Environmental and Social Policy
No. 1 / 2025
Xekong 4 Power Company Limited has been committed to operate our business with sustainable scheme by balancing viable business, social responsibility and environmental sustainability. The Company highly ensured the compliance with the environmental and social standards and regulations required by Concession Agreement (CA). The Company pledges to contribute to Lao PDR’s Green Growth by adhering to international standard, operating environmentally friendly-socially responsible practices, and fostering sustainable impacts. The Company is confident that the commitments to higher environmental and social will not only keep risks manageable but also add the values of our operations that are geared towards positive impacts on society and minimized impacts on the environment. The Company aims to enhance the environmental and social management approaches, realizing the significance of environmental and social issues to the Company’s principal business. The Company will constantly and thoroughly review and improve the Company’s efficiency concerning environmental and social operations, in light of significant changes to the context of its organization or business.
Scope
The Company’s Environmental and Social Policy is the framework and guidelines for business operations and the execution of all work processes and activities. The Company also supports and encourages business partners, suppliers and other relevant parties in the supply chain to operate with concerns about society and environment and follow or apply the policy in their operations, as deemed appropriate.
Role and Responsibility
All executives and employees are obliged to follow this policy as appropriate in all work procedures including; identification, assessment, management, monitoring, impacts and likelihood of risks; the goals setting of environmental and social operations.
Governing
This policy was approved by the Board of Directors tasked to oversee the operations of all aspects of sustainability encompassing environment, society and governance. The reporting on the performance of environmental and social operations is required while this policy shall be reviewed constantly and thoroughly in alignment with circumstances, legislation and applicable standards.
Guidelines
The Company sets forth the guidelines for relevant environmental and social aspects as follows:
Environmental aspects
The Company fully upholds and follows national legislation and environmental standards accepted in the industry, national and international levels as well as relevant environmental management measures to ensure the compliance and performance meets the requirements.
The Company’s operations emphasize the management of environmental impacts caused by the Company’s product and service production process and business activities. This entails the efficient use of resources as raw materials in the production process, energy and water; reduction of greenhouse gas emissions, air pollutants, wastewater and all types of waste; avoidance/reduction of hazardous chemicals and safe handling; and other issues significant and necessary to the business. The targets are set for environmental impact reduction along with corrective measures which at least meet legal requirements. The greenhouse gas emission reduction target is set, to achieve continuous improvement.
The Company promotes and supports sustainable supply chain and the sourcing of environmental-friendly products and services as well as environmental innovations that can reduce environmental impacts and assist the Company’s and national targets on greenhouse gas emission reduction.
The Company pledged to prevent deforestation and promote the conservation and rehabilitation of natural resources, forests and biodiversity, for protection and preservation of the sustainable ecological balance.
Social aspects
The Company upholds and respects the legislation and principles on human rights as well as the local norms, values, traditions and cultures of the host countries where the Company invests and operates.
The Company is committed to fair and equitable labor practices as stated in the international declaration on human rights and at least follow the rules /requirements of labor laws of each host country covering key relevant issues; fair and non-discriminatory employment, zero child labor, zero forced labor, zero illegal labor, and remuneration and working hours set as required by law.
The Company gives importance to the safety, occupational health and work environment of employees, suppliers and stakeholders, to prevent the loss of life and property; and promotes consultation process on employees’ safety and occupational health as well as training to create an internal safety culture.
The Company places concerns about community’s safety and health, by ensuring product safety and protection of community’s safety and health from the impacts caused by the Company’s project construction and demolition activities and waste.
The Company promotes community engagement and emphasizes communications with community for living together as “a good neighbor”. The Company also provides a dialogue about operational performance and environmental/social issues with relevant stakeholders to meet their expectations; ensure transparent and accountable information disclosure to all stakeholder groups; and promotes knowledge on the environment, safety and health for the strengths of community and sustainable improvement of their quality of life.
The Company respects the rights of indigenous people and avoids conducting business activities on the land that may lead to involuntary resettlement. If this is unavoidable, the Company prescribes compensation and remedial measures to ease the relocation impacts, taking into account legal requirements and fairness. The Company is committed to improve their quality of life and promote community engagement through supports to the preservation and restoration of their traditional culture for sustainable existence.
Compliance
The Company prepares the environmental and social management system and integrates it into the operations. The system’s practicality is constantly reviewed, monitored and assessed, to further improve the efficiency of the Company’s environmental and social operations.
The Company will announce and communicate this policy to executives and employees at all levels, for their acknowledgement and understanding in the Company’s environmental and social operational guidelines. Internal training will be organized to raise awareness in the impacts of environmental and social operations and bolster behavioral competency in environmental and social accountability so as to establish corporate values.
The Company is set to constantly review the environmental and social performance and targets, for enhancement and improvement of operational efficiency and effective target achievement. The performance will be disclosed to stakeholders on a regular basis.
The Company will follow this policy in executing environmental and social activities along with the guidelines in the Code of Conduct concerning community, society and the environment and the Human Rights Policy. This will ensure the comprehensive coverage of significant aspects, shared value for stakeholders and positive impacts on the environment.
The Company communicates this policy to business partners, suppliers and other stakeholders in the value chain and states its intention that all stakeholder groups shall be aware of and give importance to the management of environmental and social issues as well as operate accordingly to the Company’s Environmental and Social Policy.