ThaiBev’s supply chain management strategy is centered on three key pillars that align with our long-term vision of sustainable operations:

• 1. Group Procurement Shared Service
  A shared-service approach enables ThaiBev to consolidate procurement across business units, fostering transparency and ensuring adherence to high ESG standards throughout our supply chain. Through this centralized model, ThaiBev enhances operational efficiency, streamlines processes, and strengthens oversight.
• 2. Sustainable Sourcing
  ThaiBev is committed to sourcing responsibly by prioritizing suppliers who align with our sustainability values. By embedding ESG considerations into sourcing decisions, we aim to reduce Scope 3 GHG emissions and support sustainable agricultural practices. This pillar also emphasizes establishing partnerships with suppliers who are dedicated to lowering environmental impacts, promoting ethical practices, and enhancing resource efficiency.
• 3. Strategic Partnership Management
  Recognizing the importance of strong supplier relationships, ThaiBev focuses on building long-term partnerships. We engage proactively with suppliers to drive sustainability improvements, provide development opportunities, and ensure alignment with ThaiBev’s goals for reducing emissions and advancing social responsibility. Such partnerships allow ThaiBev to create shared value and resilience across the supply chain.

ThaiBev’s procurement processes are guided by three core ESG objectives:
1. Scope 3 GHG Emission Reduction
ThaiBev prioritizes suppliers and products with high GHG emission intensity as the focus of our engagement and action plans to reduce Scope 3 GHG emissions. By working closely with these suppliers, we aim to track, report, and implement strategies to reduce their carbon footprints. This approach reflects ThaiBev’s commitment to achieving Net Zero Scope 3 GHG emissions by 2050.

2. Supplier Development and Collaboration
We engage in continuous development programs with our suppliers, focusing on building capabilities in sustainable practices. ThaiBev offers training, resources, and support for suppliers to meet ESG standards, and recognize outstanding achievements through ThaiBev Business Partner Award program.

3. Sustainability Integration into Supplier Selection
ThaiBev integrates sustainability criteria into supplier selection, ensuring that ESG considerations are embedded as part of procurement decisions. This starts from supplier on-boarding where suppliers, are required to comply with the ThaiBev Supplier and Business Partner Code of Practice and undergo supplier screening and supplier assessment respectively.

Our comprehensive pre-qualification processes include sustainability assessments, third-party certifications, and on-site audits to identify and engage with suppliers who align with our environmental and social standards.

Overall ThaiBev	Thailand operations
100% of ThaiBev Suppliers comply with Supplier and Business Partner Code of Practice by 2030 Net Zero in Scope 3 GHG Emissions by 2050	Responsibly source 100% of our Key Agricultural Raw Materials (i.e. malt and hops, sugar, broken rice, tea leaves, and palm oil) by 2025 100% of Strategic Suppliers implementing their own Supplier Code of Conduct by 2030 100% of active suppliers to be assessed and examined for sustainability risks by a third party or using third-party risk databases by 2030

Definition

• Active Suppliers are suppliers with business transaction with ThaiBev in the reporting year with minimum aggregated annual transaction value of 100,000 Baht
• Strategic Suppliers are suppliers whose products or services have a high business impact on the company’s profitability and high level of supply risks, classified using the Kraljic Matrix.

INTERNAL PLATFORM

EXTERNAL PLATFORM

The Thailand Supply Chain Network (TSCN) was co-founded by ThaiBev and its strategic business partners to create a responsible and resilient supply chain ecosystem in Thailand. By connecting suppliers and business partners across various industries and fostering sustainable practices, TSCN enables shared learning and collaborative growth, ultimately supporting Thailand’s journey toward sustainability. TSCN took a prominent part in Sustainability Expo 2024 (SX2024), Southeast Asia’s largest sustainability- focused event, which is designed to inspire and educate stakeholders about sustainable practices. TSCN’s collaboration showcased a range of green innovations from its members and featured knowledge-sharing sessions, interactive workshops, and business-matching opportunities. This collaboration reinforced TSCN’s commitment to fostering ESG awareness among Thai entrepreneurs and the wider community. The first-ever award launched by TSCN, the SX TSCN Sustainability Award 2024 recognized outstanding suppliers for their achievements in ESG practices.

The criteria include measurable impacts in areas such as emission reduction resource efficiency, social responsibility, and alignment with sustainable development goals. The award aims to set a benchmark for sustainability in Thailand’s supply chain, motivating other members to elevate their ESG efforts and contribute to a greener, and more sustainable business environment.
Outlining the fundamental ESG principles expected of all TSCN members, the TSCN Business Partner Code of Conduct ensures that members operate responsibly and adhere to high standards of sustainability. The code encourages members to adopt sustainable practices within their own supply chains and align their operations with TSCN’s overarching vision of a sustainable and ethical business ecosystem.
As part of its mission to strengthen Thai entrepreneurs, TSCN introduced the Train-the-Trainer Program in collaboration with its co-founders. This initiative aims to equip member representatives with the knowledge and tools necessary to implement effective sustainability practices within their organizations. By focusing on GHG emissions tracking, reduction strategies, and sustainability management, the program supports Thai entrepreneurs in advancing toward Net Zero.

In this way, TSCN empowers businesses to be leaders in sustainability and contributes to Thailand’s broader climate objectives. Building on its success in Thailand, TSCN has expanded its collaborative efforts. In Vietnam, TSCN co-founders have hosted sessions on sustainable supply chain management, green innovation, and ESG integration. Activities have included workshops on circular economy concepts, resource efficiency, and waste reduction, all tailored to local suppliers to ensure alignment with global sustainability standards. The program has also enabled knowledge sharing between Thai and Vietnamese suppliers, fostering cross-border partnerships that strengthen the region’s overall sustainability efforts. This expansion shows TSCN’s commitment to scaling its impact across ASEAN, ensuring that suppliers in other markets benefit from equal opportunities for growth and recognition.

By promoting sustainability beyond Thailand, TSCN reinforces its role as a key driver of ESG advancement and regional supply chain resilience.

ThaiBev is committed to advancing sustainable agriculture by collaborating with key agricultural commodity suppliers to educate local farmers. In Thailand, these efforts focus on malt, hops, sugar, broken rice, tea leaves, and palm oil. Through alignment with internationally recognized standards—such as Bonsucro, RSPO, SAI Platform, SEDEX/SMETA, and Rainforest Alliance—ThaiBev promotes farming practices that enhance resource efficiency, protect ecosystems, and comply with global sustainability benchmarks.

In the Malaysia market, palm oil remains a critical component of the supply chain, particularly for F&N’s operations. Currently, 100% of palm oil used is RSPO certified, of which 80% is Certified Sustainable Palm Oil (CSPO) and 20% offset via RSPO credits. Additionally, all paper used in F&N’s carton packaging is FSC-certified, ensuring that it originates from responsibly managed forests. These efforts across Thailand and Malaysia demonstrate our commitment to sustainable sourcing through a resilient agricultural supply chain.

ThaiBev also collaborates with key agricultural raw material suppliers of sugar and broken rice to promote sustainable farming practices among non-Tier 1 suppliers in Thailand. These include nutrient management, pest control for ecosystem preservation, water conservation, and soil health improvement. Leveraging smart farming approach using automation tools such as GPS-guided tractors, drones, and IoT (Internet of Things) irrigation, such initiatives empower farmers to boost productivity while minimizing environmental impact, reducing GHG emission. This comprehensive approach strengthens local economies, and supports ThaiBev’s sustainability objectives and Thailand’s national environmental goals.

The ThaiBev Business Partner Award Program promotes supplier development, private-sector competitiveness, sustainable business practices, and innovation. The program recognizes ThaiBev’s strategic business partners, including critical suppliers, suppliers with strong business relationships, and high-volume suppliers, for their outstanding contributions to sustainability and business excellence. The awards are categorized into three tiers, Silver, Gold, and Platinum—the last-mentioned being awarded to business partners who achieve a Gold Award for three consecutive years.

Since 2022, ThaiBev has expanded the Business Partner Award Program in collaboration with F&N to include Malaysia, ensuring that suppliers in other markets with exceptional performance receive the same level of recognition as those in Thailand. In 2024, two suppliers from Malaysia won Silver and Gold awards for their outstanding achievements. Through this initiative, F&N and ThaiBev foster stronger partnerships and encourage improvements, particularly in ESG practices.

In support of our Scope 3 reduction goals, ThaiBev’s Supplier Classification Framework is based on the sustainability maturity of our suppliers:

• 1. Beginner:
  Suppliers who lack GHG accounting and reduction targets.
• 2. Competence:
  Suppliers who have initiated GHG accounting but have not yet established formal reduction targets.
• 3. Role Model:
  Suppliers who engage in GHG accounting and have established reduction targets, though they may not align with the SBTi (Science-Based Targets initiative).
• 4. Leader:
  Suppliers with mature sustainability programs, encompassing GHG accounting and ambitious reduction targets aligned with the SBTi.

Understanding the diverse needs and challenges of our suppliers during their sustainability transitions, ThaiBev tailors its engagement strategies to each supplier’s classification. For Beginner and Competence suppliers, our primary focus is on capacity building through resources, training, and data collection support to establish foundational GHG accounting practices. For Role Model and Leader suppliers, ThaiBev emphasizes target alignment and collaborative initiatives to accelerate emissions reductions, leveraging these suppliers’ sustainability maturity to drive change.

This initiative is initially being piloted in Thailand, our core market, to refine our approach and build a strong foundation. We then plan to expand the program to other key markets, including Vietnam, Myanmar, Malaysia, and Singapore, to enable consistent and impactful engagement throughout our procurement operations.