Climate Change Data

FNS Holdings Public Company Limited

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

ESG Focus Areas

  • Environmental Sustainability
  • Social Sustainability
  • Corporate Governance

Environmental Achievements

  • Installed particle counters and ceiling air purifiers in all working areas to improve air quality and reduce employee sickness.
  • Implemented measures to reduce waste and toxic substances, such as a campaign to reduce plastic, foam, and paper in toilet bowls.

Social Achievements

  • Provided reasonable remuneration and benefits to employees, exceeding legal requirements.
  • Supported employee capacity building through training and development programs.
  • Participated in a merit-making ceremony and donated to Wat Khao Sanam Chai Temple.

Governance Achievements

  • Reviewed and updated Corporate Governance Policy based on 2012 and 2017 Corporate Governance Codes.
  • Established various committees (Executive, Audit, Nomination, Compensation, Group Investment, Group Risk Management) to oversee specific issues.
  • Achieved a 99% score for its 2022 shareholders’ meeting and an “Excellent” rating for the Corporate Governance Assessment Program.

Climate Goals & Targets

Long-term Goals:
  • Building sources of sustainable and growing earnings at MK.
Medium-term Goals:
  • Proposed listing of NEO on the Stock Exchange of Thailand.
  • Significant growth driver in health and wellness business (3-year view).
Short-term Goals:
  • Sale of additional warehousing by MK to PROSPECT REIT.
  • Continued sales growth and improved profitability at Kanom.

Environmental Challenges

  • Slow economic recovery impacting revenues.
  • Increased competition in the residential housing market.
  • Ongoing losses at RX Wellness subsidiary.
  • Supply chain challenges and higher input costs affecting NEO's earnings.
Mitigation Strategies
  • Diversified revenue streams into industrial property development, hospitality, and food and beverage.
  • Boosted liquidity through land and asset sales.
  • Implemented cost reduction measures at MK.
  • Changes in RAKxa sales strategy and management changes.
  • Focus on growing HORECA business at FBF.

Supply Chain Management

Responsible Procurement
  • Focus on selecting appropriate business partners with fair treatment and competition.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Thai Financial Reporting Standards (TFRSs)

Third-party Assurance: KPMG Phoomchai Audit Ltd.

Awards & Recognition

  • 99% score for 2022 shareholders’ meeting
  • Excellent rating for Corporate Governance Assessment Program 2022

Reporting Period: 2023

Environmental Metrics

ESG Focus Areas

  • Environmental Sustainability
  • Social Sustainability
  • Corporate Governance

Environmental Achievements

  • Installed particle counters and ceiling air purifiers in all working areas to improve air quality and reduce employee sickness.
  • Used 16W LED light bulbs instead of 36W Fluorescent lights to save energy and reduce heat in the office.
  • Supported procurement from environmentally friendly suppliers.

Social Achievements

  • Provided reasonable remuneration and benefits to employees, exceeding legal requirements.
  • Supported employee capability enhancement and promoted a positive work environment.
  • Donated sports equipment to two schools in upcountry Thailand.
  • Organized merit-making activities for employees.

Governance Achievements

  • Reviewed and updated Corporate Governance Policy based on 2012 SET and 2017 SEC codes.
  • Maintained a Board of Directors with a majority of independent directors.
  • Established various committees (Executive, Audit, Nomination, Compensation, Group Investment, Group Risk Management) to oversee specific areas.
  • Implemented a code of conduct and operational manual for ethical business conduct.
  • Received a 93% score for its 2023 shareholders’ meeting performance.

Climate Goals & Targets

Long-term Goals:
  • Long-term sustainable growth and value creation for the group.
Medium-term Goals:
  • Significant growth in sales revenue at RX Wellness to curtail losses.
  • Potential for RAKxa to become an internationally recognized wellness brand.
Short-term Goals:
  • Improve sales performance of RX Wellness properties to reduce losses.
  • Complete asset sales to improve liquidity.

Environmental Challenges

  • Losses incurred in the wellness business (RX Wellness).
  • Pressure on MK's credit rating due to wellness business losses.
  • Sluggish demand for residential housing.
  • Liquidity risk due to increased current liabilities.
  • Breach of loan agreement by a subsidiary.
Mitigation Strategies
  • Restructuring plan approved by FNS and MK shareholders: FNS acquires RX Wellness, transfers real estate interests to MK.
  • Focus on sales and marketing to improve RX Wellness performance.
  • Continued asset monetization and focus on income-producing real estate assets (MK).
  • Rights offering to raise capital and improve liquidity.
  • Seeking credit lines from commercial banks and obtaining waivers for loan agreement breaches.
  • Considering the sale of several real estate development projects.

Supply Chain Management

Responsible Procurement
  • Supporting procurement from environmentally friendly suppliers.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Thai Financial Reporting Standards (TFRS)

Third-party Assurance: KPMG Phoomchai Audit Ltd.