How does ThaiBev care for our environment and the entire value chain? By considering how we can reduce our impact through a variety of projects and innovations that protect, conserve or recycle the resources key to our product lines. We learn along the way, gaining wisdom and experience in order to achieve excellence.
ThaiBev is fully mindful of the impact that its expanding operations can have on the environment. As part of the Vision 2020 Strategy, ThaiBev has set an ambitious environmental target encompassing all aspects: water, energy, emissions, effluents and waste, in order to limit potential impacts from its operations and achieve sustainable growth for all stakeholders.
ThaiBev has set forth the Corporate Water Management Policy, Environmental Policy, and Sustainability Policy as guidelines to be adhered to by all employees and management in ThaiBev and its subsidiaries.
This ensures that ThaiBev’s environmental management is aligned across the Group, and is consistent with national and international laws, legislations, and standards. To ensure continuous operational excellence, ThaiBev regularly performs environmental audits of its operations according to ISO 14000 and ISO 50001 standards.
Such policies are reflective of ThaiBev’s commitment to managing impacts and protecting the environment for the benefit of present and future generations. At the same time, ThaiBev strives for continuous improvement across its entire value chain by implementing new technologies to improve efficiencies, managing risks from operations, and identifying opportunities that can deliver mutual benefits for business growth and environmental and social value. With this in mind, ThaiBev is furthermore fully supportive of the Thai Government’s commitment to the Paris Climate Agreement, COP21, and aims to be Thailand’s industry leader in reducing GHG emissions – in order to do its part in combatting global climate change.
Water is essential to human life, other natural resources, and vital to the Company’s own operations. Each year, as human populations continue to grow and climate change continues
to cause extreme weather events like droughts and floods, the issue of water management becomes increasingly important. Businesses in the agricultural and industrial sectors as well as residential communities are likely to be challenged by water scarcity as well as extreme events
such as floods. As a food and beverage producer that uses water as a primary ingredient in
the manufacturing process, ThaiBev has especially committed to applying sustainable water management practices across the value chain. Thus, risk management practices for water resources management are embedded in all of the operations so that ThaiBev can proudly
supply its customers with high-quality products that fulfill the customers’ needs of clean and safe drinking water, according to UN SDG 6. To fulfill this mission, ThaiBev has implemented the concept of “Achieving a Sustainable Balance for Water Resources Management”. This concept is guided by the principles of SEP, which informs ThaiBev’s strategies, decision making, and daily business operations. All ThaiBev’s businesses comply with its water resources management policy on water efficiency, and environmental and social impact minimization, and ThaiBev constantly applies new technologies to its business processes.
ThaiBev aims to reduce water withdrawal intensity from all water sources (hectoliter/hectoliter of Finished Goods) by 5% by 2020, in comparision with 2014. ThaiBev will employ the risk management framework to improve the water efficiency of ThaiBev’s manufacturing process, adopt technology and innovation to optimize ThaiBev’s water usage, and implement the 3Rs Principle (Reduce, Reuse, Recycle) as well as comply with ISO 14046 standard on ThaiBev’s water footprint.
ThaiBev also recognizes the importance of water issues for external parties and is focused on supporting the conservation and rehabilitation of natural ecosystems in accordance with UN SDG 14 and UN SDG 15. For example, ThaiBev joined Huai Hong Khrai Royal Development Study Center, Doi Saket District, Chiang Mai Province to help rehabilitate watershed forests and replenish the water used in ThaiBev’s manufacturing process through sustainable water resources management. ThaiBev also teamed up with the Kenan Institute Asia and local communities for short-term and long-term water development projects that include cleaning up surrounding canals.
ThaiBev uses the Global Water Tool to evaluate its water shortage risk in terms of quantity and quality. This tool assesses facility locations by comparing the facility’s water consumption rate with the surrounding community’s total population. In addition, ThaiBev conducts a Water Resource Review to monitor the volume of water consumption and the quality of water in each source and compare the data to ThaiBev’s production plan up until 2020. ThaiBev’s Risk Management Committee also employs the Enterprise Risk Management Tool for making decisions on investments and other activities. In 2016, examples include the development of ground water and surface water wells to expand its water storage facilities. Furthermore, ThaiBev’s facilities in high-risk zones have joined the Federation of Thai Industries for a groundwater management project. In addition, for the vinasse treatment, ThaiBev has replaced the thermal vapor recovery system with one using mechanical vapor recovery. This new technology allows ThaiBev to reduce the water used for cooling systems and evaporation by 30%. ThaiBev has also changed 132-kW water pumps to the 75-kW model to reduce water withdrawal volume.
The current water withdrawal better suits the production capacity and increases the water efficiency of ThaiBev’s operations.
In 2016, ThaiBev is assessing the water footprint and is currently expanding this water footprint assessment to products from all ThaiBev product groups.
Water withdrawal intensity was reduced by 0.949 hectoliter per hectoliter of Finished Goods (hL/hL FGs) or 12%, compared with 2014, resulting from improved water management. Furthermore, ThaiBev has implemented Total Productive Maintenance (TPM) and also improved the efficiency of production processes.
ThaiBev has put the 3Rs Principle into practice. The total volume of water that was reused and recycled represents 10.7% of total water withdrawal in 2016. For every action ThaiBev takes, these guiding principles are taken into account with the aim of reducing the volume of water withdrawal in ThaiBev’s manufacturing processes. The projects include:
King Bhumibol Adulyadej and Water Management
Few issues are as central to the legacy of His Majesty King Bhumibol Adulyadej as water management. Thailand commonly suffers from both drought and floods. This cycle means that there can be either too much water or too little, which makes effective water management extremely important. His Majesty the King dedicated his life to improve this situation across the country, in both urban and rural areas. The majority of his more than 4,400 royal initiated development projects were focused on irrigation, protecting watersheds, mitigating floods, and other water management projects. From these experiences, he developed his Sufficiency Economy Philosophy, which highlights the need for proper technology to be applied to create solutions that are sensitive to the environment and local communities, all in the name of economic progress. ThaiBev is inspired by His Majesty’s wisdom, virtues, and ideas and uses His Majesty’s vision to guide its own efforts to sensitively harness water resources in the name of all stakeholders.
ThaiBev has extensively assessed the quality and quantity of its water resources. In this regard, appropriate rules and regulations have been set forth accordingly to secure water availability in the future. Moreover, ThaiBev committed to minimizing the environmental and social impacts from the water used in ThaiBev’s manufacturing operations. Vigorous efforts have been invested in problem identification, root cause analysis, problem prioritization, and problem management. In addition, ThaiBev has identified issues that may arise from each stakeholder’s perspective, ranging from local communities, farmers, governments, to industrial estates. While measures are in place to tackle such issues, ThaiBev continues to have an inclusive dialogue on water resources management with ThaiBev’s stakeholders.
“… we need water to drink, for daily use, and for agriculture.Where there is water, we can survive. However, if there is no water, we will perish…”
His Majesty King Bhumibol Adulyadej
17 March 1986
ThaiBev recognizes the importance of the water cycle in preserving natural ecosystems so ThaiBev joined forces with various partners to rehabilitate the watershed forests and restore natural water cycles to assist with beach forest preservation, and to save the oceans for marine wildlife protection and aquatic ecosystem revival, according to UN SDGs 14 and 15.
ThaiBev has assisted Huai Hong Khrai Royal Development Study Center, Doi Saket District, Chiang Mai Province in the rehabilitation of forests, raising awareness of environmental protection, fostering effective forest conservation, and enhancing the quality of life for people in Nan province. The objectives of the project are to study, research, and educate people on land and water conservation and to grow plants, rehabilitate the forests, and to build check dams. This project has succeeded in continuously replenishing water supplies.
Additionally, local people refrain from logging the forest as the project creates jobs and income for them. In 2016, 103 participants of the first-of-its-kind project had been provided with land and resources totaling to 3,000 baht each to raise baby frogs, Meishan pigs, Pradu Hangdam cocks, walking catfish, and Tilapia and to grow Bhutan oyster mushrooms. The yield’s value is about 2.5 times (or 7,500 baht). Also, this part-time job does not require intense physical labor and the yield is better than what would result from mono-cropping.
Another project in which ThaiBev is participating is “Joining Forces to Restore the Nature in commemoration of Her Royal Highness Princess Maha Chakri Sirindhorn’s 60th birthday anniversary in 2015”. The project’s objective is to revive the forest area at The Sirindhorn International Environmental Park, Rama VI camp, Cha-am district, Chonburi province. Its 17 rais of forest areas can be divided into two ecosystems for learning: mangrove and beach forests. Over 120 volunteers helped carry out the project by planting local trees that can endure a high salinity level, including Lour, Benth, Jack tree, Mahogany, Lam, and Mangrove to the area. For the past six years, the park has been developed to become a study center in ecology for the public. Moreover, ThaiBev has partnered with Administration Office 4 (Surat Thani), Tha Chang District, and Tha Poon Canal Conservation group to construct 5 fish habitats, and 1 sector (1 rai) of mangrove crab farm.
Over 80 volunteers have learnt about cockle farming and have assigned 60 tags to the trees in the mangrove forest area at Tha Poon Mor 1, Tambon Khao Tharn, Tha Chang district, Surat Thani province. The volunteers learned about the community’s way of life and participated in conservation activities which help enrich the sustainability of natural resources and the community. The project received warm support from the communities as well as local government agencies.
In addition, ThaiBev has cooperated with government agencies and fishing communities in the coastal areas to organize the “Majcha Street” project in order to restore the seawater quality and develop artificial coral reefs that provide a habitat for marine life. This is to revive the aquatic ecosystem of Khai Island in Pathio district, Chumphon province.
Climate change is a global and international challenge that requires the cooperation of all sectors of society to mitigate its potentially dire consequences. As Thailand’s world-class total beverage producer and distributor, ThaiBev committed to being part of the world’s solutions to climate change. Among its missions are emission reduction and the efficient management of its carbon footprint.
There has been a warning echoed in the recent Conference of the Parties: COP 21 under the United Nations Convention on Climate Change, about the effect of climate change on weather patterns, leading to severe droughts. The change in global weather patterns, as ThaiBev is fully aware, will affect its business, especially its procurement of raw materials and its production processes. Agricultural materials are crucial to production. Reduction of agricultural raw materials will result in rising prices, which will affect production costs.
To deal with these uncertainties, ThaiBev has adopted His Majesty King Bhumibol’s Sufficiency Economy Philosophy (SEP) as the guiding principle for its corporate and business operations, to improve sustainability and self-reliance at every level with the SEP principles of “Reasonableness” and “Sufficiency” particularly in mind. To minimize climate-change impact, ThaiBev has been proactive and adamant in including all stakeholders in its campaign to tackle climate change.
ThaiBev also requires that its business partners follow its policy to practice sustainable agriculture. ThaiBev has integrated SEP into “the Company’s sustainable agriculture guideline”. ThaiBev aims to create a production process with the least environmental impact, not only for the present benefit but for future generations.
Energy efficiency is ThaiBev’s prime concern. ThaiBev has set targets for year 2020 such that energy consumption will be reduced by 5 % in comparison with 2014. To achieve this goal, ThaiBev will focus on using research and technology to develop new alternative renewable energy sources that can help reduce the environmental impact of its processes and achieve sustainable economic growth at the same time.
Energy for the production processes of ThaiBev can be categorized into 2 groups according to the Greenhouse Gas (GHG) Protocol as follows:
Energy that releases GHG directly (Scope 1)
which refers to energy sources that are owned and controlled by the Company.
It is comprised of:
*Renewable energy — namely, biogas, concentrated distillery slop, and by-product from alcohol at 90 and 70 % alcohol.
*Non-renewable energy — namely, heavy fuel oil, natural gas, C2+, bituminous coal, gasoline, and diesel fuel.
Energy that releases GHG indirectly (Scope 2)
which refers to energy purchased from other organizations.
It is comprised of electricity and steam power.
ThaiBev has proactively conducted feasibility studies and made investments to incorporate renewable energy into its production process.
|Major Projects for 2016||Project’s Detail||Savings|
|Installing energy saving light bulbs
||Replace 20% of ordinary lightbulbs with Light-Emitting Diode (LED) bulbs.||50-60% of energy has been reduced 680,000 baht has been saved.
291,384 kWh of energy has been saved.
|Installing motor speed with Variable Speed Drive (VSD)
||VSDs are installed at various motor engines such as water pumps, cooling towers, and blowers. VSD helps control motor speed to reduce energy consumption while
maintaining a high efficiency.
|1.81 million baht has been saved.|
|Installing energy saving fan for evaporative condensers
||Fan blades made of Fiber-glass Reinforced Plastic (FRP) have been installed to replace heavy aluminium blades.
A previous trial in 2015 shows 20 % of energy reduced by FRP fans.
|160,000 baht has been saved.
180,093.60 MJ/year of energy has been saved.
efficiency by installing “Economizer”turbular heat
|The installation of boiler economizer reduces energy by recovering the excess heat from the flue gas above 190˚C before it is released and then recycles it as waste-heat energy to heat the boiler.||650,000 baht can be saved annually.|
to recover heat from
ammonia gas to heat the boiler makeup water
|After the installation of the heat exchanger, heat from ammonia gas at 100 ˚C can increase the temperature of the boiler makeup water from 30 ˚C to 60 ˚C and the ammonia gas’s temperature will be reduced from
100˚C to 60 ˚C.
|This resulted in using less electricity in the condenser which saves 1,866,400 MJ/year and
saves more than
In 2016, ThaiBev was able to reduce its energy intensity by 20 megajoules per hectoliter of Finished Goods (MJ / hL FGs) which accounted for10% of the energy use in 2015. The reduction was achieved by using more renewable energy and educating staff to save energy. This represents ThaiBev’s determination regarding energy management to ensure sustainable and efficient use of energy.
ThaiBev has implemented the system of Total Productive Maintenance (TPM) for the maintenance of tools, machines, and equipment to save energy.
ThaiBev has set its goal to reduce emission intensity from its production process. ThaiBev’s plan has been divided into two phases, with the ultimate goal to reduce greenhouse gas emission intensity by 10% by 2020, in comparison with the base year 2014. The emission intensity reduction will be equivalent to 0.0152 metric tons CO2e per hectoliter of finished goods (tCO2e/hL FGs) (CO2 emission). In year 2016, ThaiBev generated 0.01375 tCO2e/hL FGs which is 12 % lower than 2014. The successful reduction is the outcome of several campaigns it implemented to improve energy efficiency. ThaiBev produces biogas from distillery slop; the biogas produced helped cut down the amount of heavy fuel oil consumed. Furthermore, a solar energy project enables facilities to heat water without consuming fossil fuel energy. ThaiBev has also been able to produce electricity from excess biogas. Additionally, the Company launched a project to use treated wastewater effluent in agriculture, such as a campaign with palm oil plantations. ThaiBev also applies the 3Rs principle: Reduce, Reuse, Recycle with its packaging, and ensures fuel is used efficiently in logistics in order to reduce resource use and greenhouse gas emissions. ThaiBev succeeded in 2016 to reduce greenhouse gas emissions by more than 1.4 million metric tons of CO2e.
Thai Beverage Logistics Company Limited (TBL) provides logistic services for alcoholic and non-alcoholic beverages. TBL provides warehousing, transportation, and distribution services to customers. TBL helps with the reduction of CO2 emissions as it uses fuel sustainably to distribute products to customers. The Company has expanded to cover 68 warehouses. The two distributing centers and the transportation center under “4DX Trim-tab Certification” reached its goal in terms of “Delivery in Full on Time” index or DIFOT 100% of the time. The trucks used in transportations between provinces consumed less fuel from Jan – Sep of 2016. This is a result of efficient transportation that allowed the Company to save 171,335 liters of fuel, equivalent to 470 metric tons CO2e.
In 2016, ThaiBev’s greenhouse gas emission intensities were lower than 2015. The reduction shows ThaiBev’s capability to increase production while working to reduce the Company’s burden on the environment.
Greenhouse Gas Emissions Intensity
Including Direct Emission (Scope 1) and Indirect Emission (Scope 2)
ThaiBev keeps on developing its capacity to reduce greenhouse gas emissions. To show its commitment to society and the environment, the Company undertook its greenhouse gas management and greenhouse gas emission level reports. The reports follow guidelines from the Thailand Greenhouse Gas Management Organization (Public Organization). The Company also has joined the “Carbon Footprint for Organization Program” with the Federation of Thai Industries. In 2016, five subsidaries companies gained approval to use the ‘Carbon Footprint
for Organization Label’ from Thailand Greenhouse Gas Management Organization.
ThaiBev has a high priority to reduce air pollution in the community. ThaiBev’s air quality management and pollution reduction uses standards issued by the United States Environment Protection Agency (U.S. EPA). It closely monitors air quality dust particles and emissions in order to keep track of emissions released. ThaiBev adheres to air-quality management of dust particles, nitrogen dioxide (NO2), and sulfur dioxide (SO2), emitted by its facilities as required by Notification of Ministry of Industry on Prescriptions of the Content values of Air Contaminants Emitted from the Factory B.E. 2549.
ThaiBev has installed air pollution reduction systems including:
The food and beverages industry takes raw agricultural materials such as vegetables, fruits, cereal, and meat, and converts them into a variety of palatable foods and beverages that are convenient to consume and can be stored for long periods of time. But the process of preparing the raw materials – which can involve distilling, heating, freezing, and drying – requires high energy consumption and generates a large amount of waste in the form of wastewater, solid waste, food waste, and more. In addition, such foods and beverages can generate a large amount of packaging waste.
ThaiBev has committed to sustainably managing wastewater and solid waste from its production processes throughout the value chain. ThaiBev realizes such management practices can help mitigate not only ThaiBev’s environmental and social impacts, but also create value through increased efficiency in resource use and cost reductions. ThaiBev emphasizes creating value through waste innovation and management by collaborating with partners to innovate and develop new technology. ThaiBev’s ultimate goal is to minimize our impacts to the environment, which would represent a significantly sustainable value creation for ThaiBev’s business, for society, and for the environment.
ThaiBev strictly complies with all applicable environmental laws and regulations. ThaiBev has a wastewater treatment system to manage wastewater from its production processes that is tailor-designed to each individual facility. ThaiBev bi-annually reports the level of BOD, COD, pH, TSS, and TDS to the Department of Industrial Works via the Online Pollution Monitoring System. Additionally, all ThaiBev’s business units boast ISO 14001 certification, which covers the management of effluents and waste.
In 2016, a total of 26% of ThaiBev’s beverage production facilities discharged zero effluent to the environment. For the remaining 74% of facilities, the stringent treatment process ensures that the wastewater ThaiBev discharges meets or exceeds quality standards.
|Parameter||Unit||Standard Target per Regulations 1||Effluent Quality of ThaiBev 2|
|COD||miligram per liter||≤120||51.1|
|BOD||miligram per liter||≤20||8.5|
|TSS||miligram per liter||≤50||24.5|
|TDS||miligram per liter||≤3,000||1,235.9|
CASE STUDY: Creating Value from Vinasse
ThaiBev places great importance on the utilization of renewable energy. In ThaiBev’s alcohol distilleries, there is a large amount of vinasse – the wastewater from the distillation process. ThaiBev uses evaporation to concentrate the vinasse as well as reducing the odor. This concentrated vinasse is a suitable replacement for fuel oil in the incinerator/boiler system. This is a crucial part of ThaiBev waste-to-energy strategy and enables ThaiBev to produce 144,000 metric tons of steam per year.
ThaiBev is committed to further research and development on utilizing nutrients from wastewater effluent which is suitable for growing plants. This effluent can be used as soil conditioner, and has been distributed to farmers surrounding its facilities. Currently, farmers have utilized the effluent for planting sugarcane, tapioca, oil palm, and other crops, resulting in higher yields and increased profits from higher revenues and lower costs.
As part of ThaiBev’s responsibility to the environment, ThaiBev produces food and beverages with a high emphasis on quality throughout the production process. In terms of waste management, ThaiBev has committed to minimizing waste generation at the source and during the production process, while also continuing to create value by reusing waste. In 2016, ThaiBev generated 66,457 metric tons of waste – a decrease of waste intensity (kilogram / hectoliter of Finished Goods) of 26 %, compared with 2014.
CASE STUDY: Solid Waste to Energy
ThaiBev continues its research and development efforts on recycling and converting waste from its production processes into energy. ThaiBev annually converts 0.4 metric tons of soot from boiler stacks, 30 metric tons of dried sludge, and 0.8 metric tons of scale from distillation columns into charcoal briquettes. Currently, the facilities that use coal as a source of energy can convert soot from boiler stacks to charcoal briquettes, which provide 3,650 kCal/kg heating value. If fully used, they would provide the equivalent of 6 gigajoules of energy. This provides ThaiBev with the alternative to use low-cost energy in its production processes, energy which can also be distributed to surrounding communities.
CASE STUDY: By-Products to Animal Feed
ThaiBev has also established Feed Addition Co., Ltd. under the Thai Beverage Group with the aim to manage by-products from the facilities in the spirits and beer business groups. By-products such as wet malt residue, dried malt residue, and dry yeast are sold to feed mills or directly to livestock farmers, providing them with high quality raw materials that are chemical-free and have high nutritional value. In addition, by-products such as settled solid, vinasse ash, and other sludge, which have high nutrients for plants, are sold as raw materials to fertilizer manufacturing facilities.
CASE STUDY: By-Products to Agricultural
Feed Addition Co., Ltd., in cooperation with Kasetsart University, also carries out research and development on the use of by-products from distilleries and breweries to produce soil supplements containing organic matter and high nutrients which are suitable for organic farming. ThaiBev started the experiment in a sugarcane demonstration plot, and has distributed the soil supplements to farmers who work near ThaiBev’s facilities to use in organic farming.
Apart from ThaiBev’s commitment to reducing plastic in its packaging, ThaiBev also focuses on integrated post-consumption packaging management, especially for plastic bottles and aluminum cans, through partnerships with packaging recycling companies. ThaiBev has also established Thai Beverage Recycle Co., Ltd. to buy back and recycle glass bottles, scrap glass, paper briquettes, and corrugated box partitions. ThaiBev currently recycles more than 40 thousand metric tons of these materials.
In addition, ThaiBev also partners with companies with plastic weaving technology to recycle plastic from packaging into clothes, bulletproof vests, and auto parts.
ThaiBev has committed to reducing food waste through efficiency management throughout the value chain. ThaiBev emphasizes the monitoring of food waste from the production process and the improvement of its processes and machinery, especially in ThaiBev’s food production process at Oishi Central Kitchen, the main producer of food products for Oishi restaurants and retail distribution.
With the latest technology to reduce food loss from the food production process and a commitment to the “Circular Economy” concept, ThaiBev manages food waste from the production process and supplies to the subsidiary companies to process as animal feed. This process enables ThaiBev to reach its goal to continuously reduce food waste disposed of as general waste.
In 2016, ThaiBev sold 1,086 metric tons of food waste to its subsidiaries to process as animal feed, consisting of bread waste (crust and scrap), and fish scrap (bone, head, tail, guts), through which ThaiBev is able to reduce waste to landfill (including both food waste – vegetable and wanton wrapper scraps, and general waste) to only 3% of total food production volume from Oishi Central Kitchen. In addition, the added value products from food waste resulted in revenue generation for ThaiBev of 4 million baht per year approximately.
Collaboration to Reduce Food Waste
Since 2014, ThaiBev has partnered with the Faculty of Agro-Industry, Prince of Songkla University to develop talent and prepare students to enter this business sector. As part of the partnership, ThaiBev has also supported research and development into new products, productivity enhancement, and other specific topics on food science and technology which would directly benefit ThaiBev’s business. One of the research projects has been to develop new products from food waste. This allows ThaiBev to create value from food waste and reduce its environmental impact. In 2016, ThaiBev developed two prototype products from food waste; one from salmon scraps, another from bread waste. Market testing and commercialization will be carried out in early 2017.