Fundamentals of Corporate Sustainability

Law & Regulatory Compliance

Law and Regulatory Compliance

Risk	Opportunity
The operations of industrial estate businesses are subject to numerous laws and regulations due to their direct and indirect impacts on the economy, society, and environment. The Company and its stakeholders give high priority to compliance with all relevant laws and regulations. Non-compliance by the Company, its suppliers, or contractors can result in financial and reputational damage, loss of stakeholder confidence, and negatively affect the Company's relationships with neighboring communities and society. As laws, regulations, and regulatory requirements relevant to the industrial estate operations and related businesses continue to evolve, diversify, and become more stringent, compliance risk has become one of the Company's key enterprise risks and must therefore be managed with due care and diligence.	Compliance with laws and regulations enables the Company to operate transparently, gain credibility, and earn the trust of stakeholders. Monitoring changes in laws and regulations related to industrial estate and associated businesses closely will enable the Company to prepare for new legislation that may arise. Changes in customer requirements resulting from changes in domestic and foreign laws and regulations enable the Company to adapt and develop products and services to meet those needs in a timely manner.

Risk

Opportunity

The operations of industrial estate businesses are subject to numerous laws and regulations due to their direct and indirect impacts on the economy, society, and environment. The Company and its stakeholders give high priority to compliance with all relevant laws and regulations. Non-compliance by the Company, its suppliers, or contractors can result in financial and reputational damage, loss of stakeholder confidence, and negatively affect the Company's relationships with neighboring communities and society. As laws, regulations, and regulatory requirements relevant to the industrial estate operations and related businesses continue to evolve, diversify, and become more stringent, compliance risk has become one of the Company's key enterprise risks and must therefore be managed with due care and diligence.

Compliance with laws and regulations enables the Company to operate transparently, gain credibility, and earn the trust of stakeholders. Monitoring changes in laws and regulations related to industrial estate and associated businesses closely will enable the Company to prepare for new legislation that may arise. Changes in customer requirements resulting from changes in domestic and foreign laws and regulations enable the Company to adapt and develop products and services to meet those needs in a timely manner.

Management Approach

The following risk management processes were developed based on compliance with applicable laws and regulations in order for the Company to conduct business legally and in compliance with numerous regulations:

1. Risk Identification

Analyzed and identified the legal and regulatory compliance risks throughout the business value chain, by referring to the laws and regulations of each municipality or country in which the Company conducts business.

2. Risk Management

Assessed the risks associated with non-compliance with laws, regulations, and international standards, and developed measures to manage these risks. The Legal Department and the department responsible for liaising with government agencies are tasked with monitoring changes in laws and regulations at each business location. The Company communicates with employees and stakeholders through various channels, including meetings, training sessions, emails, and the intranet, to ensure they are well-informed about changing laws and regulations and maintain rigorous compliance.

3. Compliance Monitoring

The executives of all departments are responsible for overseeing the Company’s employees and contractors to ensure that they strictly comply with all applicable laws and regulations. Also, the performance of statutory and regulatory compliance has been regularly audited and assessed.

4. Communication and Reporting

The Legal Department is responsible for compiling violation cases and assessing the performance of statutory and regulatory compliance, as well as reporting to the management team, the Corporate Governance and Sustainable Development Committee, the Risk Management Committee, and the Board of Directors, respectively. These reports help inform decisions to strengthen governance and compliance mechanisms. Additionally, the performance results are disclosed in the Annual Sustainability Report. The Company defines significant non-compliance as any violation resulting in a financial penalty exceeding 1 million Baht, the suspension or revocation of business operating licenses, or involvement in fraudulent or corrupt practices.

In 2025, the Company reviewed this risk as part of its enterprise risk management process. The assessment indicated that laws and regulations related to environmental matters have become increasingly stringent and comprehensive. Key developments include regulations related to climate change, carbon‑related measures, as well as amendments to urban planning and land‑use regulations. Furthermore, sustainability disclosure requirements in several jurisdictions have been progressively elevated from voluntary frameworks into more complex mandatory obligations, in alignment with international standards, global capital market developments, and evolving investor expectations. Variations in legal and regulatory requirements across the Company’s operating locations may present challenges in monitoring, adapting to, and ensuring full compliance with applicable obligations. As a result, the Company may face regulatory non-compliance and reputational risks, which could lead to financial consequences, including increased costs associated with system and process adjustments, delays in project development, or constraints on market access and sources of financing.

To manage these risks, the Company has designated legal and regulatory compliance risk as an enterprise‑level risk, with structured governance and systematic monitoring mechanisms in place. The Company conducts legal and regulatory impact assessments as part of its decision‑making process prior to investment approvals or the development of new projects. The Legal Department, together with relevant functions, has been assigned responsibility for closely monitoring changes in laws and regulations across all applicable areas. Comprehensive operational reviews are also conducted to ensure that the Company’s operations and business expansion are carried out in a lawful, transparent, and compliant manner. The status of key risks and related performance is regularly reported to the Board of Directors to support effective oversight.

In addition, in 2025, the Company implemented communication and knowledge‑building initiatives to enhance understanding of changes in applicable laws and regulations among employees, suppliers and contractors across the value chain, customers operating within the industrial estates, and other relevant stakeholders. These efforts aim to reduce the risk of non‑compliance that could result in direct or indirect impacts on the Company, as outlined below:

The Company organized training sessions for top and middle management to enhance awareness and preparedness for the transition to the IFRS Sustainability Disclosure Standards, global sustainability disclosure standards developed by the International Sustainability Standards Board (ISSB) under the IFRS Foundation. These standards provide a framework for the disclosure of sustainability‑related risks and opportunities with potential material financial impacts. Such disclosures are intended to enhance transparency and credibility while supporting more informed decision‑making by investors and other stakeholders who rely on the Company’s financial information. The training session, titled “Prepare for the Next Step of Sustainability Reporting,” was delivered by Ms. Kulawal Supesuntorn, Climate Change and Sustainability Consultant at PricewaterhouseCoopers ABAS Ltd., on 20 May 2025. A total of 88 participants from top and middle management across the Sustainability, Accounting and Finance, and Risk Management functions attended the session.

Following the Securities and Exchange Commission of Thailand’s (SEC) enhancement of sustainability‑related risk and opportunity disclosure requirements in line with the IFRS Sustainability Disclosure Standards, including the planned mandatory application for SET100 listed companies commencing in 2028 with reporting submissions required in 2029, and in conjunction with the introduction of the “Six Pillars of Standard Knowledge for Directors” issued by the SEC and the Stock Exchange of Thailand in August 2025, the Company organized a targeted knowledge‑sharing session for members of the Board of Directors, the Risk Management Committee, and senior executives. The session, titled “Integrating ESG Risks into Enterprise Risk Management,” was conducted by Ms. Kulthida Wiratkapan, Partner at PricewaterhouseCoopers ABAS Ltd., on 15 December 2025. The objective was to enhance the Board’s and management’s understanding of risk management, sustainability disclosures in accordance with IFRS S1 and S2, and climate‑related risks management, thereby supporting effective governance and oversight. A total of 14 directors, senior executives, and risk management representatives attended the session.

Amid increasing domestic and international regulatory requirements related to greenhouse gas emissions disclosure and supply‑chain traceability, which may pose legal and compliance risks for factory operators and could potentially lead to indirect financial impacts on the Company, AMATA Facility Services Co., Ltd. collaborated with the Expert Centre of Innovative Clean Energy and Environment (InnoEN), the Research and Development Group for Sustainable Development, and the Thailand Institute of Scientific and Technological Research (TISTR). Together, they organized practical workshops titled “Carbon Footprint Journey: From Fundamentals to Practical Application in Organizations,” held on 29 August 2025 and 30 September 2025. The workshops aimed to strengthen knowledge, preparedness, and technical capability in the systematic collection and management of greenhouse gas emissions data among business and factory operators and relevant stakeholders. The two sessions were attended by a total of 74 participants.
In addition to regulatory compliance risks, factory operators are increasingly exposed to market access risks arising from requirements for greenhouse gas emissions disclosure, carbon taxation, and cross‑border carbon adjustment mechanisms, expectations from global supply chain partners, as well as access to funding subject to ESG‑related criteria. In response, the AMATA City Chonburi Industrial Estate Office, in collaboration with AMATA Facility Services Co., Ltd. and its network partners, organized seminars and a mini exhibition under the theme “AMATA Carbon Neutral Network Conference”, held on 20–21 November 2025 at Hotel Nikko AMATA City Chonburi. The event served as a platform for knowledge sharing, practical solutions related to clean energy, green energy, and intelligent technologies, with the aim of supporting businesses in reducing greenhouse gas emissions and enhancing long‑term competitiveness. The initiative also sought to encourage enterprises within the network to advance toward carbon neutrality in a structured and sustainable manner, in line with regulatory developments and market expectations. The event was attended by members of the AMATA Carbon Neutral Network (ACNN) and participants from 109 companies, representing more than 143 attendees in total, who demonstrated a shared commitment to advancing concrete actions toward carbon neutrality while aligning with regulatory requirements and evolving market demands.

Furthermore, in 2025, the Company had no incidents of non-compliance with laws related to the industrial estate business, and no significant incidents of non-compliance with economic, social, and environmental laws and regulations by employees, suppliers, or contractors were reported. In order to maintain trust among all stakeholders in its ability to conduct responsible and sustainable business, the Company continued to abide by applicable laws, regulations, and relevant international standards. This includes regular reviews and updates to of policies and operational guidelines to ensure alignment with applicable legal and regulatory frameworks in Thailand and in the countries where the Company operates.

Besides, the Company proactively monitors and ensures that tenants and factory operators within both AMATA industrial estates comply with the Industrial Estate Authority of Thailand (IEAT) regulations and industrial estate-specific regulations. These measures help mitigate risks of adverse impacts on local communities and stakeholders. In addition, the Company provides products and services that support tenants and factory operators’ compliance with national policies and international multilateralism regulations, ensuring seamless adaptation to evolving regulatory requirements.