Sustainable Supply Chain


The Company procures products and services from suppliers and contractors for the main activities of industrial estate business operations and the work that supports the management of industrial estates. As a result, the quality of products and work of suppliers and contractors have a direct impact on the Company and its stakeholders, both positively and negatively. Suppliers and contractors with substandard performance or high ESG risks are likely to cause non-compliance with laws and regulations. They may also create negative social and environmental impacts, such as poor waste management, and risks to the safety of people and property. Furthermore, without a good audit process, the Company's suppliers and contractors may contribute to labor and human rights violations, which can create risks to the Company's reputation and credibility beyond the direct economic impact on the Company from the quality of work and delivery time. 


Effective supplier and contractor management will help the Company reduce risks and social and environmental impacts in its supply chain, as well as the impacts on surrounding communities of the industrial estate, both in the short and long term. Additionally, it will increase the quality and efficiency of its work, leading to greater customer satisfaction with the Company's products and services. Screening and developing high-quality suppliers and contractors will help elevate the standard of business partners, supporting the Company's business expansion for long-term mutual growth. 

Management Approach

The Company has appointed the AMATA Procurement Working Committee ,which is chaired by the Senior Vice President of Accounting & Tax, Finance & Treasury, Investor Relations and Information Technology. The Working Committee consists of senior executives from the Company and its subsidiary companies and is responsible for developing procurement best practices that comply with international and ethical standards. The Committee also sets the procurement standards of the AMATA Group and prepares and disseminates the Supplier Code of Conduct to communicate the Company’s commitment to ethical business practices that take economic, social, and environmental impacts into consideration, including an ESG risk assessment within the Company's supply chain. This includes all suppliers and contractors that adhere to good corporate governance, economy, society, and environment. The Working Committee sets management guidelines and strategies suitable for each group of suppliers and contractors and facilitates the development and enhancement of their potential to reduce the sustainability risk and impact of business operations in the short and long term.
Hence, the Company had established the guidelines of sustainable supply chain management as follows:


The Company has announced the Supplier Code of Conduct and Procurement Manual of AMATA Group to its critical suppliers in accordance with sustainable supply chain management policy to promote the importance and to be a guideline for suppliers and contractors in doing business to comply with the Company's practice with an emphasis on social and environmental responsibility as well as honest, fair and transparent business practices covering the following issues:

Business Ethics

Comply with laws and regulations, conduct business based on accuracy and integrity, anti-corruption, transparency, and verifiable information disclosure.

Human Rights

Accurate and legal employment, fair treatment, and no use of child or forced labor of any kind.

Occupational Health and Safety

Comply with occupational health and safety laws, provide safety equipment suitable for operation, record job sickness and accidence statistics, and communicate to understand and follow.

Social Responsibility

Preparing a channel for receiving complaints from stakeholders and considering the impacts arising from the operation.

Environmental Responsibility

Comply with environmental laws and regulations, prepare measures to prevent and reduce environmental impacts from the operation, and promote environmentally friendly technologies and products.

In 2022, 80% of critical suppliers have responded to the Supplier Code of Conduct Acknowledgment. The following procurement processes were undertaken according to the AMATA Group Procurement Manual: 

1. Critical Supplier Identification

In 2022, the Company have a total of 527 tier-1 suppliers and contractors in the supply chain. The critical tier-1 suppliers are those who have conducted business with the Company continuously and met at least one of the following conditions; representing the first 80% of total procurement value, being distributors of primary raw materials or services that are critical to the Company’s operation, being a few seller in their category that are irreplaceable or non-substitutable.  

In 2022, there were 85 critical tier-1 suppliers and contractors, which accounted for 80% of the total procurement value. Tier-1 comprises 11 critical suppliers in real estate and rental businesses and 74 critical suppliers in utility and service businesses, representing total procurement values of 7% and 93%, respectively.

2. Risk Assessment in Supply Chain

The Company has implemented a supplier ESG risk assessment by giving priority to critical suppliers and all new suppliers through a self-assessment questionnaire (SAQ) that covers economic, social, and environmental dimensions as well as good governance.  For suppliers with medium-to-high risk (self-assessment score less than 80%), the Company will make a site visit to perform an additional on-site ESG audit. Furthermore, the Company has assigned the Procurement Department and business units using the supplied products or services to conduct an annual supplier quality assessment, but with a different frequency depending on the risk level. Critical and high-risk suppliers are required to present preventive and corrective measures, which will be assisted by the Company as a way to build a good relationship with suppliers.  

The Company targets all critical and new suppliers and contractors to be assessed for both economic and sustainability risks, including environmental, social, and governance risks. In 2022, the Company achieved its target of conducting 100% risk assessments on all critical and new suppliers and contractors, representing 85 and 11, respectively. It was found that none of the critical suppliers had economic risks. However, there was one critical supplier with a high level of corporate governance risk in corruption and data privacy due to a lack of written policy and management approach and no procedure on customer data privacy protection, which accounted for 1.17% of all critical suppliers. The Company conducted an immediate on-site audit and demanded the critical suppliers prepare additional policy documents, including promulgating them for all employees to be informed of and comply with the policy. The next on-site audit of this critical suppliers will be conducted by the Company’s purchasing department and related parties in 2023. 

3. Supplier Audit and Evaluation

The Company requires all critical suppliers and contractors that have already passed the economic and sustainability risks assessment by using the Self-Assessment Questionnaire (SAQ) to have an audit on the economic, environmental, social, and governance topics at their workplaces (on-site ESG audit). The patterns and frequency of the on-site ESG audit depend on the risk level. The critical suppliers with high risk will have an on-site audit as soon as possible; those at moderate risk will be audited once a year; and those at low risk will be audited every two years. The auditing items are set according to the Company’s criteria and the environmental management system (ISO 14001) standards and will be conducted by examining relevant documents and an on-site audit by the AMATA Procurement Working Committee. 

In 2022, there were 11 critical suppliers that must be audited according to the set criteria, and all of them were on-site audited by the Company (100%). 

Additionally, the Company mandates that suppliers and contractors who have business transactions with the Company undergo an annual performance evaluation and relationship assessment following the delivery of their goods or services. The results will be taken into account for the subsequent procurement. 

The Company has put in place risk management measures for each supplier and arranged supplier development activities to reduce the likelihood of risk and the impact of such risks. However, the Company has not yet terminated business relationships with any assessed suppliers or contractors (0%). 

4. New Supplier Registration

The new supplier selection process includes reviewing the qualifications and past performance of suppliers and contractors to determine whether they meet the Company's requirements. All new suppliers are required to complete an ESG risk assessment using a self-assessment questionnaire prior to new supplier registration. If a passing score is achieved and no economic, social, and environmental risks are found, the new supplier will sign the Supplier Code of Conduct Acknowledgement and be registered as a new supplier. If a passing score is not achieved or there are risks, the supplier must develop and submit a preventive or corrective plan and implement it until the score is acceptable before it can be registered as a new supplier. 

In 2022, the Company had eleven new suppliers. All of them passed the specified new supplier selection process (100%). 

5. Supplier Support and Development

The Company places importance on conducting business with suppliers in a fair manner. In order to promote liquidity in cash management and capital management for both the partners and the Company, the Company ensures adherence to agreements and commitments with partners based on fair and appropriate trade credit duration which is one of crucial factors for sustaining long-term business growth. The Company has established a Credit Term Policy for trade credit, which entails paying suppliers within a period of 30-45 days. The Company uses a banking channel to process payments, which helps build trust with suppliers and ensures timely payments within the policy framework. However, the actual payment period may deviate from the policy due to various limitations specific to each business, such as the type of business, product or service specifications, contract terms with suppliers, and quality standards of the products and services offered. The average credit term for the Company's products and services can be found in detail in the information provided. 

The Company places importance on the development of suppliers and contractors in its supply chain, especially critical suppliers of utility and industrial services, to reduce social and environmental risks and impacts as well as compliance risks. It also encourages suppliers and contractors to improve their efficiency to be in line with the Company’s standards, i.e., encourage the critical suppliers and contractors to develop management systems and obtain appropriate international standard certifications, such as ISO 9001, ISO 14001, ISO 17025, and OSHA 18000. 

  • On 26 June 2022, AMATA Facility Services Co., Ltd. organized a solid waste spill recovery drill for garbage picking and sorting workers at the contractor’s waste sorting plant, aiming to enhance knowledge and skills in waste and environmental management and elevate the safety standards and operational efficiency of the contractor’s employees. 
  • On 2 July 2022, AMATA Facility Services Co., Ltd. organized a training on safe and proper forklift driving for contractors’ employees working in the Company’s area. 
  • On 24 September 2022, AMATA Facility Services Co., Ltd. organized a training on basic firefighting and evacuation for contractors’ employees working in the Company’s area. 
  • On 15 November 2022, AMATA Water Co., Ltd. invited its business partners to visit its water management facility to get a better understanding of the industrial estates’ water management. 
  • On 28 November 2022, AMATA Water Co., Ltd. held an annual general meeting for the members of water-user organizations at AMATA City Rayong Industrial Estate to report on the 2022 performance. 
  • On 8 December 2022, AMATA Water Co., Ltd. organized a webinar to keep factory operators informed about the water situation in 2023 and to ensure efficient water management within the AMATA industrial estates. 
  • On 4 January 2023, AMATA Water Co., Ltd. held an annual general meeting for the members of water-user organizations at AMATA City Chonburi Industrial Estate to report on its 2022 performance. 

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