ThaiBev Sustainability

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Climate change creates multi-dimensional impacts not only on environmental conditions, but also on economic and community well-being. ThaiBev is fully dedicated to expediting climate action, aligning with global efforts to limit temperature increases to below 1.5 degrees Celsius as part of its contribution to the Paris Agreement, and improving the company’s resilience to potential climate impacts. We acknowledge the importance of managing climate-related risks, as well as maximizing the opportunities from climate change, to ensure a sustainable long-term future for our food and beverage operations.

Our objective is to transition our operations towards achieving net-zero emissions. We prioritize this goal by placing significant emphasis on managing energy efficiency across our entire value chain. This involves reducing overall energy consumption, elevating reliance on renewable energy sources, and integrating high-energy-efficiency technologies. Collaborating closely with our partners, we are committed to developing operations with low energy intensity and implementing effective management strategies for packaging materials and waste.

Recognizing the need to accelerate our actions to address the climate crisis, we are committed to achieving net-zero greenhouse gases (GHG) emissions for Scope 1, 2 and 3 by 2050.

Management Approach

ThaiBev’s sustainability strategy has well-defined Environmental, Social, and Governance (ESG) initiatives and goals, including a clear target to achieve net-zero greenhouse gas (“GHG”) emissions for Scope 1, 2, and 3 by 2050 with quantifiable targets. The “Enabling Sustainable Growth” strategy will enable us to drive sustainable development and resilience across our businesses, protect the environment, support local communities, and enhance governance.

ThaiBev is committed to raising the proportion of renewable energy usage by increasing investment in innovative low-carbon technologies that contribute to climate change mitigation and adaptation efforts, as well as promoting optimization of overall resource use for maximum efficiency. This approach extends to raising awareness among suppliers and partners about climate change.

We have integrated climate-change risks and opportunities into our strategy and operations to enhance our resilience to climate change, while also enhancing value creation for the business and connected communities. The company uses this strategy to disclose climate-related financial risks and opportunities in line with the Task Force on Climate-related Financial Disclosure (TCFD) and International Financial Reporting Standards (IFRS) S2 recommendations, in order to ensure transparency with stakeholders and align with global best practices.

Internal Carbon Pricing

To accelerate our reduction of emissions and drive low-carbon investment within the company, ThaiBev uses Internal Carbon Pricing (ICP) to estimate the financial impact of carbon emissions on our business. ThaiBev will apply ICP as shadow pricing to support CAPEX investment decisions in green projects and avoid CAPEX investment decisions in high-emission projects. ThaiBev’s implementation strategy is to use the ICP of USD 20/tCO₂e for investment of more than 10 million Baht per project during 2020–2024, and USD 32/tCO₂e for project investment of more than 5 million Baht during 2025–2030.

Energy Audits

ThaiBev conducts energy audits in each business unit to assess and improve energy efficiency in their processes. This includes exploring ways to reduce energy use through innovative technology or alternative energy sources. Each business unit has an energy management working group to evaluate energy use and seek ways to reduce GHG emissions, including new technologies as well as renewable and alternative energy sources. They report their energy use to the Department of Alternative Energy Development and Efficiency at the Ministry of Energy and voluntarily participate in assessments for compliance with the ISO 50001 standard, which includes energy management certification from third parties. In 2024, 14 production facilities within ThaiBev received ISO 50001 certification.

ThaiBev uses innovation to evolve production processes in order to gain a competitive advantage and improve the quality of the working environment for employees. Innovation is also leveraged to reduce impacts on the environment and society.

In 2024, we spent 221.37 million Baht on energy-saving and renewable projects. These projects include expenditures aimed at reducing GHG emissions.

Renewable Energy Projects: Solar panels, biogas, and biomass projects significantly contribute to reducing reliance on fossil fuels and decreasing GHG emissions.
GHG Emissions Reduction Projects: These projects include installing LPG boilers to replace fossil fuel usage, thereby decreasing GHG emissions by hundreds of tonnes of CO₂e per year.
Energy Efficiency Projects: Initiatives to decrease energy consumption include installing high-efficiency motor systems and new air compressors.

Science-based Targets Initiative

ThaiBev has been verified and declared a certified organization by the Science Based Targets initiative (SBTi), for its short-term GHG emissions reduction target for 2030 and its long-term net-zero GHG emissions target for 2050. The first target is to reduce total GHG emissions by 42% by 2030, covering both direct emissions (Scope 1) and indirect emissions from energy use (Scope 2). Additionally, the company aims to achieve a 25% reduction in indirect GHG emissions across its entire value chain (Scope 3). By 2050, ThaiBev is targeting net-zero GHG emissions for Scope 1, 2, and 3. We aim to achieve our emissions reduction targets by collaborating with our suppliers and partners, working closely to implement new technologies and practices and collectively reduce emissions. Through these partnerships, we ensure that GHG emissions reduction is integrated throughout the value chain.

Remark: Excluding F&N operations

Remark: Excluding F&N operations. ThaiBev will assess baselines and review targets to include F&N in fiscal year 2026

Renewable Energy Projects

Renewable energy projects contribute significantly to global efforts to reduce reliance on fossil fuels, decrease GHG emissions, and build a more sustainable energy future. These initiatives are instrumental in achieving renewable energy targets, promoting environmental sustainability, and fostering innovation in the energy sector.

Solar System Projects

The solar system project’s covers the installation of solar rooftops and floating solar panels in Thailand, Myanmar, Vietnam, Singapore, Malaysia, and France. Total installation in 41 production facilities and 8 other operation sites has been completed with a total capacity of 61.86 MWp (Megawatt peak).

The installed solar panels can generate 67,536 Megawatt hours (MWh), which reduces the cost of electricity purchased from the grid by 250.02 million Baht per year and lowered GHG emissions by 32,917 tonnes CO₂e in FY2024.

Biogas Plant

In 2024, ThaiBev started the installation of its eighth biogas plant at the distillery in Ratchaburi Province, Thailand, with an investment of 187.275 million Baht. Due to be completed in 2025, this project will be able to reduce heavy fuel oil consumption for steam production by 1.77 million liters per year, with a GHG emissions reduction of 57,193 tonnes CO₂e.

Biomass Plants

ThaiBev currently has two biomass boiler plants in Thailand and Myanmar. The boilers use organic materials such as wood chips, wood pellets, rice husks, and palm shells, and are also designed to be able to use waste labels, sludge from wastewater treatment, and tea-leaf residue for steam generation to replace fossil-fuel energy.

These biomass boilers produce 869,880,693 megajoules (MJ) of thermal energy, leading to a reduction in heavy oil and coal consumption for steam production by 1.0 million liters and 32.15 million kilograms, with a GHG emissions reduction of 80,516 tonnes CO₂e per year and an energy cost reduction of about 30.81 million Baht per year.

GHG Emissions Reduction Projects

CO₂ Recovery

All ThaiBev’s breweries in Thailand, Vietnam, and Myanmar have adopted carbon dioxide (CO2) recovery practices in their operations. This involves capturing the CO2 generated from the fermentation process in the production of alcoholic beverages. The recovered CO2 is then used for the brewing process and for carbonating beverages, such as soda and beer, thus contributing to both sustainability and operational efficiency. These projects reduce energy costs by 171.41 million Baht per year and lowered GHG emissions by 28,569 tonnes CO₂e in FY2024.

LPG Boilers

In 2024, ThaiBev invested 12 million Baht to install an LPG boiler at a non-alcohol business facility in Nakhon Sawan Province, Thailand. The boiler uses LPG instead of fuel oil to produce steam and generates 21,984,000 megajoules (MJ) of thermal energy. This switch is expected to reduce fuel oil consumption by 207,912 liters, lower GHG emissions by 207 tonnes CO₂e, and achieve an annual energy cost reduction of approximately 1.05 million Baht.

Enclosed Flare

ThaiBev invested 24.35 million Baht in 2024 to upgrade the biogas flare system in Thailand, replacing the open flare system with an enclosed flare system. This modification aims to reduce leakage of methane, one of the greenhouse gases. The shift to an enclosed flare system will result in a decrease in GHG emissions of 43,082 tonnes CO₂e per year.

Products with Carbon Footprint Reduction (CFR) certification

Products with Carbon Footprint Product (CFP) certification

9.2%

Revenue from low-carbon products (% of total revenue)

70,675

Total avoided emissions from low carbon products (tCO₂e per year)

Remark: Excluding F&N operations

Energy Efficiency Projects

Energy Efficiency Training

To successfully implement energy efficiency measures and new technology, ThaiBev holds training sessions led by industry experts for our employees and engages them through interactive initiatives. These efforts raise awareness about current energy developments and encourage active participation in environmental care.

Route Planning for Energy Saving

ThaiBev’s subsidiary, F&N, has strategically decentralized its distribution network to curtail GHG emissions. This decentralization aligns with the principles of Total Supply Chain Management (TSCM) and extends to logistics management. A major technological advancement we have implemented is the Automated Storage and Retrieval System (ASRS), which is now fully operational in our integrated warehouses in Malaysia and regional distribution center in Thailand. This system has revolutionized our operations by automating processes, enabling the handling of higher daily loads. As a result, it optimizes forklift usage and reduces their use by up to 40%, leading to savings in both time and energy while cutting down on trips down storage aisles. A notable benefit of implementing the ASRS is the elimination of reliance on external rented warehouses.

This strategic shift has enabled us to achieve a 15% annual reduction in transportation costs, yielding substantial savings in time and energy about 17,319 MWh while significantly lowering GHG emissions by 3,118 tCO2e per year and also reduce energy cost by 28 million Baht per year. Moreover, the ASRS drives continuous improvement through a series of integrated steps designed to optimize storage and retrieval, enhance operational efficiency, and support our sustainability goals, with results that include a reduction of time spent by workers at the warehouse and improvement in warehouse safety.

Heat Recovery Project

The Heat Recovery Project at the dairy plant at Rojana, Ayutthaya Province, Thailand, focuses on recovering waste heat from various processes, including the processing lines, continuous sterilizers, and jumbo sterilizers. This recovered heat is then transferred to processes such as reverse osmosis (RO), softened water, processed water, and fresh milk. The newly implemented heat recovery system captures 100% of heat waste, achieving a recovery rate of 287 MWh per year. This initiative provides a competitive advantage by enabling the cooling tower to operate with zero heat waste discharge to the atmosphere. This project also reduces energy costs by about 500,000 Baht per year and lowers GHG emissions by 65.4 tCO2e per year.

Energy-saving Projects

To reach maximum energy efficiency, ThaiBev continually invests in innovative projects and new technology development. Examples of initiatives are provided below.

GHG Emissions Accounting Training
Recognizing the diverse needs and challenges of our suppliers during their transition to low-carbon operations, ThaiBev supports their development by sharing know-how in sustainable development practices. The goal is to equip suppliers’ representatives with knowledge and tools necessary to implement GHG emissions reduction within their organizations. By focusing on capacity building and data collection support, we aim to establish foundational GHG and reduction and accounting practices across all our suppliers. In 2024, ThaiBev organized a training course on “Greenhouse Gas Accounting” for Scope 1 and Scope 2 emissions, conducted in three sessions. Led by experts in the environmental and sustainability fields, the sessions were attended by over 80 participants from 40 companies

Train the Trainer Program on Business Sustainability and Climate Change

ThaiBev collaborates with strategic business partners to enhance supplier development through the Thailand Supply Chain Network (TSCN). This collaboration includes inviting partners to attend training and seminar sessions organized by the Thailand Sustainability Academy (TSA). In 2024, the TSA successfully held a training class on the topic “Train the Trainer Program on Business Sustainability and Climate Change” at the Queen Sirikit National Convention Center, Bangkok. The event featured guest speakers from leading consulting firms specializing in sustainable business development, aimed at strengthening the capabilities of business partners. The session saw participation by more than 56 attendees representing 9 TSCN Co-Founders.

National Food Waste Management Campaign of Local Administrative Organizations in Thailand (Avoided methane emissions)

ThaiBev has purchased carbon credits from the Department of Local Administration, Ministry of Interior, under the National Food Waste Management Campaign of Local Administrative Organizations. The project encourages households across the country (excluding Bangkok) to implement household wet waste bins. The composting of food waste in these bins produces soil conditioners that households can use, while reducing methane from landfilling and incineration. In 2024, ThaiBev received a transfer of carbon credits equivalent to 4,000 tCO2e from this project, which to be used to offset emissions from internal events, such as our annual Sustainability Expo (SX 2024). This initiative not only offsets emissions but also plays a key role in increasing awareness about community responsibility in addressing climate change, highlighting the importance of collective action toward a more sustainable future.

Community Forest Restoration Project with the Mae Fah Luang Foundation

ThaiBev has joined the Mae Fah Luang Foundation’s Community Forest Restoration Project in Thailand. The foundation is seeking to expand community forests through the carbon-credit management mechanism, which aims to integrate rural development with forest preservation to reduce Thailand’s GHG emissions. Phases 1–4 of the project will add a total area of 61,850 rai (9,806 hectares) covering 11 provinces, please see a map below. The carbon credit earned from this project will be registered under ThaiBev’s account as part of the Thailand Voluntary Emission Reduction (T-VER) Project, and can be used to offset the company’s own GHG emissions.

GHG Emissions Data

Other Direct (Scope 3) GHG emissions

	Unit	2024	Methodology
Total other indirect (Scope 3) GHG emissions	Tonnes CO₂e	3,198,256
Purchased goods and services	Tonnes CO₂e	2,413,817	Hybrid method
Capital goods	Tonnes CO₂e	38,576	Spend-based method
Fuel- and energy-related activities	Tonnes CO₂e	167,031	Average-data method
Upstream transportation and distribution	Tonnes CO₂e	154,124	Spend-based method and Distance-based method
Waste generated in operations	Tonnes CO₂e	11,421	Waste-type-specific method
Business travel	Tonnes CO₂e	1,455	Distance-based method
Employee commuting	Tonnes CO₂e	81,851	Distance-based method
Downstream transportation and distribution	Tonnes CO₂e	199,546	Average-data method
Use of sold products	Tonnes CO₂e	368	Direct use phase emission: GHG and products that contain or form GHG that are emitted during use
End-of-life treatment of sold products	Tonnes CO₂e	107,663	Waste-type-specific method
Investments	Tonnes CO₂e	22,404	Investment-specific method

Remark: Excluding F&N operations

Energy Consumption within the Organization

ASEAN Energy Awards 2024

The 24th ASEAN Energy Business Forum held an awards night to announce the winners of the ASEAN Energy Awards 2024 on Friday, 27 September, in Vientiane. The event was organized by the ASEAN Centre for Energy and hosted by the Ministry of Energy and Mines of Lao PDR.

The ASEAN Energy Awards stand as an esteemed honor, celebrating excellent contributions to the energy sector across the region and encouraging greater private-sector participation in ASEAN energy development.

In 2024, ThaiBev received the following awards, underscoring our commitment to efficient energy management throughout our entire value chain:

1^st Runner Up – ASEAN Renewable Energy Project Awards, Off-grid Thermal, for renewable heat production from biogas using distillery slop as a feedstock, by Thai Beverage Energy Company (Nong Khai Province)
2^nd Runner Up – ASEAN Renewable Energy Project Awards, Off-grid Thermal, for utilization of biogas generated from the distillery slop, by Thai Beverage Energy Company (Nakhon Sawan Province)

To achieve our short-term targets of a 42% reduction in GHG emissions for Scope 1 and 2 and 25% reduction for Scope 3 by 2030 (compared to 2023 base year), we are putting in place the following initiatives.

Solar System Projects

In 2025, ThaiBev plans to install solar power systems in Thailand and Malaysia, targeting a capacity of 21.83 MWp. This initiative aims to achieve annual savings of 106.75 million Baht and reduce GHG emissions by up to 18,221 tonnes CO2e per year. With a total investment of approximately 652.59 million Baht, these projects are expected to be completed by the fiscal year 2026.

Biogas Plants

ThaiBev is undertaking the expansion of its biogas plants in Thailand at the Red Bull Distillery in Samut Sakhon Province, Mongkolsamai in Uttaradit Province, and Thanapakdi in Chiang Mai Province – all scheduled for completion by 2026, with a total investment of 438.08 million Baht. These projects are designed to reduce heavy fuel oil consumption for steam production by 5.55 million liters per year and reduce GHG emissions by 79,014 tonnes of CO2e in 2026/2027.

Biocarbon Plant

In 2025, ThaiBev plans to install a biocarbon plant in Thailand that uses torrefied biocarbon powder as input for steam generation, replacing fossil fuel energy. The biocarbon plant will generate 82,919,309 megajoules (MJ) of thermal energy, reducing fuel oil consumption by 2.05 million liters annually, resulting in cost savings of 7.57 million Baht per year. Furthermore, the project will achieve an annual reduction in GHG emissions of 6,495 tonnes CO2e.

This innovative system features pulverized solid fuel machinery designed to meet advanced engineering standards. It incorporates a parameter detection system and automated boiler operations controlled by a Programmable Logic Controller (PLC), ensuring ease of operation and efficiency.

Supplier Engagement for Indirect GHG Emissions Reduction

The strategy for managing Scope 3 GHG emissions will focus on close collaboration with suppliers. This engagement approach will include awareness training, data collection support, target setting alignment, regular disclosure requirements, collaboration for emissions reduction, and knowledge exchange, tailored to the supplier’s classification and readiness.

In 2024, ThaiBev has implemented a carbon accounting training program for suppliers classified as Beginner and Competence levels. The objective is to provide foundational knowledge of GHG emissions accounting. For key agricultural commodity suppliers, ThaiBev focuses on engaging Tier 1 suppliers to collaborate with local farmers, which are ThaiBev’s non-Tier 1 suppliers, to adopt sustainable agriculture practices. These initiatives, particularly for sugarcane and broken rice, include knowledge sharing on nutrient management, water conservation, and responsible land use. As a result, they enhance productivity, reduce environmental impact, and improve farmers’ livelihoods through better yields and resource efficiency.


Read More Information about Climate Change and Energy Management in Sustainability Report 2024