Message from Chairman

Challenges from external factors... strengthening ourselves from within

In addressing the challenges throughout 2023, Ubon Bio Ethanol Public Company Limited and its affiliated companies encountered a volatile global economy marked by geopolitical conflicts and climate change, both of which inevitably impacted the trade supply chain and the global economic system. Additionally, the domestic economy experienced a slowdown due to external factors, particularly affecting the agricultural industry sector, which urgently needed to adapt to weather conditions, plant diseases, and damages from natural disasters. Therefore, the Company’s Board of Directors has prioritized establishing a robust foundation for supply chain management, optimizing resource utilization for maximum efficiency. Furthermore, the Company has embraced innovation through collaborative research and development efforts with external agencies possessing specialized expertise. These endeavors aim to formulate measures and policies addressing climate challenges, thereby enhancing business competitiveness, fostering the country’s economic growth, and promoting societal development. Particularly, these efforts aim to improve the quality of life and income for laborers, employees, and farmers.

Era of management during the energy transition period enhancing the sustainable business from its original potential

Currently, both government policies and global consumption trends reflect a transition towards sustainable energy sources, with the goal of avoiding the depletion of natural resources that are dwindling over time. It is crucial for the Company to prioritize innovation in replacing fossil fuel energy, driving development through research and development initiatives. This effort aims to increase business opportunities by creating high-value products that align with global market sustainability standards set by Management. The Company has established a goal and strategic plan for product development in collaboration with various partner research agencies, ensuring readiness for the energy transition period. This strategic drive is geared towards establishing a bio-based agricultural industrial business group that processes agricultural raw materials sourced directly from farmers. In addition to supporting the energy business, the tapioca starch industry group has a plan to upgrade its products to meet the needs of consumers. They aim to transform cassava starch from merely a food ingredient into one with desirable properties that can serve as functional ingredients.

Business operations strategies consistent with sustainability goals

Amidst the challenges posed by external factors, the Board of Directors has recognized and prioritized addressing the ensuing crisis. They remain vigilant in seeking new opportunities to sustain business operations. This includes maintaining a commitment to sustainability management, guided by the principle of balancing three key factors: profitability (Profit), environmental stewardship (Planet), and support for surrounding communities, society, and employees (People), all within the framework of good corporate governance. In terms of environmental issues, which are inevitably linked to business operations, the Company has established a goal of participating in creating a sustainable climate by reducing greenhouse gas emissions. The Company’s Board of Directors has required a review of the policy to align with the country's greenhouse gas reduction goals. This will commence with the implementation of internal processes, facilitating access to technology for development and effective technology transfer, as well as supporting the necessary and relevant resources to actively participate in managing climate change seriously. Meanwhile, the Company has continued to prioritize stakeholders through sustainable value creation, aiming to support all sectors in achieving common goals. Additionally, this year, Management has introduced the UBE CARE sustainability strategy to establish the foundation for the organization to demonstrate care for society and the environment, while also laying the groundwork for robust corporate governance.

Dedicated to upholding good corporate governance…enhancing the organization to meet international sustainability standards

With the dedication of the Board of Directors, management team, and all employees throughout the previous year, the Company achieved success by being ranked as a listed company with exemplary corporate governance, earning a 5-star rating or "Excellence" (Excellence CG Scoring) in the Corporate Governance Report of Thai Listed Companies (CGR) project by the Thai Institute of Directors (IOD) with the support of the Stock Exchange of Thailand (SET). This marks the Company's second consecutive year of evaluation in the project. Furthermore, the Company has been selected as a sustainable stock, achieving an SET ESG Ratings Level A, and has been certified for the renewal of its membership in the Thai Private Sector Collective Action Against Corruption (CAC) for the second time in 2023. Credit goes to the Management for implementing reliable criteria across all functions' work processes.

Laying the foundation for the future by seeking new opportunities amidst challenges

The Company remains committed to its goal of being one of the leaders in driving industrial agriculture in the production of clean energy and ensuring food safety, thereby raising the standard of cassava for Thai farmers. This commitment is upheld through investments in technology and innovation, working in collaboration with partner agencies, with innovation at the heart of the business strategy to meet customer needs and stakeholders' expectations across social and environmental dimensions. This is particularly crucial given the urgent need for environmental adaptation due to the uncontrollable factors of climate change. Additionally, the Company aims to become an organization that produces goods and manages production processes with the objective of sustainably reducing greenhouse gas emissions. In 2024, the Company reviewed its policy and tasked Management with taking serious action, incorporating internationally accepted evaluation criteria to promote UBE to become UBEYOND (U-B-YOND), surpassing the anticipated goals.