Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Allocated a 45-million-baht budget to install solar roofs, reducing electricity cost by at least 10 million baht and cutting CO2 emission by 1.6 million kilograms (equivalent to CO2 absorption by 35,000 big trees per year).

Social Achievements

• Distributed 700,000 bottles of Sappe drinks worth 14 million baht to medical staff and people in need; donated 1,000 relief packages to homeless people; donated medical equipment to 7 hospitals; donated 40 tons of unused paper boxes for recycling and mask production.
• Successfully completed the 5th year of the "Wan Wan Wan" aloe vera project, generating approximately 200,000 baht per year in income for the community.
• Implemented the "Leader in Me" project at Ruamjit Prasart school, enhancing students' potential and changing the paradigm for teachers and parents.

Governance Achievements

• Received a certificate as a member of the Thai Private Sector Collective Action Against Corruption (CAC).
• Received a full score of 100% for the second year in a row from the AGM Checklist 2021, evaluated by the Thai Investors Association.

Climate Goals & Targets

Environmental Challenges

• Fluctuation of exporting cost due to the COVID-19 pandemic and container shortages.
• High competition in the beverage business.
• Investment in overseas subsidiaries affected by economic situations and consumer behaviors in foreign markets.
• High investment in launching new products.
• Cyber threats affecting IT systems and personal data.
• COVID-19 outbreak affecting distribution channels and economic growth.
• Fluctuation of foreign exchange rates affecting export revenue.
• Fluctuation of raw material prices (sugar and PET resin).
• Risk of not having own land for the factory.
• Risk towards investment of securities holders from major shareholders with management authority.
• Natural disasters (drought and flooding).

Mitigation Strategies

• Arranged sea freight service operators for customers to reduce exporting costs.
• Continuously creating and developing a variety of products and strengthening the brand.
• Careful consideration of relevant factors in investment decisions.
• Thorough research and development process for new products.
• Improving computer systems, promoting cyber security awareness, and establishing a data backup center.
• Shifting focus to online platforms and implementing O2O marketing strategies.
• Setting an adequate policy in making forward contracts to reduce the risk from exchange rate fluctuation.
• Closely monitoring material prices, analyzing price trends, and assessing demand.
• Lease agreements for factory land with rental rates in accordance with market rates.
• Establishing a management structure with knowledgeable and experienced persons and appointing independent directors.
• Conserving water in the rainy season and reserving water supply for production.

Supply Chain Management

Responsible Procurement

• Support procurement of raw materials from Thai farmers

Climate-Related Risks & Opportunities

Physical Risks

• Drought
• Flooding

Sustainable Products & Innovation

• Sappe Together hand sanitizing gel

Awards & Recognition

• Member of the Thai Private Sector Collective Action Against Corruption (CAC)

Environmental Metrics

ESG Focus Areas

• Business innovation for society and environment
• Good health and good living
• Alternative energy, improvement and development of ideas, goods and services

Environmental Achievements

• Reduced electricity usage from electricity authorities by approximately 2,795,844 kWh
• Changed bottle labels of all Sappe products from PVC to 100% PET
• Developed packaging process in line with circular economy
• Installed ‘Solar Floating’ on wastewater treatment pond and Solar Rooftop on factory roof

Social Achievements

• Wan Wan Wan project increased local residents' income by 39%, household income by 88%, and average monthly income per rai threefold
• Donated medical equipment to 13 community hospitals
• Organized 100 activities for employees to enhance potential and joy
• Employee turnover rate at the executive level was 1.38%, meeting the target of less than 5%

Governance Achievements

• Achieved a 5-star CG rating
• Renewed membership in the Thai Private Sector Collective Action Against Corruption (CAC)
• No violation of the company’s business code of conduct

Climate Goals & Targets

Environmental Challenges

• Intense competition in the beverage industry
• Fluctuation of foreign exchange rates
• Fluctuation of raw material prices (sugar, PET resin, coconut-based products)
• Geopolitical tensions impacting global trade
• Economic slowdown in major markets
• Climate change (droughts, floods)
• Cyber threats
• Risks related to not owning the factory land

Mitigation Strategies

• Continuous product innovation and diversification
• Brand strengthening
• Expansion of sales channels
• Foreign exchange forward contracts
• Price setting to cover exchange rate risks
• Advance locking of quantities and prices with suppliers
• Short-term contracts and raw material reserves
• Water management practices
• Drought emergency plan
• Cybersecurity investments and employee training
• Disaster Recovery Planning (DRP)
• Cautious operational approach and process improvement
• Lease agreement with significant shareholder group

Supply Chain Management

Supplier Audits: Quarterly audits by P&L Corporation Co., Ltd.

Responsible Procurement

• Prioritizes partners with environmentally friendly practices and ethical business conduct
• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Droughts
• Floods

Transition Risks

• Stricter environmental regulations

Opportunities

• Development of energy-efficient products and processes
• Use of renewable energy

Reporting Standards

Frameworks Used: GRI, ISO 14064-1

Certifications: ISO 14001, FSSC22000, ISO22000, HACCP, GHPs, HALAL CICOT, HALAL MUI, KOSHER

Third-party Assurance: KPMG Phoomchai Audit Ltd.

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 12 (Responsible consumption and production)
• Goal 8 (Decent work and economic growth)
• Goal 3 (Good health and well-being)
• Goal 13 (Climate action)

Initiatives contribute to these goals through renewable energy use, waste reduction, ethical labor practices, health-focused products, and climate change mitigation

Sustainable Products & Innovation

• Products with eco-friendly packaging
• Renewable energy utilization

Awards & Recognition

• Numerous awards for brand performance and sustainability initiatives (over 20 in 2023)