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Water Risks Management
ThaiBev has identified water management as one of the key material issues that serves to enhance the company’s climate resilience. We manage water-related issues by identifying risks and opportunities, as well as monitoring the risks. We review our physical risk assessment related to water in all our production facilities every three to five years, in order to understand potential risks and to prepare for the impacts of climate change. This enables each facility to develop appropriate water-related risk management plans and mitigation measures.

In conducting these assessments, ThaiBev employs internationally recognized tools, including the World Resources Institute (WRI)’s Aqueduct Tools, ENCORE, and the Water Risk Tool, to assess the water risks across business units. These risks include water stress, water quantity and quality, regulatory compliance, and reputational concerns.

ThaiBev remains committed to ongoing monitoring and proactive management of water-related risks to ensure that its operations do not adversely impact local communities, ecosystems, or water resources.

Water Risk Management for Own Operations
ThaiBev uses the World Resources Institute (WRI)’s Aqueduct Tools to annually evaluate all its production facilities against Aqueduct’s thresholds for water-stressed areas. Risks can be categorized as Low, Low–Medium, Medium–High, High, and Extremely High. Facilities with risk levels categorized as High and Extremely High are then prioritized and assessed for mitigation plans.

The result shows that 49.09% of ThaiBev’s factories (27 out of 55) are considered as having High or Extremely High water- stressed risk levels, potentially resulting in substantive financial or strategic impact.
Percentages of factories in water-stressed locations

Water stress levels
70.56% of factories in water stressed locations based on Cost of goods sold in FY2024
Water stress levels No. of factories
Extremely High (>80%) 21
High (40-80%) 6
Medium - High (20-40%) 9
Low - Medium (10-20%) 7
Low ( <10% ) 12
Total 55
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Remark: Excluding F&N operations. ThaiBev will assess baselines and review targets to include F&N in fiscal year 2025
Water Risks Management throughout Supply Chain
ThaiBev works with its suppliers in water-stressed areas to minimize water consumption. All significant suppliers are also assessed on water-related risks based on WRI’s Aqueduct and the Together for Sustainability Initiative, as disruption to their operations could have a significant financial impact on ThaiBev. We have identified 36 out of the 75 locations (48%) of key agricultural commodity suppliers operating in High and Extremely High water-stressed areas.
  • To quantify the risks, we identify the products of which these key agricultural commodities are components and the potential revenue loss from water-related supply chain disruption.
  • To mitigate the risks, ThaiBev works with its partners to secure supply continuity and requires them to track and report their water footprint and intensity annually. Additionally, we monitor and assess our suppliers’ water risks during the rainy season, through daily flood reporting via the CROSS SRM system.
ThaiBev has also established a Sustainable Agriculture Guideline for suppliers to optimize water consumption during their agricultural processes. Our suppliers are encouraged to measure their water consumption, identify opportunities to reduce their usage, conduct water risk assessments using internationally recognized tools, and implement mitigation plans in areas with significant water-stressed levels.
Percentages of Tier 1 suppliers in water-stressed locations

36.30% of factories in water stressed locations based on Cost of goods purchased in FY2024
Water stress levels No. of Tier 1 supplier locations
Extremely High (>80%) 27
High (40-80%) 9
Medium - High (20-40%) 8
Low - Medium (10-20%) 8
Low (<10%)< /td> 23
Total 75
Remark: Excluding F&N operations. ThaiBev will assess baselines and review targets to include F&N in fiscal year 2025
Water Dependencies and Impacts
ThaiBev utilizes the ENCORE Tool to assess dependencies and impacts on both surface water and groundwater—our primary sources of water withdrawal. This analysis helps identify water-related risks and opportunities for improving efficiency and supports the development and implementation of long-term water security and sustainability strategies.

Upstream Activities:
  • ThaiBev’s production processes have a high materiality rating for water dependency, meaning they require significant water input and heavily rely on ecosystem services to ensure adequate quantity and quality for production, cleaning, and sanitation.
  • We employ environmentally responsible technologies to reduce water use and promote recycling. This includes:
    • Reusing backwash water
    • Utilizing steam condensate
    • Recycling rejected water from reverse osmosis systems
    • Reusing water for gardening and road cleaning
  • ThaiBev conducts water footprint assessments, implements water usage reduction plans, and maintains diligent monitoring of wastewater discharge across all production plants.
Downstream Activities:
  • Most of ThaiBev’s total water discharge undergoes secondary, complying with standards set by the Department of Industrial Works.
  • Water optimization follows the 3Rs principle—Reduce, Reuse, and Recycle—across the full product life cycle.
  • ThaiBev's production facilities are certified with the international standards for environmental management (ISO 14001: 2015). In terms of controlling the standards of effluent discharge, the company treats wastewater to a higher quality standard than legal requirements before releasing it into the water source, to ensure minimal impact on the ecosystem.
ThaiBev, through the use of the ENCORE Tool, identifies a high dependency on water in its upstream operations and a moderate impact on downstream activities. We systematically assess and manage these dependencies and impacts by focusing on improving water efficiency, reducing consumption, conducting water footprint assessments, and diligently monitoring wastewater discharge across all production plants. ThaiBev ensures effective water stewardship throughout its operations.
WATER RISK MANAGEMENT
Surface Water and Groundwater Sustainability Assessment
ThaiBev regularly conducts a Water Sustainability Assessment (WSA) to assess its dependencies on both surface water and groundwater resources at production facilities, in order to identify any potential impacts and risks associated with its business units.

This in-depth assessment covers four dimensions:
  • Detailed water source assessment, including the availability and internal structure of water resources.
  • The vulnerability of the watershed, considering both social and environmental factors.
  • Water-related natural occurrences, such as droughts and floods, etc.; and
  • The quality of water sources.
This assessment covers a period of five years to ensure there are sustainable water supplies to support the facilities’ operations. Processes in the study include: water sufficiency, water quality, rules and regulations related to water resources, and stakeholders’ perception.

WSA allows ThaiBev to create a comprehensive risk mitigation strategy and action plan that is appropriate for local conditions while addressing both long-term and short-term water-related risks.

In parallel, ThaiBev uses the Water Risk Tool to assess annual operational risks—those related to water quantity and quality, regulatory requirements, and reputational concerns—across all production facilities. This tool enables the company to evaluate historical risks over the past three years and anticipate future scenarios, including potential changes in future water quantities and future water qualities. In 2024, ThaiBev experienced no operational impacts from physical water-related business risks.

No. of Sites in each risk level
High Risk O sites
(TH = 0/ MYM = 0/ VN = 0/ UK = 0/ FR = 0/ NZ = 0)
Medium Risk 4 sites
(TH = 2/ MYM = 0/ VN = 2/ UK = 0/ FR = 0/ NZ = 0)
Low Risk 50 sites
(TH = 31/ MYM = 2/ VN = 9/ UK = 0/ FR = 0/ NZ = 0)
Note: Thailand (TH), Myanmar (MYM), Vietnam (VN), Scotland (UK), France (FR) and New Zealand (NZ)
Physical
Water Sufficiency
ThaiBev monitors water availability monthly by comparing data from the National Hydroinformatics Data Center with internal forecasts. Risk Coordinators review reports, assess risks, and implement mitigation measures. Significant risks are escalated to the Corporate Risk Management. Our water-related risks are continuously monitored and effectively managed.

Water Quality
Water supply and effluent quality are monitored daily according to ISO 9001 and ISO 14001 guidelines. ThaiBev plants near the Chao Phraya and Tha Chin Rivers closely monitor surface water during the dry season due to saltwater intrusion, often substituting groundwater, which increases costs. To address shortages, freshwater storage and groundwater wells are enhanced. Groundwater use is strictly regulated in critical zones. ThaiBev continuously monitors regulations and applies the 3Rs principle, adopts advanced technologies such as Reverse Osmosis, and reduces water consumption per unit of product.

To date, we have not experienced any impacts from physical risks.
No. of Sites in each risk level (Physical Risk (Sufficiency and Quality))
High Risk O sites
(TH = 0/ MYM = 0/ VN = 0/ UK = 0/ FR = 0/ NZ = 0)
Medium Risk 2 sites
(TH = 1/ MYM = 0/ VN = 1/ UK = 0/ FR = 0/ NZ = 0)
Low Risk 52 sites
(TH = 32/ MYM = 2/ VN = 10/ UK = 0/ FR = 0/ NZ = 0)
Rules and Regulations Related to Water Resources

ThaiBev’s production plants are members of the Federation of Thai Industries (FTI), which regularly provides updates on new regulations relevant to various industrial sectors. These updates are shared through the FTI website, email, and regular meetings.

Each production plant has established a working group responsible for monitoring and assessing compliance with applicable water-related laws and regulatory developments. This group reports any potential regulatory changes or newly issued laws to the Product Group’s Risk Coordinator. At the corporate level, the Product Group’s risk coordinators consolidate and review information received from all production sites. Any risks identified as material are brought up to the Corporate Risk Management Working Team for further action.

No regulatory changes have resulted in adverse effects on our operations.

No. of Sites in each risk level (Rules and Regulations Related to Water Resources)
High Risk O sites
(TH = 0/ MYM = 0/ VN = 0/ UK = 0/ FR = 0/ NZ = 0)
Medium Risk 4 sites
(TH = 2/ MYM = 0/ VN = 2/ UK = 0/ FR = 0/ NZ = 0)
Low Risk 50 sites
(TH = 31/ MYM = 2/ VN = 9/ UK = 6/ FR = 1/ NZ = 1)
Stakeholders’ Perception

ThaiBev to employ third-party to conduct community perception surveys around its production sites, aiming to understand concerns on water availability and industry impacts. Each plant establishes a stakeholder engagement group to hold regular meetings with local leaders and authorities. Feedback and survey results are reviewed monthly and reported to the Product Group’s Risk Coordinators. Any material risks or potential conflicts are escalated to the Corporate Risk Management Working Team for further action, and there have been no water-related incidents that have impacted our operations.

No. of Sites in each risk level (Stakeholders’ Perception)
High Risk O sites
(TH = 0/ MYM = 0/ VN = 0/ UK = 0/ FR = 0/ NZ = 0)
Medium Risk 0 sites
(TH = 0/ MYM = 0/ VN = 0/ UK = 0/ FR = 0/ NZ = 0)
Low Risk 54 sites
(TH = 33/ MYM = 2/ VN = 11/ UK = 6/ FR = 1/ NZ = 1)
Water Resource Management for Surrounding Communities, Thailand
ThaiBev has collaborated with the Hydro-Informatics Institute (HII) on the “Water Resource Management for Surrounding Communities” projects to assess the risks of floods and droughts in both short and long terms by using the HII’s Water Resource Information System for Sustainable Development. The initiative supports water resource management in local communities around our production facilities that are in High to Extremely High water-stressed areas, covering a radius of five kilometers around each facility. Through this project, ThaiBev will be able to operate its business while creating value for the communities that share the same water sources by devising a mitigation action plan for water-related risks within and outside its operations.
The study process is as follows:
  • Study the general condition of the area, the watershed condition, and meteorological and hydrological data - including potential sources of water pollution - to assess the flooding and drought situation, including historical occurrences of such events.
  • Study the impacts of climate change on flood and drought issues, including the indices and trends in extreme rainfall data for current and future conditions. Create a probability map for extreme rainfall in the catchment area and its associated watershed areas around the facility.
The study was first conducted at Beer Thai Brewery in Kamphaeng Phet Province. In 2024, ThaiBev expanded the project to include Thanapakdi Distillery in Chiang Mai Province, Simathurakij Distillery in Nakhon Sawan Province, and ThaiDrinks Non-Alcoholic Beverage Production Facility in Lampang Province, which are also in Extremely High water-stressed areas.
(Left) The Ping River Basin; (Right) the study areas at
(a) Thanapakdi Distillery, Chiang Mai Province;
(b) ThaiDrinks Non-Alcoholic Beverage Production Facility, Lampang Province; and
(c) Simathurakij Distillery, Nakhon Sawan Province
Key Results of the Study

Thanapakdi Distillery, Chiang Mai Province
The results showed that the study area is at low to very low risk of flooding; only about 15% of the area is at high to very high flood risk. The low flood risk is largely attributed to the study area’s location in an irrigation zone. The few areas classified as high-risk are predominantly elevated and not irrigated. The facility itself is situated in a low-risk area, benefiting from its strategic location within the irrigation zone.

In contrast, 50% of the study area is identified as being at high to very high risk of drought. This heightened vulnerability is primarily due to the predominance of agricultural land situated outside the irrigation zone, as well as the presence of mountainous regions, which are inherently more susceptible to drought conditions. Nevertheless, the facility itself is in an area with a low to very low risk of drought, owing to its proximity to water sources and its location within the irrigation zone. An analysis of flood and drought risks, incorporating climate change indices across scenarios-near-term, mid-term, and long-term; revealed consistent trends.

The risk of flooding is projected to increase both in spatial extent and intensity, with areas currently classified as very low to low likely transitioning to moderate risk over time. By contrast, drought risk is anticipated to decline in both extent and severity, with moderate, high, and very high-risk areas potentially shifting to low or very low-risk. These projections align with findings from extreme rainfall indices, which underscore changing rainfall patterns as a critical driver of both flood and drought risks.
(a) Flood and (b) drought risk maps of the upper Ping River Basin (Study Area)
Simathurakij Distillery, Nakhon Sawan Province
The results showed that the study area is significantly more vulnerable to drought than to flooding. Approximately 63% of the area is classified as being at high drought risk, while only 8.85% is at high flood risk. Mueang Tak District in Tak Province has been identified as a critical area of concern for both hazards. Additionally, Khlong Lan and Mueang Kamphaeng Phet Districts in Kamphaeng Phet Province are particularly susceptible to drought conditions. Within a 5-kilometer radius of the Simathurakij Distillery, nearly 99% of the area is at high drought risk, primarily due to its location outside of the irrigation zone and the dominance of surrounding agricultural land. Nonetheless, the distillery has effectively managed its water resources through the development of storage ponds and the use of groundwater wells, which has helped to mitigate water shortages during the dry season. Conversely, flood risk in the vicinity of the facility is relatively low, owing to its strategic location within a well-managed irrigation area that reduces flood vulnerability.

The assessment of climate change impacts on flood and drought risks further reveals notable shifts in rainfall patterns across different future timeframes. In the near term (2023–2048), rainfall is projected to increase during the mid-to-late dry season and late rainy season, while declining during the early rainy season and in January. This may lead to more frequent but less severe droughts, alongside an increase in both the frequency and severity of floods. Mid-term projections (2049–2174) suggest a continuation of these trends, marked by heightened rainfall variability and more extreme weather events. In the far future (2175–2200), the changes are expected to be even more pronounced, with a further rise in drought frequency, although with reduced severity and duration, and a sustained increase in flood risk. Across all time horizons, areas at risk of flooding are expected to expand in both scope and intensity, while drought-prone areas may decrease in size and severity. These findings underscore the importance of adaptive water resource management and proactive disaster preparedness in building resilience against the escalating impacts of climate change.

ThaiDrinks Non-Alcoholic Beverage Production Facility, Lampang Province
The results showed that the study area is at low risk of flooding; only 8.85% of the area is classified as high flood risk, with Mueang Tak District in Tak Province identified as a key area that warrants close monitoring. Moderate and low flood risk zones account for 35.53% and 55.63% of the area, respectively. The low flood risk near the Production Facility and within a 5-kilometer radius can be attributed to its location within an irrigated area equipped with effective water management systems, which help mitigate potential flood impacts.

In terms of drought, the watershed is largely characterized by moderate risk, covering 40.84% of the area, while 31.05% is identified as high risk, particularly in districts within Lampang Province. Around the ThaiDrinks Non-Alcoholic Beverage Production Facility, the drought risk is predominantly low (51.67%) due to its advantageous position within an irrigation zone and the implementation of drought mitigation measures, such as the use of storage ponds and groundwater wells. These measures contribute to a reliable water supply, even during extended dry periods.

An analysis of climate change impacts across near-term (2023–2048), mid-term (2049–2072), and far-future (2073–2088) scenarios reveals a projected increase in rainfall on monthly, seasonal, and annual scales. Notable increases are expected during the late rainy season and mid-to-late dry season, while some reductions may occur in the early rainy season. Rainfall variability and uncertainty are anticipated to grow over time, particularly in the far-future period. Flood risk is expected to increase slightly, especially in areas already prone to very high risk, whereas drought risk is projected to remain stable or decrease slightly in both spatial extent and severity. These consistent trends underscore the importance of adaptive water resource and risk management strategies in response to evolving climatic conditions.

In 2025, ThaiBev will extend the program to cover other production sites that are located in high to extremely high water-stressed areas. We also install Automated Telemetry Stations in upstream forest areas, which can provide insightful data, such as water level and precipitation, and other information necessary for effective water and disaster management.
Water Footprint of Products (WFP)
ThaiBev has received the Water Footprint of Product (WFP) Certification from the Water and Environment Institute for Sustainability (WEIS), a division of the Federation of Thai Industries, for its Crystal drinking water. This certification was achieved through a water use assessment aligned with the principles of Life Cycle Assessment (LCA) across all stages of the product lifecycle—including raw material acquisition, processing and manufacturing, distribution and transport, product use, and end-of-life disposal. The evaluation measures the amount of water consumed and polluted throughout the full production cycle from the supply chain to the end-user. A product water footprint also provides insight into the impact on freshwater resources. The water use assessment found that 60% of the water usage ratio comes from raw material acquisition and 40% from processing and manufacturing, with no significant impact from distribution and transport, product use, or end-of-life disposal. This certification provides valuable guidelines for managing the product’s water use and enhancing the efficiency of water resource utilization. Moreover, it helps identify opportunities to improve water efficiency and reduce impacts on upstream, midstream, and downstream water resources.

ThaiBev has demonstrated its commitment to sustainable water management by thoroughly assessing its water use through the Water Footprint of Product (WFP) certification.