NEO and it's subsidiary recognize the critical importance of risk management as an essential component of corporate governance. It plays a vital role in driving the Company’s growth and business expansion in a stable and sustainable manner. Additionally, it ensures a strong financial position and generates appropriate returns for shareholders, while adhering to best practices in governance, including effective checks and balances. In the rapidly changing competitive business environment that the Company currently faces driven by both external and internal factors—there may be significant effects on it's ability to achieve it's goals and core mission.
NEO recognizes the importance of balancing business growth with environmental and social responsibility and is dedicated to contributing to the United Nations’ Sustainable Development Goals (SDGs) and the Bio-Circular-Green Economy (BCG) model, which has been declared a national agenda. In addition, the Company acknowledges the significance of human rights issues in it's business operations and places great importance on stakeholders along it's entire value chain who may be affected by the Company’s activities. To address sustainability comprehensively across the environmental, social, and governance (ESG) dimensions, the company has established NEO ESG framework to manage ESG risk.
For further information, please refer to the Risk Management Policy
The internal control framework for the Company and it's subsidiary has been continuously enhanced and refined across five key components, following the guidelines established by The Committee of Sponsoring Organizations of the Treadway Commission (COSO), for risk management. The Board of Directors and management prioritize managing risks to an acceptable level while preparing for changing circumstances and emerging risks that may affect business operations, such as economic conditions, oil price fluctuations, political situations, and government or regulatory policies. The company regularly assesses various risk factors related to it's business operations. Additionally, a risk management task force has been established to report directly to the Audit Committee. The Audit Committee is responsible for setting risk management policies and strategies in alignment with good governance practices. The Committee also oversees the monitoring of risk management systems and processes, ensuring they are consistent with the Company’s strategic goals and objectives.
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Risk Level Determination
For further information, please refer to One-report 2025 (p.73-82)
As the Company has not established a Risk Management Committee, the Audit Committee oversees the Company’s risk management to ensure effectiveness and alignment with the Company’s objectives. A Risk Management Working Team, comprising representatives from central functions and each department and chaired by Ms. Nissara Thakolsri, a Director of the Company, supports the risk management process by monitoring and managing key enterprises and functional risks. Relevant risk matters are reviewed quarterly and submitted to the Audit Committee for consideration.
- ESG risks
NEO has established a Sustainability Committee to provide oversight into key sustainability matters, including the governance of environmental, social, and governance (ESG) risks, monitor progress, and continuously provide policy-level recommendations to management. The Company also integrates sustainability concepts and practices into it's operational processes and corporate culture on an ongoing basis.
The Company will review the Code of Conduct and Business Ethics every 2 years to ensure that it is appropriate for the changing business circumstances and environment.
For further information, please refer to the Code of Conduct and Business Ethics.
NEO have prescribed the Whistleblowing Policy to provide protection and fairness to the employees who provide information or report their clues relating to corruption or noncompliance with laws, regulations.
For further information, please refer to the Whistleblowing Policy.
During the year, NEO had no ESG-related disputes or complaints; accordingly, no provisions for related expenses were recorded.
As part of it's ongoing commitment to good corporate governance and regulatory compliance, NEO conducts regular tender processes for the appointment of the external auditor in accordance with the Company’s Policy. This practice reflects the Group’s dedication to transparency, integrity and independence. In addition, the Company carries out regular auditor rotation in compliance with relevant regulatory requirements.