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GRI 103-1, GRI 103-2, GRI 302-1, GRI 302-3, GRI 302-4, GRI 305-1, GRI 305-2, GRI 305-4, GRI 305-5

“ThaiBev cares about the impact its business operations exert on climate change. It is one of the challenges which will spark solutions that simultaneously help improve the Company and preserve the environment to remain in a stable and sustainable condition. ”

Reduction of energy intensity by the year 2020

Reduction of energy intensity

Reduction of greenhouse gas emission intensity by the year 2020

Reduction of greenhouse gas emission intensity

Compared to 2014 as a base year

Climate change is another natural disaster that is intensifying by the day. Not only is it an issue close to home, it is a phenomenon that every country in the world needs to pay attention to and adapt according to the changing environment.

To keep pace with the Twelfth National Economic and Social Development Plan (2017-2021) which adheres to the Sustainable Development Goals of the UN as a framework for national development, climate change is one of the important issues that ThaiBev cares about. This is because climate change exerts a direct impact on ThaiBev’s business operations. For example, water shortages in the dry season result in lessened yield of agricultural products, which can impact input costs, and problems might multiply if the Company does not have a good management strategy.

With determination and a clear intention to conduct business aggressively, combined with the desire to take part in climate change management, ThaiBev has initiated management of energy consumption and greenhouse gas emissions to reduce environmental impact, save energy, and promote making the most of energy used via various projects. These include using alternative and renewable energy in the manufacturing process, modifying electrical equipment, or developing innovations to enhance energy efficiency of machinery, and so on.

Enhancing Energy Efficiency

As ThaiBev prioritizes the use of renewable energy, it has done research on the use of alternative energy. At present, the Company has increased its use of alternative fuels by using by-products of the manufacturing process as fuel for further production. Examples of such by-products include biogas, distillery slop, and technical alcohol. In addition, the Company has also initiated projects to harness solar energy in steam production.

In 2017, 18% of all energy used by the Company was renewable.

The Company focuses on and promotes the continual use of renewable energy. Already the Company has installed biogas production facilities at 5 distilleries, and this year has newly invested in the construction of a renewable energy plant processing distillery slop in Kanchanaburi Province, budgeted at 798 million baht. The biomass energy renewed will be used in distilleries in 2 parts: the first as heat energy applied in distilleries, and the remaining part will be used to produce electricity to be sold to the Provincial Electricity Authority, a multi-use process called a cogeneration system. The renewable energy plant is currently under construction, and will be finished by the end of 2017, and will start producing and selling electricity by March 2018. This program is a pilot project that will likely expand to include those factories in the ThaiBev network which have the potential to turn biomass into fuel for further production, a practice which can truly promote the use of alternative energy.

Reducing Energy Use Through Innovation and Technology

To achieve the goal of reducing energy use and greenhouse gas emissions per hectoliter of product, ThaiBev continuously invests in innovation and technology, to reduce energy consumption and promote maximally efficient use of energy, along with helping to reduce greenhouse gas emissions. The work is as follows:

To reduce electricity usage, reduce the overall energy consumption of the wastewater treatment system, reduce the amount of waste produced, and reduce the emission of greenhouse gases by 400 metric tons of carbon dioxide equivalent per year. In addition, biogas produced from the system, equivalent to more than 5,100,000 megajoules each year, is to be used in place of fossil fuel to produce steam for the manufacturing process, making all breweries capable of using alternative energy from the wastewater treatment process.

Save more than
1,200,000
megajoules per year

By changing the type of fan blades from the original aluminum material to fan blades made of lightweight, fiber-reinforced plastic, the power necessary for spinning the fan was reduced, cutting energy consumption by 25% per year or reducing greenhouse gas emissions by more than 190 metric tons of carbon dioxide equivalent per year.

Save more than
7,500,000
megajoules per year

To put biogas residue from wastewater treatment to use in producing steam for the production process, which can reduce greenhouse gas emissions by 6,500 metric tons of carbon dioxide equivalent per year.

Save more than
32,000,000
megajoules per year

By installing ammonia gas heat exchange equipment to increase the temperature of water before it enters the boiler (expansion of results from 2016). As the heat from ammonia gas reaches a temperature of 100 degrees celsius, it can be used in a heat exchanger to heat boiler water from 30 degrees celsius up to 60 degrees celsius. This can reduce energy use in steam production or reduce greenhouse gas emissions by more than 430 metric tons of carbon dioxide equivalent per year.

Save more than
2,700,000
megajoules per year

Installing variable speed drives to reduce motors’ energy usage, maintain motors’ performance, reduce maintenance costs and reduce greenhouse gas emissions by more than 480 metric tons of carbon dioxide equivalent per year.

Save more than
3,000,000
megajoules per year

A continuation of a project from 2016. LED bulbs are more efficient in energy use than fluorescent bulbs, making it possible to reduce greenhouse gas emissions by more than 390 metric tons of carbon dioxide equivalent per year

Save more than
2,400,000
megajoules per year

This move products on pallets instead of on a forklift. This can reduce the use of fuels, reduce potential accidents from the use of forklifts, reduce the frequency of maintenance and reduce opportunities for employee injury, as well as reduce greenhouse gas emissions by 95 metric ton s of carbon dioxide equivalent per year.

Save more than
30,000
megajoules per year

Energy Consumption

For 2017, energy consumption per unit of the Company was reduced by 21.72 megajoules per hectoliter or 10.73% compared with the base year of 2014. In 2017, the Company expanded and extended the scope of the report to include distribution, which primarily uses fuel.

As a result, the Company’s overall energy consumption ratio increased to 15.93 megajoules per hectoliter of product, or an increase of 7.87%.

Energy Intensity (Beverage Business)

Note:

* Data for 2017 using the same reporting scope as that of the base year 2014

** Data for 2017 using an extended reporting scope, as discussed in “About This Report” (Page 12 – 13)

*** The 2020 target energy intensity is 95%, meaning reduction of energy intensity per hectoliter of product by 5% in comparison to the base year 2014

Energy consumption = fuel consumption x the estimated heating value of each type of fuel

Conversion factors are in reference to the Thailand Energy Report, Department of Alternative Energy Development and Efficiency, Ministry of Energy, and the conversion factors used for calculation for ethane gas (C2+), natural gas, coal, and fuel oil are obtained from suppliers

Total energy intensity = total fuel energy (non-renewable energy + renewable energy) + total amount of electricity and steam purchased – energy sold, reported in the unit of megajoules per hectoliter of product

Energy type reporting is in accordance with GRI Standards

Reduction of Greenhouse Gas Emissions

ThaiBev is well aware that business enterprise throughout the value chain of the Company will inevitably affect the environment, both directly and indirectly. Therefore, the Company has taken care to initiate various projects for the continual reduction of greenhouse gas emissions, such as eco-friendly packaging design, carbon footprint program assessment, transportation-related greenhouse gas emissions reduction program, and so on.

ThaiBev is committed to developing packaging that meets consumer demands and takes into consideration environmental factors, because ThaiBev believes that good packaging not only protects products and attracts consumers through beautiful design, but must also be environmentally friendly in the long term. The Company therefore adheres to the principles of the 3Rs (Reduce, Reuse and Recycle) and the Packaging Guidelines of the Company.

In the production of spirits, beer, non-alcoholic beverages and food of ThaiBev Group, the main packaging materials with highest value in total include glass bottles, corrugated cartons, and plastic bottles.

2017 Achievement

Reduced Greenhouse Gas Emissions from 3Rs packaging management by

634,782

metric tons of carbon dioxide equivalent

million glass bottles in packaging and manufacturing alcoholic and non-alcoholic beverages and recycles

metric tons of cullet for use in the manufacturing process

Glass bottles retrieved after production are estimated to be
of total glass bottles in the production process

glass bottles in production

metric tons of cullet for use in the manufacturing process

Greenhouse Gas Emissions by metric tons of carbon dioxide equivalent

The Company recycles and reuses metric tons of corrugated carton partitions and scrap paper in its post-consumption packaging management, and gradually switches to corrugated cartons with reduced layers. So far we have switched million boxes

packing boxes with box filling

metric tons of paper

the weight of corrugated cardboard boxes on average by grams per unit and reduced the use of paper resources in production and packaging by more than

metric tons

Greenhouse Gas Emissions by metric tons of carbon dioxide equivalent

The Company reduces the weight of plastic bottles used in packaging of drinking water and carbonated beverages soft drink in every size, on average by

the plastic used in the production process by almost metric tons estimated to be an average weight reduction of grams per unit

Greenhouse Gas Emissions by metric tons of carbon dioxide equivalent

For greenhouse gas management to be sustainable, ThaiBev has implemented the Carbon Footprint Assessment Program, of interest to the Company’s stakeholders. It has expanded the scope of the companies in the ThaiBev Group receiving carbon footprint certification for both Carbon Footprint for Organization and Carbon Footprint of Product.

At present, 18 companies in ThaiBev Group have received Carbon Footprint for Organization certification while 40 products that have received Carbon Footprint of Product certification from Thailand Greenhouse Gas Management Organization (TGO), In addition, the Company has certified Carbon Footprint Reduction labels on 6 products. For products to be certified, they must reduce greenhouse gas emissions by no less than 2 percent compared to the base year.

by no less than compared to the base year

The Reduction of Transportation-Related Greenhouse Gas Emissions

As the distribution of goods is a step in ThaiBev’s value chain that receives equal attention to production, efficient use of energy during distribution is emphasized. The Company has developed the Transportation Order Management System (TOMS) application, for use in controlling and tracking driving behavior of delivery employees, to ensure the delivery of goods via the specified route in time with appointments set with customers and to help increase delivery efficiency resulting from good planning. In addition, the use of TOMS helps to manage vehicle return (backhauling) which has resulted in the reduction of greenhouse gas emissions.

In addition, ThaiBev has focused on its impact on the environment and surrounding communities, including efficient energy use. The Company has invested more than 400 million baht in changing more than 100 delivery vehicles, using state of the art delivery technology, paired with development of the mindset of delivery drivers, following the principles of “4 Disciplines of Execution”:
Discipline 1- Focus on the Wildly Important;
Discipline 2- Act on the Lead Measures;
Discipline 3- Keep a Compelling Scoreboard; and Discipline
Discipline 4- Create a Cadence of Accountability. Using this construct allows employees to set goals and follow guidelines to reduce fuel consumption and increase driving efficiency with clear results. For example, six-wheeled delivery trucks had an original driving performance of 5.5 kilometers per liter of fuel, but within just 18 months, they have increased efficiency to 6.7 kilometers per liter of fuel, or a reduction of greenhouse gas emissions of 1,800 metric tons of carbon dioxide equivalent per year.

Reduce greenhouse gas emissions by more than

13,000

metric tons of carbon dioxide equivalent per year

In the sale of beverage products, coolers are regarded as one of the most important pieces of equipment for giving consumers refreshment, quenching of thirst, and satisfaction with goods and services. They also help partners and customers of the Company reach consumers better.

At present, the Company has more than 85,000 coolers in distribution. The Company has plans to change from refrigerant R12 to refrigerant R134a, which is not an ozone depleting substance (ODS) and also emits less greenhouse gas than the former refrigerant. This can reduce greenhouse gas emissions by more than 13,000 metric tons of carbon dioxide equivalent per year.

To take care of surrounding communities concerned about the pollution that may be caused by the manufacturing process, ThaiBev has implemented appropriate technology for air quality control using the universally recognized air quality control standards of the United States Environmental Protection Agency (U.S. EPA). At the same time, ThaiBev complies with the Ministry of Industry’s 2006 Announcement Determining the Acceptable Quantity of Air Contaminants Released from Factories. Particulate pollution is continually measured in total suspended particulates (TSP), oxides of nitrogen (NOX), and sulphur dioxide (SO2). Technology is used to control and manage potential pollution. For example: the installation of cyclone dedusters, the installation of wet scrubbers, and the installation of bag filters. As a result, the quality of air released into the atmosphere is better than the legal requirements.

Greenhouse Gas Emissions

In 2017 ThaiBev had a 4.53% reduction of greenhouse gas emissions per hectoliter of product compared to the base year of 2014, which evidences good management of greenhouse gas emissions through various activities, including participation in reducing the environmental impact of employees. The Company has extended its business and reporting scope to include the distribution operations and includes reporting of direct emissions of greenhouse gas (Scope 1) from biogenic activities. As a result, overall greenhouse gas emissions increased to 7.27 kilogram of carbon dioxide equivalent per hectoliter or 47.73%.

Emission Intensity

Note:

* Data for 2017 using the same reporting scope as that of the base year 2014

** Data for 2017 using an extended reporting scope, as discussed in “About This Report”

*** The 2020 target emission intensity is 90%, meaning reduction of emission intensity per hectoliter of product by 10% in comparison to the base year 2014

Report the greenhouse gas emissions calculating from the following gases: carbon dioxide (CO2) methane (CH4) and nitrous oxide (N2O) and refrigerant, and then converted into carbon dioxide equivalent per hectoliter of product, following the guidelines of Thailand Greenhouse

Gas Management Organization (TGO) and the Global Warming Potentials (GWP) according to Report No. 4 of the Intergovernmental Panel on Climate Change (IPCC)

ThaiBev 2017 Sustainability

ThaiBev
2017 Sustainability