Why is it important
A resilient supply chain is a critical factor for the future development of clean energy technologies. The production of solar panels, wind turbines, and batteries requires key raw materials such as lithium, cobalt, nickel, and other rare earth elements. These resources are largely concentrated in a limited number of countries, creating risks related to price volatility, trade disputes, and export restrictions. For instance, the COVID-19 pandemic indirectly contributed to a surge in lithium prices in 2023. Such developments highlight the vulnerability of global supply chains. Another key challenge is ensuring that supply chains can meet the rapidly growing demand for clean energy technologies without creating new environmental and social impacts. At the same time, reliance on raw materials from resource-constrained countries presents a risk that must be carefully managed to avoid disruptions to business continuity and long-term energy security.
Nevertheless, strengthening supply chains also presents significant opportunities. These include promoting domestic manufacturing and processing to create jobs, expanding recycling initiatives, and adopting circular economy approaches to reduce environmental pressures. Advancing these efforts requires international cooperation and clear policy frameworks, such as partnerships on critical minerals, regulations supporting circular economy practices, and standards that promote transparency, labour rights, and environmental protection throughout the supply chain. These measures are essential to ensure that the transition to clean energy is both sustainable and resilient, without creating new structural risks for nature and society.
Target and Performance
| 2025 | ||
|---|---|---|
| Performance | Target | |
| Tier 1 Suppliers acknowledge the Suppliers’ Code of Conduct and Guidelines for Sustainability
(Percentage of all Tier 1 Suppliers1) |
100 % | 100 % |
| Conduct ESG risk assessments (Percentage of Critical Suppliers2) | 100 % | 100 % |
| Conduct a comprehensive ESG audit to Significant Suppliers2, and agree on corrective action plans (Percentage of Significant Suppliers) | 100 % | 100 % |
1 This covers Tier 1 Suppliers from our operation in Thailand, contributing to 91.1 percent of total revenue.
2 B.Grimm Power classifies its suppliers based on their importance to our business operations and ESG risk level as follows:
- Tier 1 Suppliers: Suppliers with a direct contractual relationship with B.Grimm Power, providing goods, materials, equipment, or services directly to B.Grimm Power.
- Non-Tier 1 Suppliers: Suppliers in the supply chain from Tier 2 onwards (Tier 2+), which do not have direct contractual agreements with B.Grimm Power.
- Critical Suppliers: Suppliers at both Tier 1 and Non-Tier 1 levels that play a critical role in ensuring business continuity and operational efficiency. These suppliers meet at least one of the following criteria: 3.1) High procurement value or ongoing procurement, 3.2) Provision of goods, components, or services essential to business operations or power generation, and 3.3) Limited substitutability in the short term or requiring significant time to identify alternative suppliers
- Significant Suppliers: Critical suppliers with moderate to high ESG risk assessment results, who are subject to annual ESG performance assessments on a continuous basis.
Management Approach and Strategy
Policy and Commitment
B.Grimm Power has established a Suppliers’ Code of Conduct and Guidelines for Sustainability, which are integrated into the procurement process to encourage suppliers to operate in alignment with the business ethics and sustainability principles. These guidelines cover key areas including labour practices and human rights, occupational health and safety, quality and safety management, as well as consideration of social and environmental impacts, with expectations that go beyond minimum legal requirements.
Supplier’s Code of Conduct and Guidelines for Sustainability
Environment
- Environmental Management
- Natural Resources and Environmental Conservation
- Waste Management and Pollution Control
- Hazardous Chemicals and Substances
- Greenhouse Gases
Society
- Occupational Health, Safety and Working Conditions
- Emergency Prevention and Response
- Human Rights
- Treatment of Employees
- Community and Social Engagement
- Freedom of Association and Collective Bargaining
Governance
- Compliance with Laws, Regulations, and Relevant Requirements
- Business Ethics and Transparency
- Anti-Corruption
- Intellectual Property Protection and Confidentiality Preservation
- Conflict of Interest
- Quality Standards
Governance Structure
B.Grimm Power has established a governance structure for sustainable supply chain management, as follows:
1. Procurement of key raw materials for Long-term PPA including natural gas and water, is overseen by each power plant. This process involves monitoring the quality and consumption of natural gas, and verifying the source, quality, and treatment of wastewater to ensure compliance with legal standards. The structure and duration of supply contracts are aligned with power plant operations, while contract details and legal requirements are reviewed by the Corporate Legal department to ensure full compliance. Regular meetings with suppliers are conducted to review contract terms and delivery conditions, and real-time monitoring systems are used to optimise contract management and improve operational efficiency.
2. Procurement of goods and general services is conducted through a transparent, auditable, and efficient process. Procurement methods include direct negotiation, price inquiries, and competitive bidding. For high-value procurements, approval is required from the Purchasing Committee, which is appointed by the Management Committee. Additionally, the Inspection Committee is responsible for verifying the quality and accuracy of goods and services prior to acceptance.
3. Procurement of Liquefied Natural Gas (LNG) as an alternative fuel for power generation is overseen by the LNG Business division. The Procurement Unit within this division is responsible for preparing Request for Proposal (RFP) documents, ensuring compliance with pricing and quality requirements set by relevant regulatory authorities. Proposals are submitted by suppliers under Master Sale and Purchase Agreements. The selection process involves comparing offers to identify the supplier providing the best price and quality in each procurement round. The final selection is approved by the Head of LNG Business and endorsed by the relevant regulatory authorities.
Strategy
B.Grimm Power’s management and employees are required to actively support, promote, and strictly adhere to procurement management policies and frameworks. This includes implementing a supply chain strategy that aligns with the Suppliers’ Code of Conduct and Guidelines for Sustainability as follows:
Compliance and Transparency
- Implement transparent procurement process.
- Select suppliers that operate in compliance with applicable laws and business ethics.
Occupational Health, Safety, and Environment
- Select suppliers that prioritise occupational health, safety, and environmental impacts on stakeholders, including employees, communities, and society , supporting the goal of a workplace free from accidents and fatalities.
Business Relationship and Opportunities
- Treat all suppliers fairly and equitably while maintaining strong business relationships.
- Promote collaboration with suppliers to create mutual value and shared benefits.
Digital Technology and Innovation
- Leverage digital technologies and innovation to enhance the efficiency of business operations with suppliers.
Environmental, Social and Governance (ESG) Responsibility
- Select suppliers that demonstrate commitment to environmental, social, and governance (ESG) responsibilities through self-assessment during the supplier selection and operational processes.
Supplier Management
B.Grimm Power recognises the importance of conducting business sustainably and therefore integrates Environmental, Social, and Governance (ESG) criteria into its supplier management processes, alongside maintaining quality standards and strong relationships with suppliers. We emphasise transparency, fairness, and accountability throughout its procurement and supplier management practices through the following processes:
Sustainable Supply Chain Management Process
Supplier Screening and Selection
All Tier 1 suppliers are required to acknowledge, accept, and implement the principles outlined in Suppliers’ Code of Conduct and Guidelines for Sustainabilityin relevant areas. Compliance with these principles constitutes a minimum requirement for conducting business with B.Grimm Power. These requirements are incorporated into the Terms of Reference (TOR) and form part of the contractual process. Suppliers are required to formally sign and certify their compliance with the Suppliers’ Code of Conduct and Guidelines for Sustainability and the initial ESG assessment requirements. B.Grimm Power conducts supplier assessments through a self-assessment process, under which new suppliers must achieve an operational readiness score of at least 70 percent and pass the initial ESG criteria prior to being registered as approved suppliers.
In addition, for procurement contracts with a value exceeding THB 5 million, ESG criteria are incorporated into the supplier selection process with a weighting of 10 percent, subject to evaluation by the Procurement Committee. For contract renewal or extension, B.Grimm Power also considers previous ESG assessment results, giving priority to suppliers that demonstrate strong ESG performance or continuous improvement in ESG practices.
Supplier Classification
B.Grimm Power classifies suppliers to enhance the efficiency of the procurement process while managing and mitigating potential ESG-related risks arising from supplier operations. This approach enables the company to assess risk levels and determine appropriate procurement strategies for each supplier group. Suppliers are therefore categorised based on their level of importance to business operations and their ESG risk profile, as follows:
Critical Suppliers |
|
Significant Suppliers |
Critical suppliers with moderate to high ESG risk assessment results, who are subject to annual ESG performance assessments on a continuous basis. |
Supplier ESG Risk Assessment
B.Grimm Power conducts ESG risk assessments of its suppliers to identify significant suppliers with high and medium ESG risk levels. The assessment results are used to determine appropriate management approaches, such as developing ESG audit plans, strengthening the capabilities of strategic suppliers, and systematically monitoring improvements in ESG-related issues. This ensures that supply chain risk management is effective, comprehensive, and aligned with the organisation’s risk profile. The ESG risk assessment process for suppliers consists of the following steps:
1. ESG issues are identified based on globally recognised supply chain risk trends, together with their direct relevance to the nature of suppliers’ business operations and activities. These issues are then grouped according to the following assessment dimensions:
| Dimension | Key ESG Risk Considered |
|---|---|
Governance |
|
Environment |
|
Social |
|
2. Based on the Enterprise Risk Management (ERM) framework, the assessment considers both the severity of impact and the likelihood of occurrence. The risk analysis focuses on 3 key risk dimensions, as follows:
- Country-specific Risk, assessed based on national ESG indices and indicators in line with sustainable supply chain management practices.
- Sector-specific Risk, where suppliers are categorised into five sectors: industrial, chemicals, energy, utilities, and consulting services, based on the Global Industry Classification Standard.
- Commodity-specific Risk, focusing on raw materials that are critical to B.Grimm Power’s production and business operations, including natural gas and acid–alkali chemicals. The assessment references high-impact commodity groups and the prioritisation framework for high-impact materials under the Science Based Targets Network High Impact Commodities guidance.
Supplier Comprehensive ESG Audit and Performance Monitoring
B.Grimm Power conducts ongoing ESG performance assessments of its suppliers, based on the results of previously conducted ESG risk assessments, to ensure effective monitoring of suppliers’ compliance with the Supplier Code of Conduct and sustainability guidelines. Comprehensive ESG assessments are carried out at a frequency aligned with each supplier’s risk level. Significant suppliers with high and medium ESG risk levels are assessed annually, while suppliers with low ESG risk levels are assessed every 3 years. The assessment approach includes multiple methods, such as supplier self-assessments verified by internal functions, reference to internationally recognised sustainability standards, and on-site audits at supplier facilities to verify actual operational practices.
In addition, B.Grimm Power prepares ESG audit reports, including Corrective Action and Improvement Plans, to monitor progress in addressing identified ESG issues. The assessment results are also used to systematically develop supplier capability development plans, aiming to enhance sustainability standards across the supply chain. Furthermore, B.Grimm Power evaluates suppliers’ ESG performance by benchmarking it against industry peers, enabling B.Grimm Power to design appropriate ESG capacity-building initiatives for suppliers. These initiatives may include in-depth training programmes, practical workshops, and tailored strategic advisory support, depending on the specific needs and maturity level of each supplier.
Performance 2025
- B.Grimm Power is currently reviewing and enhancing its Suppliers’ Code of Conduct and Guidelines for Sustainability to align with the latest international sustainability trends, standards, and frameworks. The revisions aim to reflect both domestic and international operating contexts, support business growth and new activities, and strengthen long-term sustainable supply chain governance.
- B.Grimm Power has a total of 1,113 Tier 1 suppliers, all of whom have acknowledged the Suppliers’ Code of Conduct and Guidelines for Sustainability.
- All 1,113 Tier 1 suppliers were screened using supplier classification criteria, resulting in the identification of 37 Critical Suppliers.
- In-depth ESG performance assessments are conducted across suppliers, covering: 1) All Significant Suppliers, which are required to undergo annual ESG assessments; and 2) Critical Suppliers with low ESG risk, which are scheduled for assessment every 3 years. These assessments are carried out through various approaches, including suppliers’ self-assessments in accordance with B.Grimm Power’s sustainability guidelines and verified by employees, references to internationally recognised sustainability standards adopted by suppliers, and on-site assessments. All assessed suppliers are required to develop corrective action plans and timelines to address identified ESG issues.
- B.Grimm Power and its subsidiaries organised Supplier Day 2025 to strengthen relationships with key suppliers and communicate B.Grimm Power’s business direction and future collaboration approaches. The event was attended by 52 suppliers and achieved an average satisfaction score of 94.6 percent, reflecting the overall success of the event and suppliers’ confidence in B.Grimm Power.
