Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability
• Corporate Governance
• Social Responsibility
• Environmental Responsibility

Environmental Achievements

• Reduced CO2 emissions and indirect projects (e.g., solar roof, improved water treatment for reuse, improved production processes to reduce energy consumption)
• Implemented 3R waste disposal (Reduce, Reuse, Recycle)

Social Achievements

• Received numerous awards for sustainability and corporate social responsibility from organizations like the Stock Exchange of Thailand and Thaipat Institute
• Implemented various community development projects (e.g., children's projects, religious charities, environmental projects, underprivileged support)
• Adherence to Thai Labour Standard Certification (TLS.8001:2010)

Climate Goals & Targets

Environmental Challenges

• Increased competition in the cosmetics industry due to economic volatility and changing consumer behavior
• Fluctuation of exchange rates
• Uncertainty in raw material prices
• Demand for innovative and green products
• Supply chain management (timing and flexibility)

Mitigation Strategies

• Expansion of client bases both locally and overseas
• Increasing sales volumes of smaller customers
• New product development
• Green product innovation
• Development of consumer data collection and analysis systems
• Improved supply chain efficiency through technology and process improvements

Supply Chain Management

Responsible Procurement

• Screening of trading partners based on compliance with laws, safety standards, and environmental friendliness
• Encouraging partners to develop processes that respect human rights and avoid forced labor

Climate-Related Risks & Opportunities

Physical Risks

• Climate change (natural disasters)

Reporting Standards

Frameworks Used: GRI (G4 Guidelines)

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 22716:2007 (Cosmetic GMP), Halal certification, Thai Labour Standard Certification (TLS.8001:2010)

Third-party Assurance: EY Office Limited

Awards & Recognition

• Highly Commended Sustainability Excellence Award 2019
• Thailand Sustainability Investment Award 2018
• ESG100 Certificate from Thaipat Institute

Environmental Metrics

ESG Focus Areas

• Economic
• Environmental
• Social
• Governance

Environmental Achievements

• Reduced energy use by more than 50%
• Reduced CO2 emission by 5,363 Ton CO2
• Reduced industrial waste to landfill to 1% of total garbage (8,134 kg)

Social Achievements

• Donated food and medicine worth over 4 million baht to children, the underprivileged, medical personnel and hospitals, including animals in need.
• Employee Engagement Score > 70% Result = 84.83%
• Number of labor complaints = 0
• Number of human rights complaints = 0

Governance Achievements

• Good governance evaluation Result IOD : 91%
• Corruption complaint is Result : 0
• Renewed membership in the Thai Private Sector Collective Action Coalition Against Corruption

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact on the economy
• Supply chain disruptions due to the COVID-19 pandemic

Mitigation Strategies

• Conducted business under sustainability practices, prioritizing all stakeholder groups.
• Implemented enterprise-wide risk management and revised contingency plans against COVID-19.
• Developed alternative sourcing strategies
• Used technology for training, assessment, and communication.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct and Guidelines
• Selection of trade partners based on sustainability criteria
• Cooperation on Green Packaging

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4

Certifications: ISO 45001:2018, SMETA (SEDEX) version 6.1, RSPO

UN Sustainable Development Goals

• Goal 1
• Goal 2
• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 14
• Goal 15
• Goal 16
• Goal 17

The company aligns its operations with the UN Sustainable Development Goals through various projects and initiatives.

Sustainable Products & Innovation

• Clean & Green Beauty products
• Eco-friendly packaging
• Coral-safe sunscreen

Awards & Recognition

• Honorary plaque for “Best Organization with Disability Employment”
• GP (Good Point) certification by TUV Nord Thailand for “PPE Culture”
• Silver Level award from Thailand Institute of Occupational Safety and Health (T-OSH) for Zero-Accident Campaign

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced greenhouse gas emissions by 1,068 Ton CO2 (Scope 1) and 4,188 Ton CO2 (Scope 2) in 2022.
• Reduced electricity usage per product by 10.7% from 2020.
• Reduced water usage per product by 6.25% from 2020.
• Increased renewable energy share to 96% in Sriracha factory.
• Reduced landfill waste to 0 since 2021.
• Reduced paper usage by 19% compared to 2020.

Social Achievements

• Developed the Leadership Program, including Growth Mindset & Greenversation courses.
• Developed knowledge/personal skills at leadership and operational levels.
• Achieved 82% Employee Engagement score (target >80%).
• Zero complaints for human rights violations.
• Implemented 17 corporate social responsibility projects.
• Achieved 97% community satisfaction.

Governance Achievements

• Operates under good corporate governance principles.
• Received the Outstanding Sustainability Award for the fifth consecutive year from the Stock Exchange of Thailand.
• Implemented anti-corruption training for all employees and 77 business partners.
• Zero complaints for corruption.

Climate Goals & Targets

Environmental Challenges

• Global economic slowdown.
• Rising crude oil prices affecting production costs.
• Russia-Ukraine crisis causing raw material shortages.
• Inflation impacting sales.
• Supply chain disruptions due to COVID-19.
• Changes in consumer behavior.

Mitigation Strategies

• Agile management and team agility to handle changes.
• Adjusted business strategy to increase competitiveness.
• Analyzed information to adjust work plans.
• Six-month advance purchase of sunflower oil-based raw materials.
• R&D efforts to find alternative sourcing strategies.
• Diversification of markets and products.
• Improved SAP HANA system and cybersecurity measures.
• Established a Personal Data Protection Working Group.
• Strategies to purchase raw materials and manage inventory efficiently.
• Contracts with shipping companies to reduce transportation costs.

Supply Chain Management

Supplier Audits: Annual audits of key suppliers.

Responsible Procurement

• Supplier Code of Conduct and Guidelines
• SEDEX SMETA certification
• Thai Labor Standard certification
• Anti-corruption declaration of intent

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, UN Sustainable Development Goals (SDGs)

Certifications: ISO 9001, ISO 14001, ISO 45001, ASEAN GMP, ISO 22716, HALAL

Third-party Assurance: Thailand Greenhouse Gas Management Organization (TGO)

Sustainable Products & Innovation

• Green Formula Products
• Coral safe products
• RSPO certified palm oil products
• Vegan products
• PEG-free products
• SLES-free products
• Talc-free products

Awards & Recognition

• Outstanding Sustainability Award (Stock Exchange of Thailand)
• Various awards for innovative products (Makeup in New York, Marie Claire UK Skin Awards, etc.)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Power consumption per product unit decreased by 10% compared to 2020
• Greenhouse gas emissions (Scope 1+2) decreased by 5.36% in 2023
• Achieved Carbon Footprint of Organization certification
• Increased usage ratio of electricity from Solar Cell (SJI1) to 100% during the daytime

Social Achievements

• 15 community development projects completed
• Employee Engagement Score > 80%
• Received “Excellent Support Organization for People with Disabilities for the year 2023” award

Governance Achievements

• Received “Excellent” appraisal result in 2023 for corporate governance from the Thai Institute of Directors (IOD)
• Received a full score of 100 from the assessment of the quality of the 2023 Annual General Meeting of Shareholders (AGM Checklist) from the Thai Investors Association
• Passed the 3rd certification renewal assessment from the Private Sector Collective Action Coalition Against Corruption Council (CAC)

Climate Goals & Targets

Environmental Challenges

• Fluctuations in the global economy
• Geopolitical conflicts
• Rapid changes in weather conditions
• Rising energy prices
• Supply chain disruptions
• Slowdowns in investment
• Increased business costs
• Inflation
• Decrease in consumer demand and purchasing power
• Increased competition in the cosmetics market

Mitigation Strategies

• Reviewed and monitored existing risks and analyzed additional new risks
• Managed income and expenses in the same currency (Natural Hedge)
• Protected against exchange rate fluctuations by entering into forward foreign exchange contracts
• Followed up with trading partners and customers to assess the impact of the economy
• Expanded customer base domestically and internationally
• Created additional new product groups
• Developed innovative products
• Set sales and profit targets as indicators and had a continuous monitoring plan
• Developed additional strategies to reach new customers
• Established a plan to enhance the SAP S/4 HANA system
• Upgraded cyber security system
• Established a personal data protection working group
• Set a strategy to purchase raw materials that are commonly used
• Found new sources of raw materials in Asia
• Secured a contract with a shipping line company for exported goods
• Complied with environmental and labor laws
• Established an environmental policy
• Expanded the scope to business partners, with inspections scheduled annually

Supply Chain Management

Supplier Audits: Annual inspections

Responsible Procurement

• Selection and procurement of raw materials are based on quality and reasonable price
• Encourages partners to develop a process that takes regard to human rights, not using forced labor and regard to children rights
• Offering products and service that take into consideration the environmental impact and the safety of consumers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI (G4 Guidelines)

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, ISO 22716:2007, Halal, RSPO, CGMP, Carbon Footprint of Organization

Third-party Assurance: V Green KU Company Limited

UN Sustainable Development Goals

• Good health and well-being
• Quality education
• Gender equality
• Reduced inequalities
• Life on land
• Life below water
• Peace, justice and strong institutions

The company's CSR initiatives align with these SDGs

Sustainable Products & Innovation

• Green Formula Product
• Green Packaging

Awards & Recognition

• Thailand Sustainability Investment 2023
• HWB Award 2023
• SET ESG Rating level “AA” of year 2023