ThaiBev has collaborated with the Hydro-Informatics Institute (HII) on the “Water Resource Management for Surrounding Communities” projects to assess the risks of floods and droughts in both short and long terms by using the HII’s Water Resource Information System for Sustainable Development. The initiative supports water resource management in local communities around our production facilities that are in High to Extremely High water-stressed areas, covering a radius of five kilometers around each facility. Through this project, ThaiBev will be able to operate its business while creating value for the communities that share the same water sources by devising a mitigation action plan for water-related risks within and outside its operations.
The study process is as follows:

• Study the general condition of the area, the watershed condition, and meteorological and hydrological data - including potential sources of water pollution - to assess the flooding and drought situation, including historical occurrences of such events.
• Study the impacts of climate change on flood and drought issues, including the indices and trends in extreme rainfall data for current and future conditions. Create a probability map for extreme rainfall in the catchment area and its associated watershed areas around the facility.

The study was first conducted at Beer Thai Brewery in Kamphaeng Phet Province. In 2024, ThaiBev expanded the project to include Thanapakdi Distillery in Chiang Mai Province, Simathurakij Distillery in Nakhon Sawan Province, and ThaiDrinks Non-Alcoholic Beverage Production Facility in Lampang Province, which are also in Extremely High water-stressed areas.

Thanapakdi Distillery, Chiang Mai Province
The results showed that the study area is at low to very low risk of flooding; only about 15% of the area is at high to very high flood risk. The low flood risk is largely attributed to the study area’s location in an irrigation zone. The few areas classified as high-risk are predominantly elevated and not irrigated. The facility itself is situated in a low-risk area, benefiting from its strategic location within the irrigation zone.

In contrast, 50% of the study area is identified as being at high to very high risk of drought. This heightened vulnerability is primarily due to the predominance of agricultural land situated outside the irrigation zone, as well as the presence of mountainous regions, which are inherently more susceptible to drought conditions. Nevertheless, the facility itself is in an area with a low to very low risk of drought, owing to its proximity to water sources and its location within the irrigation zone. An analysis of flood and drought risks, incorporating climate change indices across scenarios-near-term, mid-term, and long-term; revealed consistent trends.

The risk of flooding is projected to increase both in spatial extent and intensity, with areas currently classified as very low to low likely transitioning to moderate risk over time. By contrast, drought risk is anticipated to decline in both extent and severity, with moderate, high, and very high-risk areas potentially shifting to low or very low-risk. These projections align with findings from extreme rainfall indices, which underscore changing rainfall patterns as a critical driver of both flood and drought risks. Simathurakij Distillery, Nakhon Sawan Province
Preliminary findings, currently 80% complete, incorporate analyses of physical characteristics, site surveys, and stakeholder interviews conducted in both upstream and downstream areas. The findings suggest that flooding in this region is predominantly attributed to excessive water flow in the Ping River, particularly at times when temporary weirs overflow or when drainage canals exceed their designed capacity. Initial assessments classify both flood and drought risks in the area as moderate to high. Preliminary findings, approximately 50% complete, similarly include evaluations of physical characteristics, site surveys, and stakeholder consultations conducted across upstream and downstream areas. These findings indicate that flooding in this region is primarily driven by heavy rainfall in upstream areas, which significantly heightens the risk of flash floods. Additional contributing factors include excessive water inflow, inadequate drainage infrastructure, and physical obstructions such as roads and culverts, which exacerbate water flow impediments.

Community Water Management Project in accordance with the Royal Initiative of Muang Mae Haad Community, Chiang Mai Province, Thailand
ThaiBev, in collaboration with the Hydro-Informatics Institute (HII), launched the “Community Water Management Project in accordance with the Royal Initiative of Muang Mae Haad Community, Chiang Mai Province”. This initiative was designed to address the significant challenges of water scarcity, particularly during the dry season, by improving water access and supporting agricultural productivity in the villages of Ban Mae Hoy, Ban Muang Klang, and Ban Ku Ho.

• Reservoir expansion: the project increased the reservoir’s capacity, benefiting 139 households in Ban Ku Ho.
• Flood and erosion control: small dams with infiltration wells and reinforced embankments were constructed to mitigate flood risks and prevent erosion during heavy rains.
• Irrigation canal rehabilitation: repairs were carried out at nine critical points along the Muang Mae Haad irrigation canal, ensuring water distribution to 2,218 residents in 681 households engaged in agriculture across the three villages.

The primary goals were to expand water storage through reservoir enlargement and infrastructure upgrades, ensuring a reliable water supply for consumption and agriculture. Additionally, the project aimed to rehabilitate irrigation systems, such as the Muang Mae Haad irrigation canal, which had deteriorated and required restoration to enhance water delivery to agricultural areas.

The project has significantly improved water management, resulting in an annual increase in reserved water volume of more than 270,000 cubic meters. The restored irrigation system provides consistent irrigation and enhance crop yields. Furthermore, the improved infrastructure strengthens the community’s resilience to droughts and other seasonal changes, ensuring long-term sustainability and support for local livelihoods. This project will serve as a model for public–private collaboration focused on enhancing long-term water security. F&N Dairy Thailand has installed a water storage tank to provide an efficient supply for communities and dairy farmers in Chaiyaphum Province. It reduces the need for villagers to travel long distances to access reservoirs during seasonal droughts. The 460,000 Baht investment supplies 1,680,000 liters of water every month to up to 180 households. This provides sufficient water for 24 farms with 955 cattle, so minimizing disruption from drought and allowing farmers to continue their operations sustainably.

Rainwater Harvesting System in Vietnam
The rainwater harvesting system at SABECO’s Cu Chi Brewery in Vietnam represents a sustainable initiative to reduce water consumption and operational costs. Using a rooftop area of 20,000 square meters, the system was developed with minimal new investment, as it repurposed old tanks from the NCT Brewery and reused equipment from a water treatment system. The only significant new expense was the installation of a piping system, which cost USD 26,909. Additional improvements to the system included the reuse of an old sand filtration system, modifications to the controlling pump system, and the installation of new piping to enhance the collection and measurement processes. These upgrades have ensured efficient operation and ongoing water savings.

The primary purpose of the harvested rainwater is to support the brewery’s cooling and cleaning processes. The system is expected to reduce the brewery’s water usage by 4% during the six-month rainy season in FY2024, representing a substantial cost saving of USD 5,811.

This initiative has been expanded to Can Tho Brewery, also including the installation of a piping system, which cost USD 6,292. The system has decreased water withdrawal by approximately 1,500 cubic meters, resulting in an annual cost saving of around USD 703.

Improving Water Efficiency in Sugar Transforming Process
Since 2022, F&NHB in Malaysia in collaboration with local manufacturers has replaced the usage of cube sugar with liquid sugar by implementing a filtration resin method, thus effectively transforming the sugar into liquid form. By removing the need to dissolve cube sugar, this method significantly reduces the large quantities of water that were formerly used, achieving water savings of 32,030 cubic meters per year. Other benefits include electricity savings of 275,956 kWh per year and a reduction of 238 tonnes of CO2e emissions per year.

Optimizing Water Usage in Plastic Crate Washing Machines
The Food Product Group in Thailand optimized the use of soft water in their basket washing machines by adjusting both the direction of water injection and the water pressure. This improvement significantly contributed to a reduction in the group’s water consumption, which fell from approximately 15,000 to 4,000 cubic meters, resulting in annual cost savings of around 250,000 Baht.

Clean Water for Communities
In 2024, ThaiBev continued its commitment to ensuring that local communities, especially children, and the agricultural sector receive clean water. The Spirits Product Group initiated a CSR activity “Sharing Water with the Community” in Thailand, in which the production facilities in Kanchanaburi, Prachin Buri, and Surat Thani Provinces helped provide clean water to neighboring communities.

ThaiBev has also expanded the “Clean Drinking Water” project in schools and communities around our production facilities in Thailand. Our representatives provide basic training on the maintenance and cleaning of the water filtration system so that school students will always have clean, hygienic drinking water that meets quality standards. We have successfully completed 41 WASH projects in 11 provinces: Pathum Thani, Chonburi, Buriram, Prachin Buri, Ratchaburi, Uttaradit, Surat Thani, Nakhon Pathom, Ubon Ratchathani, Ayutthaya and Nakhon Sawan.

These projects have benefited a total of 13,500 people. Our target is to add five additional WASH projects annually. Furthermore, ThaiBev has initiated a program to provide water filtration systems to 15 schools in Central Vietnam, specifically in the provinces of Ha Tinh, Quang Binh, and Quang Ngai—regions that are frequently affected by natural disasters. The total estimated investment for these systems is approximately USD 13,200.

Solar Energy Irrigation for Local Farmers
Our subsidiary in Myanmar, Grand Royal Group (GRG), is dedicated to supporting local farmers in spring paddy cultivation and rice production in the model village of San Phel. Located in the eastern region of Bago, this village serves as the primary source of raw materials for GRG’s products. The farmers in this region face water scarcity, particularly during the summer season, as they struggle to afford the costs of accessing irrigation facilities.

This solar-energy project aims to give access to a daily supply of 1,500 cubic meters of irrigation for over 129 rai