Commitment, Challenge and Opportunity

CH. Karnchang acknowledges the potential risks associated with the construction and infrastructure development industry, including machinery-related accidents, pressure from tight deadlines, and health concerns among employees and contractors.

To mitigate these risks, we foster a safe working environment, strictly comply with all relevant regulations, conduct regular training sessions, assess potential hazards, and implement stringent safety measures. Additionally, we are committed to transparency in reporting safety performance and continuously improving safety protocols through rigorous monitoring and evaluation. These efforts are aimed at enhancing employees’ quality of life and reinforcing sustainability within our organization

Supporting the SDGs Goals

Goal 3:
Good Health and Well-being
Goal 8:
Decent Work and Economic Growth

Stakeholders Directly Impacted

Employees and contractors
expect a safe and well-maintained work environment, along with appropriate safety measures, to enhance efficiency while minimizing workplace hazards. This, in turn, contributes to greater job satisfaction and improved work performance.

Goals and Performance Highlights

Performance Highlights
Total working hours:
hours per year
with zero lost-time injuries.
Employees and Contractors = 0.11
Employees =
Case
Contractors =
Case
Employees and Contractors = 2 Case
Employees =
Case
Contractors =
Case
Number of employees trained in occupational health and safety standards
employees

Management and Operational Approach

Through the Occupational Health and Safety Policy, CH. Karnchang is committed to ensuring the safety and occupational health of all personnel and stakeholders, including contractors and external partners.

It enforces a comprehensive safety policy that applies to every operation, from construction projects to headquarters activities. Safety considerations are systematically integrated into work plans to align with established standards, supported by thorough Occupational Health and Safety (OHS) risk assessments at every stage of operations, including new projects. To strengthen its safety culture, the company organizes awareness activities, conducts training sessions, and provides educational resources to enhance understanding of proper safety measures.

Compliance with laws, regulations, and international standards on safety, occupational health, and working conditions is a core principle. The company aims to protect lives and health while minimizing community impacts such as noise and dust from construction. Preventive measures include quarterly risk assessments, provision of personal protective equipment (PPE), machinery inspections, and ongoing safety training programs. In the event of incidents, corrective actions are implemented through accident reporting and investigation systems, medical treatment and compensation, and continuous improvement based on lessons learned. Oversight is provided by the Health and Safety Committee, which ensures effective safety management across all projects.

CH. Karnchang is committed to achieving Zero Accidents by continuously enhancing its occupational health and safety practices. The company has set a target to maintain an accident rate of no more than 0.2 per 200,000 work hours for both employees and contractors, using 2023 as the baseline year. To achieve this, it conducts comprehensive risk assessments, implements robust control measures, and regularly reviews safety policies to align with evolving industry standards. Furthermore, the company adheres to ISO 9001:2015 quality management principles and maintains a Business Continuity Plan (BCP) to ensure operational resilience during emergencies such as natural disasters or pandemics.

To reinforce governance, CH. Karnchang has established a Health and Safety Committee. The committee comprises 11 members, including the Chairman (Project Manager), five supervisory-level members, six operational-level members, and a Secretary (Professional Safety Officer). Weekly meetings are held to review safety management and workplace health measures. Additionally, a dedicated emergency response unit consisting of safety officers, construction managers, and project managers coordinates with external agencies such as hospitals, police stations, and emergency hotlines. This team is responsible for risk assessment and implementing occupational health and safety controls to maintain a secure working environment.

Occupational Health and Safety Policy

Occupational Health and Safety Policy

Laws and Relevant Standards

CH. Karnchang ensures full compliance with relevant Thai laws and regulations regarding employee and contractor safety as follows:

  1. Ministerial Regulation on Occupational Safety, Health, and Environmental Standards in Construction Work, B.E. 2551 (2008).
  2. Occupational Safety, Health, and Work Environment Act, B.E. 2554 (2011).
  3. Ministerial Regulation on Occupational Safety, Health, and Environmental Standards (No. 2), B.E. 2553 (2010).
  4. Ministerial Regulation on Occupational Safety, Health, and Environmental Standards for Machinery, Cranes, and Boilers, B.E. 2552 (2009).
  5. Ministerial Regulation on Occupational Safety, Health, and Environmental Standards for Confined Spaces, B.E. 2547 (2004).

Additionally, CH. Karnchang has established operational guidelines to prevent potential errors by implementing the ISO 9001:2015 standard for quality management system. This system ensures compliance with operational standards across various construction projects and the head office, covering the company’s core business activities. Furthermore, the company group has developed a framework for personnel development, focusing on enhancing knowledge, skills, ethics, and accountability to the organization and stakeholders. These measures aim to mitigate and prevent potential risks that could negatively impact operations.

CH. Karnchang also complies with the National law of Laos and local standards of Occupational Health and Safety, where the operational site is located, which includes; Labor Law 2014, IFC Environmental Health and Safety Guidelines, IFC's Performance Standard 2 : Labor and Working Conditions, and IFC's Performance Standard 4 : Community Health, Safety and Security.


Employee Health and Safety Measures

CH. Karnchang has implemented a proactive strategy to prevent and minimize workplace risks by developing an Operations Manual and a Health & Safety Management Plan aimed at safeguarding the well-being of employees and contractors.

These measures encompass risk management for work-related hazards, as well as preventive and response strategies for incidents such as disease outbreaks. The company also ensures compliance with safety regulations related to construction sites, confined space work, and machinery operation to maintain a safe working environment that aligns with industry standards. In response to disease outbreaks, CH. Karnchang conducts daily worker screenings and has installed cleaning stations along with informational signage to promote preventive measures. These efforts are designed to prevent the spread of disease at the company’s construction sites.


Occupational Health and Safety (OHS) Risk Assessment

At CH. Karnchang, we prioritize the assessment of occupational risks for both employees and contractors operating on-site. We conduct risk assessments for all ongoing (Existing) projects as well as upcoming (Potential) projects, calculating risk scores based on the Likelihood of occurrence and Severity of impact. Our assessment framework employs a comprehensive evaluation method covering critical aspects such as risk factors, probability, impact, and mitigation measures. This process spans the entire value chain of our construction and infrastructure development businesses. Assessment results, along with corresponding risk reduction strategies and mitigation initiatives, are consolidated into a quarterly risk management report for executive review and approval. Project managers, employees, and partners are informed of the findings and take appropriate actions to reduce risks, enhance workplace safety, and optimize operational efficiency.

Guidelines for Preventing and Reducing Risks
Guidelines for Preventing and Reducing Risks

Construction accidents are a common risk factor in the industry. To mitigate these risks, CH. Karnchang has implemented strict occupational health and safety measures in the workplace. Project managers and workers are required to adhere to the following guidelines : (1) Safety planning, (2) Compliance with the safety plan, (3) Regular safety inspections, and (4) Continuous safety improvement. These measures are outlined in the company’s Occupational Health and Safety Policy

In the 2025 occupational health and safety risk assessment of the work environment, covering both CH. Karnchang employees and contractors, it was determined that the overall risk level at each construction site remains low. The likelihood of accidents and the severity of potential impacts were rated at levels 4 and 1, respectively, according to the company’s risk assessment framework. These findings reflect an aggregate evaluation across all construction sites. Nevertheless, CH. Karnchang has reinforced its safety measures to further protect employees. The company now requires project managers, construction managers, the human resources department, and the legal department to collaborate in overseeing safety inspections conducted by experienced professionals at every stage. These inspections will be carried out in full compliance with CH. Karnchang’s occupational health and safety guidelines ensure 100% coverage across all construction sites.


Approach to Accident Prevention and Risk Reduction

Construction-related accidents are a common operational risk. To effectively manage and mitigate these risks, CH. Karnchang has established the Occupational Health and Safety and Working Environment Committee. This committee oversees occupational health and safety for employees and contractors by developing clear policies for accident prevention, workplace hygiene, and overall safety measures. These efforts include comprehensive planning, execution, and detailed inspections to ensure a safe working environment. Additionally, the company implements safety measures tailored to specific job requirements, ensuring all personnel operate under secure conditions.

Approach to Accident Prevention and Risk Reduction

Additionally, the company is committed to continuously enhancing its safety plans by improving standards and fostering a strong culture of safety. It prioritizes thorough and regular inspections and analyses of work processes while maintaining statistical records for performance benchmarking. An enterprise risk register is established, and emergency response plans are developed for construction project units. The company also implements protocols for monitoring and preventing infectious diseases in the workplace. Furthermore, various risk response drills are conducted, including accident victim evacuation drills from construction sites and fire drills with evacuation procedures. These efforts are aimed at ensuring readiness, aligning with established safety standards, and fostering a secure and reliable working environment.


Preventive Measures to Avoid Recurrence

To ensure that such incidents do not happen again in the future, the company has taken the following steps :


Fostering a Culture of Occupational Health and Safety within the Organization

CH. Karnchang is dedicated to fostering a strong culture of occupational health and safety across the organization. We actively promote workplace safety through various initiatives, including training programs, emergency drills, the dissemination of preventive measures, and encouraging employees to take an active role in enhancing safety processes. Additionally, the company prioritizes cultivating a safety-conscious mindset among employees at all levels as well as among business partners and contractors. We strive to ensure that everyone recognizes the importance of safety—both on an individual level and as part of a collective responsibility.

This safety culture is an integral part of our strategy to create a hazard-free work environment. Employees are well-informed and aware of potential risks, enabling them to avoid hazardous situations while contributing to efficient and sustainable operations through discussions on health and safety with worker representatives. The company regularly monitors and evaluates safety measures, committed to continuously improving them to adapt to future challenges. Our goal is to foster a long-term commitment to health and safety, ensuring a workplace that prioritizes the well-being of all employees.


Site Inspection and Audit by Third Parties

Inspectors
  • Fire Police Department
Detail

Schedule: Twice a year

Objective: For Inspection and Training


Inspectors
  • Lender Environment Social Advisor (LESA)
Detail

Schedule: Twice a year

Objective: For Inspection and Audit


Inspectors
  • Department of Energy Industry Safety and Protection (DESM)
Detail

Schedule: Twice a year

Objective: For Inspection


Inspectors
  • Insurance
Detail

Schedule: Twice a year

Objective: For Inspection


Inspectors
  • Provincial Environment and Natural Resources (Luang Prabang)
Detail

Schedule: ครั้งละปี

Objective: For Inspection

Target
Target Base Year Target Year Performance and progress for 2025
A total of at least 300,000 work hours completed continuously without any lost-time injuries. N/A Annually Total working hours: 18,069,168 hours per year
Zero work-related fatalities among employees and contractors N/A Annually Employees and Contractors = 0.11 Employees = 0.055 Contractors = 0.055 (The median performance benchmarking on LTIFR for the industry group is 0.65*).
อัตราผู้เสียชีวิตของพนักงานและผู้รับเหมาเป็นศูนย์ N/A Annually Employees and Contractors = 2 Case Employees = 1 Case Contractors = 1 Case
Number of employees trained in occupational health and safety standards 2023(202 people) -

OHS training: 8,009 employees

Number of employees trained in occupational health and safety standards in specific (topic or site) training on following activities General Training (covering OHS topics): 8,009 employees
Induction Training 6,831 persons
Firefighting and Fire Drill Training 1,507 persons
Confined Space Safety Training 853 persons
Crane Operation and Signaling Training 1,245 persons
Basic Life Support (BLS) Training 121 persons
*Comparing the average LTIFR based on the disclosed occupational health and safety performance data from STECON (2024 at 0.16), DL Construction (2025 at 1.30), Hyundai Engineering & Construction (2025 at 0.50), and HOCHTIEF (2024 at 0.66).
Performance and Results

In the past year, the company recorded the lost-time injury frequency rate (LTIFR) for both employees and contractors at 0.11 cases per 1 million working hours. However, in 2025, a contractor and an employee tragically lost their life in a work-related accident. In all cases of injury or fatality, CH. Karnchang conducts a thorough investigation to determine the cause and provides appropriate support and compensation to those directly and indirectly affected. Additionally, preventive measures are continuously implemented to reduce the risk of recurrence.

There were no accidents in the production process, nor were there any incidents leading to work stoppages (LTIFR).

Fatal accidents:

  • Employees: 1 cases
  • Contractors: 1 case
  • The total working hours in 2025 amounted to 18,069,168 hours.
  • Employees: 4,405,566 hours
  • Contractors: 13,663,602 hours