SET-listed Central Pattana (CPN) is planning to invest 10 billion baht from 2025 to 2029 in sustainability programmes, with 600 million baht allocated to green initiatives this year through Central Pattana Green Growth, its newly established subsidiary.
Naparat Sriwanvit, chief finance officer and president of hotel and office at CPN, said the five-year investment represents a significant increase compared to the 5 billion baht the company spent on social development over the past decade.
"The majority of this new investment will be directed towards both the development of new projects and the renovation of existing properties to meet green building standards," she said.
CPN established Central Pattana Green Growth in 2024 to serve as the main driver of its green initiatives, beginning with clean energy production. The company aims to achieve at least 70 megawatts of clean energy capacity by the end of 2025.
In 2024 the subsidiary supported the installation of solar roofs across CPN's properties, including shopping malls, office buildings, hotels and residential projects, and will continue this year.
At present, 60% of CPN's properties, primarily shopping malls, along with some office buildings, hotels, and common areas in residential projects, are equipped with solar roofs, generating a combined capacity of 68MW.
The 600-million-baht green budget for this year will be used to install solar roofs on the remaining 40%, with the final property scheduled for completion in 2026.
The next task for Central Pattana Green Growth will be to encourage residents at the company's residential projects to install solar roofs, following installations in the common areas of each project.
"We will seek new technologies and solutions to increase the use of clean energy, reduce energy consumption, and enhance energy efficiency, with the goal of cutting energy usage by 5-10%," Ms Naparat added.
To ensure long-term sustainability, the subsidiary must also be profitable, said Uthaiwan Anuchitanukul, CPN's head of excellence and sustainable development.
As a utilities company, its revenue will come from providing clean energy and energy-efficiency solutions.
Ms Uthaiwan said the subsidiary will support CPN in achieving its annual sustainability goals and reaching net-zero emissions by 2050, with a focus on reducing energy consumption and improving waste management.
"Spinning off Central Pattana Green Growth demonstrates CPN's strong commitment to sustainability, taking it beyond an internal unit," said Ms Naparat. "The subsidiary will also serve as a vehicle for co-investment with tech partners in the future, should compelling opportunities arise."
Ms Naparat added that the subsidiary will also play a role in helping CPN secure a greater proportion of green loans, which are expected to account for 60-70% of total borrowing over the next five years, up from around one-third at present.
CPN has secured around 20 billion baht in green loans, out of total borrowings of 60 billion baht, to support its overall five-year investment plan of 120 billion baht from 2025 to 2029.
Ms Naparat said green loans offer a lower cost of funds at about 0.1 to 0.2 percentage points below CPN's average rate of 3%. However, securing these loans is not easy, as it requires a clear framework and a variety of sustainability initiatives.
One such initiative is Better Futures, which CPN will host for the fourth year in a row.
The campaign will feature a roadshow promoting a renewable energy lifestyle called "RE" Lifestyle at its shopping malls in six provinces. This will cover Bangkok, Chiang Mai, Nakhon Sawan, Nakhon Ratchasima and Chanthaburi between May 19 and June 20. The final event will take place at Central Krabi, the country's first prototype sustainable mall, which is set to open in October this year.