ThaiBev Sustainability 2019

SUSTAINABILITY

SUSTAINABILITY REPORT 2019

ThaiBev Sustainability Approach

Caring for the Environment

Sharing the Value with the World

Caring for People

Home / 2019 Sustainability Report / Caring for the Environment

Eco-Friendly Packaging

GRI 301-2, GRI 301-3

Waste disposal is a global environmental problem. More than 12 million tons of non-compostable materials such as plastic are disposed into the ocean annually, damaging marine ecosystems, threatening the lives of sea creatures, and ultimately humans as well. In order to reduce the impact of increasing amounts of waste on both land and in the ocean, ThaiBev adheres to the principle of the Circular Economy in its packaging management.

The main packaging materials used in the production of ThaiBev products are glass, paper, aluminum and plastic. ThaiBev recognizes the importance of innovation and product design, using environmentally friendly materials, and reusing and recycling post-consumption packaging in the manufacturing process. In addition, ThaiBev aims to reduce packaging, and promotes reuse and recycling.

Can 2 Can Project

The objective of the Can 2 Can project is to collect used aluminum cans so that they can be recycled into aluminum sheets, which is the raw material used in beverage can production. It is a cooperative effort between ThaiBev and its direct supplier, the aluminum can manufacturer, and an indirect supplier, the aluminum sheet manufacturer.

Thai Beverage Recycle Co., Ltd. (TBR) is responsible for collecting the cans and delivering them to the aluminum sheet manufacturer. Since the project began in June 2019, 703 tons of cans have been retrieved. This amounts to a total of 52 million cans, which represents 14 percent of the total volume of ThaiBev products sold in Thailand. The Can 2 Can program generates income for small-scale waste collectors. It also has the potential to reduce the energy used in the can manufacturing process by up to 95 percent, compared to the use of new aluminum.

Sustainable & Closed-loop Cycle

Bottle Sorting by AI Image Recognition

This represents a transformation of the bottle sorting process using cutting-edge technology. The development is a collaboration between internal departments, including Thai Beverage Recycle Co., Ltd. (TBR), the Office of Information and Technology, BevTech Co., Ltd., and a world-leading university in computer science, technology and robotics to study the use of Artificial Intelligence (AI) technology in the TBR bottle sorting process. This project is an advanced and efficient modification to Octopus, the automatic bottle-sorting mechanism invented by ThaiBev. Instead of having humans visually inspect the bottles, AI can learn and recognize the different patterns of defects presented in used glass bottles, reducing eye muscle fatigue among employees.

This new technology allows ThaiBev to deliver used glass bottles with zero risk of human error. In addition, the cost of transporting defective bottles is minimized, as well as reducing losses from rinsing bottles that are not suitable for reuse, and allows for a reduction in the number of people re-screening at the packing line. These employees will be switched to work in other areas that add more business value to the company.

Bring Back Home

A significant amount of glass packaging is being exported from Thailand for the production of beverages in Myanmar. One of the major buyers of glass bottles is the Grand Royal Group (GRG), a leading producer and distributor of spirits in Myanmar. As there is no cullet recycling plant nor glass bottle production plant in Myanmar, glass scraps become harmful waste that poses both social and environmental threats. In an effort to resolve this problem, ThaiBev collaborated with GRG to retrieve cullet from Myanmar using reverse logistics. As a consequence, this cullet can now be handled in a responsible manner and recycled by glass bottle manufacturers.

Narrow Neck Press and Blow (NNPB)

ThaiBev collaborates with its suppliers to create eco-friendly packaging designs and promote energy efficient packaging production processes. In the past year, a project has been initiated to study the Narrow Neck Press and Blow (NNPB) process in the manufacturing of large clear glass bottles. This technology allows the manufacturing of large-size lightweight bottles, requiring less resources and energy, while maintaining the same levels of durability.

UHT Leaf Design

A novel design feature of ThaiBev’s OISHI Readyto- Drink UHT Green Tea. This modern design originated from an internal management training program called the Management Development Program (MDP), where a collaboration between marketing, sales, and production departments resulted in a new innovation. The new UHT packaging is designed to be more eye-catching and eco-friendly.

Key Commitments and Achievements

ThaiBev’s sustainable packaging management strategy under the principle of the Circular Economy

Collecting and Sorting

Sorting different types of packaging and reducing of the amount of landfill waste. TBR is responsible for the post-consumption packaging collection and sorting process. TBR buys all types of ThaiBev packaging materials such as glass bottles, cans, plastic bottles, PET bottles, cardboard boxes, etc. Currently, there are over 30 purchasing locations nationwide.

Reuse and Recycle

Post Consumption packaging materials can be collected and used as raw materials for manufacturing new products. In the past year, ThaiBev reused over 1,555 million glass bottles, and collected 100,000 tons of cullet to be recycled, which is equivalent to 75 percent* of the products sold by the company.
*based on packaging weight from sales volume in FY2019

Upcycling

This involves retrieving used PET bottles and sending them to suppliers for recycling. In the past year, 5 tons of PET bottles have been retrieved for recycling.

Insight

Orathai Poonsup
Managing Director
Thai Beverage Recycle Company Limited

“ThaiBev places great importance on packaging management to reduce environmental impacts. We established Thai Beverage Recycle (TBR) to collect used packaging so that they can be reused or recycled. ThaiBev follows the principles of the Circular Economy by collaborating with stakeholders, including direct and indirect suppliers, small entrepreneurs and consumers, throughout the value chain. TBR has various programs that promote stakeholder participation, such as the “Sustainable Supplier Development Project.” This project invites existing glass bottle suppliers to visit ThaiBev factories, where discussions took place about business expansion plans and future opportunities.

TBR also works with the provincial authority on Koh Samui and local scrappers/ recycling stores to make possible the “Samui Model Project”. In this project, Thai Beverage Logistics Co., Ltd. (TBL) provides transport to pick up used packaging materials at recycling stores on the island, in a successful example of reverse logistics. The suppliers and consumers on the island are thereby encouraged to participate in addressing the island’s garbage problem, and income is distributed to the community. In the past year, 100 percent of packaging from products sold by ThaiBev on Koh Samui was retrieved and reused/recycled in the manufacturing process, generating more than 10 million baht worth of income for the local community.”

ThaiBev has set clear short-term and long-term packaging management goals, classified by types of packaging material, as follows:

2019 Achievements

Reused and Recycled Packaging