We assess the future potential impact of regulatory changes, particularly the potential new Water Tariff being developed by the Ministry of Natural Resources and Environment. Sensitivity analyses are employed to evaluate the financial impact covering FY2025-2027, accounting for additional costs from the expected water tariff. The water tariff is anticipated to be imposed for surface water withdrawal, with the regulator currently determining a reasonable and feasible charge for all industrial sectors. As 24 out of 31 ThaiBev production plants use surface water as a source, these potential regulations are linked to a financial impact of approximately 19.8 million THB. To manage this risk, ThaiBev is investing 14.3 million THB in 3Rs projects to implement a water management plan, ensuring sufficient water supply, and improving water efficiency through water-saving technology and a water recycling system.
As part of our commitment to responsible water stewardship, we use the World Resources Institute (WRI)’s Aqueduct Tools to annually assess all our production facilities for exposure to water-stressed conditions. One of our distilleries, located in Buriram Province, Thailand, operates in an area identified as having extremely high water stress.
Water quality testing in the area has revealed chloride levels ranging from 100 to 500 mg/l, significantly exceeding the acceptable operational standard of 60 mg/l for the distillery. This presents both operational and environmental challenges.
To address this issue, we have developed a comprehensive mitigation plan that includes technical and infrastructure upgrades. The plan is projected to incur a cost of approximately THB 2.8 million during FY2024–2025, while the potential financial impact from the water stress is estimated at THB 2.65 million over the 2025–2027 period.
We are actively working to implement these solutions and continue to monitor water risk across all sites to ensure long-term sustainability and business resilience.