1. Sustainability

BEM’s Commitment to Sustainability

Bangkok Expressway and Metro Public Company Limited (ฺBEM), the leading provider of the expressway and mass rapid transit rail system services, is committed to developing a fully-integrated transportation system to facilitate journeys, alleviate traffic problems in Bangkok and surrounding areas, and upgrade travel to improve the quality of life of people in society. BEM’s businesses comprise the provision of expressway and metro services, including commercial development related to the expressway and metro systems.  
 

MESSAGE FROM THE MANAGING DIRECTOR

Bangkok Expressway and Metro Public Company Limited (“BEM”), as a leader in providing comprehensive expressway and mass rapid transit rail system services, plays a crucial role in alleviating traffic congestion in the capital and surrounding areas, in order to continuously deliver services that prioritize safety, convenience, rapidity, reliability, punctuality, and efficiency for customers. The Company emphasizes business operations in response to challenges and ever-changing conditions, particularly environmental changes, climate variability, impacts on biodiversity, technological advancements and innovations, information technology security and data privacy, as well as supports on social equality and human rights. These changes affect the stakeholders’ expectations,
creating a driving force for the Company to adapt and consistently improve the quality of the Company’s business operations. The Company is committed to sustainable development, with a balance of economic, environmental, and social dimensions, in order to become a truly sustainable and leading company at the national level. 

With a commitment to sustainability, BEM has established a strategic plan, which allows the Company efficiently manage material sustainability topics that were evaluated on their impacts both inside-out and outside-in perspectives under the principle of Double Materiality, as well as effectively track performance outcomes. The Company continuously operates sustainably with a balance of all three dimensions to meet the needs of all stakeholder groups, such as customers, employees, societies and communities. In 2024, the Company focused on the economic dimension by promoting business competitiveness and good corporate governance, emphasizing its core mission of maintaining service quality to ensure our service users reach their destinations safely. Additionally, the Company collaborated with key business partners to offer various benefits and promotions to customers.

For the environmental dimension, the Company had a commitment to conserving resources and reducing energy use to mitigate climate change impacts, by continually collaborating both internal and external of the organization such as the collaboration with the Thailand Carbon Neutrality Network (TCNN), which the Company joined in 2022, in order to drive towards the Company’s climate goals and the national targets to achieve carbon neutrality by 2050 and net-zero greenhouse gas emissions by 2065. The Company had also set greenhouse gas reduction targets based on the Science Based Targets initiative (SBTi) and implemented several projects, such as the Solar Power System Installations at Depot (Solar Farm), at Main Workshop Buliding (Solar Rooftop), and on car park rooftops (Solar Car Park). In additions, the Company operated on the social dimension by enhancing health and safety of stakeholders, consistently developing our personnel with capacity building and well-beings, as well as maintaining good corporate social responsibility under our CSR Roadmap. The roadmap adheres our engagements with society and community along transit routes, and other relevant stakeholders in compliance with respecting diversity, equality, non-discrimination, and fostering collaboration with all partners. Furthermore, the Company had continuously evaluated and reviewed the performances and impacts of projects in three aspects;
namely Happy Journey “Good Health and Safe Life”, Happy Living Society “Good Quality of Life and Well-being”, and Happy Planet “Climate and Environmental Care”. 
 
As a result of our continuous business operations on sustainability, BEM has been included in the Thailand Sustainability Investment list for the eighth consecutive year with the highest level of “AAA” rating in 2024. The Company was also ranked on the 2024 list of “ESG100” securities group in the transportation and logistics sector with exceptional performance in the areas of Environment, Social, and Governance (ESG). Furthermore, in 2024, the Company received several awards, including Transport Deal of the Year award from a global platform, a plaque of honor for being a Climate Action Leading Organization (CALO), the Green Office award at an excellent level, the Employee Experience Awards 2024, the 12th Thailand Social Awards, and Thailand’s Top Corporate Brand Hall of Fame 2024 as a company with the highest corporate brand value for 5 consecutive years in the transportation and logistics sector, marking a source of great pride for the Company. Besides, the Company has obtained the opportunity to operate the MRT Orange Line Project (Bang Khun Non - Min Buri (Suwinthawong) Section), which will help reduce greenhouse gas emissions in long-term. The project plan has a schedule to start service operations of the MRT Orange Line Project’s East Section by 2028 and full service operations across the entire route by 2030.
 
On behalf of Bangkok Expressway and Metro Public Company Limited, I would like to extend my gratitude to all stakeholders in every sector for their trust, cooperation, and valuable
suggestions, which will be utilized further for our service improvements and developments to strive for excellence in providing services and raising the quality of life for our service users. I am confident that the Company will move forward steadily, adhering to sustainable operational guidelines under the principles of good governance with the consideration of the impacts on society, communities, and the environment, ultimately creating a path of happiness. “Mobility for All: Sharing the Sustainable Journey”.

Corporate Social Responsibility and Sustainable Development Policy

Sustainability Policy
 
The Company, as an expressway and metro service provider, is committed to developing the transportation network for convenient journeys and alleviating traffic problems in Bangkok and its vicinity as a means to improve the quality of life of the service users. The Company has continuously improved and developed the efficiency of its services to ensure safe, convenient, and rapid journeys, in order to deliver the services through the state-of-the-art mass transit system network and create the good quality of life to people as the “Happy Journey with BEM : Better Trips for Better Life”, always subject to its business operations with social and environmental responsibility, as the best practices adhered to by the Company for sustainable business operations. 
 
Detailed Information about Sustainability Policy is available on https://www.bemplc.co.th/CorporatePolicy

The Company is committed to conducting its business operations in accordance with sustainability principles. To that end, the Board of Directors has appointed the Corporate Governance, Risk Management and Sustainable Development Committee to consider the adequacy and appropriateness at the policy level, with the Expressway Project Management and Development Work by the Sustainability Development Department having the duty to supervise the Company's overall sustainability management process and work with the Company's internal work units to drive the organization towards sustainability together, by monitoring, evaluating, and preparing periodic reports on sustainability management for reporting to the Corporate Governance, Risk Management and Sustainable Development Committee and/or the Board of Directors for information. In this regard, the Board of Directors has established the corporate social responsibility and sustainable development policy which is publicly available on the Company's website at www.bemplc.co.th

Sustainability Management Structure
 

 
  • The Board of Directors is responsible for establishing guidelines and approving the corporate social responsibility and sustainable development policy, together with monitoring the performance of such policy to ensure that the Company has continuously developed and improved its operational efficiency, as well as creating communication with stakeholder groups, namely customers, employees, society and communities, including relevant stakeholders so as to enable the Company to achieve its corporate sustainability performance goals, covering governance and economic, social and environmental dimensions. To this aim, the Corporate Governance, Risk Management and Sustainable Development Committee is then appointed to be responsible for supervising and reviewing the overall sustainability management and sustainability strategies of the Company to ensure consistency with the corporate social responsibility and sustainable development policy, by designating the Management Team as the policy executor, as well as reviewing or evaluating the sustainability performance to ensure compliance with the business strategies and goals, along with the expectations of stakeholders, including the changing circumstances, together with monitoring the implementation of such matters on a regular basis.
  • The Corporate Governance, Risk Management and Sustainable Development Committee is responsible for considering action plans regarding sustainability management and stakeholder management in association with the Management Team to be submitted to the Board of Directors; supervising and reviewing the overall sustainability management and sustainability strategies of the Company to ensure consistency with the Company's corporate social responsibility and sustainable development policy, as well as providing advice and recommendations on the corporate sustainability management while also promoting and supporting the continuous improvement and development of sustainability management, with the report on the organization's sustainability materiality issues to the Board of Directors; following up on and evaluating the performance under sustainability management action plans, including the results of stakeholder management. The meeting is scheduled every quarter.
  • Business Development and Expressway Operations by the Sustainability Development Department is in charge of creating, overseeing, and developing the Company's sustainability management process as well as coordinating and collaborating with the Company's internal work units in driving the organization towards sustainability together. To this end, the information is prepared and submitted to the Corporate Governance, Risk Management and Sustainable Development Committee on a quarterly basis.

Sustainability Concept and Organizational Goals

BEM's Sustainability Goals
 
The Company has reviewed its sustainability operating framework to set the organization’s sustainability goals for the period 2023 - 2030, covering long-term strategic planning. The Company’s sustainability operations framework is as follows:

Mobility for All : Sharing the Sustainable Journey

 

Sustainability Implementation Guidelines

BEM has set clear goals to prioritize sustainability in 3 dimensions; i.e, Governance and Economic, Environmental and Social. This is a collaborative response to the Sustainable Development Goals (SDGs) of the United Nations, as outlined below:
 




 
 
Materiality Assessment

Materiality assessment is essential in defining the direction of the organization’s development in accordance with corporate objectives and stakeholder expectations. It assures the organization that environmental, social, and economic & governance (ESG) policies and sustainability operations are being driven towards the appropriate direction while also considering human rights issues. 

BEM conducted a materiality assessment of topics associated with business operations in line with the Global Reporting Initiative (GRI) 2021 Standards to identify and report key ESG topics. In doing so, the Company took into account the perspective of the Company’s internal agencies and external stakeholders. Then, the Company considered which topics were most significant or relevant to the Company’s business operations and the stakeholders. Acting in compliance with the GRI Standards, the Company is assured that the materiality assessment and reporting are reliable, transparent, and comparable with other organizations in the same industry. Subsequently, the assessment results were appropriately used to support decision-making on policies and sustainability management guidelines in 2023-2026 as well as to define the contents of each issue in the Sustainability Report in order to disclose BEM’s sustainability performance to stakeholders. The Company will review the material sustainability topics every three years.

1. Materiality Assessment Process

Step 1 Considering organization context and relevant stakeholder groups throughout the value chain to define materiality assessment scope
  • Consider the nature of activities and the organization context in conducting business as well as relevant stakeholder groups throughout the value chain.
  • Study global trends and key sustainability topics that affect business operations in the same industry group to pre-determine material topics.
Step 2 Identifying impacts and forecasting potential future impacts
  • Identify impacts by discussing with internal and external agencies to jointly consider all impacts on stakeholders.
  • When specifying the impacts of material topics, both actual and potential impacts on the economy, environment, society, and human rights shall be taken into account. The consideration of these impacts will allow BEM to comprehend the opinions, expectations, and concerns of internal and external stakeholders.
Step 3 Assessing significant impacts
  • Gather opinions from all eight stakeholder groups on topics of importance to the economy, environment, and society, including human rights impacts. Consider the positive and negative impact spectrum in the short and long term, and the irremediable character of the impact, covering all the Company’s business activities across the value chain.
  • Calculate the level of significance by considering the likelihood and severity, which consists of scale, scope, and irremediable character of the impact.
BEM has adjusted the Company’s criteria for considering impact significance by employing a matrix to assess impact severity and tendency. Such matrix has been adapted from the one the Company used to assess enterprise risks. The assessment results are then incorporated into the positive and negative impact matrix.
 
 
Step 4 Prioritizing material topics

After categorizing the impacts and evaluating the significance of each issue, BEM uses the assessment results to prioritize material topics based on the significance of their impacts, which is calculated by weighting both positive and negative assessment results, as well as scores obtained from discussions with external experts, including their opinions and suggestions on topics that are material to the Company’s business operations.

Prioritizing material topics enables the Company to align sustainability management guidelines correctly and appropriately. It also helps the Company determine topics that require managing current impacts and/or preventing future negative impacts. Additionally, it may allow the Company to identify topics with positive impacts that lead to future opportunities for both BEM and the Company’s stakeholders. BEM then evaluates and prioritizes the topics based on the Double Materiality framework by comprehensively considering external impacts on society or environment, and internal financial and non-financial impacts on the organization.

Predetermine Material Sustainability Topics
 
BEM was able to identify a total of 14 material sustainability topics, covering environmental, social, and economic & governance aspects.
 

 
Assess significant impacts

In assessing significant impacts of material topics, BEM assigns different weights to the impact levels. This is because negative impacts are more significant, produce more impacts, and thus need to be corrected before positive impacts.
 
Assess significant impacts and prioritize material topics

The impact level of each sustainability issue is used to prioritize the material topics. The assessment criteria consist of five levels, namely Very Low, Low, Medium, High, and Very High, which are consistent with the Company’s risk assessment criteria. 

The impact significance level is calculated by weighting positive and negative assessment results as well as scores obtained from discussions with external experts, including their opinions and suggestions on topics of importance to the Company’s business operations.
 

 
Table showing the impact level of each predetermined sustainability topic
 
 

2.  Double Materiality Assessment

BEM recognizes the importance of considering material topics in sustainable business operations from a double perspective.

  • Outside-In Perspective : Material topic to society and environment, which may be caused by the Company’s activities or business operations and may eventually produce an impact back on the Company.
  • Inside-Out Perspective : Material topic to the Company, taking into account risks with impact on the Company’s finances that affect business success and sustainability.
This dual aspect assessment process can help the Company understand and address the materiality of topics associated with the Company’s efficient and sustainable business conduct. In practice, the “Double Materiality” approach enables the Company to take responsibility for the Company’s stakeholders and the environment as well as drive businesses towards long-term success.


In the “DOUBLE MATERIALITY” assessment, BEM integrated impact analysis and enterprise risk management as a tool for evaluating impact from an inside-out perspective, which comprises five factors, namely Finance, Operation, Strategic, Reputational, and Regulatory. The Company assessed both the severity and likelihood of each material issue. Then, the material topics that were identified as “Essential” through to “Value Creation” were prioritized and placed into the relationship matrix by senior executives.
 
 
 
To consider material topics in business operations from a dual perspective, or “Double Materiality”, BEM made calculations by weighting the environmental and social impact assessment results and the impact on the organization in order to rank the assessment results and obtain the Company’s material topics.
 

 
Four out of a total of 14 material topics were identified under the Value Creation category, namely Health and Safety, Human Capital Development, Energy Management and Climate Change, and IT Security and Data Privacy.
 

BEM’s efforts to drive material topics have contributed to supporting all three dimensions of the Sustainable Development Goals (SDGs), namely Environmental, Social, and Governance & Economic. BEM has rendered the Company’s support to 13 out of the 17 SDGs through 10 material topics and four fundamental topics in the Company’s business operations.
 
 

 
3.  Materiality Review

BEM places great emphasis on the process of prioritizing sustainability topics that are material to the Company’s operations and stakeholders. Accordingly, the Company requires that a materiality assessment be performed every three years and presented to the management for approval of the material topics. This allows the Company to better understand sustainability topics that may occur or change according to the situation or time. Such an effort also enables the Company to establish guidelines for driving material topics that reduce risks and increase opportunities within and beyond the organization.


BEM’s Value Chain

To become a leading fully-integrated transportation service provider in Thailand and ASEAN, BEM is committed to enhancing the quality, efficiency, and sustainability of Thailand’s transportation system while improving the people’s quality of life by delivering convenient, safe, stable, and reliable transportation services. This covers the expressway business and rail business in line with the government’s public-private partnership (PPP) infrastructure investment policy, as well as commercial development business. These projects, which emphasize social and environmental responsibility, aim to create shared value and utmost benefit for all stakeholders based on the principles of good governance while reinforcing engagement with internal and external stakeholders across the value chain. In this regard, the Company has formulated a management plan covering a value chain that encompasses numerous activities, from planning and construction to service delivery. The complexity of BEM’s business value chain has played a key role in expanding business opportunities and extending the scope of engagement with external stakeholders.

1.  BEM’s Business Value Chain

 

BEM’s Business Value Chain


1.1 Primary Activities
  • Planning and Management : Planning and determining strategies to enhance service quality and efficiency for customers with consideration for the provision of adequate resources. The process of planning must take into account all businesses, i.e., expressway, rail, and commercial development, while establishing a risk assessment system and increasing opportunities for infrastructure and network connectivity with other public systems to achieve a sustainable business and long-term value for the Company.
  • Construction : The construction of structures for expressways and metros to support service provision. In this regard, the stability and quality of the structure can affect the efficiency of BEM’s transportation system. The Company emphasizes the utilization of materials and technologies with low environmental impact, while focusing on minimizing disturbance to local communities during the construction process. In addition, the Company also supports projects that create social value through numerous CSR activities to build the understanding and confidence of the society and neighboring communities.   
  • Operations : Focusing on internal and external operations to promote the provision of transportation services and commercial development business to customers with operational efficiency and stability, and to maintain customer satisfaction and business success. Operations cover the organization’s internal management system and the provision of convenient and rapid services to customers. Operations also include efforts to monitor and address customer needs and to ensure efficiency in the transportation system in alignment with established plans. Furthermore, operations highlight the importance of enhancing safety performance and environmental responsibility in various related processes, such as regulating and maintaining the Company’s operations in compliance with environmental and safety standards set by regulatory authorities and the public sector. This is considered a key factor in building trust in the Company’s transportation system and must be rigorously embedded in operational practise.
  • Marketing and Sales : Focusing on BEM’s marketing and services for customers by creating awareness and relationships with customers through public relations media and promotional campaigns highlighting social and environmental values. The Company also implements impactful and constructive projects that meet customer needs. In addition, The Company accentuates the utilization of technology to enhance convenience and efficiency in service provision, such as offering various formats of payment systems, which increases convenience for service users and enhances satisfaction with a transportation system that benefits both communities and society. This is in line with the Company’s mission, which aims to continuously improve and respond to the needs of customers, communities, and society.
    Moreover, BEM promotes public transportation for people living in neighboring areas and supports ESG initiatives that create shared value within and beyond the organization.
  • Service Delivery : Delivering services according to the business plans and goals of the expressway, rail, and commercial development businesses is integral to the Company’s service provision and revenue generation.
 


 
  • After-Sales Service : Activities of extreme significance directly affect customer satisfaction and business sustainability. BEM aims to provide problem-solving support to customers and responding to safety-related incidents rapidly and efficiently to build confidence in the Company’s services. An effective after-sales service delivery system will enable the Company to serve customers efficiently, meet their needs, and foster long-term satisfaction.

1.2 Support Activities
 
  • Procurement : BEM focuses on managing, selecting and procuring from suppliers who take ESG factors into consideration to reduce environmental and social impacts and enhance business sustainability. Selecting ESG-oriented suppliers, and eco-friendly materials and equipment helps decrease risks in the Company’s business operations and encourages partnerships that jointly develop and promote sustainability in terms of the environment and general safety management, thereby fostering trust among relevant customers, investors, and societies.
  • Information Technology Development : BEM is committed to developing information technology systems in order to support efficient business processes and service provision. Information technology allows the Company to promptly and accurately monitor and track service delivery using a modern security system to protect stakeholders’ personal and business data in a bid to safeguard customer data and comply with laws pertaining to personal data. Developing information technology with high-security standards and strict data management will reduce risks regarding data instability and legal risks that may affect stakeholder confidence. In addition, employing information technology to improve services and business processes will enhance the Company’s efficiency and stability, helping to create customer satisfaction and strengthen the integration between information technology and personal data protection, a fundamental factor in this era where data is vital in business and society.
  • Human Resource Management : BEM emphasizes on employing effective human resource management, providing appropriate training programs, and promoting human resource development planning to ready personnel and
    empower them to perform core activities and support efficient business operations. Besides implementing human resource management in conjunction with personnel and skill development, the Company also emphasizes supporting and promoting respect for human rights as well as diversity, equity, and inclusion (DEI), which are essential in creating an environment that recognizes and embraces employee diversity. Furthermore, encouraging employee engagement also strengthens cooperation and makes employees feel involved in business development.

2.  Stakeholder Analysis in BEM’s Value Chain
BEM is committed to sustainable management by prioritizing continuous engagement with stakeholder groups connected to the Company’s businesses, including employees who form the foundation of the Company’s development; suppliers and contractors who are business partners; customers to whom the Company aims to provide quality service and enhance satisfaction; and society and communities in which the Company operates. Additionally, the Company values other key stakeholders such as creditors, shareholders, press, regulatory authorities and the public sector, who are responsible for overseeing and governing the Company. These efforts are intended to build trust and promote transparency in business operations, ultimately fostering sustainable growth.

BEM recognizes the importance of cooperation and connection between all stakeholder groups, which can be derived from effective management. This will yield sustainable results that benefit each and every stakeholder group and enable the establishment of a strong connection. Moreover, the Company welcomes opinions and feedback from stakeholders, including their economic, social and environmental expectations, to adjust the Company’s operational plans in response to each group’s expectations and increase opportunities for them to boost their strength, reduce risks, and build a business ecosystem that creates positive contributions to all stakeholders.
 

 

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