Climate Mitigation
Climate Mitigation
Policy & Commitment
Banpu is committed to mitigating climate change through a structured decarbonization pathway aligned with our Climate Change Policy and long-term business strategy. We have set a clear ambition to achieve Net Zero emissions by 2050, supported by interim targets and actions to reduce greenhouse gas emissions across our operations. Guided by the Energy Symphonics strategy, we pursue a balanced transition that delivers lower-carbon energy solutions while maintaining reliability and energy security. Our commitment includes improving energy efficiency, optimizing operational performance, expanding lower-carbon business opportunities, and embedding climate considerations into investment and decision-making processes to support a sustainable energy future.
Management Approach
Banpu manages climate mitigation through a combination of governance oversight, leadership accountability, and operational execution. Climate governance is led by the dedicated Climate Change Committee, which oversees climate strategy, monitors performance, and supports organization-wide alignment. Climate-related performance is embedded into key performance indicators for the CEO and relevant senior executives.
Scope 1, 2, and 3 GHG emissions are quantified in accordance with the GHG Protocol, using activity data and recognized emission factors, with an operational control boundary applied consistently across target setting, tracking, and reporting. Net Zero and interim Scope 1 and Scope 2 reduction targets, covering all GHGs (CO2, CH4, N2O, SF6, and HFCs), are set and reported on a gross basis in tonnes of CO2e, excluding removals, emissions trading, and avoided emissions.
To guide decision-making, the Company applies an internal carbon pricing mechanism to integrate the cost of greenhouse gas emissions into strategic and financial evaluation, strengthening preparedness for evolving regulations and supporting the prioritization of low-carbon investments along our Decarbonization Roadmap. We also apply the mitigation hierarchy, prioritizing emission avoidance at the source, followed by reduction through energy efficiency, process improvement, and the transition to renewable energy. Remaining emissions are addressed through carbon removal, while residual emissions are managed through high-quality, verified offset projects.
Impacts, Risks & Opportunities
Impact Materiality
Unabated emissions contribute directly to global climate change. A poorly managed energy transition could disrupt energy reliability and slow societal climate goals.
Financial Materiality
Failure to act on climate mitigation could lead to higher carbon costs, regulatory penalties, and reputational damage, while weakening market competitiveness and limiting access to capital.
Banpu’s Journey to Net Zero
The journey to Net Zero is a comprehensive and ambitious effort to reduce GHG emissions as close to zero as possible. Banpu has identified 3 key steps to this transition: calculating emissions across all scopes (Scope 1, 2, and 3), setting targets, and developing decarbonization pathways.
Calculating Emissions: To understand our current baseline, Banpu has comprehensively calculated and disclosed Scope 1 and 2 emissions from assets under our operational control. We are currently in the process of estimating Scope 3 emissions, with a commitment to fully calculate and disclose the top three emission sources by 2026.
Setting Target: To align with global efforts to limit global warming to 1.5°C, Banpu has committed to becoming a net zero emissions company by 2050. As part of our interim goal, we commit to reducing GHG emissions by at least 20% by 2030, using 2023 as the base year.
Developing Decarbonization Pathway: A crucial aspect of achieving net zero is the implementation of effective decarbonization plans. This requires operational improvements, adopting new technologies, and ongoing performance monitoring. Banpu has incorporated our decarbonization plan into the annual business strategy workshops. In addition, these initiatives are overseen by the Climate Change Committee on a quarterly basis.
Scope 1 and 2 Emissions Sources
The Company has undertaken an analysis to identify the sources of GHG emissions for each business. The analysis covers GHG emissions scope 1 and scope 2.
Energy Management
Considering the diverse nature of our operations, the Company implements differentiated energy conservation approaches tailored to the specific characteristics of each business segment. These approaches aim to optimize energy performance, strengthen operational reliability, and support long-term energy security, while aligning with the Company’s broader sustainability and climate objectives.
For open-pit mining activities, energy efficiency initiatives focus on reducing fuel intensity in material handling and transportation by expanding the use of conveyor systems, refining haulage route design, and gradually electrifying vehicle fleets. Underground mining operations emphasize the efficient use of electricity through advanced automation, optimized control of ventilation and equipment systems, and systematic maintenance programs to sustain high operating efficiency. Within the renewable energy and solar rooftop businesses, energy use associated with operations and maintenance is minimized through improved logistics planning and streamlined maintenance schedules. At Combined Heat and Power (CHP) plants, overall energy utilization is enhanced by maximizing the benefits of co-generation and increasing the adoption of alternative fuels. Meanwhile, Combined Cycle Gas Turbine (CCGT) plants contribute to efficient and reliable power supply by offering high-efficiency generation with operational flexibility to respond to fluctuations in electricity demand.
To track performance, the Company monitors total energy consumption intensity as a key indicator of operational efficiency. In mining business, total energy consumption intensity was 0.473 GJ/tonne coal, which remained above the target threshold. This result reflects ongoing operational challenges and highlights areas for further efficiency improvement. In contrast, the thermal power business achieved a total energy consumption intensity of 2.56 GJ/MWh, successfully meeting the target. This performance demonstrates effective energy management and optimization of power generation processes. Overall, the results underscore the Company’s continued focus on improving energy efficiency, with targeted actions to enhance performance across all business segments.
Internal Carbon Pricing
Banpu applies internal carbon pricing in the assessment of new business investments to support the identification and evaluation of climate‑related risks and opportunities. Carbon price assumptions are differentiated by the geographic location of operations, with internal prices ranging from USD 1-23 per tonne of CO2e. These prices are used as reference inputs for sensitivity analysis and investment screening, and are periodically reviewed against external carbon market developments and climate‑related scenario assumptions to support decision‑making under uncertainty. The internal carbon prices do not represent a forecast of future regulatory carbon price levels.
Year in Review
In 2025, Banpu made significant progress in advancing our climate mitigation strategy, reinforcing the Company’s commitment to reducing greenhouse gas (GHG) emissions and supporting global decarbonization efforts. During the year, we strengthened GHG emissions accounting across all operations to ensure data accuracy and transparency. Building on this, we announced the next climate target period for 2026–2030, setting ambitious goals that align with global climate objectives and the Paris Agreement.
To achieve these targets, Banpu developed a Decarbonization Roadmap that outlines strategic pathways for emissions reduction through operational efficiency improvements, renewable energy adoption, and deployment of innovative technologies such as Carbon Capture and Storage (CCS). This roadmap serves as a strategic framework for prioritizing investments and actions that can deliver measurable climate outcomes. In parallel, the Company conducted an assessment of GHG emissions outlook under multiple scenarios to anticipate climate-related risks and opportunities. Besides, we developed a Decarbonization Playbook, a practical guide for implementing emission reduction measures and clarifying roles and responsibilities across business units.
In 2025, the Company demonstrated strong performance in reducing GHG emissions intensity across both the mining and power businesses. In the mining business, GHG emissions intensity decreased by 22%, significantly exceeding the target reduction of 7%, while the power business achieved a 38% reduction compared with the target of 20%. These achievements reflect continuous improvements in operational efficiency, energy management, and emissions control measures.
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