Home / 2020 Sustainability Report / Caring for the Environment
Climate Change
ThaiBev recognizes climate change as a material issue for its potential impacts and opportunities. The company has continued to execute its climate strategy in order to mitigate greenhouse gas emissions, adapt to climate change, and help create a more sustainable future for both the industries and the communities in which ThaiBev operates.
Highlights of ThaiBev’s 2020 Climate Strategy activities
  • In order to commit to limiting the global temperature increase to below 1.5°C this century, ThaiBev has set a sciencebased emission reduction target equivalent to a minimum of 2.5% absolute reduction per year. This science-based target is more ambitious than Thailand’s current commitment in the Paris Agreement.ThaiBev annually reviews the company’s scenario analysis to minimize transitional risks and identify climate change opportunities. This analysis enables ThaiBev to model the transition and physical risks due to climate change and plan appropriately.
  • ThaiBev has conducted workshops on greenhouse gas (GHG) reductions and climate strategy approach with the product group (PG) executives to define the 3 pillars of the company’s climate strategy: GHG mitigation, climate change adaption, and managing communities. The company also held a Task Force on Climate-related Financial Disclosures (TCFD) training session for executives and sustainability practitioners to embed understanding of the TCFD requirements and processes. TCFD has developed recommendations for businesses to follow in order to adequately prepare for climate change, as well as disclosures to investors and other stakeholders.

In terms of energy efficiency, ThaiBev conducted a company-wide Energy Audit Project to assess the energy consumption of each production process and identify opportunities for energy efficiency. ThaiBev continues to utilize renewable energy and has invested in a group-wide Solar Rooftop Project that will install solar-panel rooftops at 22 factories in Thailand and 1 factory in Myanmar. With planned completion by 2021, the total installed capacity will be 20 megawatts The company has also invested in 2 biogas plants in Nakhon Sawan and Nong Khai Provinces, in addition to the five existing biogas plants. The 2 new projects are expected to be completed in 2021.

Managing physical risks of climate change through factory activities such as Water Sustainability Assessment and Natural Hazard Risk Assessment.

In the wider value chain, ThaiBev works on identifying partnerships and collaboration activities that can benefit the environment and reduce the company’s scope 3 emissions.

ThaiBev already has scope 3 emission reduction measures in place, such as the supplier collaboration award for reducing scope 3 emissions in the purchased goods and services category, used packaging repurchase and recycling with partners for reducing emissions in the end-of-life treatment of sold products category.
Commitments and Achievements
  • ThaiBev engages strategically with its suppliers to develop low carbon products through innovation and technology to reduce GHG emissions from its products. In addition, ThaiBev continues to register products with the Thailand Greenhouse Gas Management Organization (Public Organization: TGO) in the Carbon Footprints Reduction (CFR) project to demonstrate reduction of the products’ carbon footprint of not less than 2% when compared to the base year, as required by TGO’s Carbon Labelling Program. The CFR project enables consumers to contribute towards avoiding GHG emissions by purchasing low carbon products.
  • ThaiBev adheres to the principle of the Circular Economy in its packaging management in order to reduce the impact of increasing amounts of waste on both land and the ocean. This commitment will also help reduce emissions through packaging reduction, bottle reuse, and waste collection. ThaiBev has implemented packaging reduction initiatives, and embraced the reuse of glass bottles and buybacks of cullet, PET, paper, cardboard, and aluminum.

Moving Forward
  • FY 2019 is the base year and a 15% decrease in absolute emissions is targeted by FY 2025.
  • ThaiBev is assessing scope 3 emissions to incorporate into the science-based target in the future.
  • ThaiBev has numerous initiatives to decrease the company’s total emissions; with the planned rollout of new biogas projects and phase 1 to 4 of the solar rooftop scheme. This will also increase the proportion of renewable energy utilized by ThaiBev, as part of the transition to a low carbon economy.

Vichien Rungwattanakit
President of Packaging and Engineering Business
Berli Jucker Public Co., Ltd.
BJC Glass has been using cullet in our production process since 1951. A strategic partnership with ThaiBev started in 2016 through a supplier and customer collaboration. With existing ThaiBev infrastructure across Thailand, the 2 companies have formed a partnership in the cullet supply chain, resulting in benefits to both parties. The partnership has so far led to 334,000 tonnes of cullet being recycled, or an equivalent to 18% of annual recycled cullet used by BJC Glass. BJC Glass is able to use up to 50% cullet in the smelting process, compared to 25% typically used in European glass factories. Using cullet helps to reduce energy consumption in the melting process, and avoids waste being sent to landfills. Glass produced from cullet has no reduction in strength or other properties, so it is a truly circular process. An estimated 0.24 kgCO2e per bottle is avoided per kg of recycled cullet used in the production process. In wider sustainability, BJC Glass is able to realize economic benefits such as reduced raw material price and streamlined supply chain operations. In the social field, we see opportunities being provided through additional income for communities in collecting and selling cullet to Thai Beverage Recycle or BJC Glass. We also have established campaigns and promotional materials to increase awareness around the opportunities and benefits to society of glass recycling. As a supplier to ThaiBev, we also collaborate on initiatives such as lightweight packaging design for glass bottles. Bottle weight reduction can reduce the carbon footprint of ThaiBev products, as lightweight bottles save emissions in the production process and logistic operations.