batteries disposed of and increasing recyclability.
• Reduced greenhouse gas emissions: Charging lithium batteries requires less energy and is more efficient.
• Battery replacement cost: While lithium batteries may initially have a higher cost, their longer lifespan results in less frequent replacements, making them more cost-effective in the long run.
• Maintenance cost: Maintenance costs are reduced as lithium batteries require less maintenance than lead-acid batteries.
• Performance: Faster charging and longer charging distances reduce downtime for battery charging.

Over a five-year period, using lithium batteries instead of lead-acid batteries can save the resort approximately 63,000 baht and reduce environmental impact due to the longer lifespan and lower discharge rates of lithium batteries.

Clean Energy Project

S.IF Company, a trading partner and subsidiary of Sing Estate Plc., collaborated with the in-house engineering team of S Hotel and Resort Plc. to drive and implement a clean energy project. This project involved installing solar panels in several hotel locations, including Santiburi Resort on Koh Samui, SAii Laguna Phuket, SAii Phi Phi Island Village, and at CROSSROADS Maldives.

This clean energy project helps hotels save energy by at least 4% and reduce greenhouse gas emissions. Furthermore, it promotes the transition from using fossil fuels to clean energy technologies. The Company plans to increase the proportion of clean energy in the future to enhance sustainability and energy security in its operations.

You can study further details about sustainable development in the "Sustainable Development Report, Environmental Dimension Appendix" at https://investor.shotelsresorts.com/th/downloads/sd-reports.