Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Responsible Sourcing
• Social Responsibility
• Good Governance

Environmental Achievements

• Achieved the highest category in Canopy’s Hot Button for the last 2 years, indicating low-risk sourcing for wood/pulp.
• Adheres to EU BAT guidelines for viscose/modal fibre production and completed re-certification.
• Achieved ISO 50001:2018 certification for energy management systems.
• Received “Halal Certification” for viscose fibre, sodium sulphate, and sulphuric acid production.

Social Achievements

• Undertook CSR activities to the plaintiffs and class members in a settled class action lawsuit.
• Various measures have been taken to help employees, customers, and communities and society (details in the report).
• Actively involved with local community in the implementation of various CSR projects.

Governance Achievements

• Good corporate governance supports the sustainable growth of the Company.
• Corporate Governance Policy and Code of Business Conduct are reviewed and revised annually.
• Established an Audit Committee comprising members who are not from management to verify the financial reports and internal control systems.

Climate Goals & Targets

Environmental Challenges

• Challenges of low prices for other kinds of fibres due to subdued demand and competition.
• High VSF inventory across the textile value chain, while capacity utilization remained low.
• Low retail demand, high cost of logistics, and lead time normalization due to high inventory pile-up.
• Temporary idling of AV Terrace Bay Inc. (AVTB) plant operations due to prevailing market conditions.
• Impairment loss of investment in AVTB and provision for AVTB’s outstanding liabilities.

Mitigation Strategies

• Consistent policy of buying most of its pulp on long-term contracts and sulphur requirement on monthly spot basis and caustic soda requirement on monthly basis under long-term contract.
• Additional equity injection of CAD 15 Million in AVTB to meet urgent payment obligations.
• Providing funding by way of equity or preference shares to AVTB.
• Continuous focus on operational efficiency and increased production of nonwoven and other fibres with sustainability credentials.

Supply Chain Management

Responsible Procurement

• Strict controls on wood sourcing from sustainably managed forests.
• Suppliers asked to follow ZDHC Manufacturing Restricted Substance List (MRSL).

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Thai Financial Reporting Standards (TFRSs)

Certifications: ISO 9001, ISO 14001, ISO 45001, ISO 50001:2018

Third-party Assurance: KPMG Phoomchai Audit Limited

Sustainable Products & Innovation

• Birla Modal
• Birla Purocel
• Livaeco

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Lawsuit filed by 118 people in Ang Thong Province due to release of Carbon Disulfide and Hydrogen Sulfide, causing damage.
• Class action case filed in Ang Thong provincial court in August 2018 due to odors and health impacts from chemical release.
• Lawsuit filed by a third group of people and another person for damages due to release of chemicals.

Mitigation Strategies

• Installed caustic scrubbers and an activated carbon adsorption system for CS2.
• Settled class action case through court mediation in July 2023, agreeing to conduct CSR activities totaling Baht 17.90 million over 10 years.
• Submitted petitions under section 222/18 of The Civil Procedure Code requesting the court to dispose of the third lawsuit.

Supply Chain Management

Responsible Procurement

• Pulp purchase agreements with related overseas company and unrelated overseas company.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Thai Accounting Standard (TAS) No. 34 Interim Financial Reporting

Third-party Assurance: KPMG Phoomchai Audit Ltd.