To accelerate emissions reduction and promote low-carbon investment, ThaiBev has adopted an Internal Carbon Pricing (ICP) mechanism to understand the carbon value of the company’s full carbon footprint relative to the overall operational costs, profit margins and company turnover, and assess and evaluate the potential impacts of carbon emissions on our businesses and activities, including the risks and opportunities of building resilience against climate risk and investing in low-carbon technology and other opportunities. The ICP will be applied as a shadow price to support CAPEX investment decisions in environmentally sustainable projects, such as energy efficiency projects, and avoid CAPEX investment decisions in high-emission projects. This strategy is also extended to our procurement choices for other purchased goods.

ThaiBev’s implementation strategy includes applying ICP as a shadow price 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 the period 2025–2030.

In alignment with our sustainability goals, ThaiBev’s current policy requires using ICP for all Scope 1 and Scope 2 emission-related investments. This approach enables us to proactively manage potential future regulatory costs associated with carbon pricing mechanisms, such as carbon taxes and emissions trading schemes. 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 2025, 16 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 2025, we spent 679.86 million Baht on energy-saving and renewable projects as follows:

• 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 boiler to replace fossil fuel usage and installing an enclosed flare system to replace the open flare system to reduce methane leakage, one of the major greenhouse gases, thereby reducing GHG emissions by a substantial amount each year.
• Energy Efficiency Projects:
  Initiatives to decrease energy consumption include installing high-efficiency motor systems, increasing of condensate return, and air conditioning management.

ThaiBev has been verified and declared a certified organization by the Science Based Targets initiative (SBTi), resulting from 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 percent by 2030, covering both direct emissions (Scope 1) and indirect emissions from energy use (Scope 2). Additionally, the company aims to achieve a 25 percent 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. For any residual emissions that cannot be eliminated, ThaiBev will deploy permanent carbon removal solutions. These may include carbon capture and storage (CCS) for relevant industrial processes and verified nature-based solutions, such as reforestation and afforestation, ensuring permanence, additionality, and rigorous monitoring and verification by international standards.

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Renewable energy projects contribute significantly to global efforts to reduce reliance on fossil fuels, lower GHG emissions, and support a more sustainable energy future. These projects are important for achieving renewable energy goals, protecting the environment, and encouraging innovation in cleaner and more efficient energy solutions.

The solar energy project covers the installation of solar rooftops and floating solar panels in Thailand, Myanmar, Vietnam, Singapore, and Malaysia. The installation has been completed with a total capacity of 87.51 MWp (Megawatt peak). In FY2025, the installed solar panels can generate 83,519 Megawatt hours (MWh), which reduces the cost of electricity purchased from the grid by 301.68 million Baht and lowered GHG emissions by 41,178 tonnes CO₂e. ThaiBev constructed additional biogas plants and commenced operations in 2025 at three distilleries: Thanapakdi in Chiang Mai Province, Mongkolsamai in Uttaradit Province, and Luckchai in Ratchaburi Province, with a total investment of 418.27 million Baht. The project is expected to reduce heavy fuel oil consumption for steam production by approximately 1.7 million liters per year, equivalent to 19.8 million Baht per year, and lower GHG emissions by around 3,313 tonnes CO₂e.

At present, ThaiBev operates 13 biogas plants at its distilleries, which utilize by-products from alcohol distillation, and an additional three biogas plants at breweries that produce steam from methane gas captured from wastewater treatment systems. Altogether, these biogas facilities help reduce dependence on fossil fuels, resulting in an estimated GHG emission reduction of 47,498 tonnes CO₂e per year and annual energy cost savings of approximately 283.82 million Baht 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. The biomass boiler in Thailand is 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 1,016,650,800 megajoules (MJ) of thermal energy, leading to a reduction in heavy oil and coal consumption for steam production by 1.10 million liters and 37.67 million kilograms, with a GHG emissions reduction of 95,276 tonnes CO₂e per year. In addition, this biomass can reduce waste to landfills.