ThaiBev Sustainability

ThaiBev’s Sustainability 2025

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Risk Management

ThaiBev recognizes that effective risk management is fundamental to sustaining growth, resilience, and stakeholder confidence. The company integrates sustainability and human rights principles into enterprise risk management to ensure responsible, transparent, and forward-looking decision-making.

In 2025, ThaiBev continues to strengthen resilience against key risks through a balanced and adaptive approach. The company diversifies sourcing, enhances ESG-based supplier collaboration, and applies financial hedging to mitigate commodity price volatility. Simultaneously, it reinforces digital governance and cybersecurity frameworks to safeguard data and ensure operational integrity. Environmental and climate risks remain a strategic priority, with continued progress toward the SBTi-validated Net-Zero target, expansion of renewable energy, and reduction of resource intensity. Moreover, human rights and good governance are embedded across operations to promote fairness, accountability, and transparent stakeholder engagement. ThaiBev’s holistic approach to risk management balances short-term protection with long-term opportunity creation. By embedding sustainability, innovation, and governance into its risk framework, the company enhances its capacity to navigate uncertainty and capture emerging opportunities.

Management Approach

ThaiBev Group’s risk management framework is designed to identify, assess, mitigate, and promptly report any risks critical to the business. This process guarantees consistent risk management across all Product Groups and Business Units, with clear roles assigned to relevant personnel. Important risks are reported to the Board of Directors via the Sustainability and Risk Management Committee (SRMC). By embedding this system into daily management, ThaiBev ensures its business operates within acceptable risk levels, in line with the Code of Corporate Governance, to meet its objectives and stakeholder expectations.

Risk management is a core component of annual business planning, decision-making, project management, and daily operations. Key principles of our risk management are:

1. All management and employees act as risk owners, responsible for identifying and assessing risks within their areas of responsibility and implementing suitable mitigation measures.
2. Risks affecting the achievement of the company’s objectives must be: Identified promptly; Assessed based on the likelihood of occurrence and potential impact; Managed in alignment with the company’s risk criteria, balancing costs and benefits; Monitored to ensure effective management.
3. Risks classified as “high” or “very high” in relation to the company’s business plans and strategies must be escalated to the Executive Committee, the SRMC, the Audit Committee, and the Board of Directors for appropriate oversight in line with the governance structure.

The policy details can be accessed at Risk Management Policy

ThaiBev annually reviews the risks affecting its sustainability across environmental, social, and economic dimensions. This review involves analyzing internal and external factors, key trends, and stakeholder expectations. Based on these findings, ThaiBev sorts its principal risks into three categories: Strategic, ESG (Environmental, Social, and Governance), and Operational. A comprehensive management system addresses each category by identifying potential impacts, key mitigation measures, and links to material sustainability issues. Furthermore,

ThaiBev closely monitors emerging external risks that could significantly impact the business over the long term, prompting necessary adjustments to its strategy or business model.

ThaiBev’s sustainability and risk management framework aligns with the COSO Enterprise Risk Management Framework and is built around three key components.

Governance Structure

The Board of Directors establishes the foundation for ThaiBev’s sustainability and risk management, holding ultimate responsibility for risk oversight to ensure the Group’s sustained success. Supporting this is the Sustainability and Risk Management Committee (SRMC), a board-level body. The SRMC comprises Directors, Independent Directors, Senior Executives (Senior Vice President or higher), and external experts. It is central to overseeing key corporate risks and sustainability-related matters, including reviewing risk appetite and tolerance levels before recommending them to the Board for final approval. The SRMC assesses and manages risks across all key functions, Product Groups, Business Units, and subsidiaries for comprehensive coverage. Furthermore, it collaborates closely with the Audit Committee, which ensures the integrity of the group’s reporting, audit processes, internal control systems, and legal/regulatory compliance.

ThaiBev’s Three Lines of Defence

ThaiBev strictly complies with the principles of supervision and risk management outlined in the Three Lines Model of the Institute of Internal Auditors (IIA) including processes to oversee risk management, separating structures, roles, duties, responsibilities, and decision-making authority, ensuring process transparency through ThaiBev’s Board of Directors, Sustainability and Risk Management Committee (SRMC), Audit Committee (AC), and Sustainability and Strategy Group Center.

The senior executive of each Product Group and Business Unit is responsible for implementing ThaiBev’s sustainability and risk management direction within his/her scope of responsibility. As First Line of Defence, each Product Group established its own Sustainability Representative as well as a Risk Coordinator who help control and track performance and work closely with the Sustainable Development Working Team and the Corporate Risk Management Working Team under the Sustainability and Strategy Group Center.

As Second Line of Defence, the Sustainable Development Working Team and the Corporate Risk Management Working Team report to the Sustainability and Risk Management Committee (SRMC) concerning overall risk management in the organization. This includes probability and impact analysis to ensure the effectiveness of ThaiBev’s risk management plan. The Sustainability and Risk Management Committee’s meeting is held quarterly. The Chairman of SRMC also reports to the Board of Directors on the company’s overall risk management performance on a quarterly basis. Additionally, the Sustainability and Strategy Group Center reports to the Group CEO to ensure that the risk management execution is effective and timely in controlling risk parameters within predetermined risk appetite.

As Third Line of Defence, the Office of Internal Audit directly reports to the Audit Committee (AC) to consult and assess whether operational and compliance control policies and strategies adequately address existing and emerging risks to the company. The reporting line enables independent assessment without potential conflict of interests with management team. The Audit Committee’s meeting is held at least quarterly with additional meetings among internal auditors to express independent opinions without Management’s influence. The chairman of AC reports to the Board of Directors on the company’s overall control and relevant issues on a quarterly basis. Additionally, the Office of Internal Audit reports the implementation of projects contributing to risk management, monitoring and auditing to the Group CEO, to ensure effective internal control covering financial, operational and compliance control.

Holistic Sustainability and Risk Management Process

ThaiBev systematically applies sustainability and risk management principles across all levels-corporate, Product Group, and operational units-to identify, assess, report, and monitor risks and opportunities. This process is fully integrated into management, decision-making, operations, and workflows. Senior management evaluates key risks and opportunities when planning short- and long-term operations and investments, analyzing trends, internal and external factors, and emerging risks to design effective measures.

To ensure effective oversight, Key Risk Indicators (KRIs) and Key Performance Indicators (KPIs) are used to forecast, control, and monitor performance against defined goals. Management at the Product Group and operational unit levels is responsible for identifying, assessing, and managing risks and opportunities, as well as developing and executing sustainability and risk management plans, with regular progress reporting through established reporting lines.

ThaiBev’s holistic sustainability and risk management process can be divided into four steps:

Assessing business context and setting business strategies and objectives for ThaiBev Group, Product Groups, and Business Units
Identifying and assessing risks and opportunities against business objectives, using risk identification and assessment techniques such as scenario analysis and stress-testing exercises to assess their potential impacts on ThaiBev and our stakeholders
Implementing sustainability action plans while controlling and managing risks according to established risk appetite, while exploiting opportunities in line with our strategies and sustainability objectives
Monitoring, reporting, and evaluating progress and results at least on a quarterly basis

To ensure the adequacy and effectiveness of risk management, the Office of Internal Audit, an independent unit reporting to the Audit Committee, audits risk management, internal controls, and governance processes.

Sustainability and Risk Management Culture

ThaiBev fosters a strong sustainability and risk management culture to instill the right attitudes, knowledge, and behaviors across all employees, aligning them with the company’s sustainability and business objectives. A robust culture of sustainability and risk awareness enables proactive responses to challenges, supports business performance, and drives continuous growth.

To embed these principles, ThaiBev integrates sustainability and risk management into new employee orientations, annual training programs, and engagement activities. These principles are also reflected in employee performance evaluations. The company promotes innovation through the annual WOW (Way of Work) Awards, encouraging employees to develop operational improvements or solutions that enhance sustainability or mitigate risks. Senior executives serve as judges, selecting outstanding projects for organization-wide implementation, reinforcing ThaiBev’s commitment to sustainability and risk excellence.

Employees are encouraged to report potential risks or concerns through supervisors or designated channels, including whistleblowing@thaibev.com. Sustainability and risk management metrics are also incorporated into the annual performance assessments of all executives, ensuring alignment with group targets.

These metrics cover:

Environmental:
Energy management, carbon emissions reduction, and water stewardship.
Social:
Employee safety, health and well-being, and human capital development.

Sustainability and risk management metrics account for 5–10% of the annual performance evaluation for both executives and employees, reinforcing accountability and commitment across the organization.

Risk Management Strategy

ThaiBev embeds material sustainability issues into its extensive risk management process by dividing risks into three categories: Strategic, ESG (Environmental, Social, and Governance), and Operational. The company identifies, prioritizes, and addresses potential challenges and opportunities linked to its strategic goals. ThaiBev also strongly emphasizes emerging risks that could impact the business over the mid- to long-term, integrating them into its Enterprise Risk Management (ERM) framework.

This process spotlights significant and emerging risks that demand focused mitigation, sometimes requiring adjustments to the company’s strategy or business model. Risks with stable or reduced severity levels are continually monitored and periodically reassessed for status changes.

Read more details on risk description, likelihood and magnitude of the potential impact under “Risk Factors and Risk Management for Sustainability” in our Annual Report 2025.

Targets

In response to mounting environmental challenges, societal transformations, and heightened geopolitical uncertainties, ThaiBev recognizes that traditional risk management— focused primarily on planning and mitigating well-defined risks—is no longer sufficient. To address the evolving complexity of the business landscape, the company has broadened its approach to include resilience management. This holistic strategy emphasizes strategic preparedness, robust response capabilities, and adaptive capacity, enabling rapid recovery from disruptions and ensuring sustained operational and financial performance in the face of crises, climate-related risks, and market uncertainties.

1. Financial Resilience

ThaiBev maintains a balanced approach to short- and long-term expenditures and strategically manages funding sources in line with investment and commercial objectives. By upholding a strong capital base and ample liquidity, the company is well-positioned to withstand revenue fluctuations, rising costs, and financial market volatility, safeguarding its long-term stability and growth.

2. Operational Resilience

Through adaptable and resilient production systems, ThaiBev is able to respond swiftly to shifts in demand while maintaining uncompromised quality standards. The company reinforces its supply chain and distribution networks by engaging closely with business partners, ensuring continuity of operations and reliable delivery even amid supplier disruptions, natural disasters, or geopolitical events.

3. Technological Resilience

Investments in secure, flexible, and resilient information technology infrastructure enable ThaiBev to manage cyber threats and technological disruptions effectively. Continuous development of digital competencies and comprehensive business continuity and disaster recovery plans ensure uninterrupted service delivery and seamless internal operations.

4. Organizational and Reputational Resilience

ThaiBev upholds a clear mission, core values, and strategic framework that guide business conduct and ESG practices. Through active and transparent engagement with stakeholders, the company responds proactively to societal expectations, strengthening accountability, trust, and long-term stakeholder confidence.

5. Business Model Resilience

Designed to adapt to dynamic market conditions, regulatory changes, and technological advancements, ThaiBev’s business model leverages the Transformation Program and PASSION 2030 strategy. These initiatives drive innovation, expand product offerings, optimize sales channels, strengthen sustainability collaborations, and enhance competitiveness in Thailand, Vietnam, Myanmar, Singapore, and Malaysia. Strategic focus also includes increasing shareholder value, reinforcing supply chains, digitalizing processes, and cultivating a skilled workforce.

6. Climate Resilience

ThaiBev continually advances its climate risk and opportunity management across short-, medium-, and long-term horizons. Through detailed scenario analyses, capacity-building programs, and measurable targets, the company ensures accountability for climate- related initiatives. Key actions include improving resource efficiency, promoting material circularity, developing low-carbon products, engaging suppliers, and implementing reforestation programs. ThaiBev’s Net-Zero targets, approved by the Science Based Targets initiative (SBTi), align with global efforts to limit temperature rise, mitigating climate impacts across operations and the value chain while seizing opportunities in the transition to a low-carbon economy.

By combining foresight, stakeholder insights, scenario planning, and tested crisis response protocols, ThaiBev proactively identifies potential resilience gaps and ensures timely, effective action. This integrated approach reinforces the company’s capacity to safeguard operations, protect its reputation, and sustain long-term growth while fulfilling its commitment to resilience and sustainability.


Read More Information about Risk Management in Sustainability Report 2025